AIA Bhd.

200701032867 (790895-D)

October 2022

MONTHLY FUND PERFORMANCE UPDATE

AIA GLOBAL BALANCED FUND (previously known as AIA Eleven Plus Fund)
Investment Objective Historical Performance
The primary goal of this Fund is to provide long-term total return (combination of 1.20
capital growth and income) with moderate risk by investing through exposure in AIA Global Balanced Fund
a diversified portfolio of global equities and fixed income securities. It is also 1.00 Benchmark
flexible by allowing investments in newer funds launched in the future. The Fund
adopts a relatively balanced approach towards equities and bond exposure with 0.80
the aim of providing stable growth of your investment. The Fund’s expected
average exposure to equities will be approximately 60% over the long term, 0.60
however this exposure may vary from time to time and can go up to 80%. The
balance is invested in the fixed income or money market instruments. 0.40

0.20
Notice: Please refer to the Fund Fact Sheet for more information about the

Jan-11

Jun-21
Jun-08
Feb-09

Jun-10

Sep-11
May-12
Jan-13
Sep-13

Dec-14
Aug-15

Nov-16

Nov-18

Feb-20

Feb-22
Oct-07

Oct-09

Apr-16

Jul-17

Jul-19
Mar-18

Oct-20

Oct-22
Apr-14
Fund.

Fund Details
Unit NAV (31 Oct 2022) : RM 0.95558 Cumulative Since
1-Mth 6-Mth 1-Year 3-Year 5-Year Inception
Fund Size (31 Oct 2022) : RM 206.242 million Performance
Fund Currency : Ringgit Malaysia Fund~ 3.55% -4.33% -11.67% 6.52% 5.59% 91.12%
Fund Inception : 25 October 2007 Benchmark* 6.18% -1.21% N/A N/A N/A N/A
Offer Price at Inception : RM 0.50 Excess -2.63% -3.12% NA NA NA NA
Fund Management Charge : 1.50% p.a ~ Calculation of past performance is based on NAV-to-NAV. This is strictly the performance of the
investment fund, and not the returns earned on the actual premiums/contributions paid of the
Investment Manager : AIA Bhd. investment-linked product.
Fund Type : Fund of Funds * Prior to fund restructuring effective from January 2022, there was no benchmark available. Post
restructuring the benchmark is 60.0% MSCI World Price Index + 40.0% Barclays Global Aggregate
Basic of Unit Valuation : Net Asset Value Corporate Total Return Index (Source: Bloomberg). Calculation of the benchmark since inception
Frequency of Unit Valuation : Daily performance is based on the date the fund restructuring exercise was completed which is 31 January
2022. Meanwhile, calculation of the Fund’s since inception performance is based on the Fund's
inception date of 25 October 2007.
Underlying Fund Details
Notice: Past performance of the Fund is not an indication of its future performance.
AIA Global Multi-Factor Equity Fund
AIA Diversified Fixed Income Fund
Market Review
Name : AIA Asia Ex Japan Equity Fund
Global equities rebounded in October, ending the month with a 16.7% loss on a Year-to-Date (“YTD”)
AIA Greater China Equity Fund basis. Developed market (“DM”) equities registered strong returns, while emerging markets (“EM”)
AIA India Equity Fund were dragged lower by China. Chinese equities fell sharply as markets grew increasingly anxious
Investment Manager : AIA Investment Management Private Ltd. about the state of China’s economy and the direction of governance and policies following a
reshuffling in President Xi Jinping’s leadership team. Purchasing managers’ indices (“PMI”) for
October indicated that global economic growth continued to slow, pushing the world’s economies
Top Fund Holdings closer to recession. A combination of strong labour markets and the unrelenting rise in inflation kept
most central banks on track for additional interest-rate hikes. However, the Bank of Japan (“BOJ”)
1 AIA Global Multi-Factor Equity Fund 48.84% maintained its ultra-easy policy settings even as core inflation accelerated to an eight-year high and
a slumping Japanese yen (“JPY”) pushed up import costs. Global supply-chain disruptions eased,
2 AIA Diversified Fixed Income Fund 38.38%
although geopolitical tensions heightened as the war in Ukraine escalated and global trade relations
were stressed. The US government published a sweeping set of export controls on advanced
3 AIA Asia Ex Japan Equity Fund 8.89%
computing and semiconductor manufacturing technologies to China, which could amount to the
largest shift in US policy on technology exports to China since the 1990s. The Organization of the
Fund Allocation Petroleum Exporting Countries (“OPEC+”) agreed to its biggest oil production cut since the onset of
the COVID-19 pandemic, slashing output by two million barrels per day. The European Commission
(“EC”) proposed new measures to improve stability in Europe’s gas markets and to mitigate the
Cash & others , 3.89% impact of high prices on households and businesses.
AIA Asia Ex Japan
Equity Fund, 8.89% Strong labour markets and high inflation continued to put pressure on the US Federal Reserve (“Fed”)
over the month. While non-farm payrolls fell short of street estimates, the unemployment rate
dropped to 3.5% while wages continued to rise. The US Job Openings and Labor Turnover Survey
(“JOLTS”) data, on the other hand, showed a sharp drop in job openings which may represent an
early sign that the labour market is beginning to cool. The Consumer Price Index (“CPI”) printed a
surprise to the upside yet again with core inflation notably moving up to 6.6%, a new 40-year high.
The strong advance was led by service inflation which saw strength across all categories including
the shelter, medical, and transportation sectors. The combination of strong labour and inflation data
cemented the market’s view that the Fed would hike rates by 75bps in November and led to a selloff
in rates with the 2Y and 10Y US Treasury (“UST”) yields reaching levels not seen in over 14 years.
Elsewhere the UK Prime Minister, Liz Truss, resigned from office less than two months after
assuming the post and following a chaotic period where her plans for large unfunded tax cuts sparked
market turmoil and forced a total policy reversal. Against this backdrop, the Bloomberg US
Investment Grade Credit Index was unchanged at 147bps, resulting in a monthly excess returns of
53bps. In respect to corporate earnings, with a little over half of S&P 500 companies reporting, 71%
have reported positive earnings per share (“EPS”) surprises while 68% have reported positive
revenue surprises. Thus far, the Year-over-Year (“YoY”) earnings growth rate for the quarter is 2.2%
AIA Diversified Fixed which is below analysts’ estimates and represents the lowest earnings growth rate since 3Q2020. In
AIA Global Multi-Factor the primary market, supply which printed USD104.2 billion was led by financials. As at YTD, the
Income Fund , 38.38%
Equity Fund , 48.84% supply is trailing last year’s issuance by about 14% as heightened rate volatility and high concessions
have made it more difficult for issuers to come to market. Over the month, the best best-performing
sectors were Oil Field Services, Cable Satellite, Food & Beverage, Independent Energy and Refining.
The worst-performing sectors were REITs, Foreign Local Govt, Supermarkets, Packaging and
Supranationals. Amongst rating cohorts, BBB rated bonds fared the best, while A rated bonds fared
the worst.

Lipper Leader Fund for:

Market Outlook
1. Total Return
In view of the bearish view on the equity market, the Fund currently maintains an overweight to lower
2. Consistent Return beta styles, such as Minimum Volatility, High Dividend, Quality and Value with the view that these
factors should outperform the core index under a macro context of weaker growth (or recession) and
Lipper uses a ranking system of 1 to 5. A ranking of 5 means the fund is in the top 20% of Fed tightening. These factors should also be able to provide some downside protection during equity
funds in that category while a ranking of 1 means the fund is in the bottom 20%. sell-off events as well as provide diversification benefits within a portfolio construction context.
Source: www.lipperleaders.com
As for the fixed income market, as we approach the end of the rate hike cycle, we will continue to
adopt a more cautious approach towards credits while positioning for long-term opportunities.

This document is for informational use only. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of the units may
fall as well as rise. Past performance of the fund is not an indication of its future performance. This is not a pure investment product such as unit trust and please evaluate the
options carefully and satisfy that the Investment-Linked Insurance / Takaful plan chosen meets your risk appetite. Please refer to the Fund Fact Sheet for more information
about the fund.