Affin Hwang AM raises RM100 mln in flexible maturity income fund

KUALA LUMPUR: Affin Hwang Asset Management Bhd (Affin Hwang AM) has raised more than RM100 million in the first three days since the launch of its latest wholesale close-ended fixed income fund.

The 14th fund in its flexible maturity income fund series, the Affin Hwang Flexible Maturity Income Fund 14 aims to provide regular income through investment in fixedincome instruments on an annual basis.

“Since the start of the series offering in 2009, the company has raised over RM4 billion across 28 similar trances before and maintained a track record of no default in its bonds and credit-selection throughout the series,” it said in a statement yesterday.

To achieve its investment objective, the fund will invest a minimum of 70 per cent of its net asset value (NAV) in fixed-income instruments and the remaining balance of the fund’s NAV in cash, derivatives and or structured products.

“The fund has a five-year tenure with a portfolio target return of 4.5 to five per cent per annum upon maturity,” Affin Hwang AM said.

Meanwhile, its chief marketing and distribution officer, Chan Ai Mei said the strong demand seen for the fund is reflective of current volatile market conditions and the investor’s need for consistent income and stability.

The strong historical track record of past flexible maturity income fund instalments to consistently outperform the fixed deposit rate has also lent to the appeal of the series, especially as a source of income to provide predictable returns in a portfolio.

“Within the industry, investors are also drawn to such target-maturity products because of the certainty of payout and its fixed tenure that allows them to plan their liquidity needs to meet future financial obligations. — Bernama