Entries by Affin Hwang Asset Management

Wild Ride in Markets Driving You Up the Wall?

Are Markets Making you Sick? Investing can be a mentally stimulating excursion. At once a highly regimented art form deeply rooted in technical analysis & financial theory, but also reliant on gut feel, grit and plenty of gumption. So when markets vault and fall, some investors can get overwhelmed and be swept away by the volatility. Studies have shown that stock market volatility has a direct correlation to increased hospitalisation rates and incidences of mental health disorders. A research produced in 2014 which tracked hospitalisation health records close to three decades (1983 – 2011) found that daily fluctuations in stock prices has an almost immediate impact on the physical health of investors, with sharp price declines increasing hospitalization rates over the next two days. In a chilling example, on October 19, 1987 otherwise known as Black Monday, the US stock market plunged by over 25% which led to hospital admissions spiking by over 5% on the same day (Source: “Worrying About the Stock Market: Evidence from Hospital Admissions” by Joseph Engelberg and Christopher Parsons, University of California- San Diego, October 2014).  Sounds alarming, but that’s what the data shows. However, the important lesson here is that whilst markets are bound […]

Unpacking US-China Trade Tensions: Brace for Further Escalation

In the following interview Huang Juin Hao, Senior Portfolio Manager of Affin Hwang Asset Management shares his views on the brewing trade tensions between US and China, as well as its implications to markets and global supply chains.   1. We’ve seen tensions escalate between US and China amidst newfound allegations of hacking by Chinese authorities. Help us unpack what happened this week in the latest string of incidents that have tested relations between the two countries? Reports by Bloomberg Businessweek show that investigators have found Chinese microchips were being implanted into servers sold by US-based Supermicro, a leading supplier of server motherboards. These chips were supposedly inserted at factories run by Supermicro’s subcontractors in China and reportedly ended up into almost 30 US companies, including Apple and Amazon, and in the latest news, an undisclosed major US telecommunications company. As a result of the allegations, Supermicro shares have fallen by over 40%, and the 3 named companies, Supermicro, Apple and Amazon have replied with strong statements disputing the allegations. Technology experts have expressed doubts that China could have performed the allegations as detailed according to Bloomberg, and the US Department of Homeland Security and UK’s National Cyber Security Centre, […]

Affin Hwang AM Opens Retail Tranche of Income Focus Fund for Subscription

KUALA LUMPUR – Affin Hwang Asset Management Berhad (“Affin Hwang AM” or “the Company”) announced today the launch of the retail tranche of the Affin Hwang Income Focus Fund Series. Affin Hwang Income Fund 4 (“IFF4” or the “Fund”) is the fourth tranche of the series and is a 3 year close-ended fixed income fund that aims to provide income return whilst maintaining capital preservation. To achieve its investment objective, the Fund will invest a minimum of 85% of the Fund’s net asset value (NAV) in Defensive Assets including money market instruments or deposits, and a maximum of 15% of the Fund’s NAV in Active Assets such as options or structured warrants. Structured as a fund-linked product, the Fund grants downside risk protection to investors through its backing of defensive assets, as well as offers greater upside participation by enhancing returns through a participation rate(1) that makes reference to a global equity absolute return strategy which provides broad-based income sources derived from the performance of a globally diversified equity portfolio. Chan Ai Mei, Chief Marketing & Distribution Officer of Affin Hwang AM said, “We see increasing demand for global investment solutions from investors keen to diversify their portfolios and reduce […]

100 Days: Move Past Kitchen Sinking to Gain Clarity on Growth

In the following interview Gan Eng Peng, Director of Equity Strategies & Advisory, Affin Hwang Asset Management discusses the market outlook for Malaysia as Pakatan Harapan (PH) approaches its 100-day term in office.   1. Pakatan Harapan (PH) will soon approach its 100th day term on Aug 18 – what’s your assessment so far of the new government and has it sent the right signals to the market? The way we look at this government is like a new management coming in, taking over and kitchen-sinking. Thus, the first 100 days is about pressing the reset button. But eventually, we need to move beyond this phase. Investors are very clear about what’s wrong with the country; the 1MDB scandal, high debt levels, and the fiscal deficit. Where there is less clarity now is policies the government has to promote growth. For this, we are waiting for the 100-day Government of Malaysia Symposium which will be held for the first time in September and Budget 2019 that will be tabled on 2 November 2018.   2. PH has a long list of issues to address. From the RM1 trillion debt, narrower revenue sources, capital outflows and brain drain – what are […]

Affin Hwang AM Market Views: Move Past Kitchen Sinking to Gain Clarity on Growth

In the following interview Gan Eng Peng, Director of Equity Strategies & Advisory, Affin Hwang Asset Management discusses the market outlook for Malaysia as the new Pakatan Harapan (PH) government approaches its 100-day term in office.   1. Pakatan Harapan (PH) will soon approach its 100th day term on Aug 17 – what’s your assessment so far of the new government and has it sent the right signals to the market? The way we look at this government is like a new management coming in, taking over and kitchen-sinking. Thus, the first 100 days is about pressing the reset button. But eventually, we need to move beyond this phase. Investors are very clear about what’s wrong with the country; the 1MDB scandal, high debt levels, and the fiscal deficit. Where there is less clarity now is policies the government has to promote growth. For this, we are waiting for the 100-day Government of Malaysia Symposium which will be held for the first time in September and Budget 2019 that will be tabled on 2 November 2018.   2. PH has a long list of issues to address. From the RM1 trillion debt, narrower revenue sources, capital outflows and brain drain […]

Affin Hwang AM Launches Dana Malaysia – Domestic Focused Absolute Return Fund

KUALA LUMPUR – Affin Hwang Asset Management Berhad (“Affin Hwang AM” or “the Company”) announced today the launch of Affin Hwang Dana Malaysia (“AHDM” or the “Fund”). The Fund is a close-ended wholesale fund that seeks to achieve capital appreciation over the 3-year tenure of the fund with a 1-year extension option, subject to an early maturity trigger. The Fund aims to achieve an absolute total return target of 30% during the tenure of the Fund by investing in a concentrated portfolio of domestic equities. To achieve its investment objective, the Fund will employ a flexible approach to asset allocation by investing into a range of asset classes including equities, equity-linked instruments, fixed income, structured products and/or derivatives depending on prevailing market conditions. Chan Ai Mei, Chief Marketing & Distribution Officer of Affin Hwang AM said, “To take advantage of the recent bout in volatility, the Fund will seek to capitalise on mispricing opportunities in the market through high-conviction ideas and our own proprietary in-house knowledge and experience as home-grown fund managers with extensive coverage of the local market.” “Since inception, the company’s Malaysia Absolute Return Strategy has delivered annualised returns of over 15.1% p.a. or total returns exceeding ten-fold […]

Affin Hwang Investment Forum 2018: What’s Next?

Introduction As volatility roars back into markets in 2018, with the spectre of a trade war looming, a deepening rout in emerging markets (EMs) and widening policy divergence across global central banks; investors were taken on a wild roller-coaster ride thus far as markets soar to roaring highs and plunge to chilling-lows. Should they stay risk-on or risk-off? Buy the dip or stay on the side-lines for now? Running for its fourth consecutive year, Affin Hwang Asset Management successfully hosted its annual investment forum fittingly titled ‘What’s Next?’ to address these questions. The forum took place on 14 July, Saturday at MITEC, Jalan Dutamas and saw overwhelming response with more than 1,200 participants eager to find out what lies ahead for markets and how they should position their portfolios against such a volatile backdrop. Joined by our investment partners, the forum featured prominent speakers including:- – Chung Man Wing, Investment Director, Value Partners Limited – Dr. Gerald Garvey, PhD, Managing Director, BlackRock – Siva Shanker, Past President, Malaysian Institute of Estate Agent – Teng Chee Wai, Managing Director, Affin Hwang Asset Management New China Awakens The forum got off the ground with the first session by Chung Man Wing, Investment […]