TheStar
KUALA LUMPUR: AmBank Group has launched its first structured deposit product, AmStructured Deposit - Global Bourses, which is expected to yield returns of 24.5% upon maturity in three years.
The three-year floating rate negotiable instrument of deposit (FRNID), pays a fixed return of 2% in the first year while the returns for year two and three are determined by the performance of eight global bourses.
The eight are London Stock Exchange Group, Deutsche Bourse AG (Germany), Bolsas y Mercados Espanoles (Spain), NYSE Euronext, InterContinental Exchange Inc, Nasdaq Stock Market Inc, Hong Kong Exchanges and Clearing Ltd, and Singapore Exchange Ltd.
Group managing director Cheah Tek Kuang said the deposit had a “catch-up coupon” structure, whereby if the performance of the underlying stocks was poor in the first and second years, depositors could still benefit from a higher coupon in the third year if the underlying stocks recovered.
“The deposit is close-ended with a targeted size of RM200mil,” he said at the launch yesterday. He said FRNID accorded capital preservation for investors and enabled them to share the benefits of the growth potential of the stocks
“In assessing the current market volatility, we find there is growth potential that can be tapped from the eight stock exchanges.
“Earnings of each stock exchange are dependent on the volume of transaction, regardless of market direction.
“In addition, the recent increasing merger and acquisition activities in all the global bourses, driven by increasing revenues from the surge in trading volume and advent of exchange-traded derivatives, greatly heightens the prospects for further gains,” Cheah said.
Minimum investment for this product is RM100,000 while the minimum additional investment is RM50,000.
AmInvestment Bank Group chief investment officer, fixed income, Yvonne Phe Kheng Peng said the group planned to launch a similar structured deposit product every quarter.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Friday, March 28, 2008
HwangDBS targets 6%–8% return from latest fund
TheStar
KUALA LUMPUR: HwangDBS Investment Management Bhd targets an annual return of 6% to 8% for its newly launched Asia Aspire Capital Protected Fund that invests in Australian treasury bills and 10 global brands.
Chief executive officer and executive director Teng Chee Wai said that in a bullish market, the fund would invest in these global brands that would benefit from rising consumer spending and affluence among the Asian middle-class.
“We hope to capitalise on the increasing affluence of Asia’s households and rising consumption of the middle-income class,” he said at the launch of the fund yesterday.
The investments would be made in companies involved in the financial services, luxury fashion, consumer electronics, motor vehicles and telecommunications sectors such as Apple, Nokia, Ping An Insurance, Standard Chartered Bank and Toyota.
KUALA LUMPUR: HwangDBS Investment Management Bhd targets an annual return of 6% to 8% for its newly launched Asia Aspire Capital Protected Fund that invests in Australian treasury bills and 10 global brands.
Chief executive officer and executive director Teng Chee Wai said that in a bullish market, the fund would invest in these global brands that would benefit from rising consumer spending and affluence among the Asian middle-class.
“We hope to capitalise on the increasing affluence of Asia’s households and rising consumption of the middle-income class,” he said at the launch of the fund yesterday.
The investments would be made in companies involved in the financial services, luxury fashion, consumer electronics, motor vehicles and telecommunications sectors such as Apple, Nokia, Ping An Insurance, Standard Chartered Bank and Toyota.
From left: HwangDBS Malaysia director Alex Hwang,Teng Chee Wai and Garry Frenklah, The Royal Bank of Scotland’s managing director of global banking and market
Teng said the fund would provide Malaysian investors with an opportunity to gain from Asia’s rising affluence and their increasing scale of discretionary spending.
In a bearish market, the fund will automatically switch to defensive assets – one-month Australian treasury bills – which have a yield of 7.6% a year.
The fund is available until May 10 at selected third-arty distributors, including ABN AMRO Bank Bhd, Affin Bank Bank Bhd, Alliance Bank Malaysia Bhd, AmPrivate Banking, CIMB Wealth Advisors Bhd, EON Bank Bhd, Hong Leong Bank Bhd, RHB Bank Bhd and Standard Chartered Bank (M) Bhd.
Teng also said HwangDBS hoped to launch five to six more funds this year.
The group currently manages 26 funds with a total value of RM6bil.
New fund from Public Mutual
TheStar
KUALA LUMPUR: Public Mutual Bhd will launch on April 1 the Public China Titans Fund (PCTF), which seeks to tap into the growth prospects in the Greater China region.
Chairman Tan Sri Teh Hong Piow said PCTF offered investors the opportunity to capitalise on the growth prospects of large-cap stocks in Greater China.
“The return of funds that focus on large-cap stocks are usually considered more stable than small-cap funds as larger corporations are better positioned to weather economic cycles due their sheer size, stronger cash flows and dominance in their respective industries,” he said in a statement yesterday.
PCTF is an equity fund that seeks to achieve capital growth over the medium to long term by investing up to 98% of its net asset value in companies with market capitalisation of RM10bil and above in China, Hong Kong and Taiwan, and China-based companies listed on overseas markets.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
KUALA LUMPUR: Public Mutual Bhd will launch on April 1 the Public China Titans Fund (PCTF), which seeks to tap into the growth prospects in the Greater China region.
Chairman Tan Sri Teh Hong Piow said PCTF offered investors the opportunity to capitalise on the growth prospects of large-cap stocks in Greater China.
“The return of funds that focus on large-cap stocks are usually considered more stable than small-cap funds as larger corporations are better positioned to weather economic cycles due their sheer size, stronger cash flows and dominance in their respective industries,” he said in a statement yesterday.
PCTF is an equity fund that seeks to achieve capital growth over the medium to long term by investing up to 98% of its net asset value in companies with market capitalisation of RM10bil and above in China, Hong Kong and Taiwan, and China-based companies listed on overseas markets.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Wednesday, March 26, 2008
Remain Calm Through Market Turbulence
PublicMutual
In the wake of the turbulence of stock markets in recent months, unit trust investors may be tempted to either sell or buy. However, investors are advised to remain calm and practise dollar cost averaging with their long-term goals in view.
When regional and global markets succumbed to panic selling in August 2007 and more recently in January 2008, the severity and sharpness of the correction was large enough to make unit trust investors ask themselves whether they should redeem now to stem further losses or buy more units at currently low prices.
In fact, if they practise dollar cost averaging, they need not concern themselves with these timing issues. Dollar cost averaging enables investors to automatically buy more units when prices fall and fewer units when prices rise.
It is especially during times of market volatility that individual investors should remain focused on their long-term investment goals and keep their emotions from influencing their investment decisions. A disciplined and methodical approach to investing is the key to long-term investment success.
Unit trust investors are advised to buy and hold their investments for the medium to long term.
The buy-and-hold principle is based on the notion that a good investment will generate reasonably attractive returns over the medium to long term.
This also means that investors are able to distinguish between daily movements in the market and the underlying long-term value of their investments.
Professional fund managers buy and hold for the medium to long term as they are prepared to wait patiently over several years for their investments to reach their intrinsic or fair values. For the unit trust investor, the 'buy-and-hold' strategy can also be applied by holding on to a well-selected unit trust fund over a period of at least three years.
There are some investors who believe they can achieve superior returns by timing the purchase and redemption of equity funds to profit from the stockmarket's short-term movements. These investors are tempted to engage in timing the market especially in an environment where equity markets are volatile. Such investors who wish to make quick gains in the stock market by switching from one fund into another fund will often be disappointed.
Market timing strategies that are often recommended by 'investment experts' have seldom been successful. This is because stock markets are inherently volatile and are impossible to predict with numerous factors, both domestic and foreign, affecting daily and weekly fluctuations in stock prices.
Investors who wish to take a more active approach with their investments by timing the market will expose themselves to many risks. In order to profit from the market's short-term trends, the investor has to correctly predict the market's trend and its turning points.
Without the appropriate skills to discern signals and time the entries and exits, the market timer may not only miss opportunities, but also potentially suffer the blow of rapid losses. Also with a higher frequency of fund switching, investors will have to incur increased transaction costs.
Investors who are concerned about market volatility are advised to practise dollar cost averaging as this strategy enables investors to focus on the long-term investment goal and not worry about the prevailing level of the market.
Dollar cost averaging is simply investing a fixed amount of money in a financial asset (such as a unit trust fund) on a regular basis (monthly, quarterly, biannual) regardless of the market cycle. By investing a fixed amount on a regular basis, investors will buy more units when the market is lower and fewer units when the market is higher. This strategy will produce a lower average cost of investment than the average market price over any given period.
In addition, investors are also advised to rebalance their portfolios regularly at least once a year to ensure that their portfolio allocation reflects their investment objectives and risk profile. Thus if, as a result of an uptrend in stock prices, an investor's equity exposure has exceeded a level consistent with his risk tolerance, he can trim a portion of the equity funds and switch into bond or money market funds to rebalance the asset allocation accordingly.
Maintaining a target asset allocation reduces the risk that the portfolio becomes too concentrated in a single asset class.
In conclusion, unit trust investors should always focus on achieving their medium to long-term investment goals. The practice of dollar cost averaging and regular portfolio rebalancing are effective tools that help investors remain focused on the long term horizon and prevent them from over-reacting to short-term movements of the stockmarket.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
In the wake of the turbulence of stock markets in recent months, unit trust investors may be tempted to either sell or buy. However, investors are advised to remain calm and practise dollar cost averaging with their long-term goals in view.
When regional and global markets succumbed to panic selling in August 2007 and more recently in January 2008, the severity and sharpness of the correction was large enough to make unit trust investors ask themselves whether they should redeem now to stem further losses or buy more units at currently low prices.
In fact, if they practise dollar cost averaging, they need not concern themselves with these timing issues. Dollar cost averaging enables investors to automatically buy more units when prices fall and fewer units when prices rise.
It is especially during times of market volatility that individual investors should remain focused on their long-term investment goals and keep their emotions from influencing their investment decisions. A disciplined and methodical approach to investing is the key to long-term investment success.
Unit trust investors are advised to buy and hold their investments for the medium to long term.
The buy-and-hold principle is based on the notion that a good investment will generate reasonably attractive returns over the medium to long term.
This also means that investors are able to distinguish between daily movements in the market and the underlying long-term value of their investments.
Professional fund managers buy and hold for the medium to long term as they are prepared to wait patiently over several years for their investments to reach their intrinsic or fair values. For the unit trust investor, the 'buy-and-hold' strategy can also be applied by holding on to a well-selected unit trust fund over a period of at least three years.
There are some investors who believe they can achieve superior returns by timing the purchase and redemption of equity funds to profit from the stockmarket's short-term movements. These investors are tempted to engage in timing the market especially in an environment where equity markets are volatile. Such investors who wish to make quick gains in the stock market by switching from one fund into another fund will often be disappointed.
Market timing strategies that are often recommended by 'investment experts' have seldom been successful. This is because stock markets are inherently volatile and are impossible to predict with numerous factors, both domestic and foreign, affecting daily and weekly fluctuations in stock prices.
Investors who wish to take a more active approach with their investments by timing the market will expose themselves to many risks. In order to profit from the market's short-term trends, the investor has to correctly predict the market's trend and its turning points.
Without the appropriate skills to discern signals and time the entries and exits, the market timer may not only miss opportunities, but also potentially suffer the blow of rapid losses. Also with a higher frequency of fund switching, investors will have to incur increased transaction costs.
Investors who are concerned about market volatility are advised to practise dollar cost averaging as this strategy enables investors to focus on the long-term investment goal and not worry about the prevailing level of the market.
Dollar cost averaging is simply investing a fixed amount of money in a financial asset (such as a unit trust fund) on a regular basis (monthly, quarterly, biannual) regardless of the market cycle. By investing a fixed amount on a regular basis, investors will buy more units when the market is lower and fewer units when the market is higher. This strategy will produce a lower average cost of investment than the average market price over any given period.
In addition, investors are also advised to rebalance their portfolios regularly at least once a year to ensure that their portfolio allocation reflects their investment objectives and risk profile. Thus if, as a result of an uptrend in stock prices, an investor's equity exposure has exceeded a level consistent with his risk tolerance, he can trim a portion of the equity funds and switch into bond or money market funds to rebalance the asset allocation accordingly.
Maintaining a target asset allocation reduces the risk that the portfolio becomes too concentrated in a single asset class.
In conclusion, unit trust investors should always focus on achieving their medium to long-term investment goals. The practice of dollar cost averaging and regular portfolio rebalancing are effective tools that help investors remain focused on the long term horizon and prevent them from over-reacting to short-term movements of the stockmarket.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Economists forecast 5.6pc growth for Malaysia
BusinessTimes
MALAYSIA'S economy is expected to expand at a much slower clip this year, due to global uncertainties surrounding the depth of the slowdown in the US.A Business Times poll showed that on average economists are looking for modest growth of 5.62 per cent this year, with domestic demand driving this growth.
They also expect economic activities to accelerate once the "political dust" from the recent general election is settled.
The country's gross domestic product (GDP) is also set to improve in the second half of 2008 when the fiscal stimulus following the US Federal Reserve's aggressive interest rate cuts provide some boost to the US economy.
The Finance Ministry has projected a six per cent to 6.5 per cent growth for 2008, but most of the economists including Affin Investment Bank economist Alan Tan expect Bank Negara Malaysia to forecast lower growth projections in view of the external uncertainties.
Bank Negara will announce its economic growth projection for the country for 2008 in its annual report released today. The economy grew at 6.3 per cent last year, the strongest showing since 2004, on higher domestic demand.
"In view of the global uncertainties, Bank Negara is likely to scale down the GDP growth forecast to between 5.5 per cent and six per cent," said Tan.
"We believe it will highlight downside risks to the growth projection including the US subprime mortgage crisis and credit crunch problems that could decelerate US consumer spending, forcing the economy into a sharp slowdown," he added.
Other downside risks to Malaysia's GDP growth forecast are high oil prices, rising inflation, weakening US dollar outlook as well as possible delays of major government projects and investment spending by the private sector with the new political landscape, he said.
Action Economics director of Asian Economic Forecasting David Cohen said first quarter 2008 showed economies in the region were holding up well despite the drag from the US economy.
Most of the economies in the region such as Singapore, the Philippines and Indonesia have been registering a five per cent GDP growth, he said.
However, these economies have not decoupled from the US economy and will experience slower growth this year.
The Asean economies stand to benefit from the higher oil prices despite inflationary pressures building up.
On inflationary risks, economists polled expect the country's consumer price index to grow at 2.96 per cent year-on-year, but the figure may increase depending on when the government decides to cut fuel subsidies.
Aseambankers chief economist Suhaimi Ilias said against a backdrop of escalating global food prices, Malaysia would need another year of relief before the move to cut fuel subsidies is considered.
"Domestic demand will continue to drive the economy. Although exports are expected to have a better showing than last year, it will not be sufficient and will still pose a challenge," he said.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
MALAYSIA'S economy is expected to expand at a much slower clip this year, due to global uncertainties surrounding the depth of the slowdown in the US.A Business Times poll showed that on average economists are looking for modest growth of 5.62 per cent this year, with domestic demand driving this growth.
They also expect economic activities to accelerate once the "political dust" from the recent general election is settled.
The country's gross domestic product (GDP) is also set to improve in the second half of 2008 when the fiscal stimulus following the US Federal Reserve's aggressive interest rate cuts provide some boost to the US economy.
The Finance Ministry has projected a six per cent to 6.5 per cent growth for 2008, but most of the economists including Affin Investment Bank economist Alan Tan expect Bank Negara Malaysia to forecast lower growth projections in view of the external uncertainties.
Bank Negara will announce its economic growth projection for the country for 2008 in its annual report released today. The economy grew at 6.3 per cent last year, the strongest showing since 2004, on higher domestic demand.
"In view of the global uncertainties, Bank Negara is likely to scale down the GDP growth forecast to between 5.5 per cent and six per cent," said Tan.
"We believe it will highlight downside risks to the growth projection including the US subprime mortgage crisis and credit crunch problems that could decelerate US consumer spending, forcing the economy into a sharp slowdown," he added.
Other downside risks to Malaysia's GDP growth forecast are high oil prices, rising inflation, weakening US dollar outlook as well as possible delays of major government projects and investment spending by the private sector with the new political landscape, he said.
Action Economics director of Asian Economic Forecasting David Cohen said first quarter 2008 showed economies in the region were holding up well despite the drag from the US economy.
Most of the economies in the region such as Singapore, the Philippines and Indonesia have been registering a five per cent GDP growth, he said.
However, these economies have not decoupled from the US economy and will experience slower growth this year.
The Asean economies stand to benefit from the higher oil prices despite inflationary pressures building up.
On inflationary risks, economists polled expect the country's consumer price index to grow at 2.96 per cent year-on-year, but the figure may increase depending on when the government decides to cut fuel subsidies.
Aseambankers chief economist Suhaimi Ilias said against a backdrop of escalating global food prices, Malaysia would need another year of relief before the move to cut fuel subsidies is considered.
"Domestic demand will continue to drive the economy. Although exports are expected to have a better showing than last year, it will not be sufficient and will still pose a challenge," he said.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
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