Name: 21 Nov 2020 - A great opportunity amidst volatility
Uploaded: 2020-12-03T06:11:05+0000
Description: The latest investment insights for your portfolio

Date	21 November 2020
Title	A great opportunity amidst volatility
Moderator	Ng Shin Seong Head, Investment Strategy and Advisory Standard Chartered Bank Malaysia
Speaker	Dylan Ngai Portfolio Specialist, Fixed Income Manulife Asset Management
Key Takeaways	1. Preferred securities are among the few areas within the bond universe that are able to provide potential income above 5% pa. Many of these securities are issued by well established companies; with many of the issuers concentrated in the banking and finance sector. Most of these are issued by the largest financial institutions in the world to strengthen their financial position. Non-bank issuers have lower debt to capital even compared to companies rated Investment Grade from traditional sectors. 2. Preferred securities offer higher income with lower default risk and potentially capital upside. Most of the preferred securities are Investment Grade quality. 3. Manulife Preferred Securities Income nicknamed “Cham” (local beverage that entail mixing coffee and tea) carries regular income features of bonds and some upside potential linked to equities. It serves as a good addition to clients’ portfolio offering 5.0 – 5.5% p.a. potential income on a quarterly basis in USD and MYR-Hedged. The latter is suitable to alleviate Malaysians that are worried on foreign currency risk notably USD/MYR.