4 min read I Date: 9 March 2022
( In partnership with The Star Online )
Take control of every ringgit of your investments while understanding market trends and your risk exposure.
MANY Malaysians today know the importance of investing their savings for a better future to sustain their lifestyle in the later years. You can always set aside more for savings, but investing with unit trust funds is certainly a better option as a long-term strategy, keeping in mind the importance of understanding market trends and your risk exposure. Global growth will continue to be driven by economic reopening, the rundown of excess savings and business restocking in the first half of the year, but growth rates are expected to normalise in the second half, said Principal Asset Management Bhd Asean equity chief investment officer Patrick Chang.
“We think inflation will likely begin to moderate or reverse in the second half of 2022, alongside easing pressure on the supply chain,” he said, adding that supply-demand mismatches will resolve as demand shifts back from manufactured goods towards services, alongside stablising energy prices as new production capacity comes online in key regions. This will in turn reduce the pressure on consumers, interest rates, corporations and supporting equities. Moreover, the United States Federal Reserve will be wrapping up tapering sooner, with Chang sharing, “In our base case, we do not expect tighter policy to forestall positive equity market returns as the focus is to limit Omicron’s spread and central banks will maintain a measured pace of monetary tightening, allowing growth to remain robust.”
There are some opportunities arising from current market trends, which have been impacted by the Covid-19 pandemic, amongst which investors’ principles are increasingly encompassing environmental, social and governance (ESG) considerations. This is because investors are recognising that sustainability factors matter for fundamental analysis regardless of strategy or motivation, he opined. He added, “We expect the next wave of growth will be driven by investors actively seeking to identify and address sustainability challenges in areas ranging from climate to inequality.” Despite near term identities, Chang opined that investors should remain invested in structural sectors and stocks with the highest likelihood of long-term wealth creation being technology, namely 5G, fintech, healthtech and greentech.
“We continue to favour sustainable investing supported by carbon neutral pledges, the US rejoining the Paris Agreement and substantial inflows into ESG funds and exchange-traded funds,” he noted. To take advantage of such opportunities, you can look no further than Principal Asset Management Bhd (Principal). Principal offers a wide range of global and domestic funds – be it conventional or shariah-compliant funds – to meet different risk tolerance levels, across different geographical sectors, for a diversified investment portfolio that taps into the latest investment trends.
Not only does Principal have more than 25 years of experience in Malaysia, it has global expertise with over 142 years of global investment experience, brought to your fingertips via the portal. This is because Principal is a joint venture between Nasdaq-listed global financial services group and member of the Fortune 500, Principal Financial Group and CIMB Group Holdings Bhd , one of Southeast Asia’s leading universal banking groups.
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You are advised to read and understand the relevant Prospectus, Information Memorandum and/or Disclosure Document including any supplemental thereof and the Product Highlight Sheet (if any) before Investing. Among others, you should consider the fees and charges involved. The registration of the relevant Prospectus, Information Memorandum and/or Disclosure Document including any supplemental thereof and the Product Highlight Sheet (if any) with the Securities Commission Malaysia (SC) does not amount to nor indicate that the SC recommends or endorses the funds. A copy of the relevant Prospectus, Information Memorandum and/or Disclosure Document including any supplemental thereof and the Product Highlight Sheet (if any) may be obtained at our offices, distributors or our website at www.principal.com.my. The issuance of any units to which the relevant Prospectus, Information Memorandum and/or Disclosure Document relates will only be made on receipt of an application referred to in and accompanying a copy of the relevant Prospectus, Information Memorandum and/or Disclosure Document. Please be advised that investment in the relevant unit trust funds, wholesale funds and/ or private retirement scheme carry risk. An outline of the various risks involved are described in the relevant Prospectus, Information Memorandum and/or Disclosure Document. As an investor you should make your own risk assessment and seek professional advice, where necessary. Securities Commission Malaysia does not review advertisements produced by Principal.