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 trust in 2001.” said Teng Chee Wai, Managing Director.

“GIPS compliance provides a universal language for investment performance comparability. Alpha (outperformance) is alpha, anywhere we go and to any investors we market to” said Puah Ser Sze, CFA, Head, Client Development and Relationship.

To receive a list of composite descriptions and a presentation that complies with the GIPS® standards, please email to GIPS@affinhwangam.com.

 

About the GIPS® Standards

Introduced in 1999, the GIPS® standards are universal, voluntary standards to be used by investment managers for quantifying and presenting investment performance that ensure fair representation, full disclosure and apples-to-apples comparisons. The mission is to promote ethics and integrity and instill trust through the use of the GIPS® standards by achieving universal demand for compliance by asset owners, adoption by asset managers and support from regulators for the ultimate benefit of the global investment community.

The GIPS® standards were created and are administered by the CFA Institute, the global, not-for-profit association of investment professionals that awards the Chartered Financial Analyst (CFA) and Certificate in Investment Performance Measurement (CIPM) designations. For more information, please visit www.gipsstandards.org.

 

About Affin Hwang Asset Management Berhad

Affin Hwang AM (formerly known as Hwang Investment Management Bhd) was incorporated in Malaysia on 2 May 1997 under the Companies Act 1965 and began its operations under the name Hwang-DBS Unit Trust Berhad in 2001. In early 2014, Affin Hwang AM was acquired by the Affin Banking Group. Affin Hwang AM is also 30% owned by Nikko Asset Management Asia, a wholly-owned subsidiary of Tokyo-based Nikko Asset Management Co. Ltd.

AIIMAN Asset Management Sdn Bhd (AIIMAN) (formerly known as Asian Islamic Investment Management Sdn. Bhd.) was licensed by the Securities Commission to undertake the regulated activity of Islamic fund management on 17 November 2008 and is a wholly owned subsidiary of Affin Hwang AM and a member of the Affin Hwang Investment Banking Group.

Affin Hwang AM is a registered Capital Markets Services License (CMSL) holder for fund management. The firm services both retail and institutional clients.

 

– End of Press Release –

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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 cent or SGD0.0025 per Unit
WHOLESALE CONVENTIONAL FUND
7. Affin Hwang Asia Bond Fund (“AHABF”) 0.5000 sen or RM0.005 per Unit
8. Affin Hwang Income Fund I (“AHIF I”) 0.8000 sen or RM0.008 per Unit
9. Affin Hwang World Series – Dividend Value Fund (AUD Class) (“WS-DVF”) 0.1000 cent or AUD0.001 per Unit
Affin Hwang World Series – Dividend Value Fund (RM Class) (“WS-DVF”) 0.1000 sen or RM0.001 per Unit
Affin Hwang World Series – Dividend Value Fund (SGD Class) (“WS-DVF”) 0.1000 cent or SGD0.001 per Unit
Affin Hwang World Series – Dividend Value Fund (USD Class) (“WS-DVF”) 0.1000 cent or USD0.001 per Unit
10. Affin Hwang World Series – Global Income Fund (AUD Hedged-class) (“WS-GIF”) 0.2500 cent or AUD0.0025 per Unit
Affin Hwang World Series – Global Income Fund (GBP Hedged-class) (“WS-GIF”) 0.2500 cent or GBP0.0025 per Unit
Affin Hwang World Series – Global Income Fund (RM Class) (“WS-GIF”) 0.2500 sen or RM0.0025 per Unit
Affin Hwang World Series – Global Income Fund (RM Hedged-class) (“WS-GIF”) 0.2500 sen or RM0.0025 per Unit
Affin Hwang World Series – Global Income Fund (SGD Hedged-class) (“WS-GIF”) 0.2500 cent or SGD0.0025 per Unit
Affin Hwang World Series – Global Income Fund (USD Class) (“WS-GIF”) 0.500 cent or USD0.0025 per Unit

Unit Holders for the funds mentioned above who are registered as at 15 September 2017 are eligible to receive the income allotment.

Chan Ai Mei, Chief Marketing & Distribution Officer of Affin Hwang AM said, “We are committed in upholding our pledge to deliver absolute returns, whilst maintaining a disciplined approach with regards to our distribution policy by ensuring that our income distributions, if any, are paid out from realized gains from our investments as opposed to capital.”

On currency movements Ai Mei adds, “We advise investors to be aware of how currency movements can impact their portfolio and to remain diversified across various currency exposures. For example, an investor could consider a 50:50 currency mix, where 50% of their portfolio is designed to take in currency translation exposure (eg. USD, AUD-perspective, etc.), whilst the remaining 50% is reserved for currency hedged exposures (i.e. RM exposure).”

“In recognition of our investors’ diverse needs and objectives, the funds across our product suite currently offers the broadest range of options in terms of currency classes. Our Select Series funds which are managed internally with an Asian-focused strategy comes in 4 different currencies (i.e. RM, USD, AUD, and SGD). Similarly, our World Series funds allow investors to tap into income opportunities across the globe, by relying on our investment partners’ expertise to provide consistent and stable returns across 7 different multi-currency class funds in the World Series,” said Ai Mei.

– End of Press Release –

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Affin Hwang AM Launches Inaugural “Giving is Living Charity Run”

MELAKA – Affin Hwang Asset Management Berhad (“Affin Hwang AM” or “the Company”) through its Melaka-branch, held a media briefing today to kick off its seminal “Giving is Living Charity Run 2017” in collaboration with Chee Siah Le Kee & Partners (“CSiLK”).

The event aims to raise funds to aid local charities, and to promote public awareness of learning disabilities, animal welfare sanctuary, disaster relief, recycling and protecting the environment. All proceeds will be donated to the following organisations:-

  • Wings Melaka Centre for Developmental Disabilities;
  • Joy Workshop Melaka / Persatuan Kebajikan Insan Istimewa Melaka (PKIIM);
  • Taiwan Buddhist Tzu Chi Foundation Malaysia (Melaka branch); and
  • Noah’s Ark Natural Animal Shelter (NANAS)

Chan Ai Mei, Chief Marketing & Distribution Officer of Affin Hwang AM said, “In the spirit of charity and our pledge to give back to our local communities, we are proud to co-host this charity run together with CSiLK to raise funds, and to spark conversations about the mission and the work of these organisation.”

Dato’ Chee Kong Chi, the consultant for CSiLK strongly believe that in this affluent society, we should all learn how to “LIVE WITH LESS SO THAT THE LESS COULD LIVE WITH MORE”.

“Affin Hwang AM is committed to investing in our local communities by paying it forward through various corporate social responsibility (CSR) initiatives. We see these activities as part & parcel of doing business, and that is ingrained in our culture collectively. We will also be continuing our “Beyond The Classroom” workshop series this year as part of efforts to raise awareness and improve financial literacy in the country,” continued Ai Mei.

The “Giving is Living Charity Run 2017” will be held on the 12 November 2017, with the official flag-off at 6.45 am at the premises of Chee Siah Le Kee & Partners, No. 2B Jalan KLJ 4, Taman Kota Laksamana Jaya, 75200 Melaka.

– End of Press Release –

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Affin Hwang AM Announces Income Distribution for PRS Funds

KUALA LUMPUR – Affin Hwang Asset Management Berhad (“Affin Hwang AM” or “the Company”) declared its sixth income distribution for Affin Hwang Private Retirement Funds (“PRS”) Solutions since its launch in 2012. These comprises of four PRS funds, including the Affin Hwang PRS Growth Fund, Affin Hwang PRS Moderate Fund, Affin Hwang PRS Conservative Fund and Affin Hwang Aiiman PRS Shariah Growth Fund.

The income distribution of the funds are shown in the table below:

No. Fund Income Distribution Registered as at Annualised  return since inception (%)*
CORE FUND
1. Affin Hwang PRS Growth Fund 1.0000 sen or RM0.01 per Unit 24 July 2017 7.9
2. Affin Hwang PRS Moderate Fund 1.0000 sen or RM0.01 per Unit 24 July 2017 7.2
3. Affin Hwang PRS Conservative Fund 1.0000 sen or RM0.01 per Unit 24 July 2017 4.0
NON-CORE FUND
4. Affin Hwang Aiiman PRS Shariah Growth Fund 1.0000 sen or RM0.01 per Unit 24 July 2017 7.3

*Source: Lipper as at 30 June 2017

Unit Holders for the PRS funds mentioned above who are registered as at the respective dates are eligible to receive the income allotment.

Chan Ai Mei, Chief Marketing & Distribution Officer of Affin Hwang AM said, “The income distributions reflects our ongoing commitment to deliver positive returns to investors and address their retirement and income needs.”

Ai Mei said, “We maintain our overall fund positioning moving into the 3rd quarter, optimistic that the funds have sufficient diversification exposure that is optimal for a retirement fund to preserve capital and take less risks.”

On addressing the retirement needs of investors, Ai Mei adds, “The harsh reality confronting most Malaysians is that they are trying to cope to make ends meet, and are only thinking about their present and immediate income needs. But investors, especially young working adults can start small and make use of existing incentives such as the PRS Youth Incentive to complement their existing retirement savings.”

“It may seem counter-intuitive for those in their mid-20s to already start thinking about their retirement, but time is of the essence and the sooner you start the better. Also, do not underestimate the power of compounding, whereby you can earn returns upon your returns, by reinvesting your income back into your investments and receive additional units. Any investor can make use of this financial truism, the trick is to start early,” said Ai Mei.

– End of Press Release –

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Affin Hwang AM Declared Income Distributions of over RM100 mil for 20 Funds

KUALA LUMPUR – Affin Hwang Asset Management Berhad (“Affin Hwang AM” or “the Company”) declared a total of RM106.65 million distributions for 20 funds. The income distributions were distributed across the Company’s close-ended fund, Select Series funds, Shariah-compliant funds, World Series funds as well as bond / fixed income funds. The income distribution are shown in the table below:

 

No. Fund Income Distribution Registered as at
CLOSE-ENDED FUND
1. Affin Hwang Flexible Maturity Income Fund III (“FlexMIF III”) 4.6431 sen or RM0.046431 per Unit 1 June 2017
SELECT SERIES FUND
2. Affin Hwang Select Balanced Fund (“SBalF”) 1.0000 sen or RM0.01 per Unit 9 June 2017
3. Affin Hwang Select Bond Fund (MYR Class) (“SBoF”) 0.5000 sen or RM0.005 per Unit 9 June 2017
Affin Hwang Select Bond Fund (USD Hedged-class) (“SBoF”) 0.2000 cents or USD0.002 per Unit 9 June 2017
4. Affin Hwang Select Dividend Fund (“SDF”) 1.000 sen or RM0.01 per Unit 19 June 2017
5. Affin Hwang Select Income Fund (“SIF”) 0.5000 sen or RM0.005 per Unit 9 June 2017
6. Affin Hwang Select Opportunity Fund (“SOF”) 5.0000 sen or RM0.05 per Unit 9 June 2017
7. Affin Hwang Select Asia Pacific (ex Japan) Balanced Fund (“SAPBF”) 0.5000 sen or RM0.005 per Unit 19 June 2017
8. Affin Hwang Select Asia Pacific (ex Japan) Dividend Fund (“SAPDF”) 1.0000 sen or RM0.01 per Unit 19 June 2017
9. Affin Hwang Select Asia Pacific (ex Japan) REITs & Infrastructure Fund (“SAPRIF”) 0.5000 sen or RM0.005 per Unit 9 June 2017
10. Affin Hwang Select AUD Income Fund (MYR Class) (“SAUDIF”) 0.5000 sen or RM0.005 per Unit 9 June 2017
Affin Hwang Select AUD Income Fund (AUD Class) (“SAUDIF”) 0.5000 cents or AUD0.005 per Unit 9 June 2017
11. Affin Hwang Select SGD Income Fund (MYR Class) (“SSGDIF”) 0.2500 sen or RM0.0025 per Unit 19 June 2017
Affin Hwang Select SGD Income Fund (SGD Class) (“SSGDIF”) 0.2500 cents or SGD0.0025 per Unit 19 June 2017
SHARIAH-COMPLIANT FUND
12. Affin Hwang Aiiman Growth Fund (“AGF”) 2.0000 sen or RM0.02 per Unit 9 June 2017
13. Affin Hwang Aiiman Income Plus Fund (“AIPF”) 0.3000 sen or RM0.003 per Unit 9 June 2017
14. Affin Hwang Aiiman Select Income Fund (“ASIF”) 1.0000 sen or RM0.01 per Unit 9 June 2017
15. Affin Hwang Aiiman Equity Fund (“AEF”) 0.5000 sen or RM0.005 per Unit 9 June 2017
16. Affin Hwang Aiiman Balanced Fund (ABF”) 0.5000 sen or RM0.005 per Unit 9 June 2017
WORLD SERIES FUND
17. Affin Hwang World Series – Dividend Value Fund (AUD Class) (“DVF”) 0.0250 cents or AUD0.00025 per Unit 19 June 2017
Affin Hwang World Series – Dividend Value Fund (MYR Class) (“DVF”) 0.0250 sen or RM0.00025 per Unit 19 June 2017
Affin Hwang World Series – Dividend Value Fund (SGD Class) (“DVF”) 0.0250 cents or SGD0.00025 per Unit 19 June 2017
Affin Hwang World Series – Dividend Value Fund (USD Class) (“DVF”) 0.0250 cents or USD0.00025 per Unit 19 June 2017
18. Affin Hwang World Series – Global Income Fund (MYR Class) (“GIF”) 0.1000 sen or RM0.01 per Unit 9 June 2017
Affin Hwang World Series – Global Income Fund (USD Class) (“GIF”) 0.1000 cents or USD0.01 per Unit 9 June 2017
Affin Hwang World Series – Global Income Fund (AUD Hedged-class) (“GIF”) 0.1000 cents or AUD0.01 per Unit 9 June 2017
Affin Hwang World Series – Global Income Fund (GBP Hedged-class) (“GIF”) 0.1000 cents or GBP0.01 per Unit 9 June 2017
Affin Hwang World Series – Global Income Fund (SGD Hedged-class) (“GIF”) 0.1000 cents or SGD0.01 per Unit 9 June 2017
BOND/FIXED INCOME FUND
19. Affin Hwang Bond Fund (“AHBF”) 0.5000 sen or RM0.005 per Unit 9 June 2017
20. Affin Hwang Asia Bond Fund (“AHABF”) 0.5000 sen or RM0.005 per Unit 19 June 2017

 

Unit Holders for the funds mentioned above who are registered as at the respective dates are eligible to receive the income allotment.

Chan Ai Mei, Chief Marketing & Distribution Officer of Affin Hwang AM said,” We are delighted to continue to uphold our pledge in delivering positive and absolute return performance to our investors.”

Ai Mei said, “One of our flagship fund, SOF was awarded the ‘Malaysia Equity (Ringgit), One-Year Return’ by Institutional Investor 2016 Asia Investment Management Award in January and the ‘Best Malaysia Large-Cap Equity Fund’ by Morningstar Awards 2017 in March. These recognitions are further testament of SOF’s performance and resilience.” She continued, “SOF has delivered an annualised return of 14.92% per annum (Source: Lipper as at 31 May 2017) since its inception in 2001. This means, an investor who invested RM100,000 in SOF since 2001, would be sitting on over RM800,000 today.”

Today, 17 of Affin Hwang AM’s funds are approved under the Employees Provident Fund’s Members Investment Scheme (“EPF-MIS”).  Unit holders invested in SBalF, SDF, SOF, SAPRIF, AGF, AIPF, ASIF and/or AHBF through EPF-MIS are also eligible for the income distribution.

– End of Press Release –

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Affin Hwang Investment Forum 2017

KUALA LUMPUR – Running for its third consecutive year, Affin Hwang Asset Management Berhad (“Affin Hwang AM” or “the Company”) has successfully hosted its annual investment forum for the year 2017, titled ‘Navigating through a Changing World’.

The Forum took place on the 20th May, Saturday at Sime Darby Convention Centre, Mont Kiara and was well received with more than 650 participants eager to gain insights into the investment landscape against increasingly fluid developments in the markets.

Joined by our investment partners, the forum featured prominent speakers including:

  • Eric Mueller, Director, Multi-Asset Strategist of BlackRock
  • Wang Yu-Ming, Deputy President, Global Head of Investment & CIO – International of Nikko Asset Management
  • Mallika Sachdeva, FX Strategist of Deutsche Bank; and
  • Teng Chee Wai, Managing Director of Affin Hwang AM

On the local investment-front, Teng Chee Wai, Managing Director of Affin Hwang AM said that markets are bracing for a pre-election rally in the country, as the cheaper Ringgit becomes more attractive to foreign funds as well, drawing more inflows.

Teng also adds that the worst may be over for banking and property-related counters, as both sectors look poised for a turnaround after recent lacklustre performances, driven by increasingly attractive valuations and positive macro-data.

The Company’s portfolios will continue to be managed on an absolute return strategy – through tactical asset allocation and thematic-positioning in the market, including the recent spate of increased corporate activities & restructuring exercises, large-scale infrastructure projects, a commodity catch-up, and high yielding-names.

On currency markets, Mallika Sachdeva, FX Strategist of Deutsche Bank said, “After years of underperformance, we are seeing growth in emerging markets picking up across the region, as positive export growth continue to provide support for Asian currencies.”

Asia is fast regaining interest among foreign investors, attracting close to US$40 billion of fund inflows year-to-date. Mallika adds that the Ringgit is undervalued with room to catch-up with its regional peers – as bond outflows start to abate, supported by recovering exports.

On global markets, now confronted with a Trump Economy, Eric Mueller, Director, Multi-Asset Strategist of BlackRock adds that the Trump-inspired reflation-trade may have further room to run – as a synchronised pick-up in economic activity and global growth continues to surprise on the upside.

Finally, as global markets contend with new challenges including rising income inequality among population groups, rapid technology advances, and the rise of China; Wang Yu-Ming, Deputy President, Global Head of Investment & CIO – International of Nikko Asset Management maintains that investors would do well to embrace these changes and to maintain a level of flexibility and diversity in one’s investments.

– End of Press Release –

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Photos from Affin Hwang AM Investment Forum 2017

 

Photo Captions

  1. L-R: Wang Yu-Ming (Deputy President, Global Head of Investment & CIO – International, Nikko Asset Management), Mallika Sachdeva (FX Strategist, Deutsche Bank), Tunku Dato’ Paduka Jaafar Laksmana bin Tunku Nong Jiwa (Director and Chairman of AIIMAN Asset Management Sdn Bhd) and Teng Chee Wai (Managing Director, Affin Hwang Asset Management Bhd)
  2. L-R: Teng Chee Wai (Managing Director, Affin Hwang Asset Management Bhd), Ibrahim Sani (Head of Business Desk, Astro Awani), Nurhisham Hussein (General Manager, Head, Economics & Capital Markets Department, EPF), Ibrahim Suffian (Merdeka Center), Wan Saiful Wan Jan (Chief Executive, Institute for Democracy and Economic Affairs) and Tunku Dato’ Paduka Jaafar Laksmana bin Tunku Nong Jiwa (Director and Chairman of AIIMAN Asset Management Sdn Bhd)

Affin Hwang AM sees Growth Opportunities in Asia

KUALA LUMPUR – Affin Hwang Asset Management Berhad (“Affin Hwang AM” or “the Company”) believes that while the global markets may remain volatile in the near future, pockets of opportunity will continue to present themselves in Asia.

David Ng, Chief Investment Officer of Affin Hwang AM said, “At a glance, the first quarter pretty much followed the risk-on script as optimism riding on President Trump’s policy pledges was carried forward from 4Q2016 into 2017.”

This however masks the recovery story within Asia and the turnaround seen in recent weeks. The macro data has been surprising on the upside. The earnings growth is being revised up by analysts, the first re-rating in the past 5 years. The HK/ China market led the recovery among its regional peers amid better earnings coupled with cheaper valuations as compared to developed markets. Fundamentals have also been supportive for Asian market, and it’s probably one of the better first quarter seen in recent years.

The Company believe that the infrastructure story is taking shape in Asia. This is positive for Asia economic growth over the longer term. On the infrastructure side, our main exposure remains within China, where some of our participation has done relatively well. Nonetheless, our optimism remains and we expect more foreign interest to shift towards the Indonesian infrastructure sector post the Jakarta elections end of April.

The second quarter is believed to be a crucial period for the financial markets. Given the strong momentum in the Asian region, some pullbacks can be expected in the near-term which the Company thinks is healthy for markets in general. David said there are a few key events to watch in the coming months. Firstly, US President Trump’s trade protectionism pose a risk to the Asia supply chain. The US – China trade dispute could send ripple effects to Asia economy and is causing anxiety across the region.

Secondly, Affin Hwang AM suggested that the pace of US Dollar rally may slow down in the interim. “The MYR seems to be turning around in recent weeks as the strong greenback environment is seen to be easing up. Nonetheless, after having suffered significantly since last November, MYR-assets are still relatively cheap and attractive, especially from a foreign investor’s perspective. We believe that the gradual shift of fund flows into Malaysia will provide some form of buoyancy for the domestic stock market,” David said.

Lastly, the next events to look out for include the President Trump’s first 100 days in office, French presidential election in May, UK snap election in June and German parliamentary election in September. Market confidence on President Trump seems to be diminishing and growing doubts over his ability to pass other key reforms in the future.

On Affin Hwang AM’s strategy, David said that the Company remains prudent and disciplined to produce consistent performance. Its aim to provide investors with stable and consistent medium term growth. Portfolios will continue to be managed on an absolute return strategy – whereby the Company aims to provide positive gains on investments over a 3-year rolling period, irrespective of market performance.

David explained that focus will remain, as always, on quality of the underlying investments. He said, “We remain invested according to our convictions and this encompasses our asset allocation, country allocation, thematic positioning and bottom-up ideas. We have not wavered from our investment philosophy and continue to focus on fundamentally strong companies – a selection of investments made through a stringent investment selection process.”

The Company will remain invested in the Asian region, with three key themes in particular given the more encouraging fundamentals:

  1. Reflation: banking sector, insurance, industrials and commodity
  2. Domestic Asia: consumer goods and tourism
  3. Infrastructure: infrastructure, constructions

David continued, “Our strategy during the current market condition is to remain invested through bottom-up selection of stocks. However, we would remain cautious given the fragility of the global financial markets. To mitigate potential market reversals, we keep the cash positions in the portfolios moderately higher. We are cognizant of changing market trends and our portfolios are positioned in such a way to quickly respond when market turns.”

– End of Press Release –

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Affin Hwang AM’s 8th World Series Offers Investors Access to the US Bond Market

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.

– End of Press Release –

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