KUALA LUMPUR (Sept 23): Affin Hwang Asset Management Bhd (Affin Hwang AM) has raised more than RM100 million in the first three days of the launch of Affin Hwang Flexible Maturity Income Fund 14 (FlexMIF 14).
In a statement today, Affin Hwang AM said the fund is the fourteenth fund in the Flexible Maturity Income Fund Series that aims to provide regular income through investment in fixed income instruments on an annual basis.
The fund manager said since the fund started in 2009, it has raised over RM4 billion across 28 similar tranches before and has maintained a track record of no defaults in its bonds and credit selection throughout the series.
Affin Hwang AM said in order for FlexMIF 14 to achieve its investment objective, the fund will invest a minimum of 70% of the fund's 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 4.50% - 5.00% upon maturity," it said.
Affin Hwang AM chief marketing and distribution officer Chan Ai Mei said the strong demand for FlexMIF is reflective of the current market conditions and the needs of the investors for a 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," she said.
Chan said investors within the industry are also attracted to such target-maturity products as the certain payout and the fixed tenure allows them to plan their liquidity needs to meet future financial obligations.
"We are confident of raising more than RM200 million for thefFund by the close of the initial offer period (IOP) against these factors.
"Through a stringent credit selection process, the fund will focus on building a diversified basket of regional focused bonds that provide attractive yields without sacrificing quality," Chan said.
She said the falling interest rates and dovishness of global central banks towards easing would also provide a positive backdrop for Asian bonds in a lower-for-longer yield environment.