KUALA LUMPUR – Affin Hwang Asset Management Berhad (“Affin Hwang AM” or “the Company”) announced today the launch of Affin Hwang World Series – US Dollar Liquidity Fund (“the Fund”). The Fund is a wholesale feeder income fund that aims to provide investors with a regular income stream and high levels of liquidity to meet cash flow requirement whilst maintaining capital preservation.

The Fund will feed into the HSBC US Dollar Liquidity Fund (“Target Fund”) which is a money market fund managed by HSBC Global Asset Management (“Target Fund Manager”). To achieve its investment objective, the Fund will invest a minimum of 80% of the Fund’s net asset value (NAV) into the Target Fund and a maximum of 20% of the Fund’s NAV into money market instruments, deposits and / or cash.

Chan Ai Mei, Chief Marketing & Distribution Officer of Affin Hwang AM said, “We recognise the importance of liquidity amongst individual and corporate investors to meet cash flow obligations especially during volatile market conditions. This Fund provides investors an avenue to tap into more attractive yield levels that are competitive to overnight interest rates, but in a highly liquid structure. With deposit rates likely to stay lower-for-longer, investors can park their cash in this Fund where they can preserve capital, while still earning a stable yield for their USD exposure.”

Addressing the currency exposure of investors, AI Mei said, “As more investors continue to diversify and build multi-currency portfolios, we aim to provide solutions through an array of product offerings and currency classes to meet their needs. By leveraging on our investment partners’ expertise, our World Series funds provide investors new income opportunities across the globe through 7 different currencies (USD, AUD, GBP, HKD, RMB, SGD, EUR)“

On the macro outlook for markets and income opportunities, Michael Larsen, Asia-Pacific Head of Liquidity Product, HSBC Global Asset Management said, “With more than 15 major central banks in easing mode last year, our current view is that rates will be stable throughout 2020 with some slight downside potential. Low inflation allows central banks to remain proactive, but policy space is limited. There is likely to be greater emphasis on fiscal policy to support growth.”

“The USD exchange rate is likely to remain on hold through 2020 although there are a number of factors to watch such as November 2020 US Election, post-Brexit trade deal negotiation, further US-China trade development, global health crisis impact on trade and productivity and, last but not least, US inflation readings.

“While saving accounts and time deposits have been suffering from falling returns due to monetary policy easing, money market funds have been benefitting from a widening spread when compared with deposits due to natural duration in the portfolio and professional asset management,” Michael adds.

The Fund is available to Sophisticated Investors who are conservative, risk adverse and have a short-term investment horizon. The Base Currency of the Fund is in USD with a minimum investment amount of $5,000.

Investors are advised to read and understand the contents of the Fund’s Product Highlights Sheet and Information Memorandum dated 18 February 2020 before investing. Investors who are keen to learn more about the Fund can visit http://affinhwangam.com/ and invest through any of Affin Hwang AM sales offices.

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