KUALA LUMPUR – Malaysia’s fixed deposit (FD) market is the least volatile and is very conducive for fund managers to construct multi-assets portfolio, said global investment company, Aberdeen Standard Investments.
Aberdeen Asset Management Asia Ltd investment director Dongyue Zhang said many portfolios described as ‘diversified’ or ‘multi-asset’ were in fact restricted to a traditional mix of bonds, equities and/or real estate.
“Malaysia’s FDs have low volatility and would generate good returns over the long-run,” he told a panel discussion on the sidelines of the Investment Conference 2018 today.
Zhang said constructing the right portfolio entailed mixing fixed deposits and fixed income on a tactical basis, and “this is something that Aberdeen is looking at now among other multi-assets.
“There are multi-asset opportunities as we are trying to get access to the widest range of potential opportunities as possible,” he added.
Zhang also said if a client or investor wants to look at multi-asset investment opportunities, they would want to look at investment opportunities that are more global in nature.
As for Asia, he said investment companies such as Aberdeen Standard Investment were experiencing more demand and opportunities in multi-assets basis.
He said the ‘’Belt and Road’’ initiative by China was interesting as it tried to project China’s economic impact along six different routes, one actually extending to Southeast Asia and Malaysia.
“Through that initiative, whether we’re talking about hard or soft infrastructure, consumption upgrade or Industry 4.0, it will project a halo effect on the local FD and bond market,” said Zhang.
Aberdeen Standard Investments is a brand of the investment businesses of Aberdeen Asset Management and Standard Life Investments.
Themed, “Diversification: Redefining Perspectives”, the half-day conference discussed opportunities in the current climate across a suite of asset classes.