Entries by Affin Hwang Asset Management

From the MD’s Desk : Thoughts on China

Fear on the possibility of a systemic risk after the recent rapid sell-down in the China equity market cushioned by strong support from the government. While the possibility remains apparent, the on-going policy measures being taken and the tools that are still available may be able to steer the market to safety. Recent market correction had made technical readings and valuations more interesting. However, market sentiment remains low with the recent selloff making it feel like a crisis in brewing has dragged investors’ sentiment down. Forgoing our own path, and ignoring the herd mentality. We believe the recent rout was mainly due to the excessive speculation made by retail investors on China’s domestic equity market. The markets had risen too much and too quickly, and the recent correction, albeit overly dramatic, was well needed. Valuations are now looking more palatable, and with the government adamant on keeping market afloat, we think this is an opportunity for the brave.   How do we address these situations? While the correction was anticipated, the rapid rate of the sell down came unexpectedly and dragged down the performance of our portfolios. However, given the fundamental investment strategy that we take, sectors that we have […]

The Superstar stumbles, but fans are nudging it back onto its feet.

Commentary The throng of domestic investors will also keep markets well supported, minimising the risk of the market taking a tumble due to foreign outflows. An estimated 40 million new trading accounts were opened in the 5 months ending May 2015 as investors clambered to gain market participation. Officials have eased concerns surrounding margin financing by amending the rules governing stocks purchased by borrowed money. Additional comfort was provided when the regulators abolished regulations that allowed brokers to negotiate for rollover of loans with clients as opposed to forced selling of stocks. In an initiative dubbed as the stock market rescue fund, twenty one of the country’s biggest brokers have vowed to help stabilise the market by setting aside 15% of their net assets for blue chip exchange traded funds. The value of which is estimated at 120 billion Yuan. Initial public offering plans by 28 companies, whom had earlier obtained approvals from the regulators, have also announced plans to halt their offerings, and will be refunding investors’ capital this week, a hopeful move to address diversion of funds away from the equity market. Continuous measures to boost the equity market are expected to persist as economic growth after Asia’s […]

Malaysia’s Sovereign Rating Stays

Why The Change In Outlook? The outlook changed due to various reasons: 1)    Improved government finances:  Fiscal deficit reduced from 4.6% in 2013 to 3.8% of GDP in 2014 Introduction of Goods and Service Tax (GST) in April 2015 and fuel subsidy removal putting fiscal consolidation on track 2)    Funding support by domestic funds like pension fund providers 3)    Favourable real GDP growth rates and relatively low inflation volatility as compared to fellow “A” rated countries of 5.8% (2010-2014) against average of 3.1% Fitch is further expecting Malaysia’s current account to remain in surplus of 1.4% in 2015 and 1.1% in 2016 respectively, contributed by a pickup in investments, partly driven by the Economic Transformation Programme (ETP), despite the country’s lower savings rate. What To Monitor? As we move forward, we will continue to monitor: Current account surplus, Fitch’s forecast for 1.4% in 2015, which have reduced from average of 15.6% in year 2005 till 2009 to 7.2% in year 2010 till 2014. Rise in contingent liabilities of GDP from 15.4% (2013) to 16% (2014). Fitch opines Malaysia government may have to support 1MDB, if needed. Weaker average income level as compared to other “A” rated countries Reserve cover of […]

Affin Hwang Asset Management Launches Affin Hwang Aiiman PRS Shariah Moderate Fund

Affin Hwang Asset Management Launches Affin Hwang Aiiman PRS Shariah Moderate Fund To cater for growing demand for Shariah-compliant funds and retirement planning KUALA LUMPUR – Affin Hwang Asset Management Berhad (formerly known as Hwang Investment Management Berhad) (“Affin Hwang AM” or the “Company”) today launched the latest addition to their Affin Hwang Private Retirement Scheme (“PRS”) funds, the Affin Hwang Aiiman PRS Shariah Moderate Fund (the “Fund”) as the Company recognises the rise of demand for Shariah-compliant funds and retirement planning. The new Fund, which follows on from the success and popularity of Affin Hwang Aiiman PRS Shariah Growth Fund introduced three years ago (which has delivered an annualised return of 9.7%1 p.a.), during the first rolled out of PRS solutions in the country, is an exciting development for Affin Hwang AM and one which is universally welcomed. It is also to complement the current offering of Affin Hwang PRS funds Chan Ai Mei, Chief Marketing Officer of Affin Hwang AM said, “As our client base is expanding and more Malaysians acknowledging the importance of saving early for retirement, there is a growing pressure for us to keep innovating and introduce more retirement funds especially one that ticks the boxes […]

Greece or Grexit?

Key Facts IMF repayment of EUR1.5 billion is due on 30th June, the same day that the current Greek bailout programme with the EU is expiring. Given that there was no deal over the weekend to agree on a new bailout programme or to extend the current bailout programme, it is widely expected that Greece will default on the IMF repayment. Capital controls have been introduced today and will likely be in place for the foreseeable future. Banks are closed for the whole week to mitigate deposit outflows from the Greek banking system. The European Central Bank’s (ECB) Governing Council decided on Sunday to cap Emergency Liquidity Assistance (ELA), available to Greek banks at just below EUR89 billion. There is a possibility that ECB could withdraw all forms of ELA funding if Greek banks are deemed insolvent, although the ECB can exercise a certain level of discretion on the criteria of insolvency. Commentary Our view is that Alexis Tsiparas had little choice given his predicament but to call for a referendum. His political campaign and that of his Syriza party was built on the grounds that Greece has been undergoing too much austerity and that should they come into power, […]

Affin Hwang AM’s ‘2015 Investment Forum – Connecting You With Investment Opportunities’ received overwhelming response from the public

KUALA LUMPUR – Affin Hwang Asset Management Berhad (formerly known as Hwang Investment Management Berhad) (“Affin Hwang AM” or the “Company) successfully hosted its first 2015 public investment forum, titled ‘Connecting You With Investment Opportunities’. The forum, held on 13 June 2015 at The Royal Chulan Kuala Lumpur, was very well received with more than 1,000 participants. At the forum, the participants had the opportunity to gain insights into the local and Asia current market scenarios through a series of individual presentation and panel discussions with the local and international investment and property experts, including Datuk Dr Tong Kooi Ong, Executive Chairman of The Edge Media Group, Teng Chee Wai, Managing Director of Affin Hwang AM, Robin Teo, Intermediary Business Development Director of Nikko Asset Management, Mr Lai Voon San, Director Investment Operations, Senior Fund Manager of Value Partners Group, Mr Siva Shanker, Chief Executive Offiver of Agency PPC International Sdn Bhd & Immediate Past President, Malaysian Institute of Estate Agents, Dato’ Beh Huck Lee, Managing Director of EUPE Corporation Berhad. The experts discussed on the global, regional and domestic growth, current market scenario, quantitative easing, divergent monetary policies, equities and fixed income sectors, properties, opportunities for the remaining 2015. […]

Affin Hwang Asset Management Expands Branch Network: Opens New Sales Office In Petaling Jaya

PETALING JAYA – Affin Hwang Asset Management Berhad (formerly known as Hwang Investment Management Berhad) (“Affin Hwang AM” or the “Company”), opened their eighth sales office in Petaling Jaya today as part of the Company’s long-term network expansion planning to meet the increasing demand for asset and wealth management products and services, especially from the mass affluent to the high net worth individuals. The new sales office is located at A-7-G Jaya One, No. 72A, Jalan Universiti, Petaling Jaya will give the local community an easy access to a comprehensive range of conventional and Shariah-compliant investment solutions and services such as unit trust funds, wholesale funds, structured investments and private retirement schemes. Additionally, it is worth noting that investors in Affin Hwang AM funds may also qualify for wealth protection & distribution services provided by Affin Hwang AM’s partners, AXA-AFFIN Life Insurance Berhad and Pacific Trustees Berhad at the new sales office. “Our aim is to further reach out to meet the needs of the mass affluent and high net worth segment of clients that are seeking to grow their wealth and build their retirement funds leveraging on our asset management capabilities. With the new branch, our clients can look […]