For capital appreciation and regular yearly income
KUALA LUMPUR, 8 SEPTEMBER 2014 – Hwang Investment Management Berhad (“HwangIM” or the “Company”) today announced the launch of the latest addition to their in-house managed funds, the Hwang ASEAN Flexi Fund (“AFF” of “the Fund”). Targeted at the mass retail segment, HwangIM believes that this fund will be attractive due to its flexible asset allocation strategy and its ability to provide investors with potential capital appreciation and regular income over the medium to long-term period. The flexible asset allocation allows the Fund to have a higher exposure into ASEAN equities during normal or improving market conditions to capitalise returns, and switch to higher exposure into defensive investments such as fixed income instruments during adverse market conditions to protect capital. The Fund will be investing in equities and fixed income instruments that are listed or issued in the ASEAN region.
David Ng, Chief Investment Officer of HwangIM said, “AFF offers investors opportunity to diversify their investments into the ASEAN region and its growth opportunities. Our investment philosophy remains to deliver positive and absolute return performance through different economic-cycles for our clients. AFF’s investing strategy emulates the strong performance of a Malaysian focused flexi strategy fund managed by us, which has successfully outperformed its benchmark and charted 14.6% returns per annum since inception.”
David highlighted that AFF will provide investors with growth prospects from the ASEAN economic growth. The rising incomes and increased spending power of the ASEAN-5 (Malaysia, Singapore, Thailand, Indonesia and Philippines) are expected to boost the nation’s economy. The younger population in ASEAN will be key in driving domestic consumption and hence, promoting sustainable long-term regional growth. GDP growth in ASEAN is expected to remain robust, driven primarily by strong investments and a steady domestic consumption.
He continued, “The launch of the Fund is timely. Historically, all the markets are volatile in September and rebound towards the year end. Additionally, market sentiment in ASEAN is slowly improving. The Indonesian and quasi-government bond yields have rallied when the Indonesian presidential election result was announced in August. Jokowi wins shores up market confidence in Indonesia and we believe growth will follow through when he takes office in November. The government is serious in pushing through the reduction in fuel subsidy, a move that is welcomed by foreign investors. Foreign Direct Investment in Indonesia is on the rise and this indicates investors’ confidence. As for Thailand, market sentiment has improved since the military coup. The military government has provided some stability, particularly in the tourism industry and are focusing on infrastructure improvements and curbing the excessive spending, which is good for Thailand’s growth.”
David added Philippines is expected to continue its investment cycle and investments will be key driver for the economy. In Singapore, the financial sector will remain robust and analyst expects gradual and modest appreciation of the SGD. As for Malaysia, Bank Negara Malaysia expects growth to be driven by external sector, and domestic consumption from infrastructure projects. Private-led investments growth remains strong.
The Fund will invest a minimum of 70% of the Fund’s Net Asset Value (NAV) into ASEAN countries predominantly into Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam. The Fund may also invest up to a maximum of 30% of its NAV into investments that are listed or issued outside the ASEAN region in companies that are domiciled or derive their earnings from the ASEAN region.
AFF is suitable for investors who have a bias towards capital growth on investments with income as secondary focus, medium to long-term investment horizon and high risk tolerance. The Fund is available for subscription from 8 September 2014 onwards with an initial offer price of RM0.50 per Unit. The initial investment for the Fund is RM1,000 and additional investment is RM100. The Fund is distributed and made available at all HwangIM’s sales offices, CIMB Bank and Alliance Bank. The Fund will also be available at RHB Bank and Maybank from mid-September onwards.
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Chong Chyi Ming | firstname.lastname@example.org | +603 2116 6000