Affin Hwang AM Raises Over RM100mill for Flexible Maturity Income Fund

KUALA LUMPUR – Affin Hwang Asset Management Berhad (“Affin Hwang AM” or “the Company”) has raised more than RM100 million in the first 3 days of the launch of its latest wholesale close-ended fixed income fund.

Affin Hwang Flexible Maturity Income Fund 14 (“FlexMIF 14” or “the Fund”) is the fourteenth fund in the Flexible Maturity Income Fund Series that aims to provide regular income through investment in fixed income instruments on an annual basis.

Since the start of the series offering in 2009, the Company has raised over RM4billion across 28 similar trances before and has maintained a track record of no default in its bonds and credit-selection throughout the series.

To achieve its investment objective, the Fund will invest a minimum of 70% of the Fund’s net asset value (NAV) in fixed income instruments and the remaining balance of the Fund’s NAV in cash, derivatives and/or structured products. The Fund has a 5-year tenure with a portfolio target return of 4.50% – 5.00% p.a.1 upon maturity.

Chan Ai Mei, Chief Marketing & Distribution Officer of Affin Hwang AM said, “The strong demand seen for the Fund is reflective of current volatile market conditions and the investor’s need for consistent income and stability. The strong historical track record of past Flexible Maturity Income Fund instalments to consistently outperform the fixed deposit rate has also lent to the appeal of the series especially as a source of income to provide predictable returns in a portfolio.”

“Within the industry, investors are also drawn to such target-maturity products because of the certainty of payout and its fixed tenure that allows them to plan their liquidity needs to meet future financial obligations. We are confident of raising more than RM200 million for the Fund by the close of the initial offer period (IOP) against these factors.

“Through a stringent credit selection process, the Fund will focus on building a diversified basket of regional focused bonds that provide attractive yields without sacrificing quality. Falling interest rates and dovishness of global central banks toward easing would also provide a positive backdrop for Asian bonds in a lower-for-longer yield environment.” Ai Mei continues.

The Fund is suitable for Sophisticated Investors who have a 5 years investment horizon and a moderate risk tolerance. The Base Currency of the Fund is in MYR with a minimum investment amount of RM10,000. The Fund is benchmarked against the 5-year Malayan Banking Berhad fixed deposit rate as at investment date.

Investors are advised to read and understand the contents of the Fund’s Product Highlights Sheet and Information Memorandum dated 12 September 2019 before investing. Investors who are keen to learn more about the Fund can visit and invest through any of Affin Hwang AM sales offices in Malaysia.

– End of Press Release –

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