FSMOne Malaysia optimistic on Asia’s equity market to surge in the second half of 2023

FSMOne Malaysia, a multi-asset investment platform, expects the global financial market to recover despite the concern of an impending recession. This outlook was expressed at a press conference following FSMOne’s Recommended Unit Trusts Awards 2023/2024 that took place at Grand Hyatt, Kuala Lumpur earlier today.

The Awards, which are distinguished acknowledgements of outstanding fund managers that have produced best-in-category fund performances, saw 45 Recommended Unit Trusts from 18 fund houses, including AHAM Asset Management Berhad, Manulife Investment Management (M) Berhad, Principal Asset Management Berhad, RHB Asset Management Sdn Bhd, Kenanga Investors Berhad, Eastspring Investments Berhad, and AmFunds Management Berhad, to name a few, make it to the list (see appendix for the full list). 

FSMOne General Manager, Koh Soo Cheng said, “I am thrilled to announce the Recommended Unit Trusts this year that showed our unwavering commitment to assisting investors in achieving diversified investment portfolios with ease. At FSMOne, our goal is to provide seamless access to a wide array of asset classes, geographical regions, and sectors. Through FSMOne’s online platform and mobile app, investors get to gain access to a diverse range of investments, including unit trust, stocks, ETFs, bonds, Managed Portfolios, and insurance.”

“We recognise that, particularly during the surge of a market or sector, investors may become overly aggressive and over-concentrated in specific markets or sectors. We understand the importance of striking the right balance between seizing profitable opportunities and maintaining a diversified approach, to build resilient portfolios that deliver sustainable growth even through market volatility and uncertainties. That’s where FSMOne steps in, aiming to help investors identify potential blind spots within their portfolios while uncovering potential opportunities.” 

FSMOne Portfolio Manager, Jerry Lee Chee Yeong added, “In 2023 so far, we have witnessed a decent performance in various equity markets after a disappointing 2022, largely driven by the technology sector. As of end of June 2023, the global technology index recorded gains of 46.5%, outperforming the broad market index by 27.0%.”

“From an economic fundamental perspective, following a series of aggressive monetary tightening measures since last year, there is a higher probability of an economic recession, especially in developed countries. Although the economic environment is expected to remain challenging in the second half of 2023, we believe that the equity market has to some extent, already priced in the weakening economic outlook. The current valuations in both the bond and equity markets present attractive long-term investment opportunities for investors.”

Looking ahead to the second half of the year, FSMOne is optimistic that Asia’s equity market will take the lead after lagging behind in the first half of 2023. Fortunately, factors such as relatively benign inflation, stronger economic growth, and the expectation of a weaker dollar in the latter half of the year could be the driving forces behind the growth of Asian equities.

“In particular, Japan remains our favorite market as it not only benefits from reopening tailwinds, but has a strong corporate balance sheet and offers attractive valuations. We also see that there is potential for a rebound in the yen.”

“Apart from equities, investors must not overlook bonds as part of their portfolio allocation, especially given the current decent bond yields in both the local and global bond segments. Therefore, we would like to reiterate the importance of a portfolio approach to all our investors, where understanding one’s risk profile and implementing proper asset allocation is crucial, rather than chasing the best-performing market or sector.” Jerry concluded.