Kuala Lumpur-based Affin Hwang Asset Management has launched a Shariah-compliant retail fund that provides investors access to thematic opportunities through a multi-asset approach including global equities and sukuk.

The Affin Hwang Aiiman Global Thematic Mixed Asset Fund will invest 30% to 80% of its net asset value (NAV) in Shariah-compliant equities, as well as 20% to 60% of its NAV in sukuk. The fund also has the flexibility to invest up to 20% of its NAV in Islamic deposits and Islamic money market instruments, a maximum of 15% in Shariah-compliant warrants, and up to 10% in Islamic structured products.

Chan Ai Mei, chief marketing and distribution officer of Affin Hwang AM, says: “Many thematic funds today tend to lack diversification as their holdings are often concentrated in a single sector which can lead to more volatility. Our newly launched fund is designed to solve this quandary for investors who want to capture the potential of thematic opportunities, but at the same time still manage downside risks in their portfolios.”

“Through a flexible asset allocation strategy, the fund scours the best ideas across multiple themes and asset classes to deliver a smoother path of return for investors and combat volatile times that we’re seeing. By not being bounded to any geographical or sector limits as well, the fund is able to dynamically allocate between different key megatrends such as technological innovation, sustainability as well as changing demographics and lifestyles that will transform the way the world works,” Chan adds.

The fund is managed externally by Affin Hwang AM’s wholly-owned Islamic fund management arm AIIMAN Aiiman Asset Management, with Schroders Investment Management as its investment adviser.

Commenting on the fund’s investment strategy, Aiiman Asset Management managing director Akmal Hassan says: “By applying a Shariah filter, which excludes companies with excessive levels of debt, we seek out higher-quality companies with stronger balance sheets as compared to conventional thematic strategies that would increase the fund’s resilience to market volatility.”

The fund is suitable for retail investors who seek moderate capital growth and have a medium- to long-term investment horizon, the firm says. With USD as its base currency, the fund is offered in four currency classes, namely MYR hedged class, USD class, SGD hedged class, and AUD hedged class. The minimum investment amount is US$1,000.