Affin Hwang AM chief marketing and distribution officer Chan Ai Mei said:
KUALA LUMPUR: Affin Hwang Asset Management Bhd (Affin Hwang AM) launched its Smart Invest Portfolio – Growth fund, which is a retail mixed asset fund, on Friday.
Affin Hwang AM said the fund is the first in a series of zero front-end load funds lined up by the company that waives the initial sales charge.
This retail mixed asset fund targets to provide investors with income and capital growth over the medium to long-term period through a portfolio of collective investment schemes.
Structured as a fund-of-funds (FoF), the fund combines an all-in-one approach to source the best-in-class strategies covering multiple asset classes, regions and managers.
Affin Hwang AM said the fund will invest a minimum of 95% of its net asset value (NAV) into collective investment schemes and a maximum of 5% into money market instruments and/or fixed deposits for liquidity.
Its chief marketing & distribution officer Chan Ai Mei said with a minimum of RM100, the fund is the ideal starter-kit for both novice and seasoned investors looking to invest in markets at zero entry cost.
“Through a carefully constructed model portfolio and fund selection process, we combined the best in-house strategies and investment expertise abroad to deliver better risk-adjusted returns to investors,” she said.
Based on a model portfolio which takes into account past performance, market and risk factors, the fund delivered an annualised return of 7.4% per annum since 2017. The time period covers 2017 which was a banner year for markets as well as 2018 which was a correction year.
Chan said due to the highly volatile environment many investors were finding it more difficult to time the market and position their portfolios accordingly.
She cited how quickly the macro environment flipped 180 degrees from the rout in end-2018 to the first quarter of this year, when rate expectations were lowered with the US Federal Reserve opting to take a more patient approach.
“This change in market dynamics supported a recovery in risk assets. As such, many investors were under positioned to capture this liquidity-driven rally and missed out on returns in the early part of 2019.
“This fund seeks to address one of the most common pitfalls investors make when chasing the market and instead keep their anxieties at bay in the hands of a trusted fund manager,” she said.
Chan said through an active review and quarterly rebalancing exercise (ad-hoc if needed), the fund would adjust its allocation depending on market conditions to protect downside as well as tactically deploy to benefit from a market recovery.
The fund is suitable for investors who seek capital appreciation, have a long-term investment horizon and a high risk tolerance.
The base currency is in ringgit. The annual management fee is 1.8% per annum of the NAV of the fund. There is also a 3% repurchase charge whenever a redemption is made.
Limited time offer:
Just RM5 per month.
