Entries by Affin Hwang Asset Management

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 […]

Affin Hwang AM Launches First Shariah-Compliant Commodity ETF

KUALA LUMPUR – Affin Hwang Asset Management Berhad (“Affin Hwang AM” or “the Company”) announced the launch of its first exchange traded fund (ETF) – the TradePlus Shariah Gold Tracker (“Fund” or “GOLDETF”), which was successfully listed on the Main Market of Bursa Securities today. The Fund aims to provide investors with investment results that closely track the performance of gold prices, through a Shariah-compliant investment structure. To meet its investment objectives, the Fund will invest a minimum of 95% of the Fund’s net asset value (NAV) in physical gold bars purchased from LBMA accredited refineries, with the remaining balance invested in Islamic money market instruments and/or Islamic deposits for liquidity purposes. Teng Chee Wai, Managing Director of Affin Hwang AM said, “We are proud to roll-out our first ETF to the market, which will enhance our overall product offerings and provide a broader suite of solutions for our investors. Our move to enter into the passive investment space is a natural path for us, to expand our investment offerings and capabilities to continue to be a distinguished asset management player in the industry.” “With no similar offerings, the Fund is the first of its kind in the domestic market […]

India on the Cusp of Reform

Modi’s Three-Year Scorecard Three-and-a-half year into his tenure, Prime Minister Narendra Modi has embarked on a sweeping reform movement, fulfilling key campaign promises to boost job creation and increase foreign direct investment (FDI) into India. With the introduction of pro-business policies, the administration hoped to untangle notorious amounts of red tape that has stifled business in the past, as well as revive growth within India’s vapid manufacturing sector. Under Modi, India’s annual GDP grew from 5.5% in 2013 (before he assumed office in May 2014) to 7.5% in 2015 and 8.0% in 2016. [Source: India Central Statistics Organisation, Bloomberg] Taking bold measures, Modi enacted India’s first national bankruptcy law in 2016 which would allow enforcement of contracts and a swifter resolution of insolvency cases that has weighed down on its financial system. More economic reforms followed including a radical banknote demonetisation move last November which saw India scrap its high-value 500 and 1000 rupee currency bills, as part of efforts to stem corruption, curb its shadow economy and flush-out ‘black money’ from its financial circulation. In July’17, India ushered its boldest economic move yet, rolling-out its first comprehensive Goods and Services Tax (GST) which replaced its prior complex multiple indirect […]

Benefits of Staying Invested

Why It Pays to Stay Invested Investing is a long-term game. A marathon as opposed to a sprint, where an investor is more likely to achieve their investment goals if they stay invested and avoid making short-term decisions which often spring from emotional or rash decision-making. This year, we have seen stock markets rally across globally with the FTSE 100, Germany’s Dax and the S&P 500 reaching record highs. Locally, the benchmark FBM KLCI is also charging towards the 1,800 points-level, climbing to a fresh two-year high. Can this market rally be sustained? Well no one knows for sure. But the only constant in the investment-universe is change, and investors should always be prepared to brace for future volatility, in the event markets come to an unruly end. Smooth Seas Never Made a Skilled Sailor Volatility is to be expected in markets. Like waves in an ocean – one would get nowhere otherwise without the ebb and flow in markets that provide buying or selling opportunities. Can small ripples suddenly turn violent and become sizeable tsunamis? Sure they can. But what matters more is having a well-diversified portfolio that has the potential to weather against varying degrees of volatility and […]

Affin Hwang AM Claims Compliance with GIPS

KUALA LUMPUR – Affin Hwang Asset Management (“Affin Hwang AM” or “the Company”), a Kuala Lumpur-based investment management firm, which manages more than RM43 billion, announced today that it is one of the first among local and foreign asset managers to claim compliance with the Global Investment Performance Standards (GIPS®) and has been independently verified by ACA Compliance Group for the period of 1 January 2010 through 31 December 2016. The GIPS® standards are a rigorous set of investment performance measurement standards adopted in 37 countries and recognised around the world for their unparalleled credibility, integrity, scope, and uniformity, enabling direct comparability of a firm’s track record. There are currently more than 1,600 firms worldwide that are claiming compliance with the GIPS® standards. “Our value proposition to investors has always centred around being investment-led and client-focused. Trust is fundamental in our relationship with investors. Claiming GIPS compliance enables us to present our firm’s capabilities with integrity and transparency. We are quite fortunate that we are a relatively ‘young’ fund manager. I started the firm in 2001 and we have the infrastructure in place to capture all discretionary funds/mandates in at least one composite, starting from our first mandate and retail […]