Affin Hwang AM Declares Income Distribution of RM203 mil for 24 Funds

KUALA LUMPUR – Affin Hwang Asset Management Berhad (“Affin Hwang AM” or “the Company”) has declared a total of RM203.07 million distributions for 24 funds. 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 Registered as at
RETAIL SHARIAH-COMPLIANT FUND
1. Affin Hwang Aiiman Select Income Fund (“ASIF”) 1.5000 sen or RM0.015 per Unit 11 December 2017
2. Affin Hwang Aiiman Income Plus Fund (“AIPF”) 0.7700 sen or RM0.0077 per Unit 11 December 2017
RETAIL CONVENTIONAL FUND
3. Affin Hwang Bond Fund (“AHBF”) 1.5000 sen or RM0.015 per Unit 11 December 2017
  4. Affin Hwang Select Asia Pacific (ex Japan) REITs and Infrastructure Fund (“SAPRIF”) 2.0000 sen or RM0.020 per Unit 11 December 2017
5. Affin Hwang Select AUD Income Fund (AUD Class) (“SAUDIF”) 0.5000 cent or AUD0.005 per Unit 11 December 2017
Affin Hwang Select AUD Income Fund (MYR Class) (“SAUDIF”) 1.0000 sen or RM0.010 per Unit 11 December 2017
6. Affin Hwang Select Balanced Fund (“SBalF”) 2.0000 sen or RM0.020 per Unit 11 December 2017
7. Affin Hwang Select Bond Fund (MYR Class) (“SBoF”) 1.5000 sen or RM0.015 per Unit 11 December 2017
Affin Hwang Select Bond Fund (USD Class) (“SBoF”) 0.4000 cent or USD0.004 per Unit 11 December 2017
8. Affin Hwang Select Income Fund (“SIF”) 1.5000 sen or RM0.015 per Unit 11 December 2017
9. Affin Hwang Select Asia Pacific (ex Japan) Balanced Fund (“SAPBalF”) 1.0000 sen or RM0.010 per Unit 11 December 2017
10. Affin Hwang Select Dividend Fund (“SDF”) 2.0000 sen or RM0.020 per Unit 11 December 2017
11. Affin Hwang Select SGD Income Fund (MYR Class) (“SSGDIF”) 1.2500 sen or RM0.0125 per Unit 11 December 2017
Affin Hwang Select SGD Income Fund (SGD Class) (“SSGDIF”) 1.0000 cent or SGD0.0100 per Unit 11 December 2017
12. Affin Hwang Select Asia (ex Japan) Quantum Fund (“SAQF”) 5.0000 sen or RM0.0500 per Unit 11 December 2017
WHOLESALE CONVENTIONAL FUND
13. Affin Hwang World Series – Global Income Fund (AUD Hedged-class) (“WS-GIF”) 0.2500 cent or AUD0.0025 per Unit 11 December 2017
Affin Hwang World Series – Global Income Fund (GBP Hedged-class) (“WS-GIF”) 0.2500 cent or GBP0.0025 per Unit 11 December 2017
Affin Hwang World Series – Global Income Fund (RM Class) (“WS-GIF”) 0.2500 sen or RM0.0025 per Unit 11 December 2017
Affin Hwang World Series – Global Income Fund (SGD Hedged-class) (“WS-GIF”) 0.2500 cent or SGD0.0025 per Unit 11 December 2017
Affin Hwang World Series – Global Income Fund (USD Class) (“WS-GIF”) 0.2500 cent or USD0.0025 per Unit 11 December 2017
Affin Hwang World Series – Global Income Fund (RM Hedged-class) (“WS-GIF”) 0.2500 sen or RM0.0025 per Unit 11 December 2017
14. Affin Hwang Asia Bond Fund (“AHABF”) 1.5000 sen or RM0.015 per Unit 11 December 2017
15. Affin Hwang World Series – Dividend Value Fund (AUD Class) (“WS-DVF”) 0.5000 cent or AUD0.005 per Unit 11 December 2017
Affin Hwang World Series – Dividend Value Fund (RM Class) (“WS-DVF”) 0.5000 sen or RM0.005 per Unit 11 December 2017
Affin Hwang World Series – Dividend Value Fund (SGD Class) (“WS-DVF”) 0.5000 cent or SGD0.005 per Unit 11 December 2017
Affin Hwang World Series – Dividend Value Fund (USD Class) (“WS-DVF”) 0.5000 cent or USD0.005 per Unit 11 December 2017
16. Affin Hwang World Series – US Short Duration High Income Fund (AUD Hedged-class) (“USSDHIF”) 0.2500 cent or AUD0.0025 per Unit 11 December 2017
  Affin Hwang World Series – US Short Duration High Income Fund (GBP Hedged-class) (“USSDHIF”) 0.2500 cent or GBP0.0025 per Unit 11 December 2017
Affin Hwang World Series – US Short Duration High Income Fund (RM Class) (“USSDHIF”) 0.2500 sen or RM0.0025 per Unit 11 December 2017
Affin Hwang World Series – US Short Duration High Income Fund (SGD Hedged-class) (“USSDHIF”) 0.2500 cent or SGD0.0025 per Unit 11 December 2017
Affin Hwang World Series – US Short Duration High Income Fund (USD Class) (“USSDHIF”) 0.2500 cent or USD0.0025 per Unit 11 December 2017
Affin Hwang World Series – US Short Duration High Income Fund (RM Hedged-class) (“USSDHIF”) 0.2500 sen or RM0.0025 per Unit 11 December 2017
17. Affin Hwang Wholesale Equity Fund (“WEF”) 0.5000 sen or RM0.005 per Unit 11 December 2017
18. Affin Hwang Wholesale Income Fund (“WIF”) 0.6500 sen or RM0.0065 per Unit 11 December 2017
19. Affin Hwang Structured Income Fund 9 (StrIF 9”) 1.4003 sen or RM0.014003 per Unit 19 December 2017
20. Affin Hwang Flexi Fund 1 (“FF 1”) 5.0000 sen or RM0.0500 per Unit 19 December 2017
21. Affin Hwang Income Fund 1 (“IF 1”) 0.8500 sen or RM0.0085 per Unit 19 December 2017
22. Affin Hwang Wholesale Corporate Bond Fund (“WCBF”) 0.8675 sen or RM0.008675 per Unit 19 December 2017
23. Affin Hwang Wholesale Government Bond Fund (“WGBF”) 0.8265 sen or RM0.008265 per Unit 19 December 2017
24. Affin Hwang World Series – Asian Bond Fund (“WS-ABF”) 3.5000 sen or RM0.0350 per Unit 19 December 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, “True to our investment philosophy, we are delighted to continue upholding our commitment to deliver absolute return performance to our investors, irrespective of market conditions. With this latest round of income distribution, our total payout for 2017 amounted to RM402.10 million, which reaffirms our commitment to deliver outperformance, despite volatility seen in markets.”

On outlook for 2018, Ai Mei adds, “Against a backdrop of synchronised economic expansion, we expect a continuation of developments for 2018, with growth now seen broadening-out across countries and sectors, although gradual pullbacks in liquidity are expected due to monetary policy tightening. Investors should remain diversified across different sectors, geographies, currencies and asset-classes in building a resilient portfolio to weather these developments in 2018, where constant change and market flux will continue to envelop markets.”

– End of Press Release –

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2017 Market Review and Outlook

2017 – The Return of Growth

With the return of growth, the year 2017 has seen an economic upswing that has lifted both global and regional markets in terms of asset returns and earnings recovery. Accelerating growth, but benign inflation has kept policy tightening at bay, creating the right conditions for risk-assets to perform well under a ‘Goldilocks’ environment.

Marked by global reflation, as well as a recovery in trade and manufacturing PMI – Asia scored top marks and appeared as one the best performers this year.

In Asia, the MSCI Asia ex-Japan Index advanced +37.8% (local currency terms), compared to the MSCI AC World Index which had gained +19.5% YTD (as at 29 Nov 2017).

The MSCI Asia ex-Japan performance was primarily driven by North Asia, with tech emerging as the key outperformer, across China, Korea and Taiwan.

China’s 9M’17 GDP growth has come in ahead of consensus expectations growing by 6.9%, with the MSCI China Index outperforming other Asia ex-Japan country Indices, increasing by almost +50% (USD terms) as at 30 November. The outperformance of China this year was the result of a potent combination of government stimulus, targeted regulation and SOE reforms.

An acceleration in public-private partnership (PPP) projects drove infrastructure spending demand, whilst supply-side and SOE capacity reforms helped reflate raw material and commodity prices which spurred restocking activities.

Whilst, rising household consumption and increased urbanisation through strong wage increases will place the planks for a long growth runway for its new economy sectors.

Although, we now see growth moderating for China in 2018, as it seeks to attain a more balanced economic model, after years of loose monetary policy that left its financial system flushed with liquidity and knee-deep in leverage.

Growth to Broaden in 2018

Going forward, the macro outlook looks promising with growth expected to remain robust and other global economic growth indicators revised upwards in 2018. The global growth cycle could now broaden-out across sectors and countries, aided by a revival in the capex cycle.

Improving business sentiment, a rebound in profits and benign credit conditions are driving new business investments and would lead to a pick-up in capital spending.

We believe the earnings recovery in China, Korea, Taiwan and India would continue to broaden towards South East Asia, which has been a laggard this year. Singapore, Thailand and Indonesia should begin to catch-up in 2018 from a low base effect in 2017.

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FUNDamentals - December 2017

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 which will provide investors with a low-cost and efficient entry point to gain exposure to gold, by tracking the LBMA Gold Price AM index – which is a commonly used benchmark for gold ETFs globally,” continued Teng.

Chief Executive Officer of Bursa Malaysia Berhad, Datuk Seri Tajuddin Atan said, “We are very excited with the listing of Malaysia’s first Shariah-compliant commodity ETF. This ETF will allow investors to buy and sell gold in the same manner as trading shares on Bursa Malaysia: easy, low cost and transparent. Bursa Malaysia has rolled out several initiatives to support ETF listing and trading, aimed at improving liquidity and vibrancy of the Malaysian ETF market. This includes, among others, a new market making incentive for ETFs. In addition, the Government has also announced that ETF trading on Bursa Malaysia will be exempted from stamp duty starting next year. This is set to spur ETF trading activities even further”.

On the performance of gold Teng adds, “As a safe haven asset, gold is and remains one of the most popular form of investments that is proven to be a quality long-term store of value. Its role as a natural hedge and low correlation to other asset-classes will allow investors to diversify their portfolio effectively by reaping better risk-adjusted returns and lower portfolio volatility.”

“For instance in the last two bear market cycles during the 1997 Asian Financial Crisis and 2008-GFC (Feb 1997 – Aug 1998; Dec 2007 – Mar 2009), we saw the performance of gold moving counter to the benchmark FBMKLCI which was down -75.20% and -39.60% respectively (Source: Bloomberg, Lipper), whilst gold returns had soared above 20%. Thus, investors are able to prevent losses from being amplified during heightened periods of market volatility, especially in view of potential geopolitical risks and flare-ups that continue to be a mainstay of markets for time to come,” said Teng.

Certified by advisory firm Amanie Advisors who also acts as the Fund’s Shariah Adviser – its Shariah-compliant investment structure requires each unit of the Fund to be physically-backed and segregated on an allocated basis in a secure vault. Investors are provided with an option for physical redemption (subject to fees & charges), for a minimum redemption unit block of 500,000 units which is equivalent to an estimated 5kg of gold.

Units of the Fund starts trading today on Bursa Securities under its stock short name ‘GOLDETF’ and stock code ‘0828EA’. Investors can buy and sell units throughout the trading day like any other publicly-traded shares, with a minimum board lot size of 100 Units.

– End of Press Release –

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