Top Investment Ideas (November 2017)
Do Not Lower Your Defences

Michael Lai
Head of Research, Wealth Management, OCBC Bank Malaysia
Member of OCBC Wealth Panel

We take the view that global monetary policies would be increasingly less dovish, led by the unprecedented US central bank unwinding and potential rate hikes. We remain cautious and continue to advocate a rotation strategy.

On regional equity markets, we are still negative on Japan and Asia ex-Japan, but neutral on the U.S. and Europe.

On bonds, we remain positive on Emerging Market and Developed Market high yields. However, we are negative on Developed and Emerging Market Investment Grades.

Top Investment Ideas

Unit Trust: RHB Global Macro Opportunities (Risk rating: High)
Eligibility: High Net Worth Investors Only
This fund invests in a target fund, the JPMorgan Investment Funds – Global Macro Opportunities fund and is suitable for investors seeking to benefit from enhanced diversification and sophisticated multi-dimensional risk management. This fund capitalises on global macroeconomic trends to drive returns by employing a dynamic multi-asset approach and aims to achieve capital appreciation in excess of its cash benchmark by investing primarily in securities, globally, using financial derivative instruments where appropriate. This fund also targets to deliver potentially positive returns in varying market environments with expected volatility of 6-10% over the medium term.

Unit TrustAffin Hwang Select Income Fund (Risk rating: Moderate)
Eligibility: Retail and High Net Worth Investors
Suitable for investors seeking to invest in an income-driven, absolute return focused fund. This fund also targets to provide a high level of cash flow as well as growth by investing at least 70% of its NAV into fixed income instruments and a maximum of 30% NAV into equities globally with an Asian focus.

Unit Trust: TA European Equity Fund (Risk rating: High)
Eligibility: Retail and High Net Worth Investors
This fund invests in a diversified portfolio of local and/or foreign equity funds, REITs and ETFs investing in Europe. Prospects for European equities have improved – quantitative easing lowers borrowing costs and ECB’s actions appear to be improving sentiment, economic output and, for the time being, inflation expectations. As such, investors seeking exposure in the European region may consider this fund.

Unit Trust: Affin Hwang World Series – Global Balanced Fund (Risk rating: Moderate)
Eligibility: Retail and High Net Worth Investors
Investors seeking capital growth opportunities through a portfolio of collective investment schemes with access into equities listed in global markets, fixed income instruments such as debt securities, money market instruments and fixed deposits, issued globally may consider this fund.

Top Investment Ideas are an expression of the investment outlook in this publication. They are not recommendations made in accordance with your investment objective and risk profile. As such, we recommend that you complete a suitability assessment before purchasing your selected investment product.


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