KUALA LUMPUR: Buffalo Investment Agency, part of Manulife Investment Management, has achieved RM1 billion in assets under management (AUM), a 521 per cent increase from 2017.
The agency was recently recognised by the Malaysia Book of Records for having the largest AUM among unit trust agencies in the nation.
Established on Jan 29, 2016, the agency set the RM1 billion target in 2017 when it managed RM161 million in AUM with just 64 advisers.
Buffalo Investment founder Terence Ng Chuen Leong said the agency came close to meeting the target in 2021, with AUM close to RM917 million.
"However, the Russia-Ukraine war and interest rate hikes caused the market to 'crash', and our AUM dropped to nearly RM770 million.
"Despite the discouragement, we persisted through these fluctuations," he said in an interview with Business Times.
Ng explained that the key to reaching the target was to continue servicing the clients regardless of market ups and downs, and preparing several portfolio strategies that clients found valuable.
"We have developed a distribution payout strategy that encourages long-term investment. Many clients wonder, 'After I make money, what should I do? Should I sell?
"Our proposal is to remain invested for the long term, as investments tend to grow over time. When it is time to realise gains, instead of selling, you can switch your profits to another fund that focuses on paying distributions."
Ng said the strategy involved accumulating wealth over the first five to 10 years and then transitioning to an income fund.
"This way, clients can continue to benefit from their investments through regular income. It is like buying a property and earning rental income; the steady income stream encouraged clients to stay invested for the long haul," he said.
Buffalo Investment co-founder Cannie Tan noted that one of the key strategies the agency adopted was providing extensive training, even during the Covid-19 pandemic.
"We were very forward-thinking and it helped our members to stay focused on their business.
"Our agency has established a systematic training system and e-learning portal that can help our new members to master the business in the shortest time possible."
Tan said being present when clients needed support was crucial for maintaining investor confidence.
"We believe in staying with our clients, especially during challenging market conditions when they need us the most.
Trust is not built overnight; it grows through consistency and support during financial turbulence and crises," she added.
On sustaining its growth, Ng highlighted that the agency was looking to expand its manpower.
"In an agency, you must be progressive. That means setting milestones one after another. Because now we have the largest AUM by a unit trust agency, we want to be the largest in terms of manpower and that will be our next record to achieve," he said.
Buffalo Investment currently has 375 advisers. It aims to increase this to 500 by next year and 1,000 in another three years.
In terms of increasing its AUM, Ng said the next goal of growing another RM1 billion could be achieved within four years.
" It took us about seven years to reach RM1 billion. I'd say the first pillar is always the hardest. I believe the second billion should be reached in another four years."
Manulife Investment Asia head of retail wealth distribution, Grace Ho, said the achievement proved that Manulife Investment provided an excellent platform in terms of products, such as unit trust fund selections and an investment digital platform called Manulife iFunds.
Manulife Investment Management was crowned the biggest group award winner for the second consecutive year at the LSEG Lipper Fund Awards 2024.
"These three factors — product offerings, digital tools and adviser support — have contributed to the success of our advisers.
"A more professional adviser team helps clients invest more intelligently and make better-informed decisions," she said.