Investment OutlookGlobal Fixed Income and Gold
Read the investment outlook and get to know the K-GDBOND-A(A) and SCBGOLD funds, including their investment policies, risk levels, and foreign exchange hedging policies.
Investment Environment
The ongoing conflict between the U.S. and Iran continues to keep oil prices elevated. U.S. inflation accelerated to 3.4% in August 2026, remaining persistently above the Federal Reserve’s (Fed) 2% target for an extended period. Most recently, at its September meeting, the Fed raised interest rates to the 3.75%–4.00% range, marking its first rate hike in three years. A majority of analysts still view that the Fed may raise rates at least once more this year, suggesting that investment market conditions may continue to experience volatility in the period ahead.
Fixed Income
While interest rate hikes cause bond prices to decline in the short term, they allow investors to earn higher yields than in recent years. The 10-year U.S. Treasury yield has risen to approximately 5.2%, and this elevated yield environment serves as a key supporting factor for forward-looking investments. Furthermore, should developments in the Middle East turn positive, energy prices could decline. In addition, U.S. household spending is expected to slow due to dwindling savings and moderating wage growth. Combined with current tight financial conditions, these factors are unlikely to drive inflation significantly higher, making continuous rate hikes by the Fed relatively limited. Consequently, higher coupon yields will help cushion against price volatility, and if interest rates stabilize or decline in the future, bond prices have strong upside potential.
Gold
Gold prices have experienced high volatility this year. After hitting an all-time high earlier in the beginning of the year, prices underwent a correction of over 20%, touching a year-to-date low in July. This was pressured by the Fed's interest rate hike outlook, which reduced the short-term appeal of holding non-yielding gold. Nevertheless, despite the correction, gold prices remain higher than during the same period last year, while long-term supporting drivers remain intact. These include continued gold reserve accumulation by central banks worldwide, ongoing global investor allocations into gold funds, as well as persistent concerns over U.S. public debt and geopolitical uncertainties. Gold therefore remains an essential asset class to hold for portfolio risk diversification.
02 · Global Fixed Income
K-GDBOND-A(A)
K Global Dynamic Bond Fund
Investment Policy
The fund invests in the master fund, PIMCO GIS Income Fund (Share Class: INST USD Acc), which focuses on global fixed-income instruments and debt-related securities. The master fund allocates at least two-thirds of its total asset value to these instruments through multi-sector fixed-income strategies across global regions, utilizing both direct investments and financial derivatives. Additionally, the master fund may invest up to 50% of its assets in below-investment-grade fixed-income securities.
K-GDBOND-A(A) has adopted PIMCO GIS Income Fund as its master fund effective May 15, 2025.
03 · Gold
SCBGOLD
SCB Gold Fund
Investment Policy
The fund invests in investment units of the master fund, SPDR Gold Trust, at an annual accounting average of not less than 80% of its net asset value (NAV). The master fund is an ETF that invests in physical gold bullion, aiming to deliver returns that track and reflect gold price movements.
Passively managed to closely align performance with gold prices, with potential investments in derivatives to enhance portfolio management efficiency.
Recommended Portfolio Allocation Strategy Rebalancing by Risk Level 2026 (3rd Revision)
Portfolio Allocation by Risk Profile (%) Scroll horizontally to view all asset classes. Portfolio names remain fixed on the left, and column headings remain visible when scrolling vertically within the table.
| Asset Class / Portfolio | Thai Fixed Income | Foreign Fixed Income | Foreign Equity | Asia-Pacific Equity (Excl. Japan) | Global Multi Asset Income | Gold | |
|---|---|---|---|---|---|---|---|
| Recommended Funds | KFAFIX-A | K-GDBOND-A(A)* | KKP GNP-H | LHGEQ-A | ES-ALOVE-UH | ES-GAINCOME-UH-A | SCBGOLD* |
| Aggressive | 10% | 15% | 28% | 27% | 5% | 10% | 5% |
| Advanced | 20% | 25% | 18% | 17% | 5% | 10% | 5% |
| Balanced | 25% | 35% | 13% | 12% | 5% | 5% | 5% |
| Conservative | 30% | 40% | 10% | 10% | - | 5% | 5% |
| Low Risk | 45% | 40% | 5% | 5% | - | - | 5% |
Notes:
- The recommended funds for Foreign Equity will invest in KKP GNP-H at approximately 50% and LHGEQ-A at approximately 50% of the total Foreign Equity allocation in the investment portfolio.
- For clients who choose to invest according to the recommended portfolio (former advisory service), the Company recommends executing through MTL Portfolio Management Service, which will reallocate investments into K-GDBOND-A(A) and SCBGOLD funds instead.
- For self-directed investment clients, the Company recommends switching investments into K-GDBOND-A(A) and SCBGOLD as presented above. However, if clients wish to remain in the existing funds, they may continue to do so; KF-CSINCOME still invests in the same master fund but may incur higher currency hedging costs, whereas K-GOLD-A(D) remains an option for clients who prefer not to assume foreign exchange rate volatility risks.
Source: Investment Management Division, Sample Investment Portfolios Across 5 Risk Profiles.
Investment Summary: 1 Page
Investment outlook and details of both funds in PDF format.
Disclaimer: Past performance is not indicative of future results. Investors should understand each fund's characteristics, return conditions, and risks before investing. This material has been compiled from publicly available sources for informational purposes only. It is not intended as an invitation, recommendation, solicitation, or offer to buy or sell any security, and it should not be regarded as financial or investment advice. The information has been prepared in good faith using sources believed to be reliable; however, the Company does not guarantee its accuracy, completeness, or reliability. Users should exercise their own judgment and accept responsibility for any risks arising from the use of this information. Fund-related information should also be verified directly with the relevant asset management company. The information above is only a summary of the investment policies. Investors should review the prospectus and Fund Fact Sheet and fully understand the product characteristics, return conditions, and risks before making an investment decision.
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