Alpha Bets

Teng Chee Wai, CEO of  Hwang-DBS Investment Management talks to BFM on the following topics:

- Affin deal now subject to Bank Negara's approval
- Appropriate valuations for HwangDBS
- Factors in Affin winning the bid - more than pricing
- Challenges of integration process
- Opportunities to grow fund size to government agencies
- Greater footprint in Asia - requires capable people
- Not looking at cost-cutting but looking at growth
- Addressing performance gap in Affin
- Performance of HwangDBS thus far - fund growth, talent retention despite uncertain environment
- Role of stockbroking operations that are experiencing falling margins
- HwangDBS: Retail or Institutional focus?
- Affin's funding and impact of earnings addition from Hwang
- Teng's future role in the enlarged entity
- Aiming for presence in Japan, Europe and Australia
- Nikko Asset Management can help in foray into Japan, plans to stay invested in HwangDBS
- Compeitition from product pricing in develop markets: strategy
- Marketed as alpha and active management
- Pricing in the unit trust industry on the back of normally mediocre performance
- Maintenance of good performance as fund size grows
- Developing markets offers opportunities to gain alpha (outperformance)
- Closing funds if they get too big to protect performance
- Fixed income strategy: hold on
- High cash holdings in funds: expensive?
- Problem of cashing up: uptrending markets
- Public still needs more education on PRS
- Problem of Malaysia over-investment in PRS and EPF
- Appropriate fees for retirement products given long term market returns of 8-10%
- Possibility for fee reduction