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| Ismitz Matthew De Alwis of Kenanga Investors Berhad, a fund manager at the marcus evans APAC Investments Summit 2015, shares investment advice. |
LONDON, Apr 17, 2015 - (ACN Newswire) - "The current monetary and fiscal policy in the APAC region still generally accommodates equities but investors have to be mindful of the risks, especially the changing fundamentals of different sectors, and be nimble enough to change their investment allocation," says Ismitz Matthew De Alwis, Executive Director & Chief Executive Officer, Kenanga Investors Berhad. "Investors who appoint local fund managers will have the additional edge," he believes.
Kenanga Investors Berhad is a fund management company at the marcus evans APAC Investments Summit 2015, in Kuala Lumpur, Malaysia, 20 - 22 April.
- What is your outlook on the local markets, specifically Malaysia?
On a macro basis, the focus continues to be on the timing of the interest rate hike by the Fed. Given that uncertainty, we expect more volatility especially in the ASEAN countries, which are more sensitive to US rate cycles.
We remain cautiously optimistic about Malaysia's performance especially towards the later part of the year. A lot depends on the sustainability of its economic growth, which in turn helps drive corporate earnings. The underlying drivers of GDP growth are the infrastructure developments, and the strong demand for electrical, electronics and other manufacturing industries due to a weaker Ringgit. However, in the short-term, there could be pressure coming from Malaysia's first-ever Goods and Services Tax (GST) of six percent.
- How should institutional investors modify their investment and asset allocation strategies to suit this environment?
Investors who adopt the strategy to appoint local fund managers will have the additional edge as local fund managers have the necessary local knowledge and expertise to give them the returns they are looking for.
Some stocks remain undiscovered by investors, and depending on the economic cycle, they could be the gems for this year. Stocks selection will therefore be a very important task for institutional and corporate investors.
- What are these "undiscovered gems"?
In general, investors looking into specific countries tend to invest in the main benchmark stocks, the top 30 or 40 in the country. Yet there are certain small to medium stocks that can deliver better performance, for example in the Philippines, Indonesia, and even Malaysia. We are seeing more investors open up their policy to even look at smaller cap stocks based on local currency.
We advise investors to position defensively in light of the anticipated volatility, while selectively bargain hunting on any market weakness and staying invested in core conviction ideas with clear earnings catalysts.
In the longer-term horizon, once oil prices stabilise, the outlook should brighten as investors refocus on fundamentals such as improvement from fiscal reform and infrastructure development, with a more sustainable recovery anticipated. In the meantime, a balanced strategy of holding a good mix of defensive stocks and beta/cyclical exposure is encouraged.
Having a local fund manager who knows the market well will be an advantage.
- How do you define your fund house's investment approach and how it contributed to your success?
We see ourselves as a bottom up stock picker, searching for companies with strong fundamentals that trade at a discount to their intrinsic value. We studiously perform channel checks by interviewing corporate management and industry experts to affirm our understanding of a company's business model and value drivers. This thorough on-the-ground research led us to under-researched or under-appreciated investment opportunities, which drove alpha performance and contributed to our success.
About the APAC Investments Summit 2015
The 12th annual APAC Investments Summit is the premium forum bringing elite buyers and sellers together. The Summit offers regional institutional investors and international fund managers and consultants an intimate environment for a focused discussion of key new drivers shaping institutional asset allocations. Taking place at the Hilton Kuala Lumpur Hotel, Kuala Lumpur, Malaysia, 20 - 22 April 2015, the Summit includes presentations on navigating a volatile global environment, investigating the dynamics and effects of China's slowdown to avoid pitfalls and capture profitable prospects, unearthing superior yields and strategising a robust wealth structure.
For more information please send an email to press@marcusevanscy.com or visit the event website at www.apacinvestmentssummit.com/IsmitzMatthewDeAlwisInterview
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About Kenanga Investors Berhad
Kenanga Investors Berhad ('KIB') is licensed and authorised to conduct fund management activities, dealing in securities (restricted to unit trusts), dealing in private retirement schemes and investment advice.
KIB offers multi-style investment capabilities to suit the specific client's needs.
KIB's Kenanga Growth Fund was awarded 'The Edge-Lipper Malaysia Fund Awards' in 2015 under the Best Performing Equity Malaysia Fund - 5 and 10 years category. www.kenangainvestors.com.my.
Contact:
Sarin Kouyoumdjian-Gurunlian
Press Manager, marcus evans, Summits Division
Tel: +357 22 849 313
Email: press@marcusevanscy.com
Topic: Trade Show or Conference
Source: marcus evans Summits
Sectors: Daily Finance, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network
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