Entries by Affin Hwang Asset Management

When Is a Stock Too Expensive?

Bargain Hunting for Stock Picking stocks often becomes an arduous affair, replete with decisions and choices. For some, it’s a daily occurrence, akin to second nature. With the increasing number of platforms made available today, investors can now access various markets & exchanges – thus being easily left spoilt for choice. But a recurring question investors commonly ask is when a stock becomes too expensive? Put more simply, we all know when we are overpaying for items like smartphones, clothing, laptops, etc. – we check against the quality of the material, brand recognition, its unique features and utility value. But how can investors evaluate the same for stocks and determine when you’re overpaying for one? What do we mean by ‘expensive’? If one believes the Efficient Market Hypothesis (EMH) which states that the price of assets will factor-in or discount all available information – then the value of a stock should be reflective of its fair value at that point in time. It does not mean that one cannot make money from stocks trading at their fair value – as long as the underlying business continues to grow, we believe its share price will chart higher to reflect the improved […]

More Compelling Reasons for Malaysia

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% y-o-y, despite higher inflation & high household leverage. Sustained export growth on delayed reaction to the cheap Ringgit is expected to underpin growth. Compared to regional peers in Southeast Asia, Malaysia is leading the export race  with shipments accelerating to a 7-year high of 32.5% […]

Sea Change in South Korea

Structural Reforms in South Kore In the wake of President Moon Jae-in’s victory at the South Korea presidential election last month, Moon has positioned himself as a pro-reformist – determined to unite a country torn by bitter divisions after a long-drawn corruption scandal that engulfed a nation. Former president Park Geun-hye who was impeached and removed from office is now undergoing trial for corruption and for misusing her position to gain personally. With the scandal now behind the country, South Korea could see a sea change of events which may spell positively for the country in terms of investment opportunities. Big Test Ahead for Moon Jae-in Son of North Korean refugees – President Moon campaigned under a pro-reform agenda to clean up corruption and take on the powerful family-run chaebols which traditionally held strong government sway. The 64-year old, who practiced human rights law before turning to politics, served as chief-of-staff to former president Roh Moo-hyun back in 2004. A left-leaning Democrat, Moon easily won the election securing 41% of the total votes, beating other conservative and centrist candidates. Whilst global attention was fixated on mounting tensions between North & South Korea, ultimately it was the economy and concerns of […]

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

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 worry – you still have six more months remember? One of the most crucial aspect of budgeting strategies is periodic monitoring & review – especially to identify why your budget missed its mark. Often, a re-evaluation of your budget may be necessary to cater to new circumstances or […]

Singapore REITS: More Long-Term Value

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, with improving economic fundamentals, as well as anticipation of further pro-growth policies under the new Trump administration – we saw interest rate expectations starting to pick-up again. Taking these cues, the Fed raised […]