Entries by Affin Hwang Asset Management

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 […]

Japan Approves ¥95.8 Trillion Budget to Aid Economic Revival

On 20 March 2014, Japan’s government – led by the ruling Liberal Democratic Party – passed a 95.88 trillion yen spending package aimed at sustaining economic growth as the country faces its first sales tax increase since 1997. Lawmakers approved this biggest-ever budget so far in an attempt to minimize the negative impact of the increase in the consumption/sales tax, which will rise to 8% from 5% on April 1, 2014. The targeted increase is intended to reduce Japan’s national debt, which is proportionately the highest among developed nations. However, there are concerns the tax hike could derail Abenomics – the three-arrows policies introduced by Prime Minister Shinzo Abe that comprise accommodative monetary policy, fiscal stimulus, and structural reforms – aimed at kickstarting the world’s third-largest economy from 15 years of deflation. This new budget comes as Tokyo pushes for speedy implementation of a 5.5 trillion yen stimulus plan approved in December 2013, specially designed to support Japan’s fragile economic recovery. An increase from 92.61 trillion yen for the current fiscal year, it is seen as crucial to paying for Japan’s snowballing health and social welfare costs. The rapidly aging population, compounded by low birth rates, are putting pressure on […]

What is Active Value Investing?

Walk the Talk 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 […]

Malaysia’s First Japan Investment Solution: Hwang Select Japan Quantum Fund

KUALA LUMPUR, 4 MARCH 2014 – Hwang Investment Management Berhad (“HwangIM” or the “Company”) today unveiled Malaysia’s maiden Japan investment solution that is tailored to investors who have a medium-to-long term investment horizon. Known as the Hwang Select Japan Quantum Fund (“SJQF” or “the Fund”), its objective is to provide investors with capital appreciation over the medium-to-long term. The Fund is suitable for investors who seek exposure in Japanese equities and have a relatively higher risk tolerance level. The Fund employs an active value strategy which essentially focuses on investments in undervalued companies that offer growth opportunities. It utilises fundamental research to identify stocks that have been mispriced by the market. Over the long run, the Fund also aims to take opportunities in companies which have undergone changes in business strategy. Therefore, the stock prices of these undervalued companies are expected to rise and converge to their intrinsic valuations. During the launch of the Fund, Teng Chee Wai, Chief Executive Officer and Executive Director of HwangIM, said, “I am positive of the impact from Shinzo Abe’s policies on the Japanese economy. The present administration is firm on reflating the economy with its three-arrow policy goals; bold monetary policies, fiscal stimulus […]

Ukraine Crisis

Limited Conflict in Crimea There will be peace as long as the pro-EU regime does not directly or indirectly threaten the Russian navy base in Crimea. Chances of limited conflict (confined to only Crimea) are medium to high, while waging war with Ukraine is quite remote. In the event of a short military conflict with overwhelming Russian victory expected, the Crimean region will be declared an independent pro-Russia breakaway region. NATO/US armies are either too far and hence ineffective to intervene in the conflict, hence the risk of an all-out war is low. The Russians are mainly interested because this region has underground gas pipes running from Ukraine to Russia. The gas pipes issue had a reprieve in 2010 when Ukraine extended Moscow’s lease on Sevastopol until 2042 in exchange for a 30% reduction in gas prices for Ukraine’s daily energy consumption. However, Russia objected to certain conditions in the deal, including the need for obtaining consent from Ukraine to replace or upgrade ships at the port.   [Source: AFP / www.smh.com.au] Leasing Sevastopol to Russia Ukraine’s population of 45 million people are divided in its loyalties between Russia and Europe. Western Ukraine is closer to the European Union (EU) while […]