KUALA LUMPUR – Affin Hwang Asset Management Berhad (“Affin Hwang AM” or “the Company”) announced today the launch of the Smart Invest Portfolio – Growth (“the Fund”) which is the first in a series of zero front-end load funds lined up by the company that waives the initial sales charge.
The Fund is a retail mixed asset fund that aims to provide investors with income and capital growth over the medium to long-term period through a portfolio of collective investment schemes. Structured as a fund-of-funds (FoF), the Fund combines an all-in-one approach to source the best-in-class strategies covering multiple asset classes, regions and managers.
To achieve its investment objective, the Fund will invest a minimum of 95% of the Fund’s net asset value (NAV) into collective investment schemes and a maximum of 5% of the Fund’s NAV into money market instruments and/or fixed deposits for liquidity.
Chan Ai Mei, Chief Marketing & Distribution Officer of Affin Hwang AM said, “With a minimum investment amount of just RM100, the Fund is the ideal starter-kit for both novice and seasoned investors looking to dip their toes into markets at zero entry cost. Through a carefully constructed model portfolio and fund selection process, we combined the best in-house strategies and investment expertise abroad to deliver better risk-adjusted returns to investors.”
Based on a model portfolio which takes into account past performance, market and risk factors, the Fund delivered an annualised return of 7.4%1 per annum since 2017. The time period covers 2017 which was a banner year for markets as well as 2018 which was a correction year.
She also commented on the vagaries of market timing in a highly volatile environment. “Many investors are finding it increasingly difficult to time the market and position their portfolios accordingly. For instance, we saw how quickly the macro environment flipped 180 degrees from the rout in end-2018 to 1Q’2019, when rate expectations were lowered with the US Federal Reserve opting to take a more patient approach. This change in market dynamics supported a recovery in risk assets,” Ai Mei said.
“As such, many investors were under positioned to capture this liquidity-driven rally and missed out on returns in the early part of 2019. This Fund seeks to address one of the most common pitfalls investors make when chasing the market and instead keep their anxieties at bay in the hands of a trusted fund manager,” Ai Mei continues.
Through an active review and quarterly rebalancing exercise (ad-hoc if needed), the Fund would tilt its allocation depending on market conditions to protect downside as well as tactically deploy to benefit from a market recovery. The Fund is suitable for investors who seek capital appreciation, have a long-term investment horizon and a high risk tolerance. The Base Currency of the Fund is in MYR. The annual management fee is 1.8% per annum of the NAV of the Fund. There is also a 3% repurchase charge whenever a redemption is made.
Investors are advised to read and understand the contents of the Fund’s Product Highlights Sheet and Information Memorandum dated 17 May 2019 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 in Malaysia.
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Lee Sheung Un | firstname.lastname@example.org | +603 2117 6592