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Government and Banjaran Asset Management Hold Productive Talks on New Collective Investment Scheme Fund
Phnom Penh, Cambodia - A significant meeting took place between His Excellency Su Sochet, the Director General of the Securities and Exchange Regulator of Cambodia (SERC), and representatives from Banjaran Asset Management (Cambodia) PLC. The delegation, led by H.E. Su Sochet, met to discuss the establishment and future prospects of Banjaran’s new Collective Investment Scheme (CIS) fund. This crucial dialogue aimed to align regulatory frameworks with the goals of the fund, ensuring its compliance with Cambodian financial regulations. The new CIS fund is expected to provide Cambodian investors with a broader range of investment options, allowing them access to international markets and enhanced financial growth opportunities. The discussions were highly productive, with both parties expressing optimism about the future of the fund and its potential to drive growth within Cambodia’s burgeoning financial services sector. The meeting also reinforced Banjaran Asset Management’s commitment to promoting robust investment solutions while adhering to the highest standards of governance and transparency. This marks a significant milestone for Banjaran Asset Management (Cambodia) PLC as it continues to collaborate closely with the SERC, bringing innovative investment opportunities to the Cambodian market. More Securities and Exchange Regulator of Cambodia
Investment Education Series related to Collective Investment Scheme (Part Three)
The Investment in Collective Investment Scheme In part two of the Investment Education Series, we discussed the needs and merits of investing as well as the benefits of investment diversification. The article concluded that an investment fund, or Collective Investment Scheme fund offers the best option for individuals to invest and grow their wealth steadily over time. A fund also helps to lower investment risk through diversification, all while keeping investing affordable to the public. In this article, we will share the real case study of the first Investment fund that was approved by the Securities and Exchange Regulator of Cambodia (SERC) on 15 November 2023, the BAMC Asia Equity Fund (BAEF). BAEF is managed by Banjaran Asset Management (Cambodia) PLC (BAMC), a SERC-licensed asset management company based in Cambodia. The fund lawyer is HBS Law and the fund auditor is Crowe (KH) Co., Ltd, both of which got the accreditation from the SERC. The fund trustee is Stronghold Trustee Co., Ltd which is also a SERC-licensed CIS trustee. In summary, in the ecosystem of the CIS, all players shall get a license, approval, or accreditation from the SERC. About BAMC Asia Equity Fund BAEF is a fund investing in a diversified portfolio of 30 or more companies listed on major stock exchanges across Asia Pacific Ex-Japan. The fund targets to provide the benefits of investing in Asia, which economists globally see as the premier growth region in the coming years. The fund’s tagline is “The Rise of Asia”. According to the disclosure documents, BAEF targets a return of 7% to 10% per annum over the medium to long term, yet this return is not guaranteed. The investment in fund is considered as a form of a regular savings plan. The invested amount can eventually be used for children's education, healthcare, to part fund the purchase of a house, or for retirement. To invest in the fund, the investor shall obtain an investor ID from the SERC first. However, for those who already have the investor ID, they do not need to re-apply for the investor ID. Below is a term sheet for the BAEF fund: Key Consideration Before Making Investment Decision Generally, fund managers make investments using basic approaches like the top-down approach and bottom-up approach. A top-down approach is when the fund manager looks at macro factors such as, economic cycles, inflation, interest rates, global trends, etc. The bottom-up approach is when the fund manager looks at the features of the individual securities that they invest in such as, the balance sheet, profit and loss statement, management, products, and services, etc. The BAEF adopts both approaches in making their investments. Bottom-up Approach: Sustainable Growth in the Long-term The fund manager will select companies that have proven sustainable business models and have proven track records. The fund manager will look at audited financial statements, valuation, and quality of management amongst other things. Top-down Approach: Why Invest in Asia? Stable Productive Population in the coming 10 to 20 years Asia has a large population base and a favorable demographics. It has a large segment of the younger population which will translate to a stable productive workforce over the next 10 to 20 years. This will result in higher income and higher consumption. These factors will help to drive the region’s economy and its businesses to grow. Relative to poor demographics from regions like the US and Europe, Asia is preferred. Strong Economic Growth In terms of economic growth, Asia is also growing faster and is bigger than the EU and North America. According to an IMF report dated Oct 2023, real GDP growth in 2023 is highest in Asia Pacific at 4.4% vs EU at 1% and North America at 2.1%. As % a share of the total world’s GDP, Asia Pacific share is 45.6%, the EU at 21.0% and North America at 18.7%. Benefits from the World’s Largest Free-Trade Agreement and Pro-Business Governments Asia’s economic growth will be further enhanced after 15 Asian countries recently signed a free-trade agreement known as the Regional Comprehensive Economic Partnership (RCEP), which will be the world’s largest free-trading bloc. The free-trade agreement should enhance trading activities and thus further drive GDP growth as a result. In its forecast, IMF projected Asia to remain as the strongest GDP growth region in 2028 at 3.9% vs EU at 1.6% and North America at 2.1%. Investment Education Series related to Collective Investment Scheme (Part Three) Asian Companies are Recognizable Globally Asia now has many homegrown listed companies which are recognizable globally. These companies are well-managed and have strong financials. They include companies like Singapore Airlines, Alibaba, Tencent, Samsung Electronics, TSMC, Grab, BYD and many others. Asia Markets Remain Cheap Despite Asia’s bigger population base and stronger economic growth, Asian stocks trade at much lower levels as compared to EU and US stocks based on valuation ratios like price-to-earnings, price-to-book value, and price-to-sales. These ratios are financial metrics that measure and analyze stock prices in unit terms and compare them with those of peers or competitors. The lower the financial ratio, typically the more attractive is the stock market or a particular stock. Furthermore, Asia ex-Japan accounts for 58% of the world’s population, and 48% of the world's economy, yet it accounts for only 12.42% of the investments made in the stock markets globally. BAMC views that the under-representation of Asian stock investments will have to be adjusted upwards eventually. Is it the Right Time to Invest Now? There is no right or wrong time to invest in the stock markets. Investing is a disciplined approach to set aside the savings and put them regularly into investments like an investment fund. Past market cycles show that each time markets fall, they will rebound. And when they rebound, they will set a new market high. In other words, stock markets tend to rise over the long term though in between, they may correct according to economic cycle or on non-economic-related events like war, pandemic, etc. In the current situation, stock markets in general have fallen since the beginning of 2022 on the back of several key events like the Russian-Ukraine war and the sharp increase in US interest rate. Is this an opportune time to invest? BAMC has analyzed the past market cycles and noted that after each significant event that had caused stocks to fall, they had rebounded sharply after riding out that event: Asian Financial Crisis in 1997 – the collapse of Asian currencies led by the Thai Baht and which spread to other Asian currencies, caused Asian markets to tumble. But they rebounded some 155% from the low in 1997 until 2000. Dot.com Bust 2000 and September 2001 – global markets fell when the US dot.com bubble went bust in 2000, and it was further made worse by the September 2001 bombing of the Twin Towers in the US. A couple of years later in 2003, Asian markets started to recover and moved higher. It rebounded some 360% since 2003. Global Financial Crisis in 2007 – the collapse of US banks Bear Stearns and Lehman Brothers in 2007 caused global markets to take a sharp tumble. The fall was rather short-lived and within less than two years, global markets recovered sharply by 236%. COVID-19 in 2020 – again global markets took a nosedive when the pandemic started. However decisive action by global central banks to provide funding to businesses affected by the pandemic caused the markets to again rebound very quickly. The markets fell but rebounded within a short span of six months by some 90%. Russia-Ukraine war and spike in inflation and interest rate hike in 2022 – markets have since fallen. Is it time to buy? An article from the Securities & Exchange Regulator of Cambodia (SERC)
Investment Education Series related to Collective Investment Scheme (Part Two)
Why Invest and the Importance of Investment Diversification Investment diversification across different asset classes would lower the risks compared to traditional investment portfolios. With the launch of the first Collective Investment Scheme (CIS), which was approved by the Securities and Exchange Regulator of Cambodia (SERC) recently, Cambodians now have an opportunity to further protect their investments. The CIS scheme now allows Cambodians to diversify their asset types into more legitimate investments across different countries which in turn lowers the risks. A further line of protection is with the investments being carried out only with fund managers licensed by SERC. The SERC recently approved Cambodia’s first SERC-approved CIS fund – the BAMC Asia Equity Fund, managed by Banjaran Asset Management Cambodia. Diversification of investment is not a new concept and is something that is propagated and recommended even by the world financial leaders. According to the world’s 6th richest man and famous investor Warren Buffet, “Never depend on a single income. Make an investment to create a second source”. There are many benefits to investing whereby it helps wealth creation with investors making more money. For Cambodians, it also paves the way for financial independence, eventually leading to them not worrying about their financial stability. It can also be a solid source of additional income to top up their regular income. Importantly, it could also serve as a protection against inflation, giving the investor the freedom of affordability when prices of goods increase. The positive wealth-creation effect of investing is illustrated in Figure 1 below: Investors, naturally would expect their assets to grow over time as they continue to maintain their investments. However, it is also important to note that all investments come with a certain amount of risk. The higher the return, the higher the risk. These risks can be moderated through a simple action of diversifying the investment in the regulated financial products. Currently, Cambodians tend to grow their wealth primarily through two forms of investments: bank fixed deposits and land-related investments. According to CEIC Data, in August 2023, Cambodia saw a record high of US$40.9 billion in total bank deposits. This was an increase from US$37 billion recorded a year ago. ❖ Other Types of Investment There are many investment options available for investors, ranging from lower-risk investments like bank deposits and investment-grade bonds to the extremely high-risk investments like private debt and private equities where investors may potentially lose all their invested capital. ❖ Investment Diversification Investment diversification is the process of spreading your investments across different asset classes (bank deposits, stocks, bonds, real estate, etc), across different countries (HK/China, US, Japan, Singapore, Thailand, etc), and across different industry sectors (banking, consumer, technology, property, etc). The main objective is to spread the risk such that if one investment goes bad, it should not affect the overall investment. When investments are diversified, the risk is lower. In an equities collective investment scheme fund, for example, the risk of investing in stocks can be reduced through diversification. This is done by creating a basket of stocks (known as a portfolio) comprising of 30 different stocks. The diversification benefits include not just from an increase in the number of stocks invested, but also by investing in different countries and across different industry sectors such as banking, property, consumer, telecoms, technology, etc. Through diversification by adding more stocks to a fund, the risk is greatly reduced. The illustration below shows the diversification benefit-risk reduces as more stocks are added to the portfolio: One point to note is that while adding more stocks to a portfolio will reduce risk, it will come to a point where the residual risk cannot be further reduced as more stocks are added. This residual risk is known as the market risk (indicated by * in Figure 3), which cannot be diversified away. An example of market risk is when a major war breaks out, or a global pandemic that goes out of control, on a scale that is worse than COVID-19. For an individual, it is troublesome to practice investment diversification. Firstly, the investment amount may be too small to diversify into different asset classes, or to buy too many stocks. Secondly, transaction costs may be high and will affect the investment return as a result. Thirdly, the investor may not have time or knowledge to track the different investments and this may lead to taking no action as a result. And lastly, investors may lack the discipline to maintain proper investments. Likewise, Cambodians generally should diversify their asset types into more legitimate investments. A good diversification would be to invest some in fixed deposits, land-related investments, and collective investment scheme funds. Collective Investment Scheme (CIS) fund collects monies from different investors and pools them together for investment purposes. Each investor retains ownership and control of his own units in the fund. The fund then invests in assets like stocks, bonds, real estate, etc. For an equities CIS fund, for example, a professional fund manager licensed by the SERC does the investment work. Investors can choose when to invest or exit the fund. Funds come with different investment strategies and objectives and appeal to different investors with different risk appetites. Investing in a CIS fund should offer investors an easy way to meet their investment and investment diversification objectives. An investment fund offers multiple benefits. This includes it being professionally managed by a SERC-licensed fund manager and the fund is separately approved by the SERC for sale to the investing public. It may offer diversification benefits as some CIS funds will invest in a diversified portfolio of stocks across different countries and different industry sectors The initial investment amount can be set at an affordable level, for example as low as US$500. With this small amount of investment, an investor can own units in a portfolio of approximately 30 stocks or more. It also gives Investors the right to buy and sell the fund on a daily basis with the pricing of the fund being transparent and published daily in the local media. Investing should generate a reasonable, positive return with a manageable degree of risk. Individuals should generally invest in products that are regulated by the SERC, and managed by SERC-licensed fund managers. To be able to invest in a fund unit, the investor shall obtain the Investor Identification Number (ID) from the SERC first. Investors should also practice investment diversification to minimize investment risk. CIS fund offers investors the ease of investing, and also provides the other benefits from investment including diversification. An article from the Securities & Exchange Regulator of Cambodia (SERC)
Joins Global "#WeThe15" Movement at National Centre of Disabled
Phnom Penh, Cambodia – Banjaran Asset Management (Cambodia) PLC. participated in the global "#WeThe15" event held at the National Centre of Disabled. This event, part of the worldwide campaign to represent the 1.2 billion people living with disabilities, aims to advocate for their inclusion, rights, and visibility. As part of the "#WeThe15" movement, Banjaran Asset Management (Cambodia) PLC stood alongside other organizations in promoting greater awareness and support for persons with disabilities. The event featured a series of engaging activities, discussions, and initiatives focused on driving equal opportunities and improving accessibility for those with disabilities. Banjaran Asset Management (Cambodia) PLC's involvement in this global initiative highlights its dedication to corporate social responsibility, fostering an inclusive community, and supporting efforts toward equality and empowerment. Through initiatives like "#WeThe15," the company remains committed to making a positive impact both locally and globally.
Press Conference - Cambodia First Collective Investment Scheme Fund
Press Release Banjaran Asset Management (Cambodia) PLC (“BAMC”) has successfully obtained approval from the Securities and Exchange Regulator of Cambodia (“SERC”) to launch the BAMC Asia Equity Fund (“BAEF”) in the Kingdom of Cambodia. BAEF is the first retail fund to launch for sale in the Kingdom which the public will be able to invest in. BAEF is an investment fund investing in a diversified portfolio of companies listed on major stock exchanges across Asia Pacific Ex-Japan. The fund targets to provide the benefits of investing in Asia, which economists globally see as the premier growth region in the coming years. The fund’s tagline is “The Rise of Asia”. Being the first SERC-approved retail fund to launch in Cambodia, BAMC will give Cambodian investors, who to date have narrowly relied on bank deposits to grow their wealth, an opportunity to diversify their investments. In addition, Cambodians would no longer need to travel to foreign financial centers to access investment opportunities outside the Kingdom. BAEF is the first of a series of funds that BAMC plans to bring to the investing public in Cambodia. To make the fund accessible to all investors, BAMC has set the minimum investment amount at just US$500. BAMC is the fund manager of BAEF with Banjaran Asset Management Pte Ltd (“BAMPL”) of Singapore as the investment advisor. Stronghold Trustee Co., Ltd (“ST”) is the trustee of the fund. Her Excellency Chan Theany (“HE Theany”), Chairwoman of BAMC said: “We are honored and happy to be the first fund management company in Cambodia to successfully launch a SERC-approved public collective investment fund. I am proud to report that in the process of obtaining the various licenses and approvals, we have trained a team of local Cambodians to take on various roles in the areas of asset management. For the launch of BAEF, we have brought in international fund management expertise and its best governance practices. We hope this will set a high standard for the asset management industry going forward.” Mr. Aaron Ng (“Aaron”), CEO of BAMPL said: “BAMPL is proud to be the investment advisor to BAEF, Cambodia’s first approved public investment fund. We have extended our experiences, international practices, and best governance practices to BAMC. We offer our best wishes to BAMC on this launch.” About BAMC Asia Equity Fund (“BAEF”) The BAEF is an investment fund that invests in stocks listed in major stock exchanges in Asia Pacific Ex-Japan. It aims to deliver an expected return of 7-10%* per annum over the medium to long term. The Fund is expected to be diversified with at least 30 stocks across Asia (eg. Singapore, Hong Kong/China, Australia, Thailand, Malaysia, Indonesia, Philippines, etc.) and across various sectors (eg. Banking, Property, Industrials, Consumer, Telecoms, Technology, etc.). The Fund is domiciled in the Kingdom of Cambodia and is USD-denominated. The Fund will accept subscriptions and redemptions daily and the daily unit price of the Fund will be available on various media channels. *- Investment return is not guaranteed. About Banjaran Asset Management (Cambodia) PLC (“BAMC”) BAMC was incorporated in the Kingdom of Cambodia in 2022 and holds a fund management license issued by the SERC to establish and manage a public funds of collective investment scheme. BAMC is a joint venture between Banjaran Holdings Pte Ltd from Singapore, Best Magnet Capital Co., Ltd, and Primo Plus Co., Ltd. Banjaran Holdings and BAMPL are related companies. About Stronghold Trustee Co., Ltd (“ST”) ST is the first Full-Licensed Trustee licensed by the Securities and Exchange Regulator of Cambodia and registered with the Trust Regulator. It specializes in trust services, including Collective Investment Scheme and Personal and Commercial trusts tailored to clients’ needs. ST is part of the Stronghold Group of Companies and has its roots in Taiwan. About Banjaran Asset Management Pte Ltd (“BAMPL”) BAMPL was incorporated in Singapore in 2014 and currently holds a Capital Market Services license in fund management issued by the Monetary Authority of Singapore. BAMPL’s main business activities are in investment management and its funds are distributed through private banks and investment banks across Asia and the UK. BAMPL is also a leading provider of multifamily office services in Singapore. BAMPL’s assets under management are approximately US$ 5 billion (as of 30 June 2023) in a variety of asset classes. These include private and listed equities, private and listed debts, alternative investments, ESG-focused investments, and real estate investments. More News EAC News Kampuchea Thmey Fresh News Asia TNAOT Jia Hua Daily Cambodia Express News Khmer Times Phnom Penh Post Sabay News Kiri Post Securities and Exchange Regulator of Cambodia (SERC) Cambodia Investment Review BTV News
SERC Approves BAMC Asia Equity Fund for Public Offering
Phnom Penh, Cambodia – The Securities and Exchange Regulator of Cambodia (SERC) has officially granted Decision No. 285 SERC/SSR for the establishment of the “មូលបត្រកម្មសិទ្ធិអាស៊ី ប៊ីអេអឹមស៊ី - BAMC Asia Equity Fund” as part of the Collective Investment Scheme. This landmark decision also includes the registration of the Disclosure Document (Prospectus) for the public offering of fund units managed by Banjaran Asset Management (Cambodia) Plc. The BAMC Asia Equity Fund marks a significant advancement in Cambodia's financial landscape, providing local and international investors with diverse investment opportunities. This fund is designed to enhance access to capital markets and promote economic growth in the region. Banjaran Asset Management (Cambodia) Plc is committed to upholding the highest standards of fund management and governance practices. With the approval of the BAMC Asia Equity Fund, the company aims to contribute positively to the development of Cambodia’s capital markets and provide investors with innovative investment solutions. The launch of the BAMC Asia Equity Fund is expected to set new benchmarks for collective investment schemes in the Kingdom, fostering a more vibrant and inclusive financial services sector. Further updates regarding the fund's public offering will be announced soon.
Investment Education Series related to Collective Investment Scheme (Part One)
Investing in Legitimate Investment Products According to published figures by the World Bank, Cambodia's GDP per capita has risen from US$783 (2010) to US$1,625 (2021). Statista.com projected that its GDP will continue to grow to approximately US$2,656 by 2028. The growth in the middle income and increase in wealth of the average Cambodian will naturally bring about the need for investing. However, recently we have also seen a spike in cases of reported fraudulent and failed investment schemes, as well as some which are outright scams. When investing, investors are traditionally enticed by high returns and a sense of familiarity. Very often they ignore what is perhaps the most important factor when investing, which are the risk factors. Risk comes in many forms, to name a few: Counterparty Risk Market Risk Currency Risk Liquidity Risk Regulatory Risk Specific Risk Environmental Risk Bankruptcy Risk Operational Risk Based on past data, it is evident that there is a direct relationship between risk and return. The higher the return from a particular investment, the risk becomes higher. We can illustrate this in a simple graph. Generally, to mitigate the risk, investments should be made on or above the line. Furthermore, investors should select legitimate investment products. ❖ Legitimate investment products (Regulated) When investing, investors should consider whether the investment scheme is regulated, unregulated, or an outright scam. Regulated investment products are generally subject to onerous supervision by the country’s regulators. This makes regulated investment products safer choices compared to the others. A regulated investment product will generally have these features: Approval from the regulator Managed by a licensed fund manager Proper legal documentation and disclosures and will normally be audited by an audit firm accredited by the regulator. Therefore, the risk of a regulated investment scheme being a fraud is very low. ❖ The update of the Cambodia Collective Investment Scheme Market Acknowledging the potential of the collective investment scheme market for economic growth, the Securities and Exchange Regulator of Cambodia (SERC), a sole regulator to regulate, supervise, and develop the securities market in Cambodia has developed the infrastructure to launch this market through the adoption of the Prakas to regulate this market. As a result, on May 29, 2018, SERC adopted the Prakas on “Licensing and Supervision of Collective Investment Scheme Business” to allow companies to apply for a license or approval from the SERC to conduct the Collective Investment Scheme Business. As of Q3 2023, SERC has provided license/approval to 16 fund management companies, 8 trustees, 5 fund distribution companies, and 3 fund administrators. In addition, on July 20, 2023, SERC also adopted the Prakas on “The Issuance of Fund Unit of Collective Investment Scheme”. This Prakas determines the condition and requirement to issue fund units of the collective investment scheme and the post-issuance operation to ensure the orderliness, accountability, and transparency in the market and, most importantly to protect all market stakeholders including investors. ❖ Unregulated Investment Products Unregulated investment schemes are generally operating companies offering high returns and are only governed by the basic corporate regulations. Scams and unregulated investment schemes are often difficult to differentiate. These investment schemes generally have the following features: The promise of unusually high returns (too good to be true because the risk may be extremely high), Poor documentation (hidden risks and hidden costs are not disclosed), Managed by a small team of individuals (usually with exaggerated backgrounds), No proper third-party verification (not audited – all done by one company). Most importantly, there are no regulators to supervise the legitimacy of the investment schemes. ❖ Scams or Fraudulent Investment Schemes These are recent cases of unregulated investment schemes that have gone bad in Cambodia: The International Forex Trading case of 2019, in which the scheme was operated by a small group of individuals making promises of very high returns. There were no checks and balances and the company was in charge of both making the investment as well as issuing cheques to investors. Such unregulated companies, when unchecked by an independent third party can make false and exaggerated claims. In the Empire Big Capital Limited and Investment Consultant Association case of 2017, again this scheme was operated by a small group of individuals making promises of very high returns (10% per month). Similar to the previous case, there were no checks and balances, the company basically did everything internally. There were also reports of land investment schemes that have turned sour and were alleged to be fraudulent. Some of these operators have been arrested and charged, and some jailed. The alleged land investment scheme always promised high returns. There is a lack of transparency in how the funds were invested and with regard to the progress of the projects and their cashflows. It is important to note that there is a difference between an investment scheme going bad and it being an investment scam. All investments have to take risks to generate returns. There are many examples of investments going bad due to poor market conditions and other reasons. Scams happen when there is no real intent to channel money collected from investors into the stated investment. Instead, profits are fictitiously generated by using money from new investors to pay previous investors. This is known as a Ponzi scheme. Scam operators are in all instances not approved by regulators. ❖ Conclusion In seeking legitimate investments, investors should consider the following: Is the company regulated by the relevant authorities? Is the product approved by the relevant authorities? Does the investment reasonably justify the return that is promised? Does the collective investment scheme have basic checks and balances, like independent lawyers, auditors, and other professionals? Lastly, trust your instincts. If an investment sounds too good to be true, you should investigate further and ask more questions. In selecting a legitimate investment that fits your risk profile, the investment should diversify your risk and at the same time help you grow your wealth over time. An article from the Securities & Exchange Regulator of Cambodia (SERC)
Banjaran Asset Management Submits BAMC Asia Equity Fund for Collective Investment Scheme Approval to SERC
Phnom Penh, Cambodia – Banjaran Asset Management (Cambodia) Plc. has taken a significant step forward in the financial sector by submitting the application for its BAMC Asia Equity Fund for fund unit offering approval. The submission falls under Cambodia's Collective Investment Scheme (CIS) regulatory framework, reflecting the company's commitment to providing robust investment opportunities in the region. The inspection of the application was conducted by Her Excellency Thay Sokphalline, Director of the Securities Issuance Department, along with a team of officials from the Securities and Exchange Regulator of Cambodia (SERC). The comprehensive review marks an important milestone for the BAMC Asia Equity Fund, which aims to broaden access to diverse investment portfolios, catering to the growing demand for equity investment solutions in Asia. The BAMC Asia Equity Fund represents a pioneering effort in Cambodia’s capital market landscape. Banjaran Asset Management remains confident that this offering will contribute to the country’s economic growth by attracting both domestic and international investors. With a strategic focus on high-growth sectors across the Asia region, the fund is poised to deliver long-term returns for investors while strengthening Cambodia’s position in the global financial market. Banjaran Asset Management (Cambodia) Plc. continues to work closely with regulatory bodies to ensure compliance with all legal and financial guidelines. Pending approval, the BAMC Asia Equity Fund will be the first of its kind in the Cambodian market, marking a significant achievement in the country's financial sector development. For further updates and details, please stay tuned for official announcements from Banjaran Asset Management and the Securities and Exchange Regulator of Cambodia (SERC).
Firechat on The Preparedness, Opportunities, and Potential of the Collective Investment Scheme (CIS) Business
Phnom Penh, Cambodia – Mr. Christopher Wong, Investment Director of Banjaran Asset Management (Cambodia) PLC, participated in a dynamic discussion titled “Firechat on The Preparedness, Opportunities, and Potential of the Collective Investment Scheme (CIS).” The event was moderated by H.E. Dr. Vin Pheakdey, Deputy Director General of the Securities and Exchange Regulator of Cambodia (SERC). The discussion focused on the evolving landscape of collective investment schemes in Cambodia, emphasizing the importance of regulatory preparedness and the potential for economic growth through these investment vehicles. Wong shared his expertise on the opportunities that CIS presents for both local and international investors, highlighting its role in enhancing capital access and promoting financial inclusion in the country. The event also provided a platform for industry stakeholders to engage in dialogue about the challenges and opportunities within the investment sector. Wong's insights contributed to a deeper understanding of how collective investment schemes can be leveraged to strengthen Cambodia's financial markets. As the country continues to develop its capital markets, such discussions are crucial for fostering collaboration among regulators, investors, and industry leaders. Banjaran Asset Management (Cambodia) remains committed to participating in initiatives that promote a robust investment environment and advance the nation’s financial services sector. Firechat on The Preparedness, Opportunities, and Potential of the Collective Investment Scheme (CIS) Business.
ទស្សនៈទីផ្សារ
2025 October Market Outlook: Between Tariffs and Growth — Searching for Stability
Towards the end of September, in an effort to protect American jobs, the Trump administration made surprised changes to immigration visa laws that target foreign talent, particularly those working in the U.S. technology sector. Amongst the heaviest users of this targeted immigration visa scheme include Amazon.com Services LLC, Meta Platforms Inc, Apple Inc and Google LLC. Later that month, the U.S. Immigration Service issued guidance that included exceptions, thus stabilising concerns. However, the labour market outlook remains uncertain with the shutdown of the U.S. government, which began on October 1st. Consequently, data reports such as the official U.S. monthly jobs report and the labour-intensive Consumer Price Index report would likely be delayed amidst the impending mass firing and unpaid furlough of certain segments of federal workers. In China, September data showed low domestic demand, a continued property downturn and the weakest economic growth in a year. With the ongoing US-China trade war, Chinese regulators have urged against the use of Nvidia chips completely, stating that domestic chips are adequate in delivering comparable computing power. As such, Chinese domestic chipmakers have benefitted from efforts to become self-sufficient, and this move should serve as a catalyst to grow the technology sector. China tightened exports of rare earth where products that contain certain rare earths or traces of it sourced from China will now require an export license. With a 70% share of global supply, the supply crunch would be felt by the U.S. and Europe. In response, the U.S. imposed a 100% import surtax on Chinese goods effective November 1st, ahead of the 90-day tariff truce that was set to end on November 9th. Despite the trade war uncertainty, Chinese exports rebounded in September from a slump in August, beating estimates and increasing 8.3% year over year while imports grew 7.4%. The sweep of high tariffs from the U.S. have led China to seek imports from other avenues, such as Brazil and Argentina for soybean, which has caused farmers in the U.S. to scramble for buyers. On the other hand, aggressive price competition among manufacturers in China have led to what has been termed ‘Chinese dumping’, where low prices due to Chinese imports are alarming domestic producers in India, Africa and South-east Asia. Looking ahead, we remain cautiously optimistic of the global markets. In the U.S., businesses and households are concerned over trade tariffs, changes to immigration laws and the shutdown of the U.S. government. The structural imbalance in China represented by slow domestic growth and heavy reliance on export further weighs on global financial markets and investor confidence. Despite the uncertainty, there were reports of pockets of positive news. Alternative data in the U.S. such as restaurant bookings and theatre box office receipts reflects resilient consumer activity. The number of seated diners was up 9% from last year and domestic box office grossed 13% more than the previous month.
2025 September Market Outlook: Bullish Trends Meet a Cautious Reality
August began with higher reciprocal tariffs imposed by the U.S. on its trading partners. Notably, a 50% tariff on India that included a 25% penalty for purchasing Russian oil and weapons. Meanwhile, the U.S. and China extended a tariff truce for another 90 days to 10 November. Credit spreads narrowed further in August, indicating continued high investor risk appetite. Equity markets broadly advanced, reinforcing bullish sentiment amid strong earnings from technology driven firms. That said, investors are growing cautious about returns from technology and particularly, AI investments. Economic data indicated a struggling Chinese economy with low factory output, weak retail sales, troubled property sector and high unemployment. This raises the likelihood of policy support in the fourth quarter; economists suggest monetary easing and fiscal expansion. Despite underwhelming economic data, the Chinese stock market stands at a stark contrast to the economy with the Shanghai Composite Index at a 10-year high. Additionally, the government announced their aim to triple chip output in 2026. The reluctance of household spending is evident in the size of savings worth more than 60% of the total value of the Chinese stock markets, leading analysts to believe that the rally is supported by long-term and institutional investors. Key drivers include the strategic deployment of state funds, inflows from global institutional investors—such as major U.S. financial institutions like Goldman Sachs and JPMorgan, as well as large Singapore-based funds—and increased participation by domestic mutual funds and insurers. Looking ahead, we remain cautiously optimistic. While trade frictions, sticky inflation, and geopolitical tensions continue to weigh on sentiment, global activity remains resilient. Primarily driven by technology companies’ robust earnings, U.S. equities performed well, with S&P 500 and Nasdaq reaching record highs in August. Despite an initial pullback, markets have broadly rallied since, buoyed by expectations of two more rate cuts this year, moderating inflation, and resilient corporate earnings. Within Asia, institutional investors looking for diversification beyond U.S. assets are lured by China’s stock market bull run. Against this backdrop, we maintain a disciplined and balanced approach, grounded in bottom-up fundamental analysis in our portfolio construction.
2025 August Market Outlook: AI and Tech Earnings Fuel Optimism Despite Uncertainty
Investors continue to watch closely for disinflationary indicators and the Fed's response. Despite macro uncertainties, the narrowing credit spread likely indicates the ongoing high investors' risk appetite. The strong earnings from AI-driven tech companies further supported investors' confidence, albeit after a slight June pullback. In Asia, the negative PPI in China reflects Chinese consumers becoming more price-sensitive and cutting back on non-essential spending. Sectors like electric vehicles ("EVs") and food delivery companies have slashed prices to stay competitive. The government launched an "anti-involution" campaign to combat the deepening price wars, and the initiatives such as pricing oversight have shown early signs of effectiveness. Despite this, the Chinese and Hong Kong equity markets have gained, with AI-linked firms and industrial-tech stocks driving market performance. Looking ahead, we remain cautiously optimistic. Despite continued geopolitical tensions and macro uncertainties weighing on sentiment, resilient corporate earnings and tightening credit spreads would likely continue to support the global equity markets, notably in the AI and tech sectors. Meanwhile, we believe the Fed will remain cautious, closely watching sticky inflationary indicators; if inflation continues to ease, gradual rate cuts are likely. In spite of trade reroutes and structural market challenges leading to overcapacity, Asian equity markets performed better than expected, supported by a strengthened macro backdrop. Against this landscape, we maintain a disciplined and balanced approach, grounded in bottom-up fundamental analysis in our portfolio construction.
2025 July Market Outlook: Resilient Earnings and Renewed Trade Ties Keep Investor Confidence Intact
Since June, investor sentiment has gradually improved, supported by resilient corporate earnings, stronger-than-expected macroeconomic indicators, and measured progress in trade diplomacy. Despite lingering policy uncertainty and geopolitical risks, market conditions have remained relatively calm, with volatility largely contained. Trade policy continues to be a central concern. The Trump administration’s 90-day pause on tariffs is set to expire on August 1, with proposed tariffs of up to 50% on autos and consumer electronics still under consideration. However, in spite of looming tariff risks, the successful negotiation of bilateral trade agreements - with Japan, the U.K., and South Korea - has helped bolster investor confidence. The U.S. - Japan deal, which includes a reported US$550 billion investment commitment, has further supported sentiments across Asian markets, which benefits from improved trade ties and regional policy coordination. Meanwhile, the One Big Beautiful Bill (BBB Act), which offers generous tax incentives - including permanent R&D deductions and 100% expensing of production property - has provided notable support to the technology, semiconductor, and data center sectors. While the BBB Act raises concerns over fiscal deficits, it has already helped sustain momentum in pro-growth and AI-exposed equities. In Asia, China’s Q2 GDP growth exceeded expectations, underpinned by strong industrial output and a rebound in exports, driven in part by front-loaded shipments ahead of potential new tariffs. However, weakness in retail sales and property investment underscores China’s continued reliance on external demand and industrial production over domestic consumption - raising expectations for further targeted fiscal support in the second half of 2025. Looking ahead, we remain cautiously optimistic. While U.S. headline CPI rose in June, disinflationary trends are still evident in core components. Profitability remains strong in key sectors, and Asia continues to benefit from trade gains and pro-growth policies. However, with valuation multiples remaining elevated, the upcoming earnings season will play a pivotal role in supporting the valuation premium. With liquidity conditions stable and market volatility subdued, we maintain a disciplined and balanced approach, guided by bottom-up fundamental analysis in our portfolio construction.
2025 June Market Outlook: Resilient Markets in a World of Risk
Since May, markets have continued to operate in an environment marked by policy uncertainty and rising geopolitical risks. The Trump administration’s 90-day pause on “Liberation Day Tariffs” offered temporary relief, but limited progress in broader trade talks - especially with the EU and Japan - has kept investors cautious. While a limited agreement with the U.K. was reached, the overall trade landscape remains unresolved, affecting sentiment and weighing on risk appetite. Geopolitical tensions escalated in June, particularly with the Israel-Iran conflict. Iran’s threat to close the Strait of Hormuz - a key route for around 20% of global oil supply - triggered a sharp rise in oil prices. This has increased concerns about supply disruptions, global shipping rerouting, and broader instability in the region. The timing of this conflict has added complexity to the inflation outlook. Central banks, including the Fed, were preparing for a potential shift toward easing. However, the surge in oil prices has introduced new uncertainty. In its June meeting, the Fed held rates steady and signaled only one possible cut for the rest of the year, citing persistent services inflation and elevated geopolitical risks. A prolonged conflict could keep oil prices elevated, which may delay or limit policy easing. Concerns over U.S. fiscal stability, driven by political gridlock and unresolved budget discussions, have added to the uncertainty. Despite these challenges, we maintain a cautiously optimistic outlook. Disinflationary trends are taking hold, and market volatility has stayed relatively contained. With a potential easing in tariff tensions, expectations of reduced geopolitical friction, and supportive fiscal and probusiness policies in China and the U.S., global equities are expected to continue recovery. Against this backdrop, we maintain a disciplined and balanced approach, guided by bottom-up fundamental analysis in our portfolio construction.
2025 May Market Outlook: Navigating Volatility Amid Trade Tensions and Monetary Policy Caution
Global Markets The global stock market, as represented by the MSCI World Index, rose 0.74% in April. Gains were primarily driven by robust performance in non-U.S. equities and a temporary easing of global trade tensions. While U.S. markets experienced sharp mid-month volatility following the announcement of sweeping new tariffs, a partial rollback—excluding China—helped restore investor confidence. Resilience in large-cap technology stocks and a rotation into defensive sectors also contributed to gains. Additionally, expectations of monetary easing in select developed markets outside the U.S. provided a tailwind, helping global equities recover despite ongoing geopolitical and trade-related uncertainty. General Outlook and Views April began with heightened volatility following the surprise rollout of the “Liberation Day Tariffs,” which included a blanket 10% levy on all imports and steeper country-specific rates. Markets reacted swiftly—equities tumbled, and Treasury yields dropped as risk-off sentiment took hold. A temporary rebound followed the U.S. decision to pause most tariffs, excluding those on China. However, China’s swift retaliation reignited trade tensions, pulling markets lower once again. Despite the volatility and uncertainty, equities have since staged a robust recovery, supported by a tentative trade truce between the two economic powers. Investor sentiment was buoyed by the prospect of renewed negotiations, contributing to a broad-based rally. Meanwhile, the Federal Reserve opted to keep interest rates unchanged, adopting a cautious, data-dependent approach as it assesses the broader impact of trade disruptions. Recession risks, however, remain elevated amid subdued consumer sentiment, persistent macroeconomic headwinds, and the fragile state of U.S.–China trade negotiations. The Fed’s decision to hold rates steady reinforces its wait-and-see stance, while the recent credit rating downgrade by Moody’s has drawn renewed attention to the U.S.’s long-term fiscal vulnerabilities—adding another layer of uncertainty to the market outlook. Nonetheless, we remain cautiously optimistic. While the broader economic landscape remains clouded by trade policy uncertainty and political volatility, the possibility of continued U.S.–China engagement offers some hope for de-escalation and market stabilization. Against this backdrop of fragile trade dynamics, tightening fiscal credibility, and a patient Fed, we remain focused on navigating near-term volatility through disciplined portfolio positioning. We continue to monitor developments closely, recognizing that trade relations, monetary policy, and political developments will remain key drivers of global growth and market stability in the months ahead. Given the current environment, we believe it remains prudent to refrain from significant portfolio shifts until greater policy clarity emerges.