Fund aiming for 30pc total return target

KUALA LUMPUR: Affin Hwang Asset Management Bhd (Affin Hwang AM) aims to achieve an absolute total return target of 30 per cent for its newly-launched Affin Hwang Dana Malaysia (AHDM) by investing in a concentrated portfolio of domestic equities.

In a statement yesterday, Affin Hwang AM said it would employ a flexible approach to asset allocation by investing in a range of asset classes, including equities, equity-linked instruments, fixedincome, structured products and/or derivatives depending on market conditions.

AHDM is a close-ended wholesale fund that seeks to achieve capital appreciation in its threeyear tenure with a one-year extension option, subject to an early maturity trigger.

Affin Hwang AM chief marketing and distribution officer Chan Ai Mei said to take advantage of the recent volatility, the fund would capitalise on mispricing opportunities in the market through high-conviction ideas and its own proprietary in-house knowledge and experience as homegrown fund managers with extensive coverage of the local market.

“Since inception, the company’s Malaysia Absolute Return Strategy has delivered annualised returns of over 15.1 per cent per cent, or total returns exceeding tenfold by over 955 per cent.

“When the new government is able to show more progress in terms of reforms and articulate its economic growth policy, the local market may stage a healthy rebound, underpinned by the return of foreign flows and the deployment of domestic liquidity.

“Hence, we hope the fund would be able to benefit in this shifting investment landscape,” she said.