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 Trust: Affin 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.|
Any opinions or views expressed in this material are those of the author and third parties identified, and not those of OCBC Bank (Malaysia) Berhad (“OCBC Bank”, which expression shall include OCBC Bank’s related companies or affiliates).
We recommend that you read and understand the content of the Information Memorandum for RHB Global Macro Opportunities Fund dated 1 June 2016 by RHB Asset Management Sdn Bhd. Investments in the Fund are exposed to country risk, equity risk, currency risk, management risk, emerging market risk and others as disclosed in the Information Memorandum. This fund is eligible to be purchased by High Net Worth Individuals only, the criteria of High Net Worth Individuals as per stated in Schedules 6 and 7 of Capital Market and Services Act (CMSA) 2007.
We recommend that you read and understand the Master Prospectus for the Affin Hwang Select Income Fund dated 18 July 2017 and expires on 17 July 2018 by Affin Hwang Asset Management Bhd (formerly known as Hwang Investment Management Berhad). Investments in the Fund are exposed to specific risks including equity investment risk, equity-linked securities investment risk, credit/default risk, interest rate/price risk, structured products risk, country risk, currency risk, regulatory risk and others as disclosed in the prospectus.
We recommend that you read and understand the content of the Master Prospectus for TA European Equity Fund dated 1 October 2016 which must be read together with the First Supplementary Master Prospectus dated 10 April 2017 by TA Investment Management Berhad. Investments in the Fund are exposed to country risk, equity risk, currency risk, market risk, emerging market risk and others as disclosed in the Master Prospectus and Product Highlights Sheet.
We recommend that you read and understand the contents of the Prospectus for the Affin Hwang World Series – Global Balanced Fund dated 6 June 2017, by Affin Hwang Asset Management Berhad. Investments in the Fund are exposed to collective investment schemes risk, credit and default risk, interest rate risk, currency risk, liquidity risk, related parties transaction risk, country risk and others as disclosed in the prospectus.
Product Risk Rating and Suitability Determination Matrix: a)Moderate: Product carries the risk that an investor may possibly suffer partial loss of full principal investment amount but total loss is unlikely ('Partial loss' means the loss suffered by the investor can be up to 15% of the original investment principal) and customers with 'Balanced', 'Growth' and 'Aggressive' risk profiles may invest in a Moderate risk-rated product; b)High: Product carries the risk that an investor may suffer substantial or 100% loss of principal investment amount ('Substantial loss' means the loss suffered by the investor can be more than 15% of the investment principal) and customers with 'Growth' and 'Aggressive' risk profiles may invest in a High risk-rated product.
Unit Trust investments are not bank deposits and are not obligations of or guaranteed or insured by OCBC Bank (Malaysia) Berhad. Unit Trust investments are not guaranteed and are subject to investment risk unless otherwise specified. The investment risk includes general risks as described in the Information Memorandum/Prospectuses for Unit Trust investment funds (“Information Memorandum/Prospectuses”) and specific risks which may be different for each Unit Trust investment. Description of specific risks and general risks are published in the Information Memorandum/Prospectuses. With respect to Unit Trust investment, past performance is not indicative of future results; the net asset value can go up or down. Investors should also note that the net asset value per unit and distributions payable, if any, may go down as well as up.
Where unit trust loan financing is available, investors are advised to read and understand the contents of the unit trust loan financing risk disclosure statement before deciding to borrow to purchase units. Where a unit split/distribution is declared, investors are advised that following the issue of additional units/distribution, the NAV per unit will be reduced from pre-unit split NAV/cum-distribution NAV to post-unit split NAV/ex-distribution NAV; and where a unit split is declared, investors should be highlighted of the fact that the value of their investment in Malaysian ringgit will remain unchanged after the distribution of the additional units.
The Information Memorandum/Prospectuses have been registered with the Securities Commission Malaysia, which takes no responsibility for its content. A copy of the Information Memorandum/Prospectuses can be obtained at OCBC Bank’s branches. Units will only be issued upon the receipt of application form referred in, and accompanying the Information Memorandum/Prospectuses. Investors are advised to read and understand the contents of the Information Memorandum/Prospectuses, and if necessary consult their adviser(s), as well as consider the fees and charges involved before investing in the Unit Trust.
This document has been prepared without taking account of the objectives, financial situation or needs of any specific person or organisation who may receive this document. Accordingly prior to making an investment decision, you should conduct such investigation and analysis regarding the product described herein as you deem appropriate and to the extent you deem necessary obtain independent advice from competent legal, financial, tax, accounting and other professionals, to enable you to understand and recognise fully the legal, financial, tax and other risks arising in respect of the product and the purchase, holding and sale thereof.
You should obtain and read the Product Highlight Sheet of the product before you make a decision to acquire the product. All information provided in this document is general and does not take into account your individual objectives, financial situation or specific needs.
You are required to read and understand the terms and Product Highlight Sheet of the product carefully before executing any transaction relating to the product with us. You may request for a copy of the Product Highlight Sheet at OCBC Banks’ branches.
The information provided herein is intended for general circulation and/or discussion purposes only and does not contain a complete analysis of every material fact. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. Without prejudice to the generality of the foregoing, please seek advice from a financial adviser regarding the suitability of any investment product taking into account your specific investment objectives, financial situation or particular needs before you make a commitment to purchase the investment product.
In the event that you choose not to seek advice from a financial adviser, you should consider whether the product in question is suitable for you. This does not constitute an offer or solicitation to buy or sell or subscribe for any security or financial instrument or to enter into a transaction or to participate in any particular trading or investment strategy.
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