Sunday, March 10, 2013

HwangIM taps into Islamic finance for new fund

Hwang Investment Management has launched he latest addition to their in-house managed, income series of funds, the Hwang AIIMAN Select Income Fund. The firm seeks to tap into the Shariah-compliant equity market, fast growing sukuk and Islamic money market instruments.

“HwangIM has been building up our offerings and performance track record in the income fund space since 2004, following the launch of our first Shariah income fund, Hwang AIIMAN Income Plus Fund. Since the 2008 global financial crisis (GFC), the demand for simpler, stable, income-type funds grew in prominence and it was obvious that investors were not keen on taking excessive risks. We have since shifted our focus to offering such products with the commitment to deliver positive absolute performance over three to five years horizon regardless of market conditions,” said David Ng, HwangIM’s chief investment officer.

The Asian Islamic Investment Management is the fund’s external fund manager.

Akmal Hassan, chief executive officer of AIIMAN added, “AIIMAN SIF is an opportunity for investors to diversify into global Islamic stocks which have been more resilient against its conventional peers as proven during the GFC but identifying the right stock to pick is key to delivering performance. Our experience in bottom up stock picking quality names and high growth stocks that are not dependent on global economic growth and are generally defensive has allowed our portfolios to weather multiple crises and with minimal impact. Additionally, AIIMAN SIF’s investing strategy will emulate the strong performance of the Hwang Select Income Fund, which has successfully and consistently charted 8% returns per annum for the past seven years.”

Targeted at investors with moderate risk appetite, the Fund will invest a minimum of 60% of its net asset value (NAV) in sukuk and Islamic money market instruments and a minimum of 40% of its NAV in Shariah-compliant equities. For money market instruments, the Fund’s investments in sukuk would consist of Malaysian and foreign-issued sukuk whether issued by government or companies. Additionally, the Fund will invest in equities with the anticipation to gain income from dividends.

The Fund’s offer period is from March 1-21 2013  at the price of 0.50 ringgit per unit with its initial investment is 1,000 ringgit and additional investment is 100 ringgit.