Affin Hwang Asset Management Bhd has launched its Affin Hwang Dana Malaysia - a close-ended wholesale fund that seeks to achieve capital appreciation over the three-year tenure of the fund with a 1-year extension option, subject to an early maturity trigger.
The Fund aims to achieve an absolute total return target of 30% during the tenure of the Fund by investing in a concentrated portfolio of domestic equities. To achieve its investment objective, the Fund will employ a flexible approach to asset allocation by investing into a range of asset classes including equities, equity-linked instruments, fixed income, structured products and/or derivatives depending on prevailing market conditions.
Chan Ai Mei, Chief Marketing & Distribution Officer of Affin Hwang AM said, “To take advantage of the recent bout in volatility, the Fund will seek to capitalise on mispricing opportunities in the market through high-conviction ideas and our own proprietary in-house knowledge and experience as home-grown fund managers with extensive coverage of the local market.”
“Since inception, the company’s Malaysia Absolute Return Strategy has delivered annualised returns of over 15.1% p.a. or total returns exceeding ten-fold by over 955% (1). We see opportunities emerging from the shifting market landscape as reforms and growth policies may spur the interest of both domestic and foreign investors.
“In addition, there is also ample domestic liquidity trapped in the market, as institutional funds were highly cashed-up when markets turned more volatile this year. When the new government is able to show more progress in terms of reforms and articulate its economic growth policy, the local market may stage a healthy rebound, underpinned by the return of foreign flows and the deployment of domestic liquidity. Hence, we hope the Fund would be able to benefit in this shifting investment landscape,” Ai Mei said.
On investor positioning, Ai Mei adds, “We advocate patience in this current market environment and for investors to stay the course and remain disciplined and prudent to ride out market turbulence for the rest of the year.”
Benchmarked against the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI), the Fund is available to Sophisticated Investors who seek capital appreciation, have a medium-term investment horizon and a high risk tolerance.
The Fund is available for subscription for a period of not more than 45 days from the Commencement Date of the Fund, which is on 1 August 2018. The initial offer price is RM1.000 per unit, with a minimum initial investment amount of RM100,000.
