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 reductionSee omnystudio.com/listener for privacy information.