rightcoastconservative

In our view, the equity market will likely be stuck in a range-bound trading pattern for now, but will likely trend up as global economic uncertainties clear out towards the later part of the year. Investors’ key worries include : worsening of the euro-debt crisis that remains unresolved fears of China’s and India’s economies crashing down into a hard landing ; and the risk of US falling off the “ fiscal  cliff ”. External Volatility And Impending Election 2 Key Headwinds On the home front, the major event to watch out for is the impending general election that could also create volatility to the local bourse given the uncertain election outcome. Nevertheless, we believe the market will eventually trend higher towards end-2012, premised on: the ECB making a more decisive move to mutualise the debts of Eurozone governments; China policymakers ease policies substantially and its economic growth re-accelerates; US Congressional leaders co...

Today, gold is becoming an ever important asset class in the world. Banks nationwide is offering investors the opportunity to invest in gold, whether it is for capital preservation or capital gain. How well you diversify without investing in gold? This is the question being asked by those already investing in gold, and most of them already making profit out of it. But, is it really so different? Is it really a must have asset class? History of Gold Gold has been used for numerous monetary functions long long time ago, especially in China. Ancient people used gold as a form of currency and storage of wealth. By using gold as a medium to which paper currency was pegged, most modern international monetary systems were created since then. What drives up Gold price? The modern gold rush scenario happened since 2008 global financial crisis, driven by extremely low deposits rate on cash, very volatile equity markets and surging inflation . Negative real value of money is the key factor why m...

On Sept 7, J.P.Morgan came out a report titled "Global Markets Outlook and Strategy". Here, we would like to share the equity strategy written, which we think is the most sought after reference for investors to strategize during this uncertain times. Below is the excerpt from the said report: "We believe perceptions of a US recession will continue to weigh on equity markets and we thus keep a low amount of risk in our equity portfolio and reduce beta to negative." "The most likely positive catalyst for equity markets in the near term lies with US economic data. This is not happening yet. Our US Economic Activity Surprises Index remains in negative territory, where it has been for 5 straight months (Chart 1). We need to see this index moving to positive territory, and US economic data surprising on the upside, for equity markets to sustain a recovery." 2 reasons why Under-performance The August market slump saw emerging market (EM) equities and small caps u...

The Fund is a wholesale feeder fund that aims to achieve capital appreciation over the long term by investing in a collective investment scheme, namely the China Select Fund , a Cayman Islands-domiciled sub-fund of Citi Investment Trust (Cayman) II managed by Citigroup First Investment Management Limited (the "Target Fund"). Being a wholesale fund in nature, this Fund is open for sale to Qualified Investors only. The Manager will invest a minimum of 95% to maximum of 99.8% of the Fund's NAV in units of the Target Fund and a maximum 5% in deposits. The base currency of the Target Fund is US dollar. 3 reasons to invest in this fund: What is the permitted investments for the Target Fund? It is expected that approximately 70% to 100% of the Target Fund's portfolio will be invested directly and indirectly in equity securities issued by companies which are listed or being offered in an initial public offer on official stock markets in Hong Kong, China (A Share and B Sha...

While inflation fears in China is a dominant factor, signs that China's growth is holding up well despite this concern will certainly fuel further growth. Traditionally in China, a higher inflation tends to exhibit a positive correlation with Chinese companies price-earnings ratios and nominal earnings growth. Having said that, the consensus view is that the government will raise borrowing costs to contain inflation and prevent the economy from overheating. With such growth euphoria and inflationary concern , a new fund is structured to take advantage of the current inflationary economy in China. This is a 4-year close-ended capital protected* fund which aims to provide income and capital appreciation over the medium term whilst protecting investors’ capital* on the Maturity Date. Where is the Fund's return comes from? The Hong Kong (HK) Option is designed to provide investors with potential annual coupon payments that are based on the performance of Chinese companies’ sto...

Forget about supply and demand issue of commodity, everyone knows the main mover now is Emerging Market, especially China. As long as US economy not yet recovered, China was expected to continue its great appetite to consume commodities globally. Not for its consumptions, but mainly because of China's currency management. China, already the largest creditor of US by holding USD which was slipping with a series of quantitative easing programs, would definitely forced China to diversify its holding elsewhere. However, China would hand-picking according to its own local demand. As such, Finance Malaysia forecasts those commodities which were used heavily in construction , infrastructure , production will continue to perform in 2011.   Top pick #1: Palladium One in four goods manufactured today either contain platinum group metals or the platinum group metals play a major role during their manufacturing process. Palladium was used in many electronics including computers, mobile phones,...

Do you discounted the possibilities of asset bubbles in Emerging Market ? Even though our governments, including China, saying that asset bubbles is under-controlled for almost one year now, yet, investors are not comfortable with the record breaking prices. Investors are encountering high prices in properties, commodities, resources, and of course, shares market in emerging markets. People are investing, buying, spending, and borrowing to an extent that would caused asset bubbles in various sectors. Return , the only thing in mind...   Meanwhile, investors are chasing for returns to beat the market at large, and to avoid being left behind. This " Kiasu " behavior are only pouring oils on fire. Yet, returns is the only thing in mind, and those "kiasu" investors are winning the game to date. For those who does not participate in the game were blaming them for causing the high property prices, undermining their affordability to own a house.   When did the...

The fund aims to grow the value of the investment in the Longer Term by investing in a portfolio of Shariah-compliant equities with exposure to the Greater China region namely in China, Hong Kong, Taiwan markets, as well as companies on Approved Equity Markets with business dealings in China. To achieve the investment objective, the fund will invests a minimum 85% of the fund's NAV in a portfolio of Shariah-compliant equities with exposure to the Greater China region. AmIslamic is partnering with Hamon Investment Management Limited , the sub-investment manager who is responsible for the asset allocation and stock selection for the portfolio based on the following style:- Performing active bottom-up stock selection Picking securities without the constrain of market capitalization Growth or value styles which depends on the changing economic cycles and market conditions The fund is suitable for an investor seeking:- Investment exposure to the fast growing Greater China region Ca...

While Malaysian market is hovering around 1,500 points, a ground survey shows that local investors are skeptical about the sustainability of our market. Bursa Malaysia's website shows that local retail participation is merely at 25% daily. Maybe, we could look aboard to find some other investing options. And, China's banking stocks could suit investors appetite for the following reasons:- China was an under-performer this year China's banks should report better profits Robust loan demand Due to the higher interest rate being announced recently, banks of China should experienced expansion of net interest margin for the next few quarters. Although loan growth is moderating now, it was still high, and will continue as long as China's economy is growing. We can't deny that China is the world's engine of growth currently, in which we persist for the next few years, at least. Will China raise rate again? Depending how fast and big the housing bubble was, China wou...

Yesterday, China surprisingly raised its interest rate by 0.25%  as follows: - 1 year lending rate from 5.31% to 5.56% - 1 year deposit rate from 2.25% to 2.50% Why China raise interest rate? 1. To cool down the over-heating property sector. 2. Combat inflation 3. Low liquidity in the banking system While inflation was hovering around 3.5% currently, even though the deposit rate has been raised, the net real interest rate is still in negative territory (3.5% - 2.5% = -1.0%). This is one of the main reason why Chinese were going all out to invests, especially in real-estate, due to its low yield if sitting in the bank (even lower than Malaysia). However, China would be facing another problem... Raising interest rate would attract capital inflows , which could dampen the purpose of containing inflation. Foreign investors view Chinese renmimbi as undervalue , mainly due to interventions by Chinese government. The latest news could ignite a fresh round of thoughts,...

Another Syariah Compliant product, yet, A20 is first in Malaysia which have China access investment opportunity. The fund represents a superior China access product, which provides investors direct exposure to highly lucrative China A-Share Market and potential currency appreciation of Renmimbi. Reason to invest in A20: 1. First Shariah-complian direct A-share offering in Malaysia and globally. 2. Direct, Simple and Optimal. Potential appreciation of Renmimbi. 3. Robust market dynamics & Valuations still supportive of future growth. What is the Strategy? The fund will invest into the 20 largest Shariah-compliant China A-share companies, in terms of their market capitalisation, listed in Shanghai or Shenzhen Stock Exchanges. Below is some of the informations: - Fund Category   : Structured (wholesale fund) - Min investment   : USD 10,000 - Sales Charge      : 3.00 % - Redemption Fee : 2.00 % Source: HwangDBS investment management...

OSK-UOB Unit Trust Management Bhd is launching a new fund on 11th March 2010. The fund will capitalise on the potential growth of world's two largest emerging countries. With a spectacular GDP growth of 8-10% per annum, China and India poised to lead the world's economy out of recession. China and India now ranked as world's 2nd and 4th largest economy respectively, and will outpace Japan in the next few years. Among the key selling points of the fund are: Rapid urbanisation Great domestic consumption demand Sustainability of strong GDP growth This is a high risk, high return fund, with portfolio allocation of 60%-40% between the two countries. UOB asset management will manage the China portfolio, while, UTI International (Singapore) is the sub-manager for India portfolio of the fund.