Top Investment Ideas (October 2018)
Stay Invested But Get Ready For Greater Volatility







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

Fundamentals support further upside for stock markets but with a slew of global headwinds in the coming months, investors need to be prepared for greater market volatility. In this section, we share some ways to invest and grow your wealth despite macro headwinds and the uncertainties ahead.

 

  • Unit Trust: CIMB-Principal Asia Pacific Dynamic Income Fund (Risk rating: Moderate)
    Eligibility: Retail and High Net Worth Investors Only
    This fund invests in equities in the Asia Pacific ex-Japan region with the aim of providing regular income and capital appreciation over the medium to long term. Asia’s macroeconomic growth outlook remain strong with better policy management and higher commodity prices, improving the region’s appeal for foreign direct investment flows. The near-term momentum for equities in Asia ex-Japan remains positive as the region continues to catch up.
  • 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.
  • Autocallable Equity-linked Structured Investment: Xiaomi Corp, Alibaba Group and Tencent Holdings. (Risk rating: High)
    Eligibility: High Net Worth Investors
    Investors looking for alternative sources of income aside from traditional asset class can consider this structured investment. Invests in one of 3 underlying stocks, Xiaomi Corp. Alibaba Group and Tencent Holdings. Potential yield of 7% – 8% p.a. with a structured tenure of 6 months.

    WARNING: THE RETURNS ON YOUR STRUCTURED PRODUCT INVESTMENT WILL BE AFFECTED BY THE PERFORMANCE OF THE UNDERLYING ASSET/REFERENCE, AND THE RECOVERY OF YOUR PRINCIPAL INVESTMENT MAY BE JEOPARDISED IF YOU MAKE AN EARLY REDEMPTION. THIS STRUCURED INVESTMENT IS NOT INSURED BY PERBADANAN INSURANCE DEPOSIT MALAYSIA
  • 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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