Entries by Affin Hwang Asset Management

Breaking the Cycle of Late-Cycle Investing

Late Cycle Approaches… Markets notched one of its longest bull run in history last year, when the S&P 500 surged 323% posting close to 3,453 days of uninterrupted gains back in mid-August 2018. But as headwinds from US-China trade tensions, higher interest rates and shrinking liquidity swirl around markets and threaten to finally put the brakes on this rally, investors are speculating if the cycle’s end is nigh. So is a recession upon us? Should investors scale back exposure and flee the market? Is it time for caution or courage in 2019? Investors can heed lessons from history to keep perspective and understand the nature of boom and bust cycles. Here are 3 ways investors can break free from the inevitable cycle of markets and learn to position beyond the cycle’s edge. Take a Long-Term View Many market soothsayers and economists have tried and failed to predict when a recession would hit. Some even fail to realise that they are already in a recession when it’s too late. The remarkable run in markets was sparked from the embers of the 2008 Global Financial Crisis (GFC), when the S&P 500 rebounded from its 2009 low of 666 points and more than […]

Affin Hwang AM Launches China A Equity Fund

KUALA LUMPUR – Affin Hwang Asset Management Berhad (“Affin Hwang AM” or “the Company”) announced today the launch of Affin Hwang World Series – China A Opportunity Fund (“the Fund”). The Fund is a wholesale feeder growth fund that provides access to the vast opportunities in China’s domestic equity market by investing in a collective investment scheme, namely UBS (Lux) Investment SICAV – China A Opportunity (“Target Fund”). The Target Fund is a Luxembourg-domiciled fund managed by UBS Asset Management (“Target Fund Manager”). To achieve its investment objective, the Fund will invest a minimum of 80% of the Fund’s net asset value (NAV) into the Target Fund and a maximum of 20% of the Fund’s NAV into money market instruments, deposits and / or liquid assets. Chan Ai Mei, Chief Marketing & Distribution Officer of Affin Hwang AM said, “As China continues on its roadmap to liberalisation and demonstrate its commitment to opening up its capital market, we expect the Fund to be a beneficiary of inflows as reforms take root. The gradual inclusion of China A shares into the MSCI Emerging Market Index would see sizeable fund flows and draw greater global investor interest. In the event of full […]

Affin Hwang AM Declares Income Distribution of RM116 million for 20 Funds

KUALA LUMPUR – Affin Hwang Asset Management Berhad (“Affin Hwang AM” or “the Company”) has declared a total of RM116.77 million distributions for 20 funds in December. The income distributions were distributed across the Company’s retail and wholesale funds. Inclusive of this latest round of income distribution, the total payout amounted to RM372.97 million for the full calendar year 2018. The income distributions for the Select Series and World Series Funds are shown in the table below: No. Fund Income Distribution 1. Affin Hwang Select Dividend Fund (“SDF”) 1.00 sen per unit 2. Affin Hwang Aiiman Select Income Fund (“ASIF”) 1.50 sen per unit 3. Affin Hwang Select Asia Pacific (ex Japan) Dividend Fund (“SAPDF”) 1.50 sen per unit 4. Affin Hwang Select AUD Income Fund (AUD Class) (“SAUDIF”) 0.50 cent per unit (AUD)   Affin Hwang Select AUD Income Fund (MYR Class) (“SAUDIF”) 1.00 sen per unit 5. Affin Hwang Select Balanced Fund (“SBalF”) 2.00 sen per unit 6. Affin Hwang Select Bond Fund (MYR Class) (“SBoF”) 1.00 sen per unit   Affin Hwang Select Bond Fund (USD-Hedged Class) (“SBoF”) 1.50 cent (USD) 7. Affin Hwang Select Income Fund (“SIF”) 1.00 sen per unit 8 Affin Hwang Select SGD […]

Investor Resolutions for 2019: De-risk, Do Less and Diversify

2018: When Volatility Returned As we close the chapter in another year, there is no better time to trawl back through the pages and ponder on the year that was. For investors, 2018 will be remembered as the ‘reset year’ for markets. When things finally took a pause and markets remembered to take a breather after consecutive rallies. Investors attempting to chase after the highs and lows of the stock market were also left breathless amidst the frenzy. But as the late-cycle approaches, how should investors position themselves then for 2019 as returns expectations are pared down and global central banks continue to normalise monetary policy? If you’re still stuck on resolutions, here are 3 ideas to consider on how you can position your portfolio to ride through the volatility ahead. Resolution 1: De-risk your Portfolio Amidst a litany of concerns, markets see-sawed between gains and losses throughout the year as a protracted trade conflict between US and China kept investors on edge. Mixed signals from US President Donald Trump and his penchant for Twitter diplomacy didn’t help things either. The temporary trade truce brokered between US and China may prove to be fragile and mercurial as the President’s infamous […]

Emerging Market Outlook 2019: Mind the Yield Gap

In the following interview Lim Chia Wei, Portfolio Manager, Affin Hwang Asset Management shares his outlook for emerging markets (EM) and what 2019 would herald for investors. 1) It’s been an eventful year for EMs in 2018. From the US-China trade war, rout in EMs stemming from the Turkish lira plunge and Argentina debt crisis, What’s your take of markets for 2018 and how would you sum-up the year? 2018 was a reset year for markets. After a strong rally, the markets is finally catching its breath and are beginning to reprice growth and expectations. The EM market started 2018 strong, but subsequently weakened materially in the year. Many were caught off guard by how far the US-China trade dispute escalated and how quickly the economic growth slowed down momentum within EMs. The deceleration of growth began even before the negative impact of trade tariff took place. 2) Looking forward to 2019, what are some of the key investment themes and risks that you are monitoring for EMs? There are three risks that stand out. The first is the event of a protracted and escalating geopolitical tension between the US and China. The geopolitical tension could evolve beyond trade to […]

Affin Hwang AM Forms Strategic Partnership with Samsung Asset Management to Develop Leveraged & Inverse ETFs

KUALA LUMPUR – Affin Hwang Asset Management Berhad (“Affin Hwang AM” or “the Company”) announced today that it has entered into a strategic partnership with Samsung Asset Management (Hong Kong) Limited (“Samsung”) to drive product innovation across a range of initiatives, including the development and offering of Leveraged & Inverse (L&I) ETFs on the country’s stock exchange. This comprehensive alliance will seek to deliver value to local investors by providing them access to sophisticated investment instruments at a low-cost and efficient entry point to amplify or hedge returns depending on prevailing market conditions and the investor’s own risk-appetite and objective. Under the terms of the partnership agreement, Affin Hwang AM will appoint Samsung as its Investment Advisor to provide advisory services in the management of its derivative type ETFs including L&I products through shared resources and expertise. Teng Chee Wai, Managing Director of Affin Hwang AM said, “With a shared aspiration to be product innovation leaders in the market, we are excited to join hands with Samsung to pioneer a new range of ETF strategies to meet the growing needs of investors.” “Given Samsung’s strong capabilities and success in managing L&I products, we believe that we are able to capitalise […]

Budget 2019 – Awakening the Tiger

Not as Bad as Expected Local markets breathed a collective sigh of relief last week as the much awaited Budget 2019 proved to be less harmful than initially expected. Severe austerity measures to cut costs as well as rumours of new taxes did not materialise. Instead, Pakatan Harapan’s (PH) maiden federal budget was a mildly expansionary one which stuck to fiscal consolidation, whilst providing a social safety net to the vulnerable B40 group. In a 2-hour speech in Parliament, Finance Minister YB Lim Guan Eng outlined 12 strategic thrusts to return Malaysia’s economic position as an Asian Tiger focusing on 3 areas including institutional reforms, shared economic prosperity and fostering a culture of entrepreneurship. The government had forecasted lower GDP growth of 4.9% for 2019 amidst uncertainty in the global economic landscape. Expectations of lower growth have already been well telegraphed to the market and this lower growth projection had limited impact. To shore up its revenue base, the government expects to collect a RM30 billion special dividend from Petronas which sends a clear signal to investors that the government would be the one assuming its massive debt burden instead of the Rakyat. The corporate tax rate was also reduced […]