Entries by Affin Hwang Asset Management

Affin Hwang AM Launches First Shariah-Compliant Commodity ETF

KUALA LUMPUR – Affin Hwang Asset Management Berhad (“Affin Hwang AM” or “the Company”) announced the launch of its first exchange traded fund (ETF) – the TradePlus Shariah Gold Tracker (“Fund” or “GOLDETF”), which was successfully listed on the Main Market of Bursa Securities today. The Fund aims to provide investors with investment results that closely track the performance of gold prices, through a Shariah-compliant investment structure. To meet its investment objectives, the Fund will invest a minimum of 95% of the Fund’s net asset value (NAV) in physical gold bars purchased from LBMA accredited refineries, with the remaining balance invested in Islamic money market instruments and/or Islamic deposits for liquidity purposes. Teng Chee Wai, Managing Director of Affin Hwang AM said, “We are proud to roll-out our first ETF to the market, which will enhance our overall product offerings and provide a broader suite of solutions for our investors. Our move to enter into the passive investment space is a natural path for us, to expand our investment offerings and capabilities to continue to be a distinguished asset management player in the industry.” “With no similar offerings, the Fund is the first of its kind in the domestic market […]

India on the Cusp of Reform

Modi’s Three-Year Scorecard Three-and-a-half year into his tenure, Prime Minister Narendra Modi has embarked on a sweeping reform movement, fulfilling key campaign promises to boost job creation and increase foreign direct investment (FDI) into India. With the introduction of pro-business policies, the administration hoped to untangle notorious amounts of red tape that has stifled business in the past, as well as revive growth within India’s vapid manufacturing sector. Under Modi, India’s annual GDP grew from 5.5% in 2013 (before he assumed office in May 2014) to 7.5% in 2015 and 8.0% in 2016. [Source: India Central Statistics Organisation, Bloomberg] Taking bold measures, Modi enacted India’s first national bankruptcy law in 2016 which would allow enforcement of contracts and a swifter resolution of insolvency cases that has weighed down on its financial system. More economic reforms followed including a radical banknote demonetisation move last November which saw India scrap its high-value 500 and 1000 rupee currency bills, as part of efforts to stem corruption, curb its shadow economy and flush-out ‘black money’ from its financial circulation. In July’17, India ushered its boldest economic move yet, rolling-out its first comprehensive Goods and Services Tax (GST) which replaced its prior complex multiple indirect […]

Benefits of Staying Invested

Why It Pays to Stay Invested Investing is a long-term game. A marathon as opposed to a sprint, where an investor is more likely to achieve their investment goals if they stay invested and avoid making short-term decisions which often spring from emotional or rash decision-making. This year, we have seen stock markets rally across globally with the FTSE 100, Germany’s Dax and the S&P 500 reaching record highs. Locally, the benchmark FBM KLCI is also charging towards the 1,800 points-level, climbing to a fresh two-year high. Can this market rally be sustained? Well no one knows for sure. But the only constant in the investment-universe is change, and investors should always be prepared to brace for future volatility, in the event markets come to an unruly end. Smooth Seas Never Made a Skilled Sailor Volatility is to be expected in markets. Like waves in an ocean – one would get nowhere otherwise without the ebb and flow in markets that provide buying or selling opportunities. Can small ripples suddenly turn violent and become sizeable tsunamis? Sure they can. But what matters more is having a well-diversified portfolio that has the potential to weather against varying degrees of volatility and […]

Affin Hwang AM Claims Compliance with GIPS

KUALA LUMPUR – Affin Hwang Asset Management (“Affin Hwang AM” or “the Company”), a Kuala Lumpur-based investment management firm, which manages more than RM43 billion, announced today that it is one of the first among local and foreign asset managers to claim compliance with the Global Investment Performance Standards (GIPS®) and has been independently verified by ACA Compliance Group for the period of 1 January 2010 through 31 December 2016. The GIPS® standards are a rigorous set of investment performance measurement standards adopted in 37 countries and recognised around the world for their unparalleled credibility, integrity, scope, and uniformity, enabling direct comparability of a firm’s track record. There are currently more than 1,600 firms worldwide that are claiming compliance with the GIPS® standards. “Our value proposition to investors has always centred around being investment-led and client-focused. Trust is fundamental in our relationship with investors. Claiming GIPS compliance enables us to present our firm’s capabilities with integrity and transparency. We are quite fortunate that we are a relatively ‘young’ fund manager. I started the firm in 2001 and we have the infrastructure in place to capture all discretionary funds/mandates in at least one composite, starting from our first mandate and retail […]

China Outlook: Beyond the 19th National Party Congress

Test of Power for Xi Jinping As China gears up for its 19th National Party Congress, President Xi Jinping faces an important leadership transition; that offers Xi an opportunity to potentially strengthen his grip within the Communist Party of China (CPC), by consolidating his power and cementing his leadership for the next five years. The five-yearly congress is scheduled to take place for a week, starting on the 18th of October. This Congress could see important changes within the top decision-making body of the CPC, otherwise known as the Politburo Standing Committee (PSC). The PSC has an unofficial retirement age of 68, where if this is strictly adhered to, 5 out of the 7 members are expected to step down having exceeded the stated age. Only President Xi Jinping and the Premier Li Keqiang are below the unofficial retirement age. Xi Jinping who has amassed significant political power in his first 5-year term, is expected to carry out wide-ranging economic as well as political reforms to steer China’s economy which is undergoing rapid changes as it seeks to rebalance its economy. How the congress unravels would reveal the extent of Xi’s power in the second term through the makeup of […]

Affin Hwang AM Declares Income Distributions for 10 Funds – Addresses Currency Exposure of Investors

KUALA LUMPUR – Affin Hwang Asset Management Berhad (“Affin Hwang AM” or “the Company”) has declared a total of RM50.88 million distributions for 10 funds. These funds span across 5 different multi-currency class funds, providing investors with options to invest in their preferred currency. The income distributions were distributed across the Company’s retail and wholesale funds. The income distributions are shown in the table below: No. Fund Income Distribution RETAIL SHARIAH-COMPLIANT FUND 1. Affin Hwang Aiiman Income Plus Fund (“AIPF”) 0.4000 sen or RM0.004 per Unit RETAIL CONVENTIONAL FUND 2. Affin Hwang Bond Fund (“AHBF”) 0.5000 sen or RM0.005 per Unit 3. Affin Hwang Select AUD Income Fund (AUD Class) (“SAUDIF”) 0.5000 cent or AUD0.005 per Unit Affin Hwang Select AUD Income Fund (MYR Class) (“SAUDIF”) 0.5000 sen or RM0.005 per Unit 4. Affin Hwang Select Bond Fund (MYR Class) (“SBoF”) 0.5000 sen or RM0.005 per Unit Affin Hwang Select Bond Fund (USD Hedged-class) (“SBoF”) 0.2000 cent or USD0.002 per Unit 5. Affin Hwang Select Income Fund (“SIF”) 0.5000 sen or RM0.005 per Unit 6. Affin Hwang Select SGD Income Fund (MYR Class) (“SSGDIF”) 0.2500 sen or RM0.0025 per Unit Affin Hwang Select SGD Income Fund (SGD Class) (“SSGDIF”) 0.2500 […]

Fed Prepares for the Big Unwind

All Eyes on Fed September Policy Meeting The US Federal Reserve is scheduled to meet for its upcoming policy meeting on September 19 – 20 to discuss the current economic climate and decide on further monetary policy adjustments. Although there is no expectation for a change in interest rates during this month’s policy meeting, it still holds particular importance to markets. Central bank watchers are eagerly anticipating the Fed to finally pull the trigger and begin the unwinding process of its US $4.5 trillion balance sheet – a culmination of its massive bond-buying programme which it accumulated following the 2008 GFC. The Fed has previously said in a recent communique that it will start the unwinding of its balance sheet “relatively soon”. Most observers have interpreted this statement to mean that an announcement will be forthcoming at its upcoming September policy-meeting or latest by this year-end. The unwinding exercise is then slated to begin in the month subsequent to the announcement. Impact to Markets – Don’t Hold Your Breath Whilst some observers are rightfully anxious over this perceived squeezed liquidity and a possible end of the easy-money era which kept the economy afloat since the 2008 GFC – markets aren’t […]