Press Release 2015

Affluent Malaysian investors demand greater diversification amid economic uncertainty

UOB survey highlights a growing focus on longer-term investment objectives

Kuala Lumpur, 22 December 2015 - A survey conducted by United Overseas Bank (Malaysia) Bhd (UOB Malaysia) revealed that affluent Malaysian investors1 are turning to diversification strategies to mitigate risk and achieve long-term risk-adjusted returns in the current economic climate.

According to the 2015 UOB Malaysia Wealth Management Survey, affluent Malaysian investors are pragmatic, with more than half of the respondents saying they are prepared to risk part of their principal investment in the short term to achieve longer term capital gains. The current economic uncertainty is encouraging investors to adopt a practical and moderate investment strategy with 65 per cent of affluent Malaysians classifying themselves as practical and moderate investors while 26 per cent consider themselves prudent and conservative. Only seven per cent of respondents assume a more aggressive investment position.  

Mr. Wong Kim Choong, Chief Executive Officer, UOB Malaysia, said the findings confirmed how current market uncertainties are encouraging more cautious investment behaviour and fuelling demand for balanced and diversified investment portfolios.   

"Diversification is a simple yet powerful investment strategy to help reduce risk in an investment portfolio. At UOB Malaysia, we always advise our affluent customers to allocate their investments among stocks, bonds and cash in order to achieve a goal that is suitable for their risk tolerance and what they can afford amid volatile markets," he added.

When asked to comment on their asset allocation preference, 67 per cent of respondents said they preferred investing in low-risk asset classes such as fixed deposits. Unit trusts were ranked second with 59 per cent of capital inflows allocated to this asset class. Equities and bonds were ranked the lowest by investors with respondents allocating 44 per cent and 40 per cent to the two asset classes, respectively.

Conducted by UOB Malaysia in May 2015, the UOB Wealth Management Survey 2015 reports the investment behaviour and asset allocation trends among affluent Malaysians. A total of 102 customers from UOB Malaysia's Privilege Banking and Wealth Banking segments with assets under management RM500,000 and RM150,000, respectively, participated in the survey.

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1 UOB Malaysia customers who have investable assets of RM150,000 and above.

 

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