Malaysian investors expect Asia to offer best equity and fixed income returns this year

KUALA LUMPUR, March 13 ― Many Malaysian investors are optimistic on the local economy and expect Asia to offer the best equity and fixed-income returns this year and over the next 10 years, says a global poll by Franklin Templeton.

In terms of equity, 37 per cent of the 501 Malaysian respondents expect Asia (ex-Malaysia) while 22 per cent think Malaysia will deliver the best equity returns this year, according to the 2014 Global Investor Sentiment Survey by the global investment management organisation.

Meanwhile, 30 per cent and 21 per cent expect Asia and Malaysia, respectively, to deliver the best fixed income returns this year.

Country Head of Franklin Templeton Asset Management Malaysia, Sandeep Singh, said the survey also found that most investors want to match the performance of the market or want to beat the market when it goes up.

“Investors remain upbeat about their expectation for average annual rate of return, which stood at double digits by the end of the year.

“Likewise, their expectation for the next 10 years stood at 17 per cent,” he said during a media briefing on the survey today.

Sandeep said an overwhelming 84 per cent of Malaysians are optimistic about reaching their financial goals.

On confidence of investment returns by asset class, the data shows Malaysian investors have similar views as other Asians in terms of their top two choices, which are stocks and real estate.

Of the Malaysian respondents, 15 per cent expect stocks to be the best performer this year and 38 per cent ranked real estate.

This is consistent with respondents in China, India and Australia who ranked stocks after real estate as the best performer in 2014.

The survey found the majority of Malaysians already have exposure to investments other than bank deposits, reflecting the growing sophistication of the market here.

Close to 70 per cent of them have their money in unit trust funds, the  second on the list after bank deposits, while a growing number of Malaysians recognise investment opportunities available at home and abroad.

The survey also shows 45 per cent of Malaysians invest in Syariah funds, with 46 per cent citing portfolio development as their reason while 43 per cent invest due to religious belief and 42 per cent believe Syariah funds offer potentially higher returns than conventional peers. ― Bernama