AFFIN HWANG

SMART INVEST PORTFOLIO – GROWTH

July 2021
Market Review & Outlook
Global markets shrugged off inflation fears to climb higher in June as investors start to buy-in to the Fed’s
dovish testimony. The S&P 500 index closed 2.4% higher to reach an all-time high of 4,280.70 points in the
last week of the month, whilst the Nasdaq index also rose 5.6% buoyed by stimulus optimism.

In the month, US Fed Chair Jerome Powell testified in the House of Representatives to reiterate the central
bank’s view that inflation is transitory and that the FOMC is in no hurry hike rates. The yield on the 10-year
Treasury note tumbled from 1.60% to close the month at 1.46% as the Fed affirmed that it would not pre-
emptively hike rates before signs of a recovery is evident. In Asia, the MSCI Asia ex-Japan index was
marginally weaker down 1.1% in June, as sentiment was dampened by geopolitical tensions and
consolidation seen in China’s economy. China reported weaker-than-expected retail sales and industrial
production data. However, softer economic readings could push back any chance of further tightening in
China as policymakers look to sustain growth.

On the domestic front, the benchmark KLCI fell 3.2% in June as daily new COVID-19 cases remain
stubbornly high. Phase One of the movement control under the National Recovery Plan, which was initially
scheduled to end on 28 June 2021, has been extended as daily cases have not dip below the 4,000
threshold. The 10-year MGS benchmark yield edged 67 bps higher in the month to close at 3.28%.
Malaysia’s GDP forecast was slashed from 6.0% to 4.0% given the lockdown extension. On the monetary
policy side, Bank Negara Malaysia may see more pressure to further slash the Overnight Policy Rate to
cushion the economic impact of COVID-19.

Portfolio Review
The Affin Hwang Smart Invest Portfolio – Growth Affin Hwang Smart Invest Portfolio - Growth
(“Fund”) rallied by 3.2% throughout the month,
outperforming the broader MSCI World Index which Top Contributors in June 2021 Return
rose by 1.5%. The rally was largely driven by
Baillie Gifford Worldwide Long Term
growth-centric stocks which appear to be turning 1.4%
Global Growth Fund
around a challenging year thus far.
Baillie Gifford Worldwide Health
1.1%
The Fund’s high alpha growth sleeve led the rally, Innovation Fund
with the Long Term Global Growth strategy and Nikko AM Ark Disruptive Innovation
Health Innovation strategy reversing losses from the 0.6%
Fund
previous month to contribute as much as 2.5% to the
overall returns. After a strong performance in May,
the Fund’s exposure in China posed a slight drag on Bottom Contributors in June 2021 Return
the portfolio after the country reported weaker-than- UBS (Lux) Investment SICAV - China A
expected data and increased regulatory scrutiny. We -0.7%
Opportunity
have since diversified some alpha within China by
Affin Hwang Select Asia (ex Japan)
introducing the Allianz China A Shares strategy to -0.1%
Opportunity Fund
the Fund as means to decrease the portfolio’s
concentration amongst its holdings in China. Nikko AM Global Equity Fund 0.1%

At this juncture, we remain comfortable with the Source: Bloomberg, Affin Hwang AM, as at 30 June 2021.
make-up of the portfolio, which consists of roughly
40.0% in long term growth strategies, 40.0% in
dynamic strategies (which will be repositioned
according to market condition), and a 20.0% tactical
sleeve to capitalise on market opportunities. Page 1 of 3
 AFFIN HWANG SMART INVEST PORTFOLIO-GROWTH
Target Asset Allocation

Cash
0% Bond Malaysia
10% 0%

Asia
Base 35%
CURRENCY
40%
ASSET
ALLOCATION EXPOSURE GEOGRAPHICAL
EXPOSURE
Foreign
60% Global
65%
Equity
90%

MTD
Portfolio Holdings as of 30 June 2021 Weight YTD Return
Attribution

Affin Hwang Select Asia (ex Japan) Opportunity Fund 19.9% -0.1% 4.8%

Baillie Gifford Worldwide Long Term Global Growth

15.2% 1.4% 11.4%
Fund

Baillie Gifford Worldwide Health Innovation Fund 9.7% 1.1% 12.7%

Nikko AM Global Equity Fund 9.7% 0.1% 9.1%

iShares Core S&P 500 ETF 9.7% 0.3% 15.2%

Allianz Strategic Bond Fund 9.6% 0.2% -3.4%

Morgan Stanley Global Brands Fund 6.1% 0.2% 10.5%

Affin Hwang Select Asia (ex Japan) Quantum Fund 5.0% 0.1% 18.5%

Allianz China A Shares Fund 4.9% 0.0% 5.8%

UBS (Lux) Investment SICAV - China A Opportunity 4.4% -0.7% -4.3%

Nikko AM Ark Disruptive Innovation Fund 4.0% 0.6% 3.3%

Cash 1.9% 0.0% 0.0%

Affin Hwang Smart Invest Portfolio – Growth 100.0% 3.2% 7.5%

Source: Morningstar, Affin Hwang AM, as at 30 June 2021.

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DISCLAIMER:
This article has been prepared by Affin Hwang Asset Management Berhad (hereinafter referred to as “Affin Hwang AM”) specific for
its use, a specific target audience, and for discussion purposes only. All information contained within this article belongs to Affin
Hwang AM and may not be copied, distributed or otherwise disseminated in whole or in part without written consent of Affin Hwang
AM.

The information contained in this article may include, but is not limited to opinions, analysis, forecasts, projections and expectations
(collectively referred to as “Opinions”). Such information has been obtained from various sources including those in the public
domain, are merely expressions of belief. Although this article has been prepared on the basis of information and/or Opinions that
are believed to be correct at the time the article was prepared, Affin Hwang AM makes no expressed or implied warranty as to the
accuracy and completeness of any such information and/or Opinions.

As with any forms of financial products, the financial product mentioned herein (if any) carries with it various risks. Although attempts
have been made to disclose all possible risks involved, the financial product may still be subject to inherent risk that may arise
beyond our reasonable contemplation. The financial product may be wholly unsuited for you, if you are adverse to the risk arising
out of and/or in connection with the financial product.

Affin Hwang AM is not acting as an advisor or agent to any person to whom this article is directed. Such persons must make their
own independent assessments of the contents of this article, should not treat such content as advice relating to legal, accounting,
taxation or investment matters and should consult their own advisers.

Affin Hwang AM and its affiliates may act as a principal and agent in any transaction contemplated by this article, or any other
transaction connected with any such transaction, and may as a result earn brokerage, commission or other income. Nothing in this
article is intended to be, or should be construed as an offer to buy or sell, or invitation to subscribe for, any securities.

Neither Affin Hwang AM nor any of its directors, employees or representatives are to have any liability (including liability to any
person by reason of negligence or negligent misstatement) from any statement, opinion, information or matter (expressed or
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excluded.

WARNING STATEMENT:
A copy of the Prospectus and Product Highlights Sheet ("PHS") can be obtained at Affin Hwang Asset Management's (“Affin Hwang
AM”) sales offices or at www.affinhwangam.com. Investors are advised to read and understand the contents of Affin Hwang Smart
Invest Portfolio-Growth’s (or the “Fund”) Prospectus dated 17 May 2019 and the corresponding PHS before investing. There are
fees and charges involved when investing in the Fund. Investors are advised to consider and compare the fees and charges as well
of the risks carefully before investing. Investors should make their own assessment of the risks involved in investing and should
seek professional advice, where necessary. The price of units and distribution payable, if any, may go down as well as up and past
performance of the Fund should not be taken as indicative of its future performance. The Securities Commission Malaysia has not
reviewed this marketing/promotional material and takes no responsibility for the contents of this marketing/promotional material and
expressly disclaims all liability, however arising from this marketing/promotional material.

Affin Hwang Asset Management Bhd Registration No: 199701014290 (429786-T)

Ground Floor, Menara Boustead, 69 Jalan Raja Chulan, 50200 Kuala Lumpur
Toll Free Number: 1800 88 7080 T: +603 2116 6000 F: +603 2116 6100 W: www.affinhwangam.com

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