Affin Hwang Asset Management Launches Affin Hwang Aiiman PRS Shariah Moderate Fund
To cater for growing demand for Shariah-compliant funds and retirement planning
KUALA LUMPUR – Affin Hwang Asset Management Berhad (formerly known as Hwang Investment Management Berhad) (“Affin Hwang AM” or the “Company”) today launched the latest addition to their Affin Hwang Private Retirement Scheme (“PRS”) funds, the Affin Hwang Aiiman PRS Shariah Moderate Fund (the “Fund”) as the Company recognises the rise of demand for Shariah-compliant funds and retirement planning.
The new Fund, which follows on from the success and popularity of Affin Hwang Aiiman PRS Shariah Growth Fund introduced three years ago (which has delivered an annualised return of 9.7%1 p.a.), during the first rolled out of PRS solutions in the country, is an exciting development for Affin Hwang AM and one which is universally welcomed. It is also to complement the current offering of Affin Hwang PRS funds
Chan Ai Mei, Chief Marketing Officer of Affin Hwang AM said, “As our client base is expanding and more Malaysians acknowledging the importance of saving early for retirement, there is a growing pressure for us to keep innovating and introduce more retirement funds especially one that ticks the boxes from ethical and religious perspective. Close to 70% of our population are Muslims and therefore the demand for Shariah products will continue to grow. With the launch of Affin Hwang Aiiman PRS Shariah Moderate Fund, we hope we could reach a wider scope of investors and strengthen our market presence especially in the Islamic wealth and asset management space.”
Shariah-compliant funds continue to garner interest because of its unique investment philosophy, which differs from conventional approaches. The funds are crafted based on idea of faith-based Shariah principles investment, which ban investing into companies in the business of tobacco, alcohol, gambling, pornography, pork products, military equipment or weapons.
Moreover, savings for retirement has become a big challenge for Malaysians. The latest HSBC’s Future of Retirement report exposed that 81 per cent of Malaysians2 are afraid they will be penniless upon retirement. The situation is made more alarming by the revelation of Employees Provident Fund’s (“EPF”) Chief Executive Officer, Datuk Shahril Ridza Ridzuan that almost 80 per cent of Malaysians who will turn 553 this year are expected to live below the poverty line.
“We want to encourage all Malaysians to participate in the PRS scheme for apparent benefits. Apart from the benefits of being simple and lost-cost, our PRS funds are meant to allow contributors to opt for a more aggressive portfolio in building their retirement funds. In addition to potentially higher returns, our conservative and moderate funds strive to offer semi-annual distributions whilst the growth funds aim to offer annual distributions#,” said Chan.
Affin Hwang Aiiman PRS Shariah Moderate Fund is a mixed asset fund that facilitates the accumulation of Shariah-compliant retirement savings through Shariah-compliant investment. The Fund will invest a maximum of 60% of the Fund’s NAV into a portfolio of Shariah-compliant equities and minimum of 40% of its NAV into Shariah-compliant fixed income instruments such as Sukuk, Islamic money market instruments and Shariah-compliant fixed deposit. The fund targets to achieve an annualised return of 5%-7% p.a. over a 3-5 years rolling period.
The Fund is suitable for members who seek Shariah-compliant investments, seek potential income and capital growth, and have moderate risk tolerance. The initial offer period of this Fund is not more than 21 days, starting 1 July 2015 until 21 July 2015 at a NAV price of RM0.50 per unit. The trustee of the Fund is CIMB Commerce Trustee Berhad.
Investors are advised to read and understand the contents of the Fund’s Product Highlights Sheet and Replacement Disclosure Document dated 1 July 2015 before investing. Visit www.affinhwangam.com for more information of the Fund.
#All income distributions will automatically be reinvested on behalf of the contributors based on the net asset value per Unit of the Fund
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Chong Chyi Ming | firstname.lastname@example.org | +603 2116 6000