Achieving Investment Outperformance in Asia Today - An interview with: Abdul Razak bin Ahmad, Kenanga Investors Berhad - APAC Investments SUmmit 2014


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An interview with Abdul Razak bin Ahmad, Kenanga Investors Berhad a fund management company at the marcus evans APAC Investments Summit discusses the advantages that local fund managers can provide.

Join the 2015 Summit along with top industry investment executives and service and solution providers in an intimate environment for a focused discussion of key new drivers shaping corporate priorities and investment strategies.

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Achieving Investment Outperformance in Asia Today - An interview with: Abdul Razak bin Ahmad, Kenanga Investors Berhad - APAC Investments SUmmit 2014

  1. 1. Achieving Investment Outperformance in Asia Today Interview with: Abdul Razak bin Ahmad, Chief Executive Officer, Kenanga Investors Berhad “While Asia has become an investment hot spot, given the demographics and growth potential of some economies in the region, more and more investment returns must arise from the perform- ance of specific stocks than the markets in general,” highlights Abdul Razak bin Ahmad, Chief Executive Officer, Kenanga Investors Berhad. In this scenario, having local fund managers would provide an extra advantage, he adds. Kenanga Investors Berhad is a fund management company at the marcus evans APAC Investments Summit 2014, in Kuala Lumpur, Malaysia, 7 - 9 April. What are some of the toughest decisions that institutional investors have to make when investing in Asian assets? Investors have to decide who will manage their money. The choice is between two types of fund managers: companies with a global presence or local fund managers in the country they operate in. If they adopt the strategy of appointing local fund managers, they will have an extra advantage. Their money will be treated as an important part of the portfolio, whereas if they go to an international house, it will be a small percentage of their total investment in each country, so they may not have the full expertise to manage money across all countries. This is one of the most important decisions investors have to make. If they want to extract value by investing in different countries in a specific area, should they appoint one manager for all their assets or allocate their money to different local managers who have the necessary local knowledge and expertise? More and more returns that investors can get from this market must arise from the performance of specific stocks. For example, in Malaysia, although the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBMKLCI) went up by around 10 per cent last year, the small cap index went up 25 per cent. There is disparate performance between specific stocks and the market in general. What local expertise or knowledge do big fund managers lack in? Local fund managers would have more comprehensive coverage, not just the big caps. They would be in a better position to uncover the value stocks that can deliver. The big cap space is crowded. If they require outperformance in the longer term, the small and mid cap space can outperform much more as they remain undiscovered by many investors, yet depending on the economic cycle, they could make one or two full returns. What is your outlook on the economy? How should investors modify their investment and asset allocation strategies accordingly? Once investors realise that different countries actually have better fundamentals compared to others, they will start shifting their money to markets they feel can give them the returns they are looking for. We can expect the market to be very volatile this year. This is where having local expertise is good, because they will know where the bottom of their respective country market is, and it is easier for them to manage and take advantage of the volatility. For investors, finding the right manager who can find the right stocks should be critical, as a fundamentally good stock will perform in all types of market conditions. Local fund managers would have more comprehensive coverage
  2. 2. The Investment Network – marcus evans Summits group delivers peer-to-peer information on strategic matters, professional t r e n d s a n d b r e a k t h r o u g h innovations. Please note that the Summit is a closed business event and the number of participants strictly limited. About the APAC Investments Summit 2014 This unique forum will take place at the Hilton Kuala Lumpur Hotel, Kuala Lumpur, Malaysia, 7 - 9 April 2014. Offering much more than any conference, exhibition or trade show, this exclusive meeting will bring together esteemed industry thought leaders and solution providers to a highly focused and interactive networking event. The Summit includes presentations on forecasting the future economic climate within APAC, mastering investment strategy across higher risk asset classes and geographies, achieving sustainable wealth preservation, analysing family office best practices and optimising tax efficiency. Contact Sarin Kouyoumdjian-Gurunlian, Press Manager, marcus evans, Summits Division Tel: + 357 22 849 313 Email: For more information please send an email to All rights reserved. The above content may be republished or reproduced. Kindly inform us by sending an email to About marcus evans Summits marcus evans Summits are high level business forums for the world’s leading decision-makers to meet, learn and discuss strategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity to individually tailor their schedules of keynote presentations, case studies, roundtables and one-to-one business meetings. For more information, please visit: Upcoming Events Elite Summit - European Pensions & Investments Summit - Emerging Markets Investments Summit - Private Wealth Management Summit (North America) - To view the web version of this interview, please click here: