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February 2024
AAM Magazine
February 2024
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AAM new product roundup

Affin Hwang AM launches global target return fund

Kuala Lumpur-based Affin Hwang Asset Management (Affin Hwang AM) announced on April 23 that it has launched the Affin Hwang World Series – Global Target Return Fund (WS-GTF), which is targeted at high net worth investors.

This is a wholesale feeder fund that seeks to achieve capital appreciation over the medium to long term by mainly investing in the Schroder International Selection Fund Global Target Return, an absolute return-focused strategy managed by London-based Schroder Investment Management.

The Schroder International Selection Fund Global Target Return employs a "flexible multi-asset allocation approach" that is benchmark unconstrained. It invests in a broad range of asset classes and investment instruments, ranging from global equities, investment-grade bonds, currencies, high-yield debt, to real estate, infrastructure and commodity-related securities.

According to Chan Ai Mei, Affin Hwang AM’s chief marketing and distribution officer, "absolute return focused strategy has become more relevant in an environment of heightened risks and increased market volatility".

“With its unconstrained asset-allocation, investors will be able be to tap into a broad investment universe to reap the full benefits of diversification,” she says.

First Petro Asset Management introduces passive consumer fund

Manila-based First Metro Asset Management (FMAM) launched the First Metro Consumer Fund on April 11.

The passively-managed fund, which is targeted at retail investors, seeks “long-term return by outperforming several economic benchmarks”, including the Philippine Stock Exchange Index, FMAM says in the brochure for the fund.

It tracks the First Metro Index, a benchmark jointly constructed by FMAM and Morgan Stanley Capital International.

“The fund is designed to provide total return from dividend income and long-term capital appreciation through investments in equity securities,” FMAM says.

The initial investment amount is 5,000 pesos (US$95.55) with subsequent investments of at least 1,000 pesos.

Pictet rolls out Asian corporate bonds fund

Pictet Asset Management (Pictet) announced the launch of the Pictet-Asian Corporate Bonds fund on April 27.

The fund is domiciled in Luxembourg and is UCITS compliant. It invests in hard-currency Asian investment-grade and high-yield corporate bonds, which offer attractive returns and low volatility. The fund is benchmarked against the J.P. Morgan Asia Credit Diversified Index.

The fund is managed by a team based in London, Singapore and Hong Kong, led by Alain Defise, head of emerging market corporate bonds. The team uses a proprietary fundamental, valuation and technical selection framework to identify investments that have the best risk return profile.

HSBC announces two lower carbon funds in Hong Kong

HSBC Global Asset Management on April 30 announced the launch of two new funds: HSBC Global Investment Funds – Global Lower Carbon Equity and HSBC Global Investment Funds – Global Lower Carbon Bond.

They will be offered to Hong Kong retail investors who seek to increase the resilience of their investment portfolios against global climate change.

The funds aim to outperform their respective benchmarks while lowering the carbon intensity of the portfolios by adopting a lower-carbon investment strategy.

The equity fund will primarily invest in developed market stocks. Every portfolio holding will have its carbon footprint assessed pre-purchase and on an ongoing basis so that the total carbon footprint of the portfolio can be managed and reduced.

The bond fund will primarily invest in investment grade corporate bonds denominated in US dollars, euros and British pounds, with opportunistic exposure to certified green bonds and high yield bonds. The fund adopts a dynamic bottom-up and top-down investment approach using composite carbon intensity data to understand the impact of individual issuers and sectors on total greenhouse gas emissions within the portfolio.

According to the Economist Intelligence Unit, the value at risk to global manageable assets from climate change is estimated at US$4.2 trillion.