Affin Hwang AM expands thematic offerings with launch of multi-asset fund

PETALING JAYA: Affin Hwang Asset Management Bhd (Affin Hwang AM) today launched the Affin Hwang Aiiman Global Thematic Mixed Asset Fund, further expanding its suite of thematic offerings.

The fund is a syariah-compliant retail fund that provides investors access to thematic opportunities through a multi-asset approach including global equities and sukuk.

The fund will invest a minimum of 30% and a maximum of 80% of the fund’s net asset value (NAV) in syariah-compliant equities, as well as a minimum of 20% and a maximum of 60% of the fund’s NAV in sukuk. The fund also has the flexibility to invest a maximum of 20% of its NAV in Islamic deposits and Islamic money market instruments as well as a maximum of 15% of the fund’s NAV in syariah-compliant warrants and lastly an allowance to participate with a maximum of 10% of its NAV in Islamic structured products.

Affin Hwang AM chief marketing & distribution officer Chan Ai Mei (pix) said many thematic funds today tend to lack diversification as their holdings are often concentrated in a single sector which can lead to more volatility.

“Our newly launched fund is designed to solve this quandary for investors who want to capture the potential of thematic opportunities, but at the same time still manage downside risks in their portfolios.

“Through a flexible asset allocation strategy, the fund scours the best ideas across multiple themes and asset classes to deliver a smoother path of return for investors and combat volatile times that we’re seeing. By not being bounded to any geographical or sector limits as well, the fund is able to dynamically allocate between different key megatrends such as technological innovation, sustainability as well as changing demographics and lifestyles that will transform the way the world works.”

Managed externally by Affin Hwang AM’s wholly owned Islamic fund management arm Aiiman Asset Management, the fund also benefits from the combined expertise of Schroders Investment Management which acts as its investment adviser.

On the fund’s investment strategy, Aiiman Asset Management managing director Akmal Hassan said by applying a syariah filter which excludes companies with excessive levels of debt, it seeks out higher quality companies with stronger balance sheets as compared to conventional thematic strategies that would increase the fund’s resilience to market volatility.

“Combined with Aiiman’s expertise in managing global sukuk, investors also benefit from having exposure to this defensive asset class due to its lower drawdowns in periods of extreme volatility. With an expanding market breadth, global sukuk as an asset class is also expected to see greater demand and inflows with its inclusion into major bond indices,” Akmal said.

The fund is suitable for retail investors who seek moderate capital growth and have a medium to long-term investment horizon. The base currency of the fund is in US dollar. The fund is offered in four currency classes, namely MYR Hedged-Class, USD class, SGD hedged-class and AUD hedged-class. The minimum investment amount is US$1,000 for all listed currency classes.