This article first appeared in Wealth, The Edge Malaysia Weekly on April 27, 2026 - May 3, 2026

At the LSEG Lipper Fund Awards 2026, Public Mutual Bhd has once again emerged as the biggest winner, clinching 29 individual awards and four group awards across the Best Equity (Malaysia), Best Mixed Assets (Malaysia), Best Bond Group (Islamic) and Best Mixed Assets (Islamic) categories.

Its CEO Chiang Kang Pey says the firm’s best investment strategy last year was its positioning across the global artificial intelligence (AI) value chain leaders, which saw strong performance due to the AI boom.

Chiang and his team focused on selected stocks that are beneficiaries of the proliferation of AI, comprising the hardware and software segments, as well as communications and industrial companies related to the rollout of AI applications. The funds also selectively invested in the consumer sector, which generally tends to be backed by resilient consumption trends.

On the flip side, they adopted a cautious stance on certain markets whose performance turned out better than expected despite an uncertain macroeconomic outlook. This experience highlights the importance of recognising the resilience of corporate earnings in spite of short-term market uncertainties due to policy rate actions by central banks and geopolitical tensions, says Chiang.

“All in all, the most important lesson we learnt last year is to always adhere to our investment philosophy of focusing on fundamentals. This adherence should continue to serve us well as we continue to strive to build a better financial future for investors,” he adds.

Public Mutual’s investment philosophy is one of identifying and selecting stocks with strong fundamentals and positive long-term growth prospects. It is a key factor that enabled its winning funds to ride through periods of elevated market volatility and deliver consistent returns over the long term.

Diversification also plays a key part in Public Mutual’s big win, says Chiang. “Our funds’ strong performance was driven mainly by their diversified exposures to various sectors, including technology, communications, industrial and consumer across the global, regional and domestic markets.”

The year 2025 was one of two distinct halves, he says, with the first half marked by significant market volatility amid external pressure, followed by a rebound in the second half buoyed by AI infrastructure spending, economic resilience and a strong ringgit.

Amid all this, Chiang and his team actively rebalanced their portfolio to capitalise on investment opportunities arising from volatile market conditions and changing trends in domestic and foreign markets. “Overall, our funds were generally well invested in the equity markets in 2025,” he says.

Looking ahead, Chiang and his team expect volatility to remain a defining feature of the global market.

As at mid-April, oil prices had risen to multi-year highs, owing to the Middle East conflict, presenting both risks and opportunities to fund managers. For the global economy, sustained energy inflation can tighten financial conditions and pressure consumer spending. But it also supports investment and earnings in the energy sector and resource-producing economies.

Meanwhile, geopolitical fragmentation may underpin selected structural investment themes. Areas such as energy security, defence spending, semiconductor supply chains and technology ecosystems are likely to receive greater policy support in many countries.

Chiang notes that global central banks are slowly transitioning towards a more neutral monetary policy stance, despite moderating momentum in selected markets and uncertainty on inflation, owing to increased oil price volatility.

Geographically, he sees the US economy as the anchor of global growth this year, supported by strong corporate balance sheets, structural investments in AI and digital infrastructure and resilient consumer demand. Growth across Europe and certain parts of Asia may remain uneven, reflecting weaker industrial momentum and lingering geopolitical uncertainties.

To ride out potential market volatility, Chiang says, Public Mutual’s equity funds will generally maintain diversified portfolios across various sectors and markets, while selected funds may hold higher cash positions to capitalise on investment opportunities amid potential market swings.

“We will continue to favour investee companies with good management track records that can sustain their earnings through various market cycles,” says Chiang.

“Optimal asset allocation across sectors and markets is key to capitalising on investment opportunities amid market uncertainties this year.”

He adds that the key investment risk remains the elevated geopolitical tensions in the Middle East, as it could lead to further price adjustments and supply chain disruptions in the commodity markets.

In view of the uncertain global market, Chiang’s advice to investors is to diversify. “It is especially crucial that investors diversify their portfolios across domestic, regional and global funds across the various asset classes, including fixed-income funds. Portfolio diversification is an important component in helping investors reduce their risks, while reaching their long-term financial goals,” he says.

“Despite the unforeseen events in the first quarter of 2026, we will remain steadfast in our investment philosophy, which is focusing on fundamental research and analysis in our stock selection.”

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