The Borneo Post (Sabah)

Affin Hwang’s fund provides Malaysians easy access to China assets


KUALA LUMPUR: The Affin Hwang World Series-China Allocation Opportunit­y Fund provides Malaysians with easy access to the full spectrum of China assets, including equities and bonds, regardless of whether they are mainland or offshore-listed.

Affin Hwang Asset Management Bhd (Affin Hwang AM) chief marketing and distributi­on officer Chan Ai Mei said Malaysians now have an easy “one-stop” access to China through the fund.

Designed for sophistica­ted investors, she said, the fund is an open-ended wholesale feeder fund that seek to achieve capital appreciati­on over the medium to long term by investing in a collective investment scheme namely the UBS (Lux) Key Selection SICAV-China Allocation Opportunit­y (US dollar).

“As the fund is diversifie­d across equities and bonds as well as various Chinese markets, investors would not have to tolerate too much of the ups and downs compared to pure equity strategies,” she told Bernama.

She said the fund also won the Platinum award at the Fund Selector Asia Awards in Singapore twice in a row for 2020 and 2021. Chan said the fund allowed investors to ride the wave of smart money into China local onshore markets where foreign money is still a very small fraction in China's vast markets and not many investors appreciati­ng how under-invested China markets are.

“While the flows have been significan­t, foreign investors only hold three per cent of its stock market and about two per cent of its bond markets,” she said.

She said the underrepre­sentation in investors' portfolios is not prudent as China would prop up global growth for years to come and contribute up to 30 per cent of the world's fortune in the next decade.

Chan said as China's economic stature on the world stage continued to grow, investors could also be expected to increase their share of assets to China.

Therefore, she said it is likely that the wall of money into China would continue to grow, especially since investing in mainland stocks and bonds is easier now. She said in the past, access to mainland stocks and bonds used to be restricted to institutio­nal investors who had to apply for investment quotas.

However, she said China has taken various steps to simplify access to its local markets with various connect schemes like the Shanghai-Hong Kong Stock Connect in 2014.

She said along the way, the country has addressed several investors' concerns and simplified many of its investment rules.

“The liberalisa­tion of China's financial market can be seen as a ‘two-way, win-win situation' for both China and foreign investors,” she said.

Interested investors may visit https://affinhwang­ or contact 1800 88 7080 to learn more about the Affin Hwang World Series - China Allocation Opportunit­y Fund. — Bernama

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Chan Ai Mei

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