Entries by Affin Hwang Asset Management

Fed Prepares for the Big Unwind

Flash Points: Fed balance sheet unwinding to be gradually unwounded with initial reduction caps Inflation picks up in August, breaking 5-month streak of sluggish data Market positioning still seen tilting towards dovish stance with only rate hike priced-in until 2018 Leadership uncertainty at the Fed prompts policy continuity risk All Eyes on Fed September Policy Meeting The US Federal Reserve is scheduled to meet for its upcoming policy meeting on September 19 – 20 to discuss the current economic climate and decide on further monetary policy adjustments. Although there is no expectation for a change in interest rates during this month’s policy meeting, it still holds particular importance to markets. Central bank watchers are eagerly anticipating the Fed to finally pull the trigger and begin the unwinding process of its US $4.5 trillion balance sheet – a culmination of its massive bond-buying programme which it accumulated following the 2008 GFC. The Fed has previously said in a recent communique that it will start the unwinding of its balance sheet “relatively soon”. Most observers have interpreted this statement to mean that an announcement will be forthcoming at its upcoming September policy-meeting or latest by this year-end. The unwinding exercise is then […]

Affin Hwang AM Launches Inaugural “Giving is Living Charity Run”

MELAKA – Affin Hwang Asset Management Berhad (“Affin Hwang AM” or “the Company”) through its Melaka-branch, held a media briefing today to kick off its seminal “Giving is Living Charity Run 2017” in collaboration with Chee Siah Le Kee & Partners (“CSiLK”). The event aims to raise funds to aid local charities, and to promote public awareness of learning disabilities, animal welfare sanctuary, disaster relief, recycling and protecting the environment. All proceeds will be donated to the following organisations:- Wings Melaka Centre for Developmental Disabilities; Joy Workshop Melaka / Persatuan Kebajikan Insan Istimewa Melaka (PKIIM); Taiwan Buddhist Tzu Chi Foundation Malaysia (Melaka branch); and Noah’s Ark Natural Animal Shelter (NANAS) Chan Ai Mei, Chief Marketing & Distribution Officer of Affin Hwang AM said, “In the spirit of charity and our pledge to give back to our local communities, we are proud to co-host this charity run together with CSiLK to raise funds, and to spark conversations about the mission and the work of these organisation.” Dato’ Chee Kong Chi, the consultant for CSiLK strongly believe that in this affluent society, we should all learn how to “LIVE WITH LESS SO THAT THE LESS COULD LIVE WITH MORE”. “Affin Hwang AM […]

More Compelling Reasons for Malaysia

Flash Points: •Improving economic fundamentals and robust exports to underpin growth • Property and banking sector poised for turnaround • Ramping-up of infrastructure and new economic drivers to fuel growth • Prospects of further China Investments and bilateral led initiatives to sustain construction job flows More Compelling Reasons for Malaysia Against a benign economic backdrop of moderate growth, gradual interest rate hikes and mild inflation – markets especially in Asia are poised to stage one of their best rally this year. As at 30 June’17, the MSCI Asia ex-Japan index returned 22.8% becoming one of the best performers in the region so far. For the first time in 5 years, there is also a positive earnings revision for Asia markets, with earnings-per-share (EPS) being revised upwards between 15% – 20% for 2017. Growth in corporate earnings continue to be underpinned by improving macro-optimism and rebound in the region’s growth with strong exports. Spearheaded by a more outward-looking China, this Asian growth-led renaissance is expected to positively spillover to other markets in the region including Malaysia. Malaysia Leads Export Race Locally, the FBMKLCI is charging towards 1,800 points level – lifted by improvements in economic fundamentals with 1Q’17 GDP growing 6.6% […]

Affin Hwang AM Announces Income Distribution for PRS Funds

KUALA LUMPUR – Affin Hwang Asset Management Berhad (“Affin Hwang AM” or “the Company”) declared its sixth income distribution for Affin Hwang Private Retirement Funds (“PRS”) Solutions since its launch in 2012. These comprises of four PRS funds, including the Affin Hwang PRS Growth Fund, Affin Hwang PRS Moderate Fund, Affin Hwang PRS Conservative Fund and Affin Hwang Aiiman PRS Shariah Growth Fund. The income distribution of the funds are shown in the table below: No. Fund Income Distribution Registered as at Annualised  return since inception (%)* CORE FUND 1. Affin Hwang PRS Growth Fund 1.0000 sen or RM0.01 per Unit 24 July 2017 7.9 2. Affin Hwang PRS Moderate Fund 1.0000 sen or RM0.01 per Unit 24 July 2017 7.2 3. Affin Hwang PRS Conservative Fund 1.0000 sen or RM0.01 per Unit 24 July 2017 4.0 NON-CORE FUND 4. Affin Hwang Aiiman PRS Shariah Growth Fund 1.0000 sen or RM0.01 per Unit 24 July 2017 7.3 *Source: Lipper as at 30 June 2017 Unit Holders for the PRS funds mentioned above who are registered as at the respective dates are eligible to receive the income allotment. Chan Ai Mei, Chief Marketing & Distribution Officer of Affin Hwang AM said, […]

Give Yourself a Mid-Year Financial Health Check

Flash Points:- • Review of budget may reveal wasteful expenditure • Start planning your taxes early to optimise reliefs & deductions • Consider tweaking your investment portfolio if allocation of asset-class has deviated from set target • Insurance coverage should be proportionate to wealth and needs of dependents Importance of Financial Reflection It’s hard to believe but we are already midway through 2017. For some, it’s that mid-point where we start reassessing our life goals, careers, and even New Year’s Resolutions to start losing weight and eat healthy. We start scheduling multiple doctor appointments to complete a myriad of tests, experiment with the latest food fads, start working out in the gym, etc. But, what about our own personal finances and overall financial well-being? The idea behind a financial health check-up, should not be a concept as alien as paying your own local GP a visit. But sadly, it is something most of us tend to neglect. Is Your Budget on Track? There is no better time than to start revisiting your monthly income and expenditure – specifically if they are on track and within what you initially budgeted for the year. If you happen to veer off course, don’t […]

Singapore REITS: More Long-Term Value

Flash Points:- • Yield spreads for S-REITs most attractive in region at 4.4% • Less impact seen from rising interest rates • Higher DPU growth potential for office, business parks and hospitality REITs Switching Gears, But Don’t Forget the Brakes Whilst, we are seeing a collective shift globally to a risk-on approach against expectations of higher earnings and a global economic recovery – investors should not neglect to also stack-up on defensive asset-classes, should markets come to an unruly end. Asian REITs are such possible defensive asset classes, particularly Singapore REITs (S-REITs) – as they continue to perform well and offer one of the most attractive yield spreads (Dividend Yield – 10Yr Bond Yield) at 4.4% in the region. More distribution per unit (DPU) upside is also seen from further asset rejuvenation projects, redevelopments and a consolidation theme in the industry. Limited Impact Seen From Rising Interest Rates In 2016, S-REITs outperformed the broader STI index, rallying by over 11% until Sept’16, as prior expectations for interest rate hikes were dialled back due to key risk events that occurred in 2016 like Brexit, a further correction in crude oil prices, and persistent negative interest rates in Europe and Japan. However, […]