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Your Long-Awaited List of Recommended Unit Trusts 2018/19 is Finally Here! July 2, 2018
It is the time of the year again where we furnish investors with an updated list of consistent performing unit trusts.
Author : Tan Wei Yine


The List You've been Waiting For: FSM Recommended Unit Trusts 2017/18

SUMMARY OF RECOMMENDED UNIT TRUSTS LIST 2018/19

Markets are behaving very differently this year. Volatility “returned” to the scene, and market participants have been busy at catching up with various developments on the global economic front. Having surfed through the tides across 1H2018, it is the time of the year again where we furnish investors with our list of Recommended Unit Trusts. Each year, we perform fund assessments and select the best performing funds from each category available to ensure that the list remains relevant and current to investors. This year, we have a total of 37 funds under 26 categories on our list, spanning across both equities and fixed incomes with exposure to a wide range of countries and regions across the globe. Most of the funds on the list have demonstrated a strong long-term track record and 29 out of 36 Recommended Unit Trusts for 2017/18 have made it back to the list for this year, indicating the consistency of our fund recommendations as well as the quality of our recommended funds.

Our methodology of fund assessment is largely quantitative, where funds are assessed based on historical performances, risk and expenses. Apart from the quantitative analysis, we also consider qualitative factors in our analysis, including the fund house’s investment philosophy, the fund manager’s consistency in their investment approach, the stability of the management team, the investment team’s years of experience and the fund holdings among other factors.

 

CATEGORY RECOMMENDED UNIT TRUSTS FOR 2018/19
CORE PORTFOLIO
EQUITY
Core Equity - Global (Islamic)
Core Equity - Developed Markets
Core Equity - Global Emerging Markets
Core Equity - Asia ex-Japan
Core Equity - Asia ex-Japan (Islamic)
Core Equity - Malaysia
Core Equity - Malaysia (Islamic)
BOND
Bond - Malaysia (Short Duration)
Bond - Malaysia
Bond - Malaysia (Islamic)
BALANCED
Balanced - Asia ex-Japan
Balanced - Malaysia
Balanced - Malaysia (Islamic)
SUPPLEMENTARY
Sub Regional Equity - Greater China
Sub Regional Equity - Europe
Single Country-India
Single Country-Singapore
Sector Equity - Malaysia Small to Medium Companies
Bond - Asia
Bond - Emerging Markets
Bond - Malaysia with Foreign Exposure
Sector Equity - Global Resources
PRIVATE RETIREMENT SCHEME
Private Retirement Scheme - Conservative
Private Retirement Scheme - Moderate
Private Retirement Scheme - Growth

what's new

There are several changes within the Core Equity segment this year. On the domestic front, we brought back Eastspring Investments Small-Cap Fund into the Malaysia Small-to-Mid Cap category. At the same time, we replaced Affin Hwang AIIMAN Growth Fund with PMB Shariah Premier Fund for the Malaysia Islamic category. We have removed Eastspring Investments Global Leaders MY Fund from the Global Equity category due to its closure earlier this year amid departure of the target fund manager.

Looking towards the Balanced Fund segment, we have added Affin Hwang Select Asia Pacific (ex-Japan) Balanced Fund-MYR into Balanced – Asia ex-Japan category. Within Malaysia category, we have replaced Eastspring Investments Dynamic Fund with Kenanga Balanced Fund, where the latter have portrayed better resiliency in challenging periods. Scoping onto the Malaysia Islamic Fixed Income space, we have replaced AMB Dana Arif with RHB Islamic Bond Fund.

There are also changes within the list of Private Retirement Scheme (PRS) funds we introduced last year. For the Conservative category, we have changed Kenanga OnePRS Conservative Fund to CIMB-Principal PRS Plus Conservative – Class C. As for the Growth category, we have replaced Kenanga OnePRS Growth Fund with CIMB-Principal PRS Plus Growth – Class C.

Under the Supplementary Fund segment, we have switched out Commodities Equity and replaced with Manulife Global Resources Fund under Global Resources Category.

The supplementary portfolio consists of sub-regional funds, country-specific funds as well as sector-specific funds, with the goal of enhancing a portfolio’s potential return. While these funds provide higher potential returns, investors should be aware that these funds may entail higher volatility. Thus, investors who seek to invest in funds under these categories should have a higher risk tolerance and longer investment time frame.

While there have been changes of funds within the categories, previously recommended funds should not be considered as sub-par investments because we have seen previously dropped funds making it back to the list. We note that the difference of scores between good funds is marginal for some categories, and with the fact that we had to be stringent in our shortlist, some good funds inevitably did not make the list.

TAKEAWAY

With the large array of funds available on our platform, the Recommended Unit Trusts list serves as a starting point for investors. Prior to making any investment decisions, investors should note that they should select a fund that would complement and sit well with their investment styles, philosophies and objectives.

Aside from keeping up with the rapid developments on the global economic front, the careful study of fund factsheets, prospectus and semi-annual/annual reports are essential reading for investors who are determined to take a more active role in selecting funds for their portfolios. Investors should consider the various merits and characteristics that individual fund possess in constructing their own portfolios. Likewise, having a suitable asset allocation and the exposure to regional markets across the globe for the purpose of diversification are also critical considerations for a successful investment.

Click here for detailed description on the recommended funds.

 


This article is not to be construed as an offer or solicitation for the subscription, purchase or sale of any fund. No investment decision should be taken without first viewing a fund's prospectus, product highlight sheet (PHS), and if necessary, consulting with financial or other professional advisers. 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. Amongst others, investors should consider the fees and charges involved. The relevant prospectuses have been registered and lodged with the Securities Commission. Past performance and any forecast is not necessarily indicative of the future or likely performance of the fund. The value of units and the income from them may fall as well as rise. 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. Where a unit split is declared, investors should be highlighted of the fact that the value of their investment will remain unchanged after the distribution of the additional units. All applications for unit trusts must be made on the application form accompanying the prospectus. The prospectuses and PHS can be obtained from Fundsupermart.com. Opinions expressed herein are subject to change without notice. Please read our disclaimer in the website.