This article first appeared in Wealth, The Edge Malaysia Weekly on April 27, 2026 – May 3, 2026
AmFunds Management Bhd’s AmDynamic Bond fund won the Best Bond MYR (Provident) award over 10 years at the LSEG Lipper Fund Awards 2026.
Its chief investment officer Raymond Lew says one of the most effective strategies deployed last year that contributed to the win was the active combination of duration positioning and selective credit allocation, which allowed Lew and his team to navigate a rapidly changing market environment with confidence.
“As expectations of rate cuts intensified, the Malaysian Government Securities (MGS) yield curve flattened significantly. Our proactive move to extend duration ahead of this shift helped us capture capital gains as long-end yields declined faster than the front end,” he says.
At the same time, Lew and his team remained highly selective within credit, favouring issuers with resilient fundamentals and attractive value. Such disciplined credit selection paid off as spread on quality names tightened, leading to the fund’s outperformance against the broader market.
“Together, these two levers — well-timed duration positioning and conviction-driven credit selection — worked in our favour and were key contributors to our strong performance relative to peers,” he says.
Lew adds that AmDynamic Bond’s returns were supported primarily by capital allocations to high-quality AA- and AAA-rated corporate issuers, particularly in the utilities, infrastructure and financial sectors. These issuers offered resilient fundamentals and stable carry, helping the portfolio generate steady income through periods of market volatility.
The fund also benefited from selective participation in the primary corporate bond market, where new issuances provided attractive entry levels. “In addition, tactical exposure to government bonds allowed us to adjust portfolio duration in a timely manner as market conditions evolved,” says Lew.
He adds that the firm’s asset allocation strategy last year was guided mainly by active duration management, with government bonds serving as the main lever for adjusting overall interest rate exposure. The rebalancing exercise was not extensive, as most tactical adjustments were executed through government bond positioning.
Cash levels, on the other hand, remained modest last year and were held mainly for liquidity management and to facilitate timely deployment into fixed income opportunities.
“As a result, the portfolio stayed largely invested for most of the year, with duration positioning serving as the primary tactical tool,” says Lew.
Looking ahead, Lew and his team will continue to manage the fund with a disciplined and proactive approach that reflects their assessment of the current economic environment.
“While inflation has shown signs of rising, our view is that Bank Negara Malaysia is likely to remain patient and keep the overnight policy rate on hold, given the need to balance price pressure with growth stability.
“In this backdrop, we plan to employ a barbell strategy, combining selective longer-duration positions to capture potential curve movements with shorter-tenure exposures that provide liquidity and flexibility. At the same time, we will maintain a higher level of liquidity to take advantage of trading opportunities as market conditions evolve.
“This balanced and nimble positioning allows us to stay defensive where necessary, while remaining ready to deploy capital into attractive opportunities that can enhance returns for clients,” says Lew.
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.