Top Investment Ideas (July 2018)
How to Invest in Uncertain and Volatile Markets







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

Given the nebulous second half outlook, investors ought to tread carefully and seek investments that are well placed to manage the volatility and potential market drawdowns ahead. This includes investing in multi-asset funds, bonds with shorter duration and funds that can write equity call options.

Unit Trust: RHB Global Macro Opportunities Fund (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 Trust: CIMB-Principal Global Titans Fund (Risk rating: High)
Eligibility: Retail and High Net Worth Investors
Investors seeking exposure and investment opportunities in the developed markets, i.e US, Europe and Japan may consider this fund. This fund invests at least 50% of its NAV into 3 PGI Funds and 3 Schroder funds in the global titans market of the US, Europe and the Japan. This fund also has exposure to the Malaysian equities to balance any short term volatilities. The steadily recovering global economy especially in Europe and the US remains a healthy backdrop for equities.

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.

Unit Trust: RHB Asian Income Fund (Risk rating: Moderate)
Eligibility: Retail and High Net Worth Investors
This fund invests in one target fund, the Schroder Asian Income fund and is suitable for investors seeking income and capital growth over the medium- to long-term via an active allocation strategy. Exposure in Asia is opportunistic as we view Asia being in a relatively strong position with a high level of foreign reserves, limited external debt and improving growth potential which benefitted from structural reforms.

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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