Entries by Affin Hwang Asset Management

Affin Hwang AM Launches Private Equity Business – Bintang Capital Partners

KUALA LUMPUR – Affin Hwang Asset Management Berhad (“Affin Hwang AM” or “the Company”) announced today that it has launched its private equity business, Bintang Capital Partners Berhad (“Bintang”). Bintang is a Private Equity Management Company registered with the Securities Commission Malaysia and is a subsidiary of Affin Hwang AM. Bintang is the formalisation of Affin Hwang AM’s foray into the private equity market, which began in June 2017 with their maiden transaction, the buyout of Bitsmedia Pte Ltd, the company behind the world’s leading Muslim lifestyle app, Muslim Pro. This buyout was completed in conjunction with Bintang’s strategic Singaporean partner, CMIA Capital Advisors. Teng Chee Wai, Managing Director of Affin Hwang AM, said, “The launch of Bintang marks the culmination of nearly two years of effort by the team to build the private equity business, an initiative led by Johan Rozali-Wathooth who joined Affin Hwang Asset Management as Deputy Managing Director in June 2016.” “When we first came up with the idea of setting up a private equity business in 2015, I realised that the strong demand from both our institutional and high net-worth clients for more sophisticated investment solutions, including private equity, will only grow over time. “We […]

Five Lessons from Football to Score a Winning Portfolio

From the Football Pitch to the Trading Floor The 2018 FIFA World Cup is set to kick-off in a couple of weeks. Through glazed eyes and sleepless nights, football fans across the globe will be neglecting their spouses and family for at least a month to cheer on their favourite team into the finals. But beyond the dribbling and hat-tricks, the game of football also offers valuable lessons that investors can use. Here are 5 lessons from the football pitch that you can apply in your portfolio management:- Lesson 1: Stay on the Ball For 90 minutes, players on either side of the field have only a single objective in mind. To score the most number of goals within the allocated time-frame. Similar to investing, you need to define your objectives clearly according to your investment horizon and wealth needs. It’s easy to lose focus in the game when stakes run high and emotions get the better of you. The football pitch can be an assault of the senses with the thunderous cheers of the fans applauding and the field becomes mired in mud before the slinging begins. Markets can be equally nerve-racking with investors often engulfed with a torrent […]

Affin Hwang AM Launches First Tranche of Enhanced Income Fund Series

KUALA LUMPUR – Affin Hwang Asset Management Berhad (“Affin Hwang AM” or “the Company”) announced today the launch of the 18M Enhanced Income Fund 1 (“18M EIF1” or the “Fund”). The Fund is the first tranche of the Enhanced Income Fund Series which is a wholesale close-ended fixed income fund that aims to provide income return whilst maintaining capital preservation. To achieve its investment objective, the Fund will invest a minimum of 90% of the Fund’s NAV in Defensive Assets including money market instruments or deposits, and a maximum of 10% of the Fund’s NAV in Active Assets such as options or structured warrants. Structured as a fund-linked product, the Fund grants downside risk protection to investors through its backing of defensive assets, as well as offers greater upside participation by enhancing returns through a participation rate(1) that makes reference to a global fixed income strategy that provides broad-based income derived from multiple sources. Chan Ai Mei, Chief Marketing & Distribution Officer of Affin Hwang AM said, “As we enter the early-stages of a rising interest rate environment, there is an increased demand for fixed income products that provide higher returns to investors. The chase for yield continues in spite […]

Post GE-14: A New Market Script for Malaysia

Tide Turns in Malaysia In a watershed election, the opposition won the 14th General Election (GE14) wrestling traditionally held strongholds from the incumbent by taking over states such as Johor, Kedah, and Melaka. Whilst an opposition win raises questions about government regulation and economic policies, we view that such concerns on policy uncertainty will fade as the incoming government clarifies its position. All markets dislike uncertainty and we expect this could lead to bigger discounts with the adjusting factor being lower share prices overall. This would be the immediate reaction as the selloff will be broad-based. We are looking at 5-8% immediate downside within the next 1-3 days, where we note that pre-results the market has already corrected by 3.5% since it reached its record high in April. Stocks including contractors, politically-linked counters and CIMB could take the brunt of the hit. Our Malaysian portfolios have currently 12-15% exposure in such stocks with the largest weights in CIMB, Gamuda and IJM. Markets Won’t Stay Down For Long The street is overwhelmingly bearish if the opposition wins. We are on the contrary, bullish. Any new government will want to generate confidence for the market and overall population. This fading of uncertainty […]

Cutting Through Noise to Make Sound Investment Decisions

Bracing for Market Turbulence Volatile. If there ever was a word to describe markets now, that would be it. Markets were whipsawed last month amidst a torrent of trade retaliatory measures between the US and China, as fears of an escalated trade war kept markets on edge over who will blink first. Geopolitics also took centre stage following a missile attack in Syria by US-allied forces, as part of a joint-coordinated strike to stem the Syrian regime’s use of chemical weapons in its arsenal. Locally, Malaysia will also hold its 14th General Election (GE14), with polling taking place on the 9th May. Trade tariffs, geopolitics, missile strikes, elections – that’s a lot to digest for any experienced fund manager, let alone a casual observer. So, what’s an investor to do? It’s important to first realise that global markets are prone to ‘noise’ and that most short-term fluctuations in asset prices are a direct reaction from traders reacting to such noise occurrence. Broadly, noise refers to any information (true or false) or activity that distorts the price trend or underlying fundamentals of an asset class. In this fast-paced digital age with social media platforms such as Twitter and Facebook, such noise […]

Affin Hwang AM Launches Global Target Return Fund – An Objective Based Solution amidst Volatility

KUALA LUMPUR – Affin Hwang Asset Management Berhad (“Affin Hwang AM” or “the Company”) announced today the launch of the Affin Hwang World Series – Global Target Return Fund (“WS-GTF” or the “Fund”). The Fund is a wholesale feeder fund that seeks to achieve capital appreciation over the medium to long term period by investing in a collective investment scheme, namely Schroder International Selection Fund Global Target Return (“Target Fund”). The Target Fund is a Luxembourg-domiciled fund managed by Schroder Investment Management (“Target Fund Manager”). To meet its investment objective, the Fund will invest a minimum of 80% of the Fund’s NAV into the Target Fund and a maximum of 20% of the Fund’s NAV into money market instruments, deposits and/or liquid assets. Chan Ai Mei, Chief Marketing & Distribution Officer of Affin Hwang AM said, “In an environment of heightened risks and increased volatility in markets, the role of an absolute return focused strategy has never been more relevant than it is now. As markets enter a new transition phase, the demand for a dynamic and flexible approach to asset allocation has become more punctuated.” “The Fund will benefit clients by focusing on absolute returns with the intention of […]

Keeping an Eye on Inflation

Return to Calmer Waters After January’s US inflation scare that sent jitters across markets and caused ripples all the way to Asia – it looks like markets are making its return back to calmer waters. US consumer prices held steady in February, soothing investor’s concerns over any sudden spike in inflation that would trigger an acceleration of the pace of interest rate hikes by the US Federal Reserve. The US consumer price index (CPI) rose 2.2% in the 12 months through February, compared with 2.1% in January, whilst core CPI was up 1.8% from a year earlier for a third month. As inflation gradually firms up to the Fed’s inflation target, markets have now repriced asset prices in terms of inflationary expectations, where after years of loose monetary policy and quantitative easing (QE) programmes have finally resulted in an uplifting of growth. Markets were only priced-in for 2 rate hikes by the Fed at the start of the year, before we saw markets sold-off on the back of strong inflation data. But with the correction behind us, markets are now priced in-line with the Fed. Nonetheless, we don’t expect any rapid runaway inflation data that would spark another market correction […]