Popular Funds Promotion 2010 has been quite a ride so far. Investors had to decide whether risk was 'on' or 'off' lest their previous gains get wiped off. What are other investors buying anyway? Which regions are Malaysian investors most optimistic on thus far this year?
by FSM
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We at Fundsupermart.com explored the investors' buying behaviours and have the report on our findings below.
We found that equity funds dominated the top 10 list, with the exception of three fixed income funds, namely OSK-UOB Cash Management Fund, AmDynamic Bond and OSK-UOB Income Alpha Fund.
Fundsupermart.com compilations Year-To-Date till 31st July 2010
It comes as no surprise that OSK-UOB Cash Management Fund nabbed the first spot in our list, since this fund has consistently been number one for the past seven months this year. So, what makes OSK-UOB Cash Management Fund a strong contender to be reckoned with? This fund offers a high level of liquidity and a higher interest rate than a conventional savings account, currently at 2.451% (as at 18 August 2010). Moreover, it is a convenient parking facility for investors of our platform.
Moving on to AmDynamic Bond, this fund has successfully made the list of Recommended Unit Trusts Report 2010. Further, at the Edge-Lipper Malaysia Fund Awards 2010, the fund was awarded the top performing Bond - Malaysian Ringgit fund in the 3-year and 5-year categories, making itself a strong contender among its peers.
Among the Top 10 selling funds, Prudential Global Emerging Markets holds the second position, in line with Fundsupermart's in-house view being postively upbeat on Emerging Markets. China remains as one of Fundsupermart's favourite markets as it is currently trading at an attractive valuation level. Perhaps our investors caught a wave of this as well, thus taking OSK-UOB Big Cap China Enterprise Fund into the 4th position on the Top 10. Another 2 Fundsupermart.com's Recommended Funds 2010 made the list, Prudential Asia Pacific Equity and OSK-UOB Smart Treasure Fund taking the number 8 and number 10 spot respectively. Here are some of Fundsupermart's takes on the mentioned funds:
Although the economic growth in China in the second quarter slows down to 10.3% from 11.9% year-on-year in the first quarter, it is still relatively faster than the government target of 8 in 2010.
Further reform of the RMB exchange rate regime could lead RMB to appreciate against USD in the long run. According to the Non-Deliverable Forward, the market expects the RMB to appreciate about 1.5% in the next 365 days. We believe that the appreciation in RMB could help the Chinese economy to increase its domestic spending power.
The Chinese government already implemented lots of measures in order to cool down the property market. Property market finally shows a signal of cooling down. New property prices dropped 0.1% mom in June. Second hand property dropped 0.3% month-on-month in the same month.
Inflation pressure is increasing in China. We still believe that the People’s Bank of China is like to announce a rate hike in the forth quarter of 2010. We decode a rate hike as a positive news as a vote of confidence to the economic outlook.
Recovery in Asia ex-Japan remains robust and broadly based. Most of the countries recorded a strong rebound in GDP growth year-on-year in the first half of 2010. We believe that the region will remain the centre of global growth boosted by the strong domestic demand and a recovery in exports.
The strongest earnings growth comes from Indonesia, Taiwan and South Korea which is estimated to increase 103.9%, 83.8% and 63.3% in 2010 respectively (data as at 13 August 2010).
Inflation remains a concern in the region. However, most of the central banks are planning to hold back their rate hike decisions due to the unclear impact from a potential slowdown in the Europe.
However, we might still see interest rates moving upwards in some countries such as India due to the increase in inflation pressure.
The economic has recovered from recession as GDP has reported 3 consecutive growth since 4Q 2009. GDP for 2Q 2010 and 1Q 2010 grew 8.9% and 10.1% respectively, which are better than expected.
MYR has been strengthened 7.6% against USD since 31 Dec 2009. Investor would do well if they stay in MYR bond funds, protecting themselves against currency risk.
Financial sector stands to benefit from an increase in net interest margins with Bank Negara Malaysia is expected to raise the benchmark interest rates to 3.25-3.50%.
Equity and bond markets will benefit from the subsidies rationalisation programme with the savings from the subsidy cut could be channeled to other developments that are productive and boost economic growth.
Backed by these figures and the attractive plus points of the above four funds, Fundsupermart.com is lowering the sales charge to just 1.25% for a limited time only from 23 August 2010 till 24 Sept 2010. Grab this rare opportunity!
Don’t have an account with Fundsupermart.com? Open an account forfree and receive a complimentary copy of the Annual Recommended Unit Trusts Magazine 2010!
Terms and Conditions
1. This promotion is only valid from 23 August to 24 September 2010. To be eligible for the promotion, orders must be placed before 3pm on 23 September 2010.
2. All cash payments (Cheque and Internet payments) must reach us by 3pm on 1st October 2010.
3. This promotion does not apply to transactions involving Intra Switch Buy and Regular Savings Plan (RSP).
This advertisement is not to be construed as an offer or solicitation for the subscription, purchase or sale of any fund. An investment in the fund(s) is subject to investment risks, including the possible loss of the principal amount invested. Past performance and any forecast is not necessarily indicative of future or likely performance of the fund.No investment decision should be taken without first viewing a fund's prospectus, which is available from the fund manager or www.fundsupermart.com. For the date of the prospectus, please refer to the prospectus itself which has been registered with the Securities Commission. Issue of units will only be made on receipt of an application form referred to and accompanying a copy of the prospectus. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. The value of units and the income from them may fall as well as rise. Investors may seek advice from a financial adviser before investing, otherwise he/she should consider whether the fund is suitable for him/her.