Affin Hwang AM launches wholesale equity feeder fund

KUALA LUMPUR: Affin Hwang Asset Management Bhd (Affin Hwang AM) has launched a new fund, Affin Hwang European Unconstrained Fund (EUF), a wholesale equity feeder fund.

Affin Hwang AM said on Monday the fund sought to achieve capital appreciation over the the medium to long term by investing in collective investment scheme, namely, UBS (Lux) Equity SICAV-European Opportunity Unconstrained (Target Fund), a Luxembourg-domiciled fund of UBSW Asset Management.

"EUR will invest a minimum of 80% of its net asset value (NAV) into the Target Fund and maximum 20% of its NAV into money market instruments, fixed deposits and/or liquid assests," it said.

It said the Target Fund predominantly invested in equities, equity rights or other capital shares of companies domiciled or chiefly active in Europe.

"The Target Fund is managed by the UBS Concentrated Alpha Team of UBS Asset Managment (UK) Ltd London," it said.

Affin Hwang AM chief marketing officer, Chan Ai Mei, said the company has identified an opportunity to gain returns through the target fund. 

"It is a flexible equity fund that invests in European stocks and its strategy allows the Target Fund manager to take up short positions alongside the fund's long positions.

"This gives the target fund an extra source of returns while also providing downside protection," Chan said.