KUALA LUMPUR – Affin Hwang Asset Management Berhad (“Affin Hwang AM” or “the Company”) announced today the launch of Affin Hwang World Series – Global High Income Fund (“the Fund”). The Fund is a wholesale feeder income fund that provides access to vast income opportunities in the global fixed income universe by investing in a collective investment scheme, namely JPMorgan Funds – Income Fund (“Target Fund”).
The Target Fund is a Luxembourg-domiciled fund managed by JP Morgan Asset Management (“Target Fund Manager”). To achieve its investment objective, the Fund will invest a minimum of 80% of the Fund’s net asset value (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, “Using an unconstrained approach, the Fund will seek to scour the best investment ideas across the globe to deliver attractive yield at lower volatility. With a focus on generating income, the Fund has a dynamic allocation to shift across sectors and countries with no constraints. The Fund also has the flexibility to adjust duration depending on market conditions to minimise fluctuation. In return, investors gain a predictable income stream through a consistent monthly payout from the Fund at a targeted distribution yield between 5% – 6%1.”
“With global central banks maintaining their accommodative bias towards monetary policy, the Fund provides a solution to investors in their search for yield in a lower-for-longer interest rate environment. As markets continue to be tested by higher volatility, the importance of fixed income as an asset class should not be underestimated by acting as a ballast in one’s portfolio to provide a steady source of income and liquidity,” Ai Mei said.
On the macro outlook for markets and recessionary risk, Ramon Maronilla, Managing Director, Global Fixed Income, JP Morgan Asset Management said, “After a thaw in trade tensions and a year of three Federal Reserve rate cuts along with easing by dozens of other central banks, sub-trend growth is our likeliest scenario. Global growth is bottoming including in emerging economies, but we can’t see the next impulses that would ratchet growth much higher. Tariffs, quotas, embargoes and all forms of protectionism reduce efficiency as well as trade volumes and increase costs. Ultimately that would affect the profitability of global companies.”
“The probability of recession over the next 3 to 6 months have come down from 40% to 25% in acknowledgment of the quantity of global central banks easing and the bias for the US and China to try and maintain some middle ground. If either Trump has given up on his desire to decouple the US economy from China’s; or Xi has given up on or at least toned down his desire to expand Chinese influence globally, a recession would no longer occur. But because we still see a trajectory towards trade tension instead of one of resolution, we think a recession is rather likely,” Ramon said.
With global central banks signalling a pause in its easing cycle for now, Ramon sees opportunities within higher-rated short-duration securitised credit, intermediate high yield and select investment grade credit, as well as US Treasuries with yields expected to trade around current levels.
The Fund is available to Sophisticated Investors who seek a source of income through exposure to a range of debt securities globally, have a medium to long-term investment horizon and have a low risk tolerance. The Base Currency of the Fund is in USD. The Fund is offered in five (5) currency classes, namely USD Class, MYR-Hedged Class, SGD-Hedged Class, AUD Hedged-Class and GBP Hedged-Class. The minimum investment amount is $5,000 for all listed currency classes.
Investors are advised to read and understand the contents of the Fund’s Product Highlights Sheet and Information Memorandum dated 9 January 2020 before investing. Investors who are keen to learn more about the Fund can visit http://affinhwangam.com/ and invest through any of Affin Hwang AM sales offices.
– End of Press Release –
Lee Sheung Un | firstname.lastname@example.org | +603 2117 6592