Affin Hwang partners Samsung Asset Management

PETALING JAYA: Affin Hwang Asset Management Bhd has entered into a strategic partnership with Samsung Asset Management (Hong Kong) Ltd.

The tie-up aims to drive product innovation across a range of initiatives, including the development and offering of leveraged and inverse (L&I) exchange-traded funds (ETFs) on the country’s stock exchange.

Under the terms of the partner- ship agreement, Affin Hwang will appoint Samsung as its investment adviser to provide advisory services in the management of its derivative type ETFs, including L&I products, through shared resources and expertise.

“Given Samsung’s strong capabilities and success in managing L&I products, we believe that we are able to capitalise on their expertise to complement our growth strategy.

“Samsung was the first asset management firm in the region to launch futures-based ETFs in Asia, and has been managing L&I products since 2009,” said Affin Hwang Asset Management managing director Teng Chee Wai in a statement.

The Securities Commission recently introduced a new ETF framework that will pave the way for a broader range of ETF offerings beyond plain-vanilla products.

“With the availability of this new framework, issuers such as ourselves are encouraged and galvanised by steps taken by regulators in enabling greater product innovation and also flexibility in terms of different investment strategies.

“As we aspire to take the lead in our industry, we are preparing a product pipeline in the next one year ranging from L&I as well as smart beta that would complement our current ETF offerings.” Teng said.