This article first appeared in The Edge Financial Daily on February 20, 2019

KUALA LUMPUR: Pheim Asset Management Sdn Bhd, with asset under management (AUM) worth about RM1 billion, is aiming to deliver 8% to 12% returns for its portfolio of funds over three to five years.

“To achieve an 8%-to-12% [growth] is not difficult. Whenever people give us money [to invest], I would like to emphasise to give us three to five years, and normally it (the investment) can do quite well,” said its founder and chief strategist Dr Tan Chong Koay (pic) at a press conference in conjunction with Pheim Asset Management's 25th anniversary celebration yesterday.

“For the last 25 years, Pheim has cumulatively and consistently delivered returns, yielding more than that of fixed deposits for our long-term investors. Our commitment remains — sharing our expertise with investors, both existing and prospective, in creating wealth,” he added.

Guided by Pheim Asset Management's investment philosophy of “never fully invest at all times”, the firm has weathered all major crises in the past 25 years, believing the philosophy will serve it well for the next 25 years, he said.

Pheim Asset Management highlighted its funds such as Dana Makmur Pheim and Pheim SICAV-SIF-Asean Emerging Companies Fund registering total cumulative returns of 358.74% and 454.36% since they were established in 2002 and 1995 respectively.

About this year’s investment strategy, Tan is bullish on the technology and semiconductor sectors due to their promising outlook. “People talk so much about 5G (fifth-generation wireless, the latest iteration of cellular technology]; eventually, 5G will go (that is, develop rapidly) — you cannot stop that, [hence] the outlook is very good.”

Tan said Pheim Asset Management still looks at Internet-related and semiconductor companies, especially those in countries such as Taiwan and South Korea, in a bid to leverage their strengths in semiconductor and technology to bring in good returns for their investors.

Tan also said Pheim Asset Management still favours the Asia region ex-Japan, particularly Asean, citing it as one of the fastest-growing regions in the world.

Asean’s potential cannot be understated. Although its population is five times more than those of Taiwan and South Korea combined, the total market capitalisation of Asean is smaller than that of the two countries combined, showing much space to grow in the capital markets given there is no shortage of talents and entrepreneurs, Tan added.

Pheim Asset Management, celebrating its silver jubilee this year, is hopeful about increasing its AUM by 10% to 15% by end-2019.