Author Topic: AmBank: Bonds look a good bet  (Read 5273 times)

Offline Ļaughing Ģor

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AmBank: Bonds look a good bet
« on: October 26, 2012, 05:43:26 PM »
Thursday January 19, 2012 The Star

KUALA LUMPUR: While the volatile global economic outlook continues to muddle the direction for investors this year, bond markets could prove enticing given expected low interest rates, according to AmBank's funds management team.

Low interest rates are painting a clearer picture for investors on where to allocate their funds.

AmBank noted that elections to be held across the world would prod policymakers to cut interest rates in order to spur growth, leading to a fertile environment for bonds.

“If interest rates are accommodative or low, bond funds will make money from rising bond prices,” fixed income chief investment officer Goh Wee Peng said, noting that bond markets in countries with strong AAA ratings like Australia and Indonesia were promising.

“Interest rates will be even lower in the second half of this year. Indonesia has just widened its borrowing cost and we also expect countries like Australia to cut its interest rate,” she said at the launch of AmConstant Flexi, a three-year closed-ended bond fund.

On the domestic front, she said that there was also possible rate cut later in the year, in view of the current high consumer price index (CPI) reading and if the global growth outlook continued to be sluggish. “There won't be a rate hike in Malaysia with plenty of liquidity in the market,” Goh said.

“As overnight policy rate is at 3% and CPI is 3.4%, we are now in a negative interest rate environment so it is difficult for the policymakers to further cut rates but as the CPI is expected to peak soon following weaker global demand, they will take action in response.”

She added that the first quarter CPI would be “sticky” in line with bigger consumer spending due to festivities.

On AmBank's partnership with Australia and New Zealand Banking Group Ltd (ANZ), AmBank funds management division chief executive Datin Maznah Mahbob said that the team was looking at collaborating to create investment solutions that added value to investors and shareholders.

“We want to work with them on their wealth management platform. Within their group, we are the only funds management unit so we are looking at exploring the natural synergies,” she said.

AmBank's funds under management as at December 2011 was RM27bil. Maznah said that the bank was likely to achieve its 30th anniversary target of RM30bil for the financial ending March 31.

The bank's AmConstant Multi Maturity 2, launched in October 2011, has received nearly RM155mil in sales so far. It expects 6% return on its medium-term bond funds and above 10% return on its flagship bond fund.

Can someone to give me a Loan and then leave me Alone?

Offline Name Change

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Re: AmBank: Bonds look a good bet
« Reply #1 on: October 26, 2012, 05:50:48 PM »
Please note that when a Bond fail also becomes a.....


Let's drink a toast to the trading of Penny Bonds!!!!

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Offline Dorky

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Re: AmBank: Bonds look a good bet
« Reply #2 on: October 26, 2012, 07:21:03 PM »
Can I buy CDS from AmBank?
Buy, sell, up, down, gain, gain.

Offline crashbandicoot

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Re: AmBank: Bonds look a good bet
« Reply #3 on: October 26, 2012, 07:32:18 PM »
Bonds LOL! Spinning lies  :)
Google "Speculation Today" for my views

Offline lim_90

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Re: AmBank: Bonds look a good bet
« Reply #4 on: December 05, 2018, 04:19:36 PM »
Nice one  :clap: :clap: :clap: :cash: