5 Things to Know before 13th General Election

Are you bored of the recent elections hoo-haa ? It's all coming from either party from different side, some NGOs, and some political related persons. How about foreigners? What are they thinking about our Malaysia General Election? Here you go...

In this note, Morgan Stanley outline the 5 things they think investors need to know regarding Malaysia elections:

1. What's upcoming? Setting the context
   The 13th General Elections are due to be held very soon in Malayia. Parliament needs to be dissolved no later than April 2013, and elections need to be held no later than 60 days from date of its dissolution.
   
   
2. Which are the key states to monitor?
   They are Kedah, Penang, Selangor, Perak, Johor, Sabah and Sarawak.
3. Election scenarios and macro implications
   BN Parliamentary seat share of > 63% would be seen as a positive surprise for investors. BN Parliamentary seat share of < mid 50% would be seen as a negative risk event by investors and could have implications for leadership and government stability. The political landscape will determine momentum of reform agenda.
4. Policy comparison: Pakatan Rakyat (PR) vs Barisan Nasional (BN)
   The broad economic thrust of PR policy is fairly similar to that of BN. However, PR campaign proposals have a more leftist slant and also focus on policy devolvement to state governments, more geographically balanced economic development, and strengthening of decentralization in Sabah and Sarawak.
5. What to expect in UMNO Party elections?
   UMNO elections have to be held by Jun-2013. The president of UNMO is historically the prime minister, and hence, this will determine whether there is leadership stability. Forthcoming elections will take place amid constitutional amendments which makes the process more democratic.

* NO abusive comments were allowed. Thanks.

Source: Morgan Stanley research report dated 18th Feb 2013

OSK-UOB Dana KidSave

One of the most desired by an investor, is to achieve diversification in his or her portfolio and what better way to do so then by investing in a balanced fund. A balance in an investment portfolio is also fundamental to appease an investor in times of uncertainties and volatility. Such a balance can appeal to the investor of any age regardless of his or her objectives. Thus, with market uncertainties continuing to prevail over the Eurozone debt crisis and its contagion effect on the global economy, investors remain cautious with their investment choice, seeking to invest in low to moderate risk investments such as a balanced fund.

Hence, OSK-UOB offer you a Shariah-based fund with its balanced asset allocation strategy in equities and investments comprising sukuk, islamic money market instruments, deposits and collective investment schemes. The investment in equities will enjoy potential capital appreciation upswings while any downswings will be cushioned by its investments in the latter which are defensive in nature.

When making investments, the manager may invest up to 30% of NAV in foreign markets. The fund will invest in Shariah-compliant securities/instruments listed on or traded in Asia Pacific ex Japan markets, including Shariah-compliant securities / instruments of companies that are listed on or traded in non-Asia Pacific ex Japan markets (such as NYSE and LSE).

How about Sukuk ?

At lease BBB rating sukuk issued by Malaysian incorporated companies at the point of purchase by RAM Rating Services Bhd or equivalent rating agencies. Foreign sukuk issued by corporations and financial institutions must carry a rating of BB or higher by S&P or equivalent, whereas sukuk issued by supra-nationals, governments and their agencies need not be rated.

Click here to download prospectus

Source: OSK-UOB IM

New Fund: Hwang AIIMAN Select Income

After the successful performance of AIIMAN series and the superb proven track record of Hwang Select Income fund, it's natural for Hwang to launch this new fund by riding on the story of these.

What is the Hwang AIIMAN Select Income fund?

This is a Shariah-compliant mixed asset (conservative) income unit trust fund that seeks to provide investors with regular income stream through Shariah-compliant investments. It also serves as an alternative investment for investors looking to diversify their portfolio into the fast growing Sukuk market and attractive Shariah-compliant equity market.

What it offers you?

1. Potentially Stable Returns and Regular Income by investing in prudently selected Sukuk and quality dividend yielding equities.
   
   
   
2. Peace of Mind: Managed at Low Volatility rates. It aims to deliver positive returns at low volatility rates through various market cycles.
   
   
   
3. A Diversified and Shariah-compliant Investment. Potential for enhanced return due to the opportunity to tap into new attractive Shariah-compliant investment in view of growing demand for Islamic securities, growth fueled by ample liquidity in the Gulf Corporation Council (GCC) and Asia, coupled with the increasing sovereign Sukuk issuers.

Click here to download prospectus

Source: HwangIM

New Fund: AmAsia Pacific Leisure Dividend

Do you like to go on a holiday spree in Asia Pacific region? If yes, then this fund may suit your appetite. On top of that, you can expect some dividends from this new fund launched by AmMutual. Please read on.

The fund aims to provide regular income and to a lesser extent capital appreciation over the medium to long term by investing in equities and equity-related securities of leisure industry across Asia Pacific region.

To achieve its objective, the fund seeks will be investing 70%-98% in a diversified portfolio of equities related to leisure industry. Who were they? They may include issuers engaged in the design, production and distribution of products and services related to leisure industry. These companies operate in the following sectors within the leisure industry such as hotel, retail, publishing, advertising, beverages, audio/video, broadcasting radio/television, cable and satellite, motion picture, recreation services and entertainment, toy, gaming and tobacco.

Where were they?

These companies are listed in the Asia Pacific region, which includes but not limited to Australia, Hong Kong, Malaysia, New Zealand, Singapore, South Korea, Taiwan and Thailand. However, the fund will not invest into Japan.

Investment Strategy...

The investment manager combines top-down asset allocation process with a bottom-up security selection process. The asset allocation will be reviewed periodically depending on the macroeconomic, industry trends, respective country's economic and stock market outlook. The asset allocation decision is made after a review of macroeconomic trends in Asia Pacific economies. As for bottom-up security selection, the investment manager will focus on undervalued companies which demonstrate sound corporate fundamentals, which are expected to provide dividends yield above market average, and sustainable dividend yield on a medium to long term basis. Stock valuation fundamentals considered are earnings per share growth rate, return on equity, price earnings ratio and price to book multiples.

Click here to download prospectus

Source: AmMutual

3 Different Types of PRS Distributors

Finance Malaysia believes that after a series of publicity and roadshow by various parties, especially PPA and PRS providers, you should know what is Private Retirement Scheme (PRS) is all about. Since then, we received many inquiries on whom should potential contributor consult with and why?

It brings us to this topic, and hopefully by understanding the different types of PRS distributors, investors could make their decision confidently. There is no right or wrong. It's down to your own preferences and of course, the trust level you have on a PRS consultant. So, who are they?

1. PRS consultant
   This is the most common practice in town, whereby a PRS consultant representing one PRS provider. So, in this case, he/she can only distribute PRS from one company.
   
   
2. Institutional PRS adviser
   Basically, they are bankers whom also licensed to distribute PRS schemes made available by respective banks. Bankers may distribute schemes from more than one PRS providers.
   
   
3. Corporate PRS adviser
   Currently, only financial planning firms holding this kind of licensed, whereby they can represent and distribute products from more than one PRS providers. They are individual acting on behalf of clients to source for the most suitable schemes for contributors.

Please take note also that not all unit trust consultants can distribute PRS. ONLY those already get their PRS license can distribute. Under the guideline, he/she may represent a PRS provider, which differ from his/her existing unit trust company. Example, a Public Mutual unit trust consultant can holds a PRS consultant license by Manulife. In this case, he/she can ONLY distribute Manulife PRS to clients.

According to Alex Yeoh (email: alexyeoh@vka.com.my), a licensed financial planner with a corporate PRS adviser, thinks that each channel has its own advantages. In the end, clients would choose the one, who can give them the best service they want.

Finance Malaysia hopes the above info is useful for you to make informed decision. We believe service of adviser/consultant plays an important role in PRS distribution. However, if you intended to have different PRS funds from different PRS providers, it would be advisable to seek help from a corporate PRS adviser. It's more convenient, simple and effective. Thank you.