UOB AM Malaysia stands out for state fund mandate

UOB Asset Management delivered outstanding returns for one of Malaysia's largest government institutions amid tricky conditions and despite the equity mandate being long-only.
UOB AM Malaysia stands out for state fund mandate

Since May 30, AsianInvestor has published explanations of why the winners of its marquee Asset Management Awards scooped their prizes (see below for the links). These were presented at a celebratory dinner on May 29 (click here for a gallery of photos).

We will feature a detailed write-up on all our award winners in the forthcoming June edition of AsianInvestor magazine. 

Best institutional product/strategy
UOB Asset Management (Malaysia
UOB Asset Management has won for an exceptional delivery on an equity mandate carried out for one of Malaysia’s largest government-sponsored investors.

The mandate focuses on domestic small- to mid-cap equities, allowing the manager to short, but with cash at never more than 30% of the portfolio. The objective is an absolute return of 8.5% per annum and a return of 6%. Since inception the fund has exceeded the absolute-return benchmark and target return, often in tough conditions.

In 2015, the time weighted rate of return of 19% was well ahead of the reference index return of 3.9%. This was achieved with lower portfolio risk. Stock selection is a major factor and tactical decisions, such as the raising of cash levels, help the strategy. It is a delicate act for the manager to balance outperforming an absolute-return benchmark and a relative benchmark to receive performance fees.

The long-only nature of the fund and the cash limit presented a challenge to preserve returns in a declining market. But as the overall return demonstrated, it was an obstacle the firm surmounted with ease. 

The other winners highlighted so far:

Invesco: Asset Manager of the Year and Best Business Development

UOB Asset Management: Asian Fund House of the Year

HSBC Securities Services: Asset Service Provider of the Year

Andrew Narracott, Aberdeen Asset Management: COO of the Year

LGT Capital Partners: Alternatives Manager of the Year

Goldman Sachs AM: Institutional Solutions Provider of the Year

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