Eastspring Investments Berhad, part of Prudential plc, is pleased to announce the launch of the Eastspring Investments Asian Low Volatility Equity MY Fund (“Fund”) in Malaysia.
Mitigating Market Volatility with a Proven Strategy
The Fund feeds into the Eastspring Investments - Asian Low Volatility Equity Fund (“Target Fund”), leveraging on this proven low volatility strategy, which has demonstrated resilience and consistent performance across various market conditions. As highlighted by Michael Sun, Director of Quant Capability at Eastspring Investments, the Asian Low Volatility Equity (“ALVE”) strategy is well-suited to mitigate the volatility seen in today's markets.
"Eastspring’s ALVE strategy has consistently provided robust downside protection while capturing as much of the market rally as possible. This is achieved through our systematic investment process, which adapts to market changes and dynamics, guiding us to invest in more resilient, less volatile names within sectors such as Financials, Utilities, Consumer Discretionary, and Industrials, and in markets such as China, Singapore and India”, said Michael Sun.
Key Benefits of the Fund
Resilient Returns Amid Market Ups and Downs: The Target Fund demonstrates lower volatility compared to its peers during market downturns. This encourages investors to stay invested, not miss the market’s best days, and benefit from compounding.
Differentiated Investment Process: The Target Fund selects stocks based on multiple factors, not just low volatility, to create a well-diversified and attractively valued portfolio. This approach is enhanced by quant style analysis, which incorporates factors such as low risk, quality, value, momentum and sentiment.
Expertise: The Target Fund is managed by an experienced team, who has been managing Low Volatility strategies since 2013, with an AUM of USD603 million as of 30 November 2024.
Navigating Trade Tensions and Geopolitical Risks
The current market environment is characterised by significant uncertainty due to factors such as deglobalisation, trade tariff protectionism, and geopolitical tensions. Michael Sun noted that the ALVE strategy is well-positioned to provide resilience in such conditions. "Our portfolio has underweight exposures to markets and sectors with higher US sales exposure, making it well-positioned to provide downside protection during trade tensions. By focusing on domestically oriented companies, the portfolio can offer resilience against export volatility."
A Timely Solution for Investors
“As investors increasingly seek stability and risk mitigation without sacrificing returns, the Fund offers a timely solution. With the Target Fund’s track record of consistent performance and effective risk management, this Fund is designed to meet the needs of investors looking for a reliable investment option in today's unpredictable market”, said Yap Siok Hoon, Chief Executive Officer of Eastspring Investments Berhad.
The Fund is available through participating banks and Eastspring’s licensed Unit Trust Consultants. For more information about the Eastspring Investments Asian Low Volatility Equity MY Fund, please visit our website: www.eastspring.com/my
This content is provided by Eastspring Investments.
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