Entries by Affin Hwang Asset Management

Affin Hwang Asset Management Collaborates With Axa-Affin Life Insurance And Pacific Trustees To Safeguard Its Investors’ Wealth

KUALA LUMPUR – A month after its merger completion announcement, Affin Hwang Asset Management Berhad (“Affin Hwang AM” or the “Company”) (formerly known as Hwang Investment Management Berhad), today announced its collaboration with AXA-AFFIN Life Insurance Berhad (“AXA-AFFIN”) and Pacific Trustees Berhad (“PTB”) to launch its Wealth Protection & Wealth Distribution service. Over the past decade, Affin Hwang AM has been assisting its clients to create wealth as well as building retirement funds through its fund management services such as unit trust funds and wholesale funds as well as Private Retirement Scheme. The Wealth Protection & Wealth Distribution service is an added service which Affin Hwang AM is offerings to complement its wealth creation services, which Affin Hwang AM currently has in place. The new service brings the three important wealth management aspects; wealth creation, wealth protection and wealth distribution under one roof.   Chan Ai Mei, Chief Marketing Officer of Affin Hwang AM said, “We have been assisting our clients to create wealth as well as building their retirement fund for over a decade. There was a natural need from our clients to protect their wealth for their loved ones and their next generation. We know and understand that […]

Investing in ASEAN Market

ASEAN Portfolio Year-to-date, the stronger fundamentals and liquidity support remain primary drivers in ASEAN regional markets being the top equity performers. The country strategies for our portfolios are as follows: Malaysia We will continue with our bottoms-up approach as overall valuation is not cheap and the market lacks catalysts. Focus would be towards companies with potential earnings surprises and strong franchise business models. Export recovery plays could feature prominently. Indonesia There are still a lot of political roadblocks ahead. Hence, the market will be soft in the near term. But key to watch is the impending fuel price hike, which is expected to be implemented in November/December this year. If a substantial hike comes through, it will be positive for the country as this would remove some pressure on the burgeoning current account deficit and allow the government to channel its budget savings from subsidies to more productive use such as infrastructure development. We still prefer sectors that will benefit from proposed reforms i.e. infrastructure, oil and gas. Philippines Premium valuation is a key pushback factor. However, we favour the banking sector as it is in an early stage of the credit cycle and will deliver one of the fastest […]

Putting Our Money Where Our Mouth Is

That being said, it is important for sales and marketing professionals to have faith in their respective product offerings. What better way than to invest directly into their own stable of products and services, as exemplified by the phrases: “practice what you preach”, and “action speaks louder than words”. Believing in the performance or potential benefit and capability of one’s product offerings will inevitably reinforce confidence in those products and services. At the end of the day, everyone wants the best for themselves so if one would to invest in what they promote and market, it must say that they believe in what they promote and market. Staff Investing At Affin Hwang Asset Management, we firmly subscribe to the belief of practising ourselves what we preach to our clients and investors. It is not about “OPM” (Other Peoples’ Money) but our own too. This is evident from the AUM that our staff invest in our own funds. Chart 1 below shows our total assets under management (AUM) for our own staff investments totalling to RM27.5 million as at 31 August 2014. Cash and EPF (Employee Provident Fund) investments formed the bulk with RM13 million (47.3%) and RM11 million (40%) respectively, […]

Investing in a Rising Interest Rate Environment

Gradual Normalisation Our view is that, near-term fluctuations and pullbacks aside, investors will conclude any interest rate hikes would be very gradual in nature. The end of quantitative easing in the US would be negated partially by continued loose monetary policies by the Bank of Japan and the European Central Bank. Movement of US bond yields suggests investors do not anticipate a build-up in inflationary pressures nor an environment of robust global economic growth. Europe, China and Australia are all showing no signs of any acceleration in growth and we believe this would cap any acceleration in US economic growth as well. Therefore, we expect the US treasury yield curve to flatten where shorter term rates rise, but the longer end of the yield curve remains anchored. Being Selective Investors should be more discerning when it comes to investing in EM, and differentiate between the better markets from the weaker ones. We will similarly focus on the countries that have undergone structural adjustments and thus, present thematic and bottom-up opportunities. Asian countries like India and Indonesia have seen both their current account deficits narrow over the past year. Moreover, these countries have and are embarking on further reforms which will […]

Hwang Asean Flexi Fund: Offering Peace Of Mind In All Market Conditions

For capital appreciation and regular yearly income KUALA LUMPUR, 8 SEPTEMBER 2014 – Hwang Investment Management Berhad (“HwangIM” or the “Company”) today announced the launch of the latest addition to their in-house managed funds, the Hwang ASEAN Flexi Fund (“AFF” of “the Fund”). Targeted at the mass retail segment, HwangIM believes that this fund will be attractive due to its flexible asset allocation strategy and its ability to provide investors with potential capital appreciation and regular income over the medium to long-term period. The flexible asset allocation allows the Fund to have a higher exposure into ASEAN equities during normal or improving market conditions to capitalise returns, and switch to higher exposure into defensive investments such as fixed income instruments during adverse market conditions to protect capital. The Fund will be investing in equities and fixed income instruments that are listed or issued in the ASEAN region. David Ng, Chief Investment Officer of HwangIM said, “AFF offers investors opportunity to diversify their investments into the ASEAN region and its growth opportunities. Our investment philosophy remains to deliver positive and absolute return performance through different economic-cycles for our clients. AFF’s investing strategy emulates the strong performance of a Malaysian focused flexi […]

Asian Markets: Expected To Continue Its Upward Trend

KUALA LUMPUR, 17 JUNE 2014 – Hwang Investment Management Bhd (“HwangIM” or “the Company”) believes Asia Emerging Markets will continue its upward trend but market condition will likely to remain bumpy in the interim. A forecasted rebound in US’ economic growth in the second quarter, stimulus programs from central banks in Japan, and Europe, as well as higher-than-expected corporate earnings are nudging investors’ confidence higher. HwangIM anticipate the improving economic conditions in the Developed Market to boost the Asian equities markets’ and fixed income markets’ performance. While volatility will likely be prolonged in the near-term, reversal of capital outflows are expected to continue within the region, and higher levels of liquidity will remain supportive of asset classes in the region over the medium to longer-term. Teng Chee Wai, Chief Executive Officer of HwangIM said, “Most financial markets are easing into the new economic landscape. Equity markets which were sold down in 2013 have recovered since the start of the year till 6 June 2014; for example Thailand, Philippines, and Indonesia equity market are the top performers in Asia on year-to-date basis with gains of 15.4% , 14.9% , and 14.0% respectively in local currency terms.” He added that the manufacturing […]

Philippines: Rising Inflation, Moderate Growth

Summary Real GDP and export growth moderate Policy interest rates held steady Strategy The Philippines’ real gross domestic product (GDP) growth moderated to 5.7% year-on-year (yoy) in the first quarter of 2014 (1Q14) from a revised 6.3% registered in 4Q13 (Source: Philippine Statistics Authority). The impact from Typhoon Yolanda resulted in supply disruptions and infrastructure bottlenecks in disaster-hit areas. This marked the first time that GDP expanded below 6.0% yoy in more than two years. External trade Merchandise exports growth moderated to 11.2% in March 2014 from 24.4% in February 2014 (Source: Philippine Statistics Authority), but reaffirmed continued recovery in tandem with strengthening global demand. The moderation was attributed to a slowdown in the exports of manufactured and mineral products, while petroleum products contracted sharply. These were, however, partly cushioned by the pick-up in agro-based and forest products. In terms of export destination, the slowdown in March’s exports was led by a sharp decline in the exports to China, US, EU and Japan. Policy rates In May 2014, the Monetary Board of Bangko Sentral ng Pilipinas (BSP) decided to maintain the benchmark policy rates at 3.50% for the overnight borrowing or reverse repurchase (RRP) facility and 5.50% for the overnight […]

Indonesia Update

Indonesia Update   Summary Indonesia July 2014 presidential election Improving economic fundamentals Market strategy Improving economic fundamentals, accompanied by better balance of payments position, helped the rupiah strengthen (on foreign capital inflows) during the first quarter of 2014 (1Q14). Indonesia’s currency and markets advanced on speculation Jakarta Governor Joko Widodo’s party will form a larger coalition that could help push through much needed economic reforms. The Indonesian Democratic Party of Struggle (PDI-P), led by Widodo – widely known as Jokowi – secured the most votes in parliamentary polls in April 2014 and has formed a three-party grouping ahead of the presidential elections on July 9. However, the rupiah experienced a moderate correction in April due to the Federal Reserve’s hawkish stance, concerns over China’s economic downturn, and an escalation of geopolitical tensions along the disputed Ukraine-Russia border. Balance of Payments The balance of payments (BoP) is expected to return to a surplus due to a smaller current account deficit and a surge in foreign capital inflows. The current account deficit is expected to decline to approximately 2.06% of gross domestic product (GDP) in 1Q14 due to a contraction in non-oil/gas imports in tandem with moderating economic growth (Source: Bank Indonesia). […]

Singapore 1Q2014 Growth Driven by Manufacturing Sector

Singapore 1Q2014 Growth Driven by Manufacturing Sector   Summary 1Q2014 growth attributed to manufacturing Investing strategy Market outlook The Singapore economy grew 4.9% on a year-on-year (yoy) basis in the first quarter of 2014 (1Q14), due to stronger-than-expected growth in manufacturing production. On a quarter-on-quarter (qoq) seasonally-adjusted annualised basis, the economy grew 2.3%, moderating from the 6.9% growth in the fourth quarter of 2013 (4Q13). The manufacturing sector expanded 9.8% yoy in 1Q14, faster than the 7.0% expansion in 4Q13. This was largely driven by a sharp rebound in the biomedical manufacturing cluster, as well as stronger growth in the chemicals and transport engineering clusters. (Source: Department of Statistics, Singapore) Global economic outlook is expected to improve modestly in the coming months, led by sustained recovery in the US and Eurozone economies. In Asia, China’s growth is expected to moderate slightly in 2014 as the government continues with credit tightening measures and financial reforms to rebalance the economy. The ASEAN economies are likely to remain resilient, supported by robust domestic demand. Against this backdrop, Singapore’s Ministry of Trade and Industry forecasts the economy to grow at a modest pace of between 2% and 4% in 2014. In tandem with the gradual […]

Thailand Military Coup

Summary Appointment of unelected interim government Economy battered by political turmoil Market impact Political uncertainty has always undergirded Thai politics, particularly in the last decade. This is because of the wide chasm between between the royalists yellow shirts (who are mainly urban middle class incensed at what they see as the massive government corruption) and red shirts (farmers from rural areas who were the main beneficiaries of the populist policies implemented by ousted, former Prime Minister Thaksin Shinawatra). The recent coup, announced on May 22, gives the military full power over civilian matters and has effectively deposed the caretaker government of Yingluck Shinawatra. The constitution has been suspended and a night curfew has been imposed. Thai Army Commander Prayuth Chan-Ocha has received royal endorsement to lead the interim government. However, he has yet to appoint an unelected civil prime minister, but many speculate that he will assume the post himself. A new election date has not been announced. The priority of the interim government is likely to be political reform, although they have taken steps to alleviate the economic slowdown by repaying farmers for the previous government’s rice pledging scheme.  The road ahead is expected to be bumpy and it […]