KUALA LUMPUR – Affin Hwang Asset Management Berhad (“Affin Hwang AM” or the “Company”) launches another solution in the Affin Hwang World Series today. Funds in the Affin Hwang World Series offer investors a platform to gain exposure in major developed markets by accessing global funds. The latest and the eighth fund in the series, Affin Hwang World Series – US Short Duration High Income Fund (the “Fund”) is a wholesale feeder fund that aims to provide investors with regular income through investment in a portfolio of US high yield bonds. The Fund invests in the Target Fund, the Allianz US Short Duration High Income Bond managed by Allianz Global Investors U.S. LLC. (the “Target Fund Manager”).
Chan Ai Mei, Chief Marketing & Distribution Officer of Affin Hwang AM said, “We foresee a positive outlook for the US economy. The US GDP showed a strong rebound in the third quarter of 2016, with positive contribution from inventories after five negative quarters.” The Target Fund Manager forecasts that the headline inflation rate will likely to accelerate due to the base effects from commodity prices and a relatively tight labour market.
Ai Mei said that the Company recognised that there is demand from investors to diversify their investments not only across geographies and asset classes but also across different currencies. “This Fund, with its multi-currency classes, is a solution for Malaysians who are seeking to build their non-ringgit assets,” she said.
“The Target Fund invests in a concentrated portfolio of high quality high-yield bonds and is actively managed to enhance risk-adjusted performance. The investment team at Allianz Global Investors focuses solely on short-maturity short duration credits and invests in fixed income securities with an average duration of between 1.5 to 2 years. Its concentrated and non-benchmark approach allows the team to have the flexibility to construct a portfolio that aims at delivering superior risk-adjusted return which provide higher return and less volatility compared to core bonds,” she continued. The Target Fund Manager has been focusing on managing short duration high-yielding assets for over 15 years. Their expertise led to consistent performance of the Allianz Global Investors Short Duration High Income Fund (US Onshore fund) with annualised return of 5.3% (in USD term) since its inception. (Source: Morningstar as at 31 January 2017).
Ai Mei said the Company identified Allianz Global Investors as the right partner to meet the demand. “We are selective with the partners we work with as we only short list those with strong capabilities and share the same investment philosophy of providing absolute returns to investors,” she continued.
The Fund is available for Sophisticated Investors who seek regular income through investment in a portfolio of US high yield bonds, have a medium to long-term investment horizon and have a moderate risk tolerance. The Fund is available in five (5) currency classes, namely USD Class, MYR Class, MYR-Hedged Class, SGD-Hedged Class and AUD-Hedged Class. The Fund invests minimum 80% of the Fund’s NAV into the Target Fund, while the remaining balance will be placed in money market instruments, Deposits with Financial Institutions and/or liquid assets. The Fund is available for investment from 3 March 2017 through Affin Hwang AM and its partners, namely Citibank.
Investors are advised to read and understand the contents of the Fund’s Product Highlights Sheet and Information Memorandum dated 3 March 2017 before investing. Visit www.affinhwangam.com for more information of the Fund.
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