This article first appeared in Wealth, The Edge Malaysia Weekly on April 27, 2026 – May 3, 2026
Hong Leong Asset Management Bhd (HLAM) took home the Best Equity Malaysia Income (Provident) award over 10 years at the LSEG Lipper Fund Awards 2026 with the Hong Leong Dividend Fund.
Its executive director and CEO Chue Kwok Yan says the fund’s outperformance last year was generally supported by companies that consistently delivered earnings growth, which strengthened their competitive positions.
“Our focus has been on identifying businesses that have the ability to compound value across multiple market cycles. Last year, the healthcare and financial sectors performed strongly, and that positive momentum has carried forward beyond 2025.”
Chue says a feature of last year’s market environment was how strongly performance was influenced by macroeconomic trends and the relatively concentrated sector leadership. In response to that, the firm’s strategy was to remain diversified across sectors and companies with sustainable earnings growth and strong competitive positioning.
“It worked in our favour to the extent that it provided consistent investment outcomes across multiple years. Over a full cycle, underlying earnings usually drive performance, which is why we remain focused on business fundamentals,” he says.
As at Feb 28, the top five holdings of the fund were CIMB Group Holdings Bhd, IJM Corp Bhd, Tenaga Nasional Bhd, IHH Healthcare Bhd and Mi Technovation Bhd, according to its fund fact sheet.
HLAM’s investment philosophy is anchored on fundamental research and long-term compounding returns. It focuses on companies with resilient business models, capable management teams and sustainable competitive advantages. Its asset allocation is primarily driven by bottom-up stock selection while remaining mindful of macroeconomic trends.
Chue says these basic building blocks have helped the team navigate uncertain periods last year, such as during the trade tariff announcements on “Liberation Day” on April 2.
“The tariffs were broad and far-reaching, while the constantly shifting tariff levels created volatility and uncertainty. As there was so much noise, we anchored on the basic building blocks once again. We made incremental adjustments as valuations and fundamentals evolved rather than undertaking any major tactical shifts.
“Market volatility did present opportunities to selectively add to certain positions where we believed the risk-reward had improved. Cash levels were managed prudently to maintain flexibility while the portfolio remained largely invested in line with our long-term investment approach,” he says.
Moving forward, Chue says the global economic environment remains uncertain, with geopolitical developments, policy divergence and currency movements continuing to shape market conditions. These factors can lead to sharper rotations and periods where macroeconomic narratives dominate global fund flows and investor sentiment.
“In such conditions, we believe it is important to remain measured and stay focused on company fundamentals rather than trying to anticipate every short-term market move.
“Our priority remains identifying businesses that can sustain earnings growth and adapt to a more uncertain global backdrop, while maintaining discipline on valuation and risk. These would carry the fund through the 2026 period and beyond,” he says.
Save by subscribing to us for
your print and/or
digital copy.
P/S: The Edge is also available on
Apple’s App Store and
Android’s Google Play.