Affin Hwang AM Raises Over RM1.5 Billion Across its Fixed Income Funds
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KUALA LUMPUR – Affin Hwang Asset Management Berhad (“Affin Hwang AM” or “the Company”) continues to see strong investment demand despite market jitters from the Covid-19 outbreak, where the company has raised over RM1.53 billion across its retail and wholesale fixed income funds1.

Chan Ai Mei, Chief Marketing & Distribution Officer of Affin Hwang AM said, “Investors continue to seek income-based solutions to diversify their portfolios against heightened volatility in markets. As a defensive asset class, fixed income provides a measure of stability to one’s portfolio by reducing the variability of returns as well as helps cushion losses in a market downturn.”

“We advise investors not to be perturbed with any short-term impact the coronavirus might have on financial markets. With more decisive measures and effective control policies by governments in containing the outbreak, we view that the global economic recovery risks being delayed rather than derailed. Investors should continue to strive for diversification in their portfolios and stay disciplined in their approach by investing consistently,” Ai Mei said.

Among the company’s fixed income fund which saw steady demand include the Affin Hwang World Series – Global High Income Fund (“the Fund”) which is a wholesale feeder income fund that was launched last January. The Fund provide investors 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”).

Through an unconstrained approach, the Fund has the flexibility to invest into a range of debt securities including sovereign debt, corporate investment grade and high yield bonds to generate a consistent income stream with a targeted distribution yield between 5% – 6%2.

As the first banking distributor of the Fund, Standard Chartered Bank Malaysia advocates that investors adopt a model portfolio approach towards asset allocation. Sammeer, Managing Director & Head of Wealth Management, Standard Chartered Bank Malaysia said, “Following last month’s rate cut, Bank Negara has signalled that there is still ample room to adjust the monetary policy to support economic growth. The recent launch of the Affin Hwang World Series – Global High Income Fund is timely as it presents a suitable low-risk alternative to achieve higher income in a low interest rate environment. As one of the core staple multi-income solutions in our model income portfolio, it can help savers mitigate the reduced interest on their savings brought on by rate cuts.”

On market impact from the Covid-19 outbreak, Ramon Maronilla, Managing Director, Global Fixed Income, JP Morgan Asset Management said, “Despite recent volatility, demand for fixed income in general remains robust, providing a solid technical backdrop. Issuance is higher than last year, but supply is being well received. Flows into high quality bonds remain strong. With central banks continuing to provide policy support and growth likely to be impacted at least in the short-term by the coronavirus outbreak, core duration and high quality credit will continue to play a key role in portfolios.”

“It is still premature to say when the new confirmed cases will peak out, and when things will get back to normal. We are still at an early stage of the outbreak. Therefore, being diversified and nimble is the key. Even within Asia, some sectors are likely to see greater resilience on their earnings performance. Some companies with global business exposure is likely to face less volatility. It is also important to focus on the long-term and the fact that economic activities should bounce meaningfully if governments manage to get the virus situation under control.

“We expect more monetary easing from China and the rest of Asia to boost the economy in subsequent quarters, especially after the virus is under control. Further uncertainties from the outbreak are expected to reinforce the dovish bias for central banks around the world. This backdrop is likely to support government bonds and high quality IG corporate bonds,” Ramon said.

As an open-ended fund, investors can continue to purchase units of the Fund and invest. The Investment Date will begin on the 25th February 2020 and the Fund can be accessed through all Standard Chartered and UOB bank branches as well as Affin Hwang Asset Management sales offices nationwide.

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 –
FOR MEDIA ENQUIRIES, PLEASE CONTACT:

Lee Sheung Un | [email protected] | +603 2117 6592
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Copyright © 2020 Affin Hwang Asset Management Bhd
TENG CHEE WAI

Managing Director
Teng Chee Wai is the founder of Affin Hwang Asset Management Berhad (Affin Hwang AM). Over the past decade, he has built the Company to be the fastest growing and only independent investment management house in Malaysia’s top three, with an excess of RM47 billion in assets under management as at 31 December 2018.​

​In his capacity as Managing Director / Executive Director, Teng manages the overall business and strategic direction as well as the management of the investment team. His hands-on approach sees him actively involved in investments, product development and marketing. Teng’s critical leadership and regular participation in reviewing and assessing strategies and performance has been pivotal in allowing the Company to successfully navigate the economically turbulent decade.

Teng’s investment management experience spans more than 20 years, and his key area of expertise is in managing absolute return mandates for insurance assets and investment-linked funds in both Singapore and Malaysia. Prior to his current appointments, he was the Assistant General Manager (Investment) of Overseas Assurance Corporation (OAC) and was responsible for the investment function of the Group Overseas Assurance Corporation Ltd.​

​Teng began his career in the financial industry as an Investment Manager with NTUC Income, Singapore. He is a Bachelor of Science graduate from the National University of Singapore and has a Post-Graduate Diploma in Actuarial Studies from City University in London.
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