Amanah Raya Berhad is Malaysia’s premier trustee company wholly owned by the government of Malaysia. AmanahRaya Syariah Trust Fund won the Core Fixed Income Malaysia (Islamic) category. Roszali Ramlee shared their award-winning fund and the current market situation with us.
Roszali Ramlee: Thank you, we are extremely honoured to receive such a prestigious award, more so as 2022 has been a tough and difficult year for bond funds. We are grateful that, with discipline, perseverance and our trust in the process, we managed to overcome the challenges that came our way during the said year.
We see this recognition as a great platform to elevate ARIM’s brand and reputation in the investment fraternity. Nevertheless, we do not intend to sit on our laurels, we will continue to strive for greater performance and hopefully more awards.
SI: What are the challenges you have faced in the past 12 months?
RR: The bond yield, which rose sharply during the first half of 2022, had affected the valuation of our fund. We have positioned our portfolio with a short-to-medium portfolio duration to cushion the impact. Nonetheless, the downside risk remains, which includes rising inflation, conflict in Ukraine, prolonged supply chain snarls, China COVID-19 lockdowns, aggressive policy tightening by central banks and the global economic slowdown.
SI: What are the market trends that an investor should look out for in the near future?
RR: We anticipate that interest rates will continue to rise in the next 12 months and Bank Negara Malaysia will continue to increase the OPR to 3.00% by 2023 to 2024. As the entry level for 10-year Malaysian Government Securities (MGS) is now above 4.20%, we opined that the current level is attractive and more palatable for traders and investors.