Income Distribution for Eastspring Investments Balanced Fund

14 May – Kuala Lumpur.  Eastspring Investments Berhad is pleased to announce that an income distribution of 3.75 sen per unit for has been declared for the Eastspring Investments Balanced Fund. This income distribution is equivalent to 4.50% on the Net Asset Value of the Fund as at 31 March 2012.

The performance of the Fund to date is as follows:

                Source: Lipper, 31 March 2012

The Fund’s performance was attributed to its consistent equity weighting above 50% for 2011. In 1H2011, the Fund mainly invested in beta plays to take advantage of the bullish equity market. The Fund switched into defensive stocks and reduced equity exposure in the 2H2011 when concerns on the European sovereign debt crisis escalated. The Fund continues its strategy to identify undervalued stocks with good earnings sustainability for investment opportunities.

Equity Market Outlook

Growth is expected to be adversely affected by the faltering export engine, which remains the key risk. Amid some glimmer of hope for the US economy, the eurozone’s debt saga would weigh on the global economy.

Domestic demand is expected to ease in 2012 on the back of softer growth in consumer spending and a slowdown in investment activities. Consumer spending, however, is envisaged to remain reasonably resilient given high savings, rising consumerism and favourable labour market conditions. The handouts by the Government in 2012 Budget could also provide some help. At the same time, sustained high commodity prices, that have boosted rural household incomes, will likely sustain rural household spending going forward. Nevertheless, the measures introduced by the Bank Negara Malaysia to control rising household debt are likely to dampen consumer spending during the year. In the same vein, businesses are expected to cut spending, in view of rising economic uncertainties. Growth, however, will likely be supported by the implementation of the ETP projects.

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