Retirement planning is a long-term journey, one in which an individual sets aside a pool of money for future benefits in preparation for an ideal retirement. The general thinking among investors is that a well-diversified investment portfolio includes a mix of different asset classes such as fixed income and equities. These investments, made through financial products such as ETFs, mutual funds, or direct investments, are key to generating sustainable returns to meet long-term financial goals.

However, the low yield environment that investors are facing today leads to downward pressure on the deposit rates of banks globally, and investors, like you, may be seeking ways to potentially increase the yields on your savings and investments. Committing to new investment ideas would require a large portion of your time and a deep understanding of the market dynamics and its variable factors. Moreover, you would also need access to the right resources to conduct reliable and extensive market research, which may not always be at your disposal.

So, How Does Nomura Asset Management Malaysia Empower Investors?

Nomura understands the struggles that investors may face when investing in their future. As a global investment manager with local interests in mind, Nomura strives to help Malaysian investors obtain optimal returns to achieve long-term financial goals. Nomura’s solution is based on four core pillars designed to support you through your investment journey: Invest Better, Invest Affordably, Invest Informed, and Invest Global.

Let’s look at each of these pillars and how investors can benefit from them.

Invest Better – Invest Smarter With the Right Asset Manager

Investing can be a daunting and complicated process as it involves making decisions of which financial products to invest in, and dedicating a substantial amount of time and skill in monitoring each investment.

This is where the services of an asset manager, such as Nomura Asset Management come into play. Their professional and experienced fund managers are tasked to help investors to conduct market research, monitor market trends, and manage the risks associated with their investments while allocating their capital strategically to achieve sustainable long-term growth.

Nomura’s current range of investment products allows investors to design their own investment approach based on a focused suite of funds. Their funds range from global equities funds that enable better diversification with high-quality global companies to local fixed income products which provide investors with the potential to enjoy consistent income.

For investors who lack the time or expertise to construct their own portfolios, Nomura’s multi-asset solutions use their proprietary framework to optimise the portfolio’s asset allocation according to the current market conditions. These solutions are designed to minimise short-term volatility while providing an opportunity for them to capture long-term returns across different asset classes given any market condition.

Every decision taken by an investor is bound to have repercussions on not only the market but the society as a whole. As such, Nomura considers Environmental, Social, and Governance (ESG) issues to be important factors when analysing a company’s business sustainability and always strives to incorporate these principles into their overall investment approach.

Invest Affordably – Know Exactly What You’re Paying For

When choosing an investment product, you may not be aware of the potential charges or fees that come with it. Understanding such charges or fees is crucial as they can negatively affect the overall performance of the investment products.

It is worth noting that there are usually two types of fees incurred when engaging the services of an asset manager – one-time sales charges, which would normally be quoted in a certain percentage of up to 5-6% of the investment amount, and annual management fees which can range up to 1.80% depending on the asset class. Due to these charges, some investors may fear that they are paying too much. This is even more so when they feel that they are not being given sufficient advice from their chosen financial advisor or asset manager, particularly with regards to potential risks of a financial product before committing their hard-earned money.    

Therefore, Nomura aims to redefine the existing industry landscape by bringing more affordable investment solutions to investors underpinned by their belief that a reasonable fee structure offers the best value to investors. For instance, most of the funds offered by Nomura Asset Management in Malaysia adopt a zero sales charge policy with affordable annual management fees ranging from as low as 0.20% per annum.

Invest Informed – Better Relationship & Staying Informed

Investors have long been concerned by the lack of transparency when it comes to investing in funds. You should be aware that all investments carry a certain degree of risk, and Nomura finds that the biggest risk usually comes from not knowing what one is investing into.

Nomura believes that strong and long-term client relationships are based on trust and communication. In the spirit of transparency, Nomura strives to take investors through each step of your journey by communicating regularly on the fund’s progress, positioning, and strategy. By being informed throughout the investment journey, you will be able to see the bigger picture and as a result, gaining better control over your portfolio.

Invest Global – Avoid Home Bias

Nomura also finds that most local investors have the tendency to invest heavily in the domestic market instead of spreading investments to the global market, mainly due to a lack of access and knowledge about global companies. A domestic-centric portfolio can potentially leave investors vulnerable to a single country’s market risks arising from political instability or economic corrections, in addition to a potentially big opportunity loss.

With Nomura’s extensive years of global markets experience and research capabilities, their global investment team has the in-house expertise to help add global exposure to your portfolios through their proprietary investment frameworks.

For example, Nomura’s multi-asset strategy specialises in identifying global companies with the potential to grow sustainably and independently over the coming decades, which Nomura coins as “Future Winners”, foreshadowing the companies’ long-term growth potential.

Nomura’s high conviction strategy focuses on maintaining portfolios with only around 20 global stocks underpinned by a strong conviction that effective portfolio diversification involves more than just increasing the number of stocks. This is achieved by focusing on quality stocks that are trading at attractive valuations. The strategy also provides more impactful investment as ESG data is embedded into the investment process. Therefore, local investors are given the opportunity to capitalise on the growth of these multinational companies while achieving global diversification compared to a domestically-concentrated portfolio.

Diversify Your Portfolio with Nomura’s Multi-Asset Strategy

Nomura’s multi-asset strategy, as its name implies, involves investing in a combination of different asset classes such as fixed income, equities, commodities, and more. Investing in different asset classes allows for better risk management and optimises returns across the board.

For example, bonds and equities perform differently in different environments within a certain time frame. Bonds tend to outperform equities in a recessionary environment or during low-economic activity. On the other hand, equities tend to outperform bonds over a longer-term as investments in businesses that continue to grow their earnings yield better returns over time. And as with any kind of investment, both asset classes come with their own risks and yields, which is why a multi-asset approach is commonly practiced.

This is where Nomura steps in to provide investors with asset management solutions that suit their financial goals. Bearing their Japanese spirit of efficiency and thoughtful hospitality, Nomura aims to provide quality investments to help Malaysians achieve their financial goals. Above all, Nomura aspires to provide simple, affordable, and transparent options through their fund offerings.

Introducing Nomura, A Japanese-Origin Investor-Focused Asset Manager

Nomura Asset Management’s business principle has always been putting customers first ever since its inception in 1959. In Malaysia, Nomura Asset Management Malaysia Sdn Bhd and Nomura Islamic Asset Management Sdn Bhd have been well-known as specialists in managing assets for pension, institutional, and corporate investors. In recent years, Nomura has also ventured into the mutual fund space, offering both conventional and Shariah investment solutions through a range of different funds that are designed to meet its clients’ changing needs.

Nomura always aims to improve the financial literacy of society. If you’d like to explore more about the funds of Nomura Asset Management in Malaysia and their strategies, you can visit their new website here to read more about their experience and insights on different investment opportunities in the market.

Nomura will also be organising a series of live webinars that may help you in achieving financial success, with the next one scheduled for 24th July 2021. Do stay tuned to their website and social media for more updates in the future. By starting to take control of your financial future today, you have the power to create a better tomorrow.

The contents of this advertorial are intended for general information only. Investors should carefully consider their investment objectives as well as the risks and costs associated with fund investing prior to making any investment decisions. Investors should also read and understand the relevant Information Memorandum and Product Highlight Sheet relating to the funds mentioned in this advertorial at www.nomura-asset.com.my

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