Phillip Fund Focus September 2026

Regional and global markets improved in August as easing expectations of near-term US monetary tightening and resilient corporate earnings supported risk appetite. The MSCI Asia Pacific ex-Japan Index gained 3.0%, outperforming the MSCI World Index’s 2.5% increase, with market leadership concentrated in Taiwan and South Korea amid continued optimism over AI infrastructure spending, semiconductor demand and positive earnings revisions. Improved foreign inflows and resilient export growth further supported technology-oriented Asian economies. Nevertheless, performance remained uneven across the region, with the Philippines, Thailand, India and Hong Kong declining amid domestic growth concerns and cautious investor sentiment. Inflation risks also remained relevant, particularly for energy-importing economies, while regional central banks continued to balance growth support against currency volatility and potential price pressures.

Phillip Fund Focus August 2026

Malaysia’s macro backdrop in July remained relatively resilient despite a more politically active environment, with investors closely monitoring the Johor state election and the subsequent Negeri Sembilan election as potential indicators of the political landscape heading into GE16. The decisive outcome in Johor and the heightened focus on Negeri Sembilan reinforced expectations that political developments will remain a key theme for domestic markets, although overall market reaction has remained orderly amid continued confidence in institutional stability and policy continuity. At the macro level, inflation remains contained, domestic demand continues to be supported by a healthy labour market, and government-led investment initiatives provide a supportive backdrop for growth. We remain constructive on selected domestic-oriented sectors, particularly beneficiaries of rising electricity demand driven by data centre expansion, ongoing renewable energy investments, and infrastructure-related spending, especially within the Johor growth corridor. We also see increasing opportunities in the construction, utilities and industrial sectors as Malaysia continues to attract foreign direct investment, supported by supply chain diversification trends and the acceleration of digital infrastructure projects. Accordingly, our strategy continues to favour a barbell approach anchored on large-cap, high-quality companies with strong balance sheets and reliable dividend yields, while selectively complemented by exposure to firms with clear earnings growth potential driven by structural thematic drivers.

Phillip Fund Focus July 2026

Malaysia’s macro backdrop in June remained broadly stable, supported by improving global risk sentiment, though domestic sentiment was tempered by political attention ahead of the upcoming general election cycle. While election uncertainty caused intermittent equity market volatility, overall reactions remained measured, reflecting expectations of policy continuity and institutional stability. Easing global energy pressures and more diversified crude supply helped moderate inflation and support price stability, although second-order inflation effects from earlier increases in energy, logistics, and labour costs may persist in some industries. Against this backdrop, we remain constructive on selected domestic-oriented sectors, particularly those benefiting from rising electricity demand driven by data centre expansion and continued renewable energy investment. We are also increasingly positive on technology as order visibility improves, supported by sustained AI-related capital expenditure. Our strategy continues to favour a barbell approach, combining large-cap, high-quality dividend stocks with selective exposure to companies offering structural earnings growth.

Phillip Fund Focus June 2026

Recent developments in the Middle East, including reported progress in maintaining a conditional ceasefire between Iran and the United States, have helped ease some geopolitical tensions and support a more stable risk backdrop into mid-2026. This gradual improvement in global risk sentiment is constructive for broader markets, particularly for manufacturing and semiconductor equipment sectors, which continue to be underpinned by strong structural demand from AI infrastructure, data centre expansion, renewable energy deployment, and advanced memory technologies such as DRAM and HBM. While near-term volatility arising from Middle East-related supply chain risks may persist, we view such episodes as opportunities for disciplined long-term positioning. Although sector leadership continues to be driven by AI infrastructure and its global supply chain beneficiaries, the market is becoming increasingly selective as valuations turn more demanding. In this environment, we believe a barbell strategy that combines growth and income exposures, alongside broader diversification, remains well positioned to navigate volatility stemming from potential energy shocks, renewed inflationary pressures, and lingering uncertainties surrounding US tariff policies.

Phillip Fund Focus May 2026

Following recent efforts to de-escalate tensions, Iran and the United States have reportedly agreed to extend a conditional ceasefire, signalling further progress toward reducing geopolitical risks in the region. The gradual improvement in geopolitical conditions reinforces a more constructive market outlook for the remainder of 2026, particularly for the global manufacturing and semiconductor equipment sectors, which continue to benefit from robust demand linked to AI infrastructure, data centres, renewable energy development, and advanced memory technologies such as DRAM and HBM. While near-term volatility arising from Middle East-related supply chain risks may persist, we view such episodes as opportunities for disciplined long-term positioning. Although sector leadership continues to be driven by AI infrastructure and its global supply chain beneficiaries, the market is becoming increasingly selective as valuations turn more demanding. In this environment, we believe a barbell strategy that combines growth and income exposures, alongside broader diversification, remains well positioned to navigate volatility stemming from potential energy shocks, renewed inflationary pressures, and lingering uncertainties surrounding US tariff policies.

Phillip Fund Focus April 2026

Following President Trump’s recent remarks regarding the seizure of Iranian export hubs like Kharg Island, we anticipate further escalation for several weeks before any diplomatic intervention to end the conflict occurs. While markets often react with short-term volatility, we believe this presents opportunities for disciplined, long-term investors. In this environment, a barbell strategy balancing high-quality growth exposures with income-oriented assets remains well suited to navigating bouts of volatility, while incorporating broader diversification to serve as a critical hedge against potential energy shocks.

Phillip Fund Focus March 2026

Tensions between the United States, Israel and Iran have escalated significantly during Donald Trump’s second presidency. The first major escalation happened in June 2025, when Israel launched large-scale strikes on Iran’s nuclear and military facilities. Iran responded with waves of missiles and drones targeting Israel, leading to a brief 12-day conflict. The US later joined with strikes on Iranian nuclear sites, showing its willingness to directly intervene to curb Iran’s nuclear ambitions. The confrontation flared up again in February 2026, when the US and Israel carried out another coordinated round of strikes on Iranian military and leadership targets. While markets usually react with short-term fear, we believe the most likely outcome is a prolonged period of ongoing conflict rather than a full-scale war. In this environment, a barbell strategy balancing high-quality growth exposures with income-oriented assets remains well suited to navigating bouts of volatility.

Phillip Fund Focus February 2026

Equity markets are poised for moderate, selective gains in 2026, as resilient earnings help offset elevated valuations and concentrated leadership. Investors remain attentive to geopolitical risks, the payoff from sustained AI investment, and policy uncertainties, particularly in the U.S. With the Fed well into an easing cycle, liquidity conditions are supportive, while parts of Asia still have room to ease amid high real rates. A barbell strategy balancing high-quality growth with income-oriented assets remains well suited to navigating potential volatility.

Phillip Fund Focus January 2026

As we move through 2026, global equities are expected to post moderate gains, supported by solid earnings growth, though valuation concerns persist. For investors, geopolitical developments, AI-related capital expenditure monetization, and concentration risks are key factors. The current Fed rate-cut cycle should support equities, with Asian markets potentially able to ease further given elevated real rates. In this environment, we recommend a barbell strategy focused on quality growth and income to navigate potential volatility.