Entries by Affin Hwang Asset Management

The Case for Holding Gold in a Market Correction & Strengthening Ringgit Environment

Making the Most of the Ringgit Strength The Ringgit’s resurgence has dampened the risk appetite of investors when allocating into offshore assets. As the Ringgit continues its steady climb upwards, rallying by over 3.66% YTD (as at 30 January) to close at 3.899 – many investors are rightfully anxious about unfavourable forex translation, when converting back their investments into the local currency. However, chasing currency movements is often a superfluous exercise and investors are bound to get burnt. Instead, investors should avoid such short-sightedness and take the opportunity to also capitalise on the Ringgit’s strength to diversify their portfolios and allocate a portion of their holdings into offshore assets including gold which is denominated in USD, and hence diversify their currency exposure. Markets Enter Correction Phase With the S&P and Nasdaq repeatedly pivoting to all-time highs, and the momentum in markets looks set to continue unabated, underpinned by positive earnings revision and rising corporate profits following the passage of US tax reforms and strengthening crude oil prices – some investors are also understandably cautious of how long until the rally starts to dissipate. In fact, we already see markets puling back which is likely an overdue correction, as markets begin […]

Malaysia Bond Market Outlook 2018

Malaysia Bonds Stay Resilient In a global environment marked by heightened geopolitical risks, stepped-up talks of trade protectionism and a cautious undertone lying beneath markets that have rallied strongly at the start of the year – the Malaysia bond market stands as an outlier providing positive yield for investors in an era of low or negative yield rates. Despite the prospect of tightening monetary conditions, and policy uncertainty surrounding a tumultuous administration led by US President Donald Trump, the local bond market held up strongly providing decent yields for bond investors. The Quantshop MGS All-Index and BPAM Corp Bond All-Index yielded 1-year returns of 5.60% and 5.28% respectively in 2017. Real Money Investors to Stem Fund Outflows Underpinned by sound economic fundamentals, an increase in external reserves, along with an expansion in the current account surplus – we see these improving fiscal conditions to be supportive of fund flows into the local bond market. The Ringgit has been on a steady climb and has rallied by over 3.66% YTD (as at 30 January), closing at 3.899 and would strengthen the risk-appetite for Ringgit-denominated bonds among investors. Overall net inflows of foreign debt securities increased by RM2.7 billion in December’17, buoyed […]

Affin Hwang AM Stays Bullish on Asia – On Track to Meet RM50b AUA

KUALA LUMPUR – Affin Hwang Asset Management Berhad (“Affin Hwang AM” or “the Company”) believes that synchronised growth across emerging and developed markets will be positive for risk assets, as a positive earnings revision cycle continue to underpin markets. Asia remains one of the top-performers, with the MSCI Asia ex-Japan Index advancing 41.8% (USD terms), compared to the MSCI AC World Index which gained 21.6% YTD (Source: Bloomberg, as at 31 Dec’17). In a media press briefing today, Teng Chee Wai, Managing Director of Affin Hwang AM said, “We expect the year 2018 to be a front-loaded market, with a risk-on script continuing into the 1H’18 and investors riding on the momentum to extract as much returns as possible in this period. Positive sentiment in markets and the recovery in crude oil prices will help fuel the momentum and cheer on the rally. Markets remain in a sweet-spot position with positive growth, and benign inflation which has kept policy tightening at bay and created the right conditions for risk-assets to perform well.” “Volatility could pick-up in the 2H’18, as markets adjust to a reversal of a rate-cut cycle, with global central banks expected to gradually lift interest rates and embark […]

Affin Hwang AM Launches Global Small-Cap Fund

KUALA LUMPUR – Affin Hwang Asset Management Berhad (“Affin Hwang AM” or “the Company”) announced today the launch of the Affin Hwang World Series – Global Quantum Fund (“WS-GQF” or the “Fund”), Malaysia’s first global small-cap fund. The Fund is a wholesale equity feeder fund that seeks to achieve capital appreciation over the medium to long-term period through investments in global smaller company equities. The Fund feeds into the Standard Life Investments Global SICAV II – Global Smaller Companies Fund (“Target Fund”), a Luxembourg-domiciled fund managed by Standard Life Investments (“Target Fund Manager”). To meet its investment objective, the Fund will invest a minimum of 80% of the Fund’s NAV into the Target Fund and a maximum of 20% of the Fund’s NAV into money market instruments, fixed deposits and/or liquid assets. Chan Ai Mei, Chief Marketing & Distribution Officer of Affin Hwang AM said, “With the return of growth globally, the investment case for allocating into small-caps has been emboldened, where the MSCI AC World Small Cap Index returned 110% in the past 10 years exceeding its large-cap peers represented by the MSCI AC Index which posted 66%” (1) “This latest Fund will enhance our existing product suite and […]

What Stocks Not to Own for the Long-Term

A Black List… Of Sorts Many things have been said about what and how to buy stocks, but not much on what to avoid. In a typical portfolio, there will always be winners and losers. Sometimes these losers overwhelm the gains. Besides judicious cutting of losses before they swell further, avoiding them in the first place would be even better. We highlight some categories of stocks below which we think are not suitable for long term holdings. The key word being long term. Another point is that this is not a total blacklist of what to avoid, some of them do turn out to be darlings, but the odds are working against you. Penny Stocks with High Volumes Look at any old listing of top volume penny stocks. How many have grown to be significant companies? Anecdotal evidence suggests none make it big. This is evidence enough that such positions are not meant to be held for the long term. One should look at it from a listed company owner’s perspective – if one has genuine interest in growing the business, why would significant chunks of their shares be traded on a daily basis? One has to question the motivation […]

Affin Hwang AM Declares Income Distribution of RM203 mil for 24 Funds

KUALA LUMPUR – Affin Hwang Asset Management Berhad (“Affin Hwang AM” or “the Company”) has declared a total of RM203.07 million distributions for 24 funds. The income distributions were distributed across the Company’s retail and wholesale funds. The income distributions are shown in the table below: No. Fund Income Distribution Registered as at RETAIL SHARIAH-COMPLIANT FUND 1. Affin Hwang Aiiman Select Income Fund (“ASIF”) 1.5000 sen or RM0.015 per Unit 11 December 2017 2. Affin Hwang Aiiman Income Plus Fund (“AIPF”) 0.7700 sen or RM0.0077 per Unit 11 December 2017 RETAIL CONVENTIONAL FUND 3. Affin Hwang Bond Fund (“AHBF”) 1.5000 sen or RM0.015 per Unit 11 December 2017   4. Affin Hwang Select Asia Pacific (ex Japan) REITs and Infrastructure Fund (“SAPRIF”) 2.0000 sen or RM0.020 per Unit 11 December 2017 5. Affin Hwang Select AUD Income Fund (AUD Class) (“SAUDIF”) 0.5000 cent or AUD0.005 per Unit 11 December 2017 Affin Hwang Select AUD Income Fund (MYR Class) (“SAUDIF”) 1.0000 sen or RM0.010 per Unit 11 December 2017 6. Affin Hwang Select Balanced Fund (“SBalF”) 2.0000 sen or RM0.020 per Unit 11 December 2017 7. Affin Hwang Select Bond Fund (MYR Class) (“SBoF”) 1.5000 sen or RM0.015 per Unit 11 […]

2017 Market Review and Outlook

2017 – The Return of Growth With the return of growth, the year 2017 has seen an economic upswing that has lifted both global and regional markets in terms of asset returns and earnings recovery. Accelerating growth, but benign inflation has kept policy tightening at bay, creating the right conditions for risk-assets to perform well under a ‘Goldilocks’ environment. Marked by global reflation, as well as a recovery in trade and manufacturing PMI – Asia scored top marks and appeared as one the best performers this year. In Asia, the MSCI Asia ex-Japan Index advanced +37.8% (local currency terms), compared to the MSCI AC World Index which had gained +19.5% YTD (as at 29 Nov 2017). The MSCI Asia ex-Japan performance was primarily driven by North Asia, with tech emerging as the key outperformer, across China, Korea and Taiwan. China’s 9M’17 GDP growth has come in ahead of consensus expectations growing by 6.9%, with the MSCI China Index outperforming other Asia ex-Japan country Indices, increasing by almost +50% (USD terms) as at 30 November. The outperformance of China this year was the result of a potent combination of government stimulus, targeted regulation and SOE reforms. An acceleration in public-private partnership […]