KUALA LUMPUR: Affin Hwang Asset Management Bhd launched its world series Next Generation Technology Fund on Tuesday which will feed into a target fund managed by the world's largest asset manager BlackRock.
BlackRock Global Funds - Next Generation Technology Fund is a wholesale feeder growth fund providing access to opportunities in the tech universe outside of mega cap names by capturing emerging innovative leaders.
Affin Hwang AM's Next Generation Technology Fund will invest a minimum of 80% of its net asset value (NAV) into the target fund and a maximum of 20% of the fund’s NAV into money market instruments, deposits and/or cash.
Affin Hwang AM chief marketing & distribution officer Chan Ai Mei said the pandemic has accelerated the adoption of technology across different platforms whether it is e-commerce, cloud computing or artificial intelligence (AI).
She pointed out technology names were one of the biggest winners in 2020 driven by ample liquidity which led the market recovery.”
“For investors seeking differentiated exposure in the technology space, the fund’s unique strategy allows investors to diversify outside of well-established mega cap names, ” she said.
“By focusing on emerging hyper-growth companies leading the digital wave, the Fund provides investors an avenue to tap into growth opportunities in a growing tech universe, ” she said.
Chan also said with interest rates expected to stay lower for a longer period, there has been strong interest from investors looking to diversify and participate in long-term structural themes such as technology with multi-year growth trajectories.
Since inception of the target fund in 2018, it has delivered an annualised return of 44.6% per annum and a total return of 115.3% in the calendar year 2020.
Tony Kim, BlackRock Portfolio manager and head of the fundamental equities technology team believed innovation leaps in technology, such as next generation silicon or the cloud computing stack, have driven the growth of the sector in recent years.
BlackRock continues to see healthy fundamental demand and secular growth in the sector, giving us conviction in the ability for technology companies to continue growing in the near and long term.
The fund is available to sophisticated investors who seek capital appreciation, have a medium to long-term investment horizon and have a high risk tolerance.
The base currency of the fund is in US dollar. The fund is offered in four currency classes, namely US$ class, ringgit-hedged class, Singapore dollar-hedged class and Australian dollar hedged-class. The minimum investment amount is US$5,000 for all listed currency classes.