Safe and Steady Is Winning the Race

While AI headlines chase the next big thing, a different kind of portfolio keeps delivering what investors actually need: yield, stability, liquidity, and peace of mind!

Written over two thousand years ago, long before modern finance existed, one of the most enduring texts had already arrived at two timeless truths regarding wealth and uncertainty: diversify, because the future is unpredictable, and not to be surprised by what markets do next, because something similar has all happened before.

Before we get into the Orion Income Portfolios, here is a brief look at the month that just passed.

Source: Bloomberg, public market data as at 19 June 2026.

The Month in Brief

A month that began in cautious optimism ended the same way. The White House signed a preliminary peace agreement with Iran ahead of schedule, signalling the expected reopening of the Strait of Hormuz. Oil prices, which had spiked sharply during the conflict, continued their retreat from March highs. Risk assets cheered.

The S&P 500 closed the week ending 19 June at 7,500.58, ticking another positive period in 2026. Europe's STOXX 600 reached its first record high since the start of the US-Iran war. Confidence has returned. But it has not arrived unconditionally.

The Federal Reserve, meeting on 16 and 17 June under new Chairman Kevin Warsh, held rates steady. The hawkish subtext was harder to ignore: nine officials now see scope for at least one rate hike before year-end. More significantly, the Fed removed its forward-guidance language from its policy statement — each data release now carries more weight. This move will induce greater volatility across both bond and equity markets.

On the AI front, the engine keeps running. Nvidia continues to anchor the AI infrastructure story, and the effects are being felt across the supply chain. Samsung Electronics and SK Hynix — Korea's two dominant memory chipmakers and critical suppliers of the high-bandwidth memory that powers Nvidia's AI processors — have helped drive Korean equities to become one of the best-performing markets this year.

One major milestone worth noting: SpaceX, which launched its highly anticipated IPO on 12 June, saw its shares pull back and may settle back towards the offer price by the month's end. Even the most historic listings eventually face gravity.

Three Questions that will Shape the Second Half

The easier part of the recovery may be behind us. Here is what we are watching:

• Can the Iran situation hold? The interim peace agreement is real progress, but negotiations remain fragile. Oil prices falling below the US$90 to 100 range suggests the worst of the energy shock may be behind us. However, the world has become structurally more prone to geopolitical disruption. Investors should not mistake a short-term truce for a long-term resolution.
• Will AI earnings justify the spending? Hyperscalers are committing close to US$700 billion in AI capital expenditure. The question now is not how much is being spent, but whether the returns justify the investment. The upcoming earnings season will be telling. Any disappointing guidance from major AI player could trigger a swift repricing.
• Where are interest rates actually going? With the Fed removing forward guidance, no one can say with confidence. Inflation remains above target. Longer-duration bonds carry more risk than their headline yields might suggest. Income investors need to be highly selective about where they harvest yield.

Against this backdrop, our case for income over speculation, and for capital preservation over performance-chasing, has become even stronger.

In Summary: The Orion Income Portfolios

Recently, many of you have asked similar questions about our market positioning and risk management. Here is a brief recap of our approach and why we believe it is more relevant today than ever.

The Orion Income Portfolios are a globally diversified portfolio of higher-quality assets built for lower volatility and a steady stream of passive income, rather than index-beating returns. For Singapore and overseas investors building long-term wealth, this distinction matters enormously.

They are not benchmarked against any indices because outperforming the market is not the objective, and it was never meant to be. That said, when conditions favour quality and value — as they periodically do — the portfolio can and does outperform. That is a coincidental bonus, not the goal.

One such period has been since Donald Trump took up his second term as the 47th President of the United States, inaugurated on 20 January 2025, alongside Vice President JD Vance.

As the charts illustrate, extreme optimism has propelled top US large-cap tech and AI valuations to highly elevated levels. Yet, the same charts reveal a clear advantage in stability for the Orion Income Portfolios. By carrying just ~33% exposure to US equities and ~20% to technology, our portfolios hold about half the exposure of major global benchmarks. For context, the MSCI World index now allocates almost 48% of its weight to tech-related sectors and over 72% geographically to the US — extreme concentrations few investors fully grasp.

We believe Orion Income Portfolios deserve a place at the core of your investments. Robo and automated algorithms have their merits, but time and again, a disciplined approach rooted in fundamentals and valuation has demonstrated better risk-adjusted returns over the long term.

Looking for a more resilient passive income stream? While S-REITs, local dividend stocks and bonds are traditional income-generating assets, a localized strategy exposes you to concentrated market risks. The Orion Income Portfolios offer a modern upgrade. By building a globally diversified multi-asset portfolio, we lower volatility and secure sustainable, long-term yields.

Against the backdrop of an unpredictable Trump administration, chasing stretched AI valuations carries undeniable risk. A more prudent path is a strategy grounded in fundamentals and global diversification. In today's economic environment, steady, lower-volatility assets are not a consolation prize — they may well prove to be your strongest hand.

The Orion Income Series is a rare find in Singapore: a portfolio designed to preserve your capital while generating perpetual cash flow. Built on the core principle of "natural income collected, capital never eroded," it delivers passive income designed to last as long as you need it to.

A Word on China

No investment update is complete without a word on China.

Previously, investing in China meant navigating a property collapse, deflation, tech crackdowns, and geopolitical tensions. This caused a three-year losing run for the MSCI China Index from 2021 to 2023.

But the narrative is shifting. The late-2024 policy pivot ended property deleveraging, and DeepSeek reframed China's technological credibility. China's market outperformed the US in 2025, with the MSCI China Index gaining over 30% and 2026 earnings expectations are at 15%.

Of course, risks remain real: a fragile consumer and sudden policy shifts. China is not a straightforward bet, but for selective investors, the recovery narrative is highly credible.

Closing Thought

Markets move in cycles. The peaks of today will fade, and the forgotten valleys will rise again.

The discipline of collecting natural income, preserving capital, and allowing wealth to compound over time is a strategy for those who understand what long-term financial security actually looks like. It is for those who are prepared to build it, one steady distribution at a time.

We stand committed to preserving your capital and growing your passive income steadily, sustainably, and with your long-term well-being at the centre of every decision.

Interested in learning more about the Orion Income Portfolios? Reach out to us directly. We would be glad to walk you through the investment strategy in detail.