Affin Hwang AM Triggers Early Maturity of Flexible Maturity Income Fund 7
KUALA LUMPUR – Affin Hwang Asset Management Berhad (“Affin Hwang AM” or “the Company”) triggered an early maturity notice of its retail income fund Affin Hwang Flexible Maturity Income Fund 7 (“FlexMIF 7” or “the Fund”) to deliver an annualised return of 5.50% per annum after returning capital back to investors.

FlexMIF 7 was a close-ended income fund which pays annual income distribution over a maximum investment horizon of five (5) years with a targeted return of 5.00% p.a. The Fund’s underlying credit exposure was in regional names which held a long-standing track record of honouring their outstanding financial obligations over multiple market cycles.

In accordance with the prospectus of the Fund, the Early Maturity requirement can be triggered where the Fund’s NAV per Unit has exceeded the Target NAV per Unit for more than ten (10) consecutive business days.

The Fund matured on 10 October 2019 at a Net Asset Value (“NAV”) of RM1.00 per unit. At the maturity of the Fund, it registered a return of 5.50% per annum which exceeded the target return of 5.00% p.a. The total return is derived from the Fund’s income distribution as below:
Income Distribution (sen per unit)
Chan Ai Mei, Chief Marketing & Distribution Officer of Affin Hwang AM said, “After achieving the targeted return, the company decided to trigger an early maturity of the Fund to lock-in gains for unitholders and allow them to redeem back their principal before the expiry of the 5-year tenure in 2021.”

“The Fund’s unique product feature which enables flexibility of maturity is meant to safeguard the interest of investors as well as prevent our fund managers from taking undue risks as necessary especially once the targeted returns has already been achieved. The Fund continued to beat the benchmark despite yield compression and maintained its track record of no defaults in credit selection throughout the series.

“In the past, we had been managing a total of 28 similar funds before in the series and successfully raised over RM4billion in total assets since 2009. We will continue to replicate the success of the series through capturing returns in a low interest rate environment.” Ai Mei said.

– End of Press Release –

Lee Sheung Un | [email protected] | +603 2117 6592
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Managing Director
Teng Chee Wai is the founder of Affin Hwang Asset Management Berhad (Affin Hwang AM). Over the past decade, he has built the Company to be the fastest growing and only independent investment management house in Malaysia’s top three, with an excess of RM47 billion in assets under management as at 31 December 2018.​

​In his capacity as Managing Director / Executive Director, Teng manages the overall business and strategic direction as well as the management of the investment team. His hands-on approach sees him actively involved in investments, product development and marketing. Teng’s critical leadership and regular participation in reviewing and assessing strategies and performance has been pivotal in allowing the Company to successfully navigate the economically turbulent decade.

Teng’s investment management experience spans more than 20 years, and his key area of expertise is in managing absolute return mandates for insurance assets and investment-linked funds in both Singapore and Malaysia. Prior to his current appointments, he was the Assistant General Manager (Investment) of Overseas Assurance Corporation (OAC) and was responsible for the investment function of the Group Overseas Assurance Corporation Ltd.​

​Teng began his career in the financial industry as an Investment Manager with NTUC Income, Singapore. He is a Bachelor of Science graduate from the National University of Singapore and has a Post-Graduate Diploma in Actuarial Studies from City University in London.
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