THERE is a need for Malaysian unit trust funds to view the capital markets from various perspectives, including from a top-down and bottom-up approach given the inter-connectedness of a globalised environment.
After all, the recent volatilities arising from geopolitical tensions, inflationary issues, and recessionary concerns have made it more challenging for fund managers, hence necessitating a thorough reassessment of investment strategies, according to Principal Asset Management Bhd (Principal Malaysia) country head and CEO Munirah Khairuddin.
“For example, at the onset of the COVID-19 pandemic, we saw that companies closely associated with healthcare and remote work such as gloves and technology stocks performed strongly,” she commented after the unit trust fund was named winner of the FSMOne Recommended Unit Trusts Awards.
“The year 2022 was a particularly unique year where, generally, equity and fixed income investments posted negative returns. However, we are happy to report that our two flagship bond funds – Principal Lifetime Bond Fund and Principal Lifetime Sukuk Fund – produced positive returns.”
The FSMOne Awards which are distinguished acknowledgements of outstanding fund managers who have produced best-in-category fund performances saw 45 Recommended Unit Trusts from 18 fund houses, including AHAM Asset Management Bhd, Manulife Investment Management (M) Bhd, Principal Malaysia, RHB Asset Management Sdn Bhd, Kenanga Investors Bhd, Eastspring Investments Bhd and AmFunds Management Bhd, to name a few, make it to the list.
Delving on the funds’ modus operandi, Munirah revealed that Principal Malaysia’s equity strategy that focused on quality and defensiveness has worked well to mitigate risks which helped funds under its stable generally outperform the broader market.
“Our team remains committed to identifying and leveraging the pockets of opportunities and delivering stability and income for our investors,” she pointed out.
Earlier, Munirah described the award as a recognition that underscores Principal Malaysia’s commitment to delivering exceptional investment solutions and generating value for its clients and customers.
“Through the years, we have built our investment philosophy on an uncompromising purpose to help people achieve financial success,” she shared.
“By leveraging our global expertise coupled with our local knowledge, we continually stand by our client and customers through market challenges and landscapes with steadfast commitment.”
Meanwhile, RHB Asset Management acting CEO Mohd Farid Kamarudin emphasised the need to be “brave and follow your conviction” as the fund manager’s success recipe.
“Our team always look for high conviction ideas that passed our rigorous checklist of fundamental and technical criteria. To have conviction also means that we must ensure that we are well informed on everything that’s going on with the company,” revealed Farid who is also the RHB Islamic International Asset Management CEO.
As for the near-term Malaysian economic outlook, he projected: “Domestic consumption, although slower, is expected to drive the economy amid global uncertainties. Stable wage growth and improving labour market would ensure domestic consumption remains resilient as manufacturing activities slowing down due to weak external demand.” – July 9, 2023
