AFFIN HWANG ASSET MANAGEMENT BERHAD

CORPORATE INFORMATION

affin-hwangAffin Hwang Asset Management Berhad, (formerly known as Hwang Investment Management Berhad) is one of Malaysia’s largest and fastest-growing independent investment house and is consistently positioned amongst the country’s top players. Since its inception in 2001, the entity has received over 40 awards and accolades from renowned rating agencies and reputable publications for its achievements and outstanding performance.

Affin Hwang Asset Management’s products and services are catered to a broad spectrum of clients; from high net-worth individuals to retail and institutional investors, offering Conventional and Shariah unit trust funds, cash management solutions, discretionary and non-discretionary mandate and private retirement scheme. Affin Hwang Asset Management’s investment philosophy is premised on delivering absolute return performance. It defines absolute return performance as, delivering positive performance through various market conditions (and not merely outperforming the benchmark).

For detail information on the PRS, please refer to the PRS Provider’s Disclosure Document & Product Highlights Sheet here

SCHEME AND FUND INFORMATION

Default & Self Selection

Please read the scheme’s disclosure document before deciding to make a contribution. If you do not have a copy, please contact the PRS Provider to ask for one or click here to go the PRS Provider’s page

Investment Objective To provide Members with a Fund that preserves# capital for their retirement needs

.#The Fund is not a capital guaranteed nor a capital protected fund.

Fund Category Core (Conservative)
Investment Strategy To provide Members with a fund that facilitates preservation# of capital for their retirement needs, the Fund will be investing primarily in fixed income instruments (including money market instruments) such as bonds, corporate bonds, commercial papers and other permitted investments, which will be at a minimum of 80% of the Fund’s NAV. The Provider will mainly focus on investments in fixed income instruments with a minimum of BBB3/P2 ratings by RAM or equivalent rating by other credit rating agencies. The Provider may also invest in fixed income instruments that are unrated (subject to the Provider’s internal credit analysis) and fixed income instruments that are rated below the BBB3/P2 ratings by RAM or equivalent rating by other credit rating agencies. To manage the risks posed by these types of fixed income instruments, the exposures will be capped at 5% of the Fund’s NAV.

The Fund may invest in derivatives, such as foreign exchange forward contracts and cross currency swaps for hedging purposes. Foreign exchange forward contracts enable the Fund to buy or sell currency at the specified exchange rate, specified time and specified amount, as indicated in the contract. Cross currency swaps allow the Fund to convert foreign exchange rate and/or interest rate exposures between two currencies. These derivatives may be used to hedge the principal and/or the returns of the foreign currency denominated investments back to RM. The employment of derivatives under these circumstances is expected to reduce the impact of foreign currency movements on the Fund’s NAV. While the hedging strategy will assist with mitigating the potential foreign exchange losses by the Fund, any potential gains from the hedging strategy will be capped as well.

To enhance returns, the Fund may be investing in dividend paying equities. Exposure in equities will be within the domestic equity market and will be capped at a maximum of 20% of the Fund’s NAV. The Fund may also invest in collective investment schemes that have similar objectives to the Fund.

#The Fund is not a capital guaranteed nor a capital protected fund.

Asset Allocation Equities and equity-linked instruments Minimum of 0% to maximum of 20% of the NAV of the Fund
Fixed income instruments (including money market instruments) Minimum of 80% to maximum of 100% of the NAV of the Fund.

Note: The Provider will maintain a minimum of 20% of the Fund’s NAV in money market instruments at all times.

Performance Benchmark Maybank 12-month Fixed Deposit Rate
Member Profile

(i) Suitable for Members who:

  • are generally conservative;
  • risk averse;

(ii) If under the Default Option, you are in the age group of fifty five (55) years old and above.

Please read the scheme’s disclosure document before deciding to make a contribution. If you do not have a copy, please contact the PRS Provider to ask for one or click here to go the PRS Provider’s page

Investment Objective The Fund seeks income and capital growth from its investments to facilitate the accumulation of retirement savings# for Members’ retirement needs.

#The Fund is not a capital guaranteed nor a capital protected fund.

Fund Category Core (Moderate)
Investment Strategy The Fund will be investing in a portfolio which will mainly consist of equities and fixed income instruments to achieve income and capital growth. The Fund’s exposure in the equity markets will be capped at a maximum of 60% of the Fund’s NAV and will include investments in Foreign Markets to increase the Fund’s investment and diversification opportunities. The Fund may also invest in collective investment schemes that have similar investment objectives to the Fund.

The Fund will also have a minimum of 40% of its NAV invested in both local and foreign fixed income instruments. The Provider will invest in fixed income instruments with a minimum of BBB3/P2 ratings by RAM or equivalent rating by other credit rating agencies. However, the Provider may also take on exposure in fixed income instruments that are unrated (subject to the Provider’s internal credit analysis) and fixed income instruments that are rated below the BBB3 / P2 ratings by RAM or equivalent rating by other credit rating agencies. To manage the risks posed by these types of fixed income instruments, the exposures will be capped at 30% of the Fund’s NAV. The Provider will remain focused on a stringent credit selection process to reduce potential volatility and credit default risk.

The Fund may invest in derivatives, such as index futures, foreign exchange forward contracts and cross currency swaps mainly for hedging purposes. Foreign exchange forward contracts enable the Fund to buy or sell currency at the specified exchange rate, specified time and specified amount, as indicated in the contract. Cross currency swaps allow the Fund to convert foreign exchange rate and/or interest rate exposures between two currencies. These derivatives may be used to hedge the principal and/or the returns of the foreign currency denominated investments back to RM. The employment of derivatives under these circumstances is expected to reduce the impact of foreign currency movements on the Fund’s NAV. While the hedging strategy will assist with mitigating the potential foreign exchange losses by the Fund, any potential gains from the hedging strategy will be capped as well. The Fund may also employ derivatives for investment purposes to enhance the returns of the Fund by taking a view on the underlying asset or currency and establish a long position to gain a specific underlying exposure.

The Fund may also invest in structured products such as, but not limited to, equity-linked notes. Investments in these structured products will provide the Fund with the exposure to the reference asset. Each of these products has its own targeted maturity and will expose investors to the price fluctuations of the stock to which the equity-linked note is linked. As a result, any fluctuation in the price of the structured product may also lead to fluctuations in the NAV of the Fund i.e. if the price of the structured product sees a drop in price, the NAV of the Fund will also be negatively impacted. As the note is structured by an external party, investments in a structured product will also expose the Fund to counterparty risk, which the Provider will attempt to mitigate by carrying out a stringent selection process on the counterparty prior to an investment being made.

Asset Allocation Equities and equity-linked instruments Minimum of 0% to maximum of 60% of the NAV of the Fund
Fixed income instruments Minimum of 40% to maximum of 100% of the NAV of the Fund
The Provider will maintain a sufficient level of cash or cash equivalent for liquidity purposes.
Performance Benchmark 30% FTSE Bursa Malaysia Top 100 Index + 30% Dow Jones / Asia Pacific Select Dividend 30 Index + 40% Maybank 12-Month Fixed Deposit Rate
Member Profile

(i) Suitable for Members who:

  • seek potential capital growth;
  • have moderate risk tolerance.

(ii) If under the Default Option, you are in the age group of between forty five (45) to below fifty five (55) years old.

Please read the scheme’s disclosure document before deciding to make a contribution. If you do not have a copy, please contact the PRS Provider to ask for one or click here to go the PRS Provider’s page

Investment Objective To facilitate the accumulation of retirement savings# by Members for their retirement needs, the Fund aims to generate capital growth.

# The Fund is not a capital guaranteed nor a capital protected fund

Fund Category Core (Growth)
Investment Strategy To achieve the objective of generating capital growth, the Fund will invest in a portfolio of mixed assets. Because of the Fund’s relatively aggressive nature, the Fund will be investing mainly in a portfolio of growth biased equities to achieve capital growth. The Fund’s exposure in the equity markets will be capped at a maximum of 70% of the Fund’s NAV and will include investments in Foreign Markets to increase the Fund’s investment and diversification opportunities. The Fund may also invest in collective investment schemes that have similar objectives to the Fund.

The Fund will also have a minimum of 30% of its NAV invested in both local and foreign fixed income instruments. The Provider will mainly invest in fixed income instruments with a minimum of BBB3/P2 ratings by RAM or equivalent rating by other credit rating agencies. However, the Provider may also take on exposure in fixed income instruments that are unrated (subject to the Provider’s internal credit analysis) and fixed income instruments that are rated below the BBB3/P2 ratings by RAM or equivalent rating by other credit rating agencies. To manage the risks posed by these types of fixed income instruments, the exposures will be capped at 30% of the Fund’s NAV. The Provider will remain focused on a stringent credit selection process to reduce potential volatility and credit default risk.

The Fund may invest in derivatives, such as index futures, foreign exchange forward contracts and cross currency swaps mainly for hedging purposes. Foreign exchange forward contracts enable the Fund to buy or sell currency at the specified exchange rate, specified time and specified amount, as indicated in the contract. Cross currency swaps allow the Fund to convert foreign exchange rate and/or interest rate exposures between two currencies. These derivatives may be used to hedge the principal and/or the returns of the foreign currency denominated investments back to RM. The employment of derivatives under these circumstances is expected to reduce the impact of foreign currency movements on the Fund’s NAV. While the hedging strategy will assist with mitigating the potential foreign exchange losses by the Fund, any potential gains from the hedging strategy will be capped as well. The Fund may also employ derivatives for investment purposes to enhance the returns of the Fund by taking a view on the underlying asset or currency and establish a long position to gain a specific underlying exposure.

The Fund may also invest in structured products such as, but not limited to, equity-linked notes. Investments in these structured products will provide the Fund with the exposure to the reference asset. Each of these products has its own targeted maturity and will expose investors to the price fluctuations of the stock to which the equity-linked note is linked. As a result, any fluctuation in the price of the structured product may also lead to fluctuations in the NAV of the Fund i.e., if the price of the structured product sees a drop in price, the NAV of the Fund will also be negatively impacted. As the note is structured by an external party, investments in a structured product will also expose the Fund to counterparty risk, which the Provider will attempt to mitigate by carrying out a stringent selection process on the counterparty prior to an investment being made.

Asset Allocation Equities and equity-linked instruments Minimum of 0% to maximum of 70% of the NAV of the Fund
Fixed income instruments Minimum of 30% to maximum of 100% of the NAV of the Fund
The Provider will maintain a sufficient level of cash or cash equivalent for liquidity purposes.
Performance Benchmark 35% FTSE Bursa Malaysia Top 100 Index + 35% MSCI AC Asia ex Japan Index + 30% Maybank 12-Month Fixed Deposit Rate.
Member Profile

(i) Suitable for Members who:

  • seek potential capital growth;
  • are risk tolerant;

(ii) If under the Default Option, you are in the age group of below forty five (45) years old.

Other Self Selection

Please read the scheme’s disclosure document before deciding to make a contribution. If you do not have a copy, please contact the PRS Provider to ask for one or click here to go the PRS Provider’s page

Investment Objective To facilitate the accumulation of Shariah-compliant retirement savings# by Members for their retirement needs, the Fund aims to generate capital growth through investments in a collective investment scheme that invests primarily in Shariah-compliant equities.

#The Fund is not a capital guaranteed nor a capital protected fund.

Fund Category Feeder (Equity)
Investment Strategy The Fund will invest in a portfolio of Shariah-compliant equities and Islamic fixed income instruments to achieve capital growth. The Fund’s exposure in Shariah-compliant equities will be subject to a minimum of 70% of the Fund’s NAV and will include Shariah-compliant investments in Foreign Markets to increase the Fund’s investment and diversification opportunities. The Fund will also have a maximum of 30% of its NAV invested in Islamic fixed income instruments and other Shariah-compliant permitted investments as listed.

The Fund may also invest in Islamic collective investment schemes (“Islamic CIS”) that have similar objectives to the Fund. The Fund can invest up to 50% of its NAV in a single Islamic CIS until 30 June 2022.

The Fund may invest in Islamic derivatives, such as Islamic index futures, Islamic foreign exchange forward contracts and Islamic cross currency swaps mainly for hedging purposes. Islamic foreign exchange forward contracts enable the Fund to buy or sell currency at the specified exchange rate, specified time and specified amount, as indicated in the contract. Islamic cross currency swaps allow the Fund to convert foreign exchange rate and/or profit rate exposures between two currencies. These Islamic derivatives may be used to hedge the principal and/or the returns of the foreign currency denominated investments back to RM. The employment of Islamic derivatives under these circumstances is expected to reduce the impact of foreign currency movements on the Fund’s NAV. While the hedging strategy will assist with mitigating the potential foreign exchange losses by the Fund, any potential gains from the hedging strategy will be capped as well. The Fund may also employ Islamic derivatives for investment purposes to enhance the returns of the Fund by taking a view on the underlying asset or currency and establish a long position to gain a specific underlying exposure.

Asset Allocation Shariah based collective investment scheme namely the Hwang AIIMAN Growth Fund Minimum of 95% to maximum of 100% of the NAV of the Fund
The Provider will maintain a sufficient level of cash or cash equivalent for liquidity purposes.
Performance Benchmark FTSE Bursa Malaysia Emas Shariah Index
Member Profile

Suitable for Members who:

  • seek Shariah-compliant investments;
  • seek potential capital growth;
  • are risk tolerant.
Please read the scheme’s disclosure document before deciding to make a contribution. If you do not have a copy, please contact the PRS Provider to ask for one or click here to go the PRS Provider’s page

Investment Objective To facilitate the accumulation of Shariah-compliant retirement savings# by Members for their retirement needs by generating income and capital growth through Shariah-compliant investments.

# The Fund is not a capital guaranteed nor a capital protected fund.

Fund Category Mixed Asset (Income & Growth)
Investment Strategy The Fund will invest in a portfolio of Shariah-compliant equities and Islamic fixed income instruments to achieve income and capital growth. The Fund’s exposure in Shariah-compliant equities and Shariah-compliant equity-linked instruments will be capped at a maximum of 60% of the Fund’s NAV and will include Shariah-compliant investments in Foreign Markets to increase the Fund’s investment and diversification opportunities. The Fund will also have a minimum of 40% of its NAV invested in Islamic fixed income instruments and other Shariah-compliant permitted investments.

The Fund may also invest in Islamic collective investment schemes (“Islamic CIS”) that have similar objectives to the Fund. The Fund can invest up to 60% of its NAV in a single Islamic CIS until 30 June 2022.

The Fund may invest in Islamic derivatives, such as Islamic index futures, Islamic foreign exchange forward contracts and Islamic cross currency swaps mainly for hedging purposes. Islamic foreign exchange forward contracts enable the Fund to buy or sell currency at the specified exchange rate, specified time and specified amount, as indicated in the contract. Islamic cross currency swaps allow the Fund to convert foreign exchange rate and/or profit rate exposures between two currencies. These Islamic derivatives may be used to hedge the principal and/or the returns of the foreign currency denominated investments back to RM. The employment of Islamic derivatives under these circumstances is expected to reduce the impact of foreign currency movements on the Fund’s NAV. While the hedging strategy will assist with mitigating the potential foreign exchange losses by the Fund, any potential gains from the hedging strategy will be capped as well. The Fund may also employ Islamic derivatives for investment purposes to enhance the returns of the Fund by taking a view on the underlying asset or currency and establish a long position to gain a specific underlying exposure.

Asset Allocation
Shariah-compliant equities Minimum of 0% to maximum of 60%
Shariah-compliant fixed income instruments Minimum of 40% to maximum of 100%
Performance Benchmark 60% FTSE Bursa Malaysia EMAS Shariah Index
40% Maybank 12-Month General Investment Account (GIA) Rate
Member Profile

Suitable for Members who:

  • seek Shariah-compliant investments;
  • seek potential income and capital growth;
  • have moderate risk tolerance.

CONTRIBUTIONS & WITHDRAWALS

There are fees and charges involved and you are advised to consider them before contributing to the scheme.

Affin Hwang PRS Conservative Fund Affin Hwang PRS Moderate Fund Affin Hwang PRS Growth Fund Affin Hwang Aiiman PRS Shariah Growth Fund Affin Hwang Aiiman PRS Shariah Moderate Fund
Minimum contribution Initial – RM100.Subsequent – RM50.
Minimum withdrawal No minimum withdrawal

FEES & CHARGES

There are fees and charges involved and you are advised to consider them before contributing to the scheme.

Affin Hwang PRS Conservative Fund Affin Hwang PRS Moderate Fund Affin Hwang PRS Growth Fund Affin Hwang Aiiman PRS Shariah Growth Fund Affin Hwang Aiiman PRS Shariah Moderate Fund
Sales charge Not applicable.
Redemption charge Not applicable.
Switching fee (between funds in this Scheme) Not applicable.
Switching Fee (between funds in another PRS managed by the PRS Provider) Not applicable.
Transfer fee (to another PRS provider) RM25 for each transfer request to another PRS provider.
Annual management fee Up to 1.3% per annum of the NAV of the Fund Up to 1.5% per annum of the NAV of the Fund Up to 1.8% per annum of the NAV of the Fund Up to 1.8% per annum of the NAV of the Fund Up to 1.5% per annum of the NAV of the Fund
Annual scheme trustee fee 0.04% per annum of the NAV of the Fund (excluding foreign custodian fees and charges, if any).
Annual PPA administration fee 0.04% per annum of the NAV of the Fund.

RISKS DISCLOSURE

You are advised to read the scheme’s disclosure document and understand the risks involved and, if necessary, consult your professional adviser before making contributions.

General Investment Risks

Capital and returns not guaranteed, Fund Manager risk, Market risk, Inflation risk, Liquidity risk, Risk associated with default option, Risk of non-compliance, Operational risk and legal and regulatory risk.

Specific Risks of the Funds

Affin Hwang PRS Conservative Fund Affin Hwang PRS Moderate Fund Affin Hwang PRS Growth Fund Affin Hwang Aiiman PRS Shariah Growth Fund Affin Hwang Aiiman PRS Shariah Moderate Fund
Equity investment risk checkmark checkmark checkmark checkmark checkmark
Credit/default risk checkmark checkmark checkmark checkmark checkmark
Interest rate risk checkmark checkmark checkmark checkmark checkmark
Collective investment scheme risk checkmark checkmark checkmark checkmark checkmark
Equity-linked instruments investment risk checkmark checkmark checkmark checkmark checkmark
Counterparty risk checkmark checkmark checkmark checkmark checkmark
Currency risk checkmark checkmark checkmark checkmark checkmark
Country risk checkmark checkmark checkmark checkmark checkmark
Derivatives risk checkmark checkmark checkmark checkmark checkmark
Shariah-compliant equity investment risk checkmark checkmark checkmark checkmark checkmark
Shariah-compliant equity-linked instruments investment risk checkmark checkmark checkmark checkmark checkmark
Islamic collective investment scheme risk checkmark checkmark checkmark checkmark checkmark
Reclassification of Shariah status risk checkmark checkmark checkmark checkmark checkmark
Islamic derivatives risk checkmark checkmark checkmark checkmark checkmark

OTHERS

The Fund Investment Performance information is provided by Morningstar. Click here to access the Morningstar webpage.

For more information about Morningstar, go to About Morningstar.

Customer Care Consultant
Affin Hwang Asset Management Berhad
Toll Free Number: 1800 88 7080
T: +60 3 2116 6000
E: customercare@affinhwangam.com