KUALA LUMPUR: Malaysia is well-positioned to benefit from the recovery in the global economic cycle, while the domestic market is backed by adequate monetary policy as well as a credible central bank to navigate changes faced by the market, said Wellington Management Singapore Pte Ltd vice president and investment director, Andrew Sharp-Paul.
“Malaysia is a small component of the United Global Income Focus Fund (UGIFF) and as for the market, we will continue to be in the equity market as it is better,” he said, when asked about the local asset class that was attractive to the company.
He said this at the launch of multi-asset weather fund, UGIFF, which is sub-managed by Wellington Management.
The fund will invest a minimum of 90 per cent of its net asset value in the United Income Focus Trust managed by UOB Asset Management Ltd in Singapore.
Sharp-Paul said further moves by the US Federal Reserve in revising interest rates, similar to the move by the European Central Bank and followed by the Bank of Japan, showed that the global economy was in recovery mode.
“Malaysia should benefit from these,” he said.
On the sector that would be in the limelight, he said, Wellington Management was positive on the financial sector as it could develop by itself and the US financial growth was also in a good position as well and globalisation in the monetary policy.
UOB Asset Management (Malaysia) Bhd Chief Executive Officer, Lim Suet Ling, said investors were concerned about the impact resulting from these monetary policy decisions and expected an increase in volatility.
“Lingering geopolitical risks and US protectionist trade policies are adding further uncertainties to the financial markets. We believe it is prudent to be prepared to implement a more cautious stance should market risks increase,” she said.
On the performance of the local equity market, Lim said, most of the global equities markets were in the consolidation mode, and Malaysia was not an exception. — Bernama