KUALA LUMPUR – Affin Hwang Asset Management Berhad (formerly known as Hwang Investment Management Berhad) (“Affin Hwang AM” or the “Company”), launched a sequel in the successful fixed maturity income series – the Affin Hwang Fixed Maturity Income Fund XIV (“FMIF XIV” or the “Fund”). Similar to its predecessors, FMIF XIV offers investors the opportunity to invest in an income fund that provides regular income with the potential upside of a bonus coupon upon maturity of the Fund.
Chan Ai Mei, Chief Marketing Officer of Affin Hwang AM said, “Affin Hwang AM has a track record of managing 13 series of the Fixed Maturity Income Fund (“FMIF”) series and raised more than RM2 billion since 2009. Four of the FMIF funds have matured and repaid to investors with full investment amount, including sales charge and guided target returns for the respective funds.”
Ai Mei shared the success of the FMIF series, “For fixed income funds, our Managers practice an active management combined with bottom-up security selection which forms a cornerstone of our performance. We are known for being value-orientated and the strength of our in-house credit team has contributed strongly to our achievement. Our credit team follows a rigorous process when assessing the creditworthiness of a company, i.e. to perform an in-depth analysis of the risks associated with the borrower and that particular issue. In formulating our own credit opinion, we conduct both quantitative and qualitative analysis. We employ our stringent and proprietary credit scoring model to identify companies that will help us ensure that issuers meet the grade in addition to being willing and able to meet their obligations. In our quantitative assessment, we evaluate the company’s financial strength and corporate structure, among others and for qualitative, we will assess the management track record and experience in addition to its positioning in its respective industry.”
Affin Hwang AM believes in assessing macro-economic themes to guide the credit team on interest rate movements and sector allocations. Their assessment does not end when they purchase a security; they continue to monitor each security throughout the period that the Company hold the security in a portfolio which includes rating changes by the rating agencies. This has resulted in Affin Hwang AM's track record of NO default across all fixed income securities held despite having gone through several key economic events since the start of its business in 2001.
FMIF XIV is a close-ended income fund that aims to provide income through investments predominantly in fixed income instruments. The target return of the Fund is 4.75% per annum. FMIF XIV will be investing minimum 70% of the Fund’s NAV in fixed income instruments and a minimum of 0.20% of the Fund’s NAV in liquid assets. The Fund may also invest up to 40% of its NAV in unrated bonds or bonds which are rated below investment grade by Standard & Poor’s, Moody’s, Fitch, RAM, MARC or any other rating agencies.
FMIF XIV is suitable for investors who have three (3) years investment horizon and have a moderate 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 6 April 2015. The initial offer price is RM1.00 per Unit, with minimum initial investment at RM1,000 and additional investment at RM100. The Fund is expected to be fully subscribed within two (2) weeks of the subscription period.
Investors are advised to read and understand the contents of the Fund’s Product Highlights Sheet and Prospectus dated 6 April 2015 before investing. Visit www.affinhwangam.com for more information on the Fund.