MALAYSIA | APRIL 19, 2021 wealth

2021 Presented by

Resilience in adversity W2 Presented by APRIL 19 2021

Foreword

t the start of 2020, when global markets were not looking portantly, a major factor was the quick thinking and decisive meas- too good, the thinking then among many fund managers ures by fund managers to manage the risks and ride the volatilty. was that it would be tough to bring in returns that matched So, what was expected to be a washout year turned out to be an those of previous years. extraordinary one for our fund managers. For the Refi nitiv Lipper Indeed, when the global markets crashed in March as Fund Awards 2021 in collaboration with The Edge, most of the win- Athe Covid-19 pandemic heightened and what started as a health ning funds outperformed, with Public Mutual standing out again crisis quickly snowballed into an economic one, the worst of times as the biggest winner. seemed inevitable. What of this year? There is certainly optimism that 2021 will be But in a year of multiple black swans, the fund management in- a year of recovery, but be that as it may, challenges remain as we are dustry has shown great resilience, thanks to global monetary easing not quite out of the woods yet. which brought about a big turnaround in equity markets. More im- To all the winners, we say, “Congratulation s”. — By Anna Taing

Winners list

GROUP AWARD WINNERS Equity Malaysia (Malaysia) Areca equityTrust DURATION: 3 YEARS Equity Malaysia (Islamic) Hong Leong Dana Makmur Equity Malaysia (Provident) AmMalaysia Equity GROUP AWARD COMPANY Equity Malaysia Small & Mid-Cap (Malaysia) Public Strategic SmallCap Best Bond Group (Provident) AmFunds Management Bhd Equity Malaysia Small & Mid-Cap (Islamic) Public Islamic Opportunities Best Equity Group (Malaysia) Public Mutual Bhd Equity Malaysia Small & Mid-Cap (Provident) Maybank Malaysia SmallCap Best Equity Group (Islamic) Kenanga Investors Bhd Equity Malaysia Diversifi ed (Provident) Hong Leong Growth Best Equity Group (Provident) Hong Leong Asset Management Bhd Equity Asia-Pacifi c (Malaysia) PB China Pacifi c Equity Best Mixed Assets Group (Malaysia) Public Mutual Bhd Equity Asia-Pacifi c (Provident) PB Islamic Asia Strategic Sector Best Mixed Assets Group (Islamic) Public Mutual Bhd Equity Asia-Pacifi c ex-Japan (Malaysia) Pheim Asia Ex-Japan Best Mixed Assets Group (Provident) Kenanga Investors Bhd Equity Asia-Pacifi c ex-Japan (Islamic) Public Islamic Asia Leaders Equity Equity Asia-Pacifi c ex-Japan (Provident) Hong Leong Asia-Pacifi c Dividend

EDITORIAL FUND AWARD WINNERS Equity Global (Malaysia) PB Global Equity EDITOR-IN-CHIEF DURATION: 3 YEARS Equity Malaysia Income (Islamic) Public Islamic Savings AZAM ARIS MANAGING EDITOR AWARD FUND Equity Malaysia Income (Provident) Hong Leong Dividend ANNA TAING Bond MYR (Malaysia) AmanahRaya Unit Trust Mixed Asset MYR Balanced - Malaysia Public Growth Balanced EDITORS KUEK SER KWANG ZHE, Bond MYR (Islamic) AmanahRaya Syariah Trust (Malaysia) JENNIFER JACOBS Mixed Asset MYR Balanced - Malaysia (Islamic) Kenanga SyariahEXTRA ASSISTANT EDITOR Bond MYR (Provident) AmDynamic Bond PATHMA SUBRAMANIAM Equity Malaysia (Malaysia) Areca equityTrust Mixed Asset MYR Balanced - Malaysia Kenanga SyariahEXTRA SENIOR WRITERS (Provident) OLIVER CHRISTOPHER GOMEZ, Equity Malaysia (Islamic) Hong Leong Dana Makmur TAN ZHAI YUN Equity Malaysia (Provident) Hong Leong Dana Makmur Mixed Asset MYR Balanced - Global (Malaysia) United Bond & Equity Strategic Trust WRITERS Mixed Asset MYR Balanced - Global (Provident) Affi n Hwang Select Balanced VANESSA GOMES, JOTHAM LIM, Equity Malaysia Small & Mid-Cap (Malaysia) Public Emerging Opportunities IRIANI AMIRUDIN, CHUI YEE MUN Equity Malaysia Small & Mid-Cap (Islamic) Public Islamic Opportunities Mixed Asset MYR Conservative (Malaysia) PB Mixed Asset Conservative EXECUTIVE EDITOR (PRODUCTION) OOI INN LEONG Equity Malaysia Small & Mid-Cap (Provident) Kenanga OA Inv-Kenanga Growth Mixed Asset MYR Conservative (Islamic) Public Ehsan Mixed Asset Conservative CHIEF COPY EDITORS Opportunities Mixed Asset MYR Conservative (Provident) Public Ehsan Mixed Asset Conservative ELAINE LIM, MAH PIN PIN ASSISTANT CHIEF COPY EDITORS Equity Malaysia Diversifi ed (Provident) Public Strategic Growth Mixed Asset MYR Flexible (Malaysia) Public Tactical Allocation EVELYN TUNG, Equity Asean (Malaysia) United ASEAN Discovery Mixed Asset MYR Flexible (Islamic) Public Islamic Asia Tactical Allocation KENNETH FRANCIS MARTINUS SENIOR COPY EDITORS Equity Asia-Pacifi c (Malaysia) KAF Jade Mixed Asset MYR Flexible (Provident) Public Islamic Asia Tactical Allocation CHEW RU JU, LEE MEI GEOK, SHANTHI MURUGIAH Equity Asia-Pacifi c (Provident) PB Islamic Asia Strategic Sector ART DIRECTOR Equity Asia-Pacifi c ex-Japan (Malaysia) Pheim Asia Ex-Japan SHARON KHOH FUND AWARD WINNERS ASSISTANT ART DIRECTOR Equity Asia-Pacifi c ex-Japan (Islamic) Public Islamic Asia Leaders Equity DURATION: 10 YEARS LEE WAN YEE Equity Asia-Pacifi c ex-Japan (Provident) Hong Leong Asia-Pacifi c Dividend DESIGN TEAM AWARD FUND Equity Global (Malaysia) PB Global Equity RAJITA SIVAN, Bond MYR (Malaysia) KAF Bond TAN SIEW CHING Equity Global (Islamic) Public Islamic Global Equity Bond MYR (Islamic) PB Islamic Bond ADVERTISING & MARKETING Equity Malaysia Income (Malaysia) Areca Dividend Income Bond MYR (Provident) Maybank Malaysia Income CHIEF COMMERCIAL OFFICER Equity Malaysia Income (Islamic) Public Islamic Savings SHARON TEH (012) 313 9056 Equity Malaysia (Malaysia) Areca equityTrust GENERAL MANAGER Equity Malaysia Income (Provident) AmDividend Income FONG LAI KUAN (012) 386 2831 Equity Malaysia (Islamic) Affi n Hwang Aiiman Growth Mixed Asset MYR Balanced - Malaysia Public Growth Balanced SENIOR SALES MANAGERS Equity Malaysia (Provident) AmMalaysia Equity GEETHA PERUMAL (016) 250 8640 (Malaysia) GREGORY THU (012) 376 0614 Equity Malaysia Small & Mid-Cap (Provident) KAF Vision Mixed Asset MYR Balanced - Malaysia (Islamic) Kenanga SyariahEXTRA SENIOR ACCOUNT MANAGERS Equity Malaysia Income (Islamic) Manulife Investment Al-Fauzan EVON SEAH (016) 973 8699 Mixed Asset MYR Balanced - Malaysia Kenanga SyariahEXTRA KENNY LIM (014) 334 2733 Equity Malaysia Income (Provident) AmDividend Income SHAFINA SYAHRIR (017) 281 4787 (Provident) SHANNON LEONG (012) 677 5345 Mixed Asset MYR Balanced - Global (Malaysia) Public Strategic Balanced Equity Malaysia Diversifi ed (Provident) Affi n Hwang Select Opportunity ACCOUNT MANAGERS Equity Asia-Pacifi c (Malaysia) PB China Pacifi c Equity BRYAN ANG (012) 317 8473 Mixed Asset MYR Balanced - Global (Provident) Affi n Hwang Select Balanced KHAIRUL ADZMAN (012) 619 5091 Mixed Asset MYR Conservative (Malaysia) United Income Plus Equity Asia-Pacifi c ex-Japan (Malaysia) Pheim Asia Ex-Japan NICHOLAS HONG (012) 768 0881 YVETTE ERIN (016) 273 0856 Mixed Asset MYR Conservative (Islamic) Public Ehsan Mixed Asset Conservative Equity Asia-Pacifi c ex-Japan (Islamic) Public Islamic Asia Leaders Equity HEAD OF MARKETING SUPPORT Mixed Asset MYR Conservative (Provident) Public Ehsan Mixed Asset Conservative & AD TRAFFIC Equity Asia-Pacifi c ex-Japan (Provident) Principal Asia Titans LORRAINE CHAN Mixed Asset MYR Flexible (Malaysia) Public Tactical Allocation Mixed Asset MYR Balanced - Malaysia Dana Makmur Pheim EMAIL [email protected] Mixed Asset MYR Flexible (Islamic) Public Islamic Asia Tactical Allocation (Islamic) Mixed Asset MYR Flexible (Provident) RHB Th ematic Growth CORPORATE Mixed Asset MYR Balanced - Malaysia Dana Makmur Pheim PUBLISHER & GROUP CEO (Provident) HO KAY TAT CHIEF OPERATING OFFICER FUND AWARD WINNERS Mixed Asset MYR Conservative (Provident) Eastspring Investments Dana al-Islah LIM SHIEW YUIN DURATION: 5 YEARS Mixed Asset MYR Flexible (Malaysia) InterPac Dynamic Equity WE WELCOME YOUR COMMENTS, AWARD FUND LETTERS AND CRITICISM. Mixed Asset MYR Flexible (Islamic) Eastspring Investments Dana Dinamik Bond MYR (Malaysia) AmanahRaya Unit Trust PHONE (03) 7721 8000 Mixed Asset MYR Flexible (Provident) Manulife Investment-HW Flexi EMAIL [email protected] Bond MYR (Islamic) AmanahRaya Syariah Trust Mixed Asset MYR Balanced - Global (Malaysia) Pheim Emerging Companies Balanced PSEUDONYMS ARE ALLOWED BUT Bond MYR (Provident) AmDynamic Bond PLEASE STATE YOUR FULL NAME, ADDRESS AND CONTACT NUMBER (TEL/FAX) FOR US TO VERIFY. Presented by W17 APRIL 19 2021

when the risk-reward ratio looked favourable to maintain a loose monetary and fiscal policy FUND Affin Hwang Aiiman Growth after the FBM KLCI plunged below 1,300 points. stance to ensure a sustainable economic re- AWARD Equity Malaysia - Islamic “We were able to pick up many quality names bound from the trough last year as downside (10 years) at distressed valuations. This rebalancing pro- risks remain. FUND SIZE (AS AT RM330.40 million DEC 31, 2020) We went into cess was repeated throughout the year due to “In the near term, rising yields will inevitably FUND MANAGER Akmal Hassan capital protection the constant change in the lockdown stance to weigh on ringgit bonds. We remain focused on combat Covid-19.” credit quality and have a shorter duration posi- Lee Pak Seng mode early on by On the fund’s fixed-income strategy, Ahmad tioning for the fixed-income portion to protect RETURNS FOR PERIODS 3 years 28.00 ENDED DEC 31, 2020 (%) raising cash levels Raziq Ab Rahman, senior portfolio manager at our holdings from rising yields,” he says. E 5 years 46.30 to above 20%, in AHAM, says the fund’s allocation was main- 10 years 129.00 anticipation of tained at around 40% throughout last year. The a major market firm took a more defensive stance during the FUND correction … We start of the pandemic by shortening duration Affin Hwang Select Balanced were able to and then gradually increasing duration AWARD Mixed Asset MYR Balanced pick up once it became clear that Bank Negara Malaysia would cut interest rates. - Global — Provident many In the near term, rising (3 and 5 years) quality Looking ahead, Loh says the dissipat- yields will inevitably ing risk of strict lockdowns, thanks to FUND SIZE (AS AT RM272.30 million names at weigh on ringgit bonds. DEC 31, 2020) the gradual rollout of vaccines, coupled distressed FUND MANAGER David Loh with the unprecedented scale of stim- We remain focused on valuations.“ credit quality and have Ahmad Raziq Ab Rahman ulus measures, should drive a synchro- RETURNS FOR PERIODS 3 years 26.30 > Loh nised global recovery. This bodes well a shorter duration ENDED DEC 31, 2020 (%) for corporate earnings, which positioning for the 5 years 49.70 are a key driver for equity fixed-income 10 years 113.00 markets. portion to On fixed income, Ah- protect our FUND Affin Hwang Select mad Raziq says the out- holdings Opportunity look for global growth from AWARD Equity Malaysia Diversified and inflation is being rising - Provident (10 years) reshaped by the vac- yields..“ FUND SIZE RM585.10 million cine rollouts and fiscal FUND MANAGER Gan Eng Peng stimulus. Central banks > Raziq RETURNS FOR PERIODS 3 years 7.00 and governments around ENDED DEC 31, 2020 (%) the world are expected 5 years 39.10 10 years 129.00

A purpose-built ecosystem that delivers better, more consistent returns.

2021 WINNER MALAYSIA Bond MYR Malaysia (Provident), 10 Years Maybank Malaysia Income Fund Equity Malaysia Small and Mid Cap (Provident), 5 years Maybank Malaysia SmallCap Fund

To find out more about our funds, please visit maybank-am.com.my or call +603-2297 7888.

Disclaimer: This print advertisement has been prepared solely for informational purposes and does not constitute (1) an offer to buy or sell or a solicitation of an offer to buy or sell any security or financial instrument mentioned in this document and (2) any professional investment advice. Investors are advised to request, read and understand the respective fund's prospectus before deciding to invest. Investors should seek financial or any relevant professional advice regarding the suitability of investing in any securities or investments based on their own particular circumstances and not on the basis of any recommendation in this presentation. Investors should note that income from such investments, if any, may fluctuate and that each investment’s price/value may rise or fall. Past performance is not an indication of future performance.

Investors should be aware of the risks involved when investing in any investments. Please seek clarification on potential risks that may arise prior to any decision made to invest in any investments.

The Securities Commission Malaysia takes no responsibility for the contents of this print advertisement and expressly disclaims any liability whatsoever arising from this print advertisement.

Humanising Financial Services. W24 Presented by APRIL 19 2021

Manulife Investment Management bags two awards

BY JOTHAM LIM and rational was a challenge in a panicked “Companies with sound balance sheets market, particularly when dealing with mul- and strong management are likely to with- anulife Investment Manage- tiple uncertainties due to the far-reaching stand the challenging economic conditions ment (M) Bhd nabbed two fund impact of the pandemic, he says. of last year. One example would be the tele- awards at the Refinitiv Lipper To address this issue, the team had to be One advantage in communications sector, and even alternative Fund Awards 2021. disciplined in adhering to their investment havinggg a regional industries such as the glove sector, which Manulife Investment-HW fundamentals and not let periods of extreme teamteam iiss tthathat wwee areare enjoyingenjoying strongstro earnings that Flexi won the award for Best market sentiments aff ect their investment leverageleverage each could potentiallypotenti translate into Mixed Asset MYR Flexible (Provident) in the decisions. “When it became clearer that the other’sother’s deep betterbetter dividenddivid payouts later,” M10-year category, which saw a return of 143.96%, pandemic was turning into a black swan sayssays ChoChong.n locallocal insiinsightsghts ffororr while Manulife Investment Al-Fauzan took event, we decided to drastically adjust our MovingMovin into 2021, he home the award for Best Equity Malaysia In- strategy — fi rst by prioritising the return of channelchhannell checchecksh ksks highlightshighlights a shift in invest- come (Islamic) in the 10-year category, with capital,” says Chong. andand sectosectorr oorr ment focusfocus — from prioritis- a return of 80.64%. “This involved locking in gains in holdings stock rread-ead- inging companiescompan with earnings CEO Jason Chong attributes the funds’ that had priced in earnings growth. In addi- throughs.”throughs.” certaintycertainty lastlas year to prioritis- success to a dynamic investment team that tion to that, the cash would allow us to pick > CChonghong inging those withwit strong earnings is active in sharing ideas and quick in deci- and choose fundamentally strong companies ggrowthrowth momentum. “We sion-making, which allowed them to adapt at beaten-down prices and valuations.” will looklo for stocks that to rapidly shifting market conditions. “We For Manulife Investment-HW Flexi, Chong offeroffer strong earnings work as a team, and no idea is too small or points out that the rebalancing exercises were recoveryreco and growth too big,” he says. concentrated in the fi rst and fourth quarters inin the light of an an- “One advantage in having a regional team of last year. 1Q2020 involved increasing its ticipatedti economic is that we leverage each other’s deep local in- cash position before the market selldown to recovery,re resump- sights for channel checks and sector or stock protect the fund’s position while providing tiont of economic read-throughs. A climate of transparency ammunition to capitalise on bargain-hunt- activities and po- and trust in the regional team allows for a ing opportunities. tential reopening cross-fertilisation of ideas.” In 4Q2020, the team rebalanced the port- of borders. Un- Chong describes 2020 as a tumultuous year folio to support post-pandemic benefi ciaries der such circum- in which they witnessed not only extreme once it became clear that there was light at stances, compa- swings in share prices but also investor sen- the end of the tunnel when it came to the nies that did not timent and emotions as well. Remaining calm pandemic. fare well in 2020

Two awards for Maybank Asset Management

BY JOTHAM LIM their fund management strategies, which He says that due to the decision to position allowed them to look at opportunities in dis- MMI to be nimble and agile early on, the in- aybank Asset Management Sdn located markets. vestment team managed their liquidity well Bhd once again landed a win- “Due to our proactive engagements, we and kept cash at a minimum during the sell- ning spot at the Refinitiv Lip- were able to turn ‘defensive’ early on. When Due to our off — opting to capture new opportunities in per Fund Awards 2021, with two the markets were dislocated, we were ready the bond market instead. proactive fund awards this year. to go on the off ensive and capitalise on those As for MMSC, Ahmad Najib explains that Maybank Malaysia Income opportunities at attractive valuations,” he adds. engagements, the team conducted several rebalancing ex- (MMI) took home the award for Best Bond However, Ahmad Najib highlights that we were able to ercises towards the second half of 2020, as MMYR (Provident) in the 10-year category, with it was challenging to make contrarian calls turn ‘defensive’ the market shifted away from the health- a return of 116.77% over the period. Maybank and persist with that view while managing early on.When care sector. However, since the fund got into Malaysia SmallCap (MMSC) won the award investors’ expectations. He says that when the markets the sector early, the team was able to raise a for Best Equity Malaysia Small and Mid-Cap the team decided to position MMI defensive- were dislocated, signifi cant amount of cash and took (Provident) in the fi ve-year category, with a ly, investors were concerned about a laggard we were ready profi t from that strategy. return of 76.61% over the period. performance. to go on the Moving forward, he expects CEO Ahmad Najib Nazlan says making con- “Moving into 2020, the market was ex- off ensive and a global growth recovery this trarian calls in its investment strategy enabled pecting GDP performance to be better at 4.8% capitalise year. But he foresees a vola- both MMI and MMSC to outperform their in- compared with 4.7% in 2019 on a potential tile market, with fi scal poli- on those dustry peers. “For MMI, we turned defensive meaningful resolution to the US-China trade cies playing an increasingly in January 2020 and decided to have higher war. Hence, having a defensive call may have opportunities critical role in supporting levels of cash to allow us to be agile in case of dragged our performance compared with our at attractive growth. any market events due to the uncertainties peers,” he adds. valuations.” “For MMI, given the cur- surrounding the Covid-19 pandemic. Due to However, as it turned out, 2020 saw a con- > Ahmad Najib rent volatile situation in the that stance, during the sell-off in March, we traction in GDP. bond markets, we will be were able to add positions and benefi t from “Similarly with MMSC, when we decid- positioned defen- the wild swings. ed to increase positions in healthcare and sively in the “For MMSC, we had a very strong convic- technology, investors questioned our stance near term tion in the healthcare sector after news of the as they were unsure about our view. Despite by reduc- virus broke out in China heading into 2020. the immense pressure from our investors, ing our That conviction was vital as it contributed very we maintained our call,” says Ahmad Najib. ‘govvies’, positively to the portfolio. Those healthcare “We continued to engage with and com- names were small-cap stocks when we invest- municate our strategies to our investors and ed, but have now increased their market cap.” provided clarity and justifications for our Ahmad Najib points to the investment calls. When the sell-off happened, it was chal- team’s agility, teamwork and leadership as lenging to stick to our conviction. But we did being key contributors to the success of the not panic and instead, focused on the funda- two funds. He says that from the onset of the mentals as well as the long-term objectives of pandemic and lockdowns, the team mobilised the funds. As a result, we were able to deliver daily virtual meetings to discuss and plan better returns to our investors.”