Maybank Asset Management Group

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It has been a while since the last market update. Our view of a US softlanding for 2024 has been on track. The US economy is chugging along with jobs created of 150-300k per month and US industrial production bottoming. We mentioned that a softlanding will see a broadening of the equity rally and that has occurred. Most equity markets are up for the year with even the laggard Asian markets up in 2024 . Where we were also correct was our positive view on China/HK stocks. Investors have been wary of China over the past 2 years due to various reasons (bursting of property bubble, weaker consumer, US-China geopolitics etc). We stuck to our conviction that Chinese markets had bottomed and communicated this to our investors. There were 2 major reasons for our convictions: Firstly, there was a technical double bottom in February 2024 and secondly this coincided with valuations hitting PERs of 9x where China markets bottomed in the past (Left Chart). From the bottom, China stocks are up between 20-30% and are up more than 10% for the year. Where we have been wrong have been with the interest rate expectations. Although US inflation has dropped from the high of 9% in 2022, it has stayed stubbornly high. Headline inflation has stayed above 3% for the past 6-9 months above the Fed target of 2%. As a result we have seen interest rates rising and staying high throughout 2024. Rising rates have put pressure on bond prices and bond markets flat to down for the year. We have had to make adjustments for our asset allocation. We started the year with a more even split between fixed income and equities but at this stage we are favouring equities more.   What is our outlook going forward? We believe that the softlanding scenario is still the likely outcome over the next 3 months though we believe US equity markets will be more challenging looking slightly further ahead to 4Q2024. While US corporate earnings have been strong, they are concentrated in the AI and tech companies. US consumers appear to be weakening with bellwethers McDonald's and Starbucks both reporting earnings that were softer than expected. Sell side economists are still calling for a robust US economy. However, we are are not so sure and see some troubling macro data. Both ISM Services and ISM Manufacturing dipped below 50 in April 2024 (Right Chart). This is a rare occurrence and is not seen outside of a weak US economy. With all the caveats about a small sample size, this 'double dip' was seen in the Tech Bubble 1.0 (2001), GFC (2008) and COVID (2020).   It is too early to call for a US recession, but one of the smarter ways to position for a weaker US economy is via fixed income. With consensus still expecting rates to stay high it is probably a wise move to start gradually positioning for a lower rates in 4Q2024. For Asian stockmarkets, a weakness in US stock markets will drag down the more cyclical markets like Taiwan and Korea. So we shall remain overweight on China and Asean equity markets.

Maybank Asset Management Group launches its Shariah compliant Hyper-Customised Discretionary Portfolio Mandate. https://rebrand.ly/6mjeogw #REDmoney #IFN #IslamicFintech #IslamicFinance #Finance #MAM #Malaysia

MAM Malaysia is pleased to declare distributions for 9 funds for the period ended 31 October 2023. #MaybankAssetManagement

Maybank Asset Management Sdn Bhd targets to clinch RM100 million assets under management (AUM) in the next 12 months with the launch of its Shariah-compliant artificial intelligence (AI)-powered Hyper-Customised Discretionary Portfolio Mandate (DPM), tailored for high-net-worth clients in Malaysia. Its CEO Ahmed Muzni Mohamed said in the ever-evolving landscape of asset management, innovation continues to be a driving force behind its investment offerings.    “We are constantly pushing to seek and provide innovative solutions to better serve our clients and investors, who have a wide range of investment objectives, preferences, time horizons and risk tolerances. With everyone having different investment needs, customisation and targeted solutions are critical in helping them achieve their financial goals and objectives,” said Ahmed Muzni.

Maybank Asset Management launches AI-powered Shariah-compliant Discretionary Portfolio Mandate with Arabesque AI

Today marks a significant milestone as Maybank Asset Management Group introduces an AI-powered, Shariah-compliant Discretionary Portfolio Mandate in partnership with Arabesque AI. This revolutionary offering is tailored for High-Net-Worth investors in Malaysia, offering a cutting-edge approach to Sharia-compliant investing. This partnership empowers Maybank’s investors access to Arabesque AI's cutting-edge technology platform. The platform enables asset managers and investment professionals to craft hyper-customised Shariah-compliant portfolios, personalising them to each investor's unique preferences and objectives at a faster speed, as well as portfolio monitoring and rebalancing. Omar Selim, Founder and CEO of Arabesque Group, emphasized the importance of sustainability and technology. He stated, "Arabesque's DNA is rooted in Islamic finance, and a decade ago, we set out with the vision to pioneer this space. Sustainable, responsible, and Islamic investment principles are all based on financial moderation and common sense. We firmly believe in the convergence of sustainability and technology as the driving force for a more sustainable future. It's no longer sufficient for investments to yield returns; we must scrutinise how they're generated. Arabesque leads the sustainable finance revolution, leveraging AI, ESG data, and digital technology. In a world where investors prioritise societal impact and values, the true power of AI lies in crafting highly personalised portfolios down to the individual stock level. This values-driven shift reshapes finance for a more sustainable future.” This collaboration with Maybank Asset Management signifies a positive step towards a future where finance is both profitable and purposeful. Arabesque AI is excited to have pioneers like Maybank Asset Management utilise their technology to deliver customised portfolios that align with individual investor values. Read more here: https://lnkd.in/eahY3BnU

MAM Malaysia is pleased to declare distributions for 8 funds for the period ended 30 September 2023. #MaybankAssetManagement

BNP Paribas Asset Management & Maybank Asset Management have announced to launch a Sustainable & Responsible Investment fund (SRI), the MAMG Green Tigers Fund to invest in fast growing & innovative APAC companies providing disruptive environmental solutions. Announcement - https://lnkd.in/g_NTjZ5E follow Caproasia | Driving the future of Asia BNP Paribas Asset Management Maybank Asset Management Group

Watch the full video of Rachana Mehta, CFA, Co-Head, Regional Fixed Income at Maybank Asset Management, discusses her latest fixed income strategy and market outlook. She speaks with Rishaad Salamat and Haidi Stroud-Watts on "Bloomberg Markets: China Open". #MaybankAssetManagement https://lnkd.in/g3eBYnyU