Affin Hwang Aiiman Global Sukuk Fund
The Fund aims to provide investors with regular income through investments in Shariah-compliant fixed income instruments.
|Fund Category||Fixed Income|
|Launch Date||14 December 2015|
|Investors’ Profile||This Fund is suitable for you if you:-
· seek income through investment in a portfolio of Shariah-compliant fixed income instruments;
· have a medium to long term investment horizon; and
· have a moderate risk tolerance.
|To achieve its objective, the Manager intends to invest a minimum of 70% of the Fund’s NAV in a portfolio of Shariah-compliant fixed income instruments issued and/or offered globally, which consists of investment grade Sukuk and Islamic money market instruments that provide regular income. The Manager will also invest a maximum of 30% of the Fund’s NAV in Islamic liquid assets. The Fund will invest principally in a portfolio of Shariah-compliant fixed income instruments (including non-investment grade securities and unrated securities) including Sukuk al-Ijara and Sukuk al-Wakala issued by government, government-related and corporate entities located globally.
The Fund may invest in investments listed or issued in foreign markets. The decision to invest into foreign markets will be opportunistically driven where we would seek out investments that could provide a potential to enhance the returns of the Fund. The Fund will invest only into countries where the regulatory authorities are ordinary or associate members of the IOSCO.
The Fund may employ Shariah-compliant derivatives, such as Islamic cross currency swaps, Islamic profit rate swaps and other Shariah-compliant derivatives that are certified by the SC or Shariah Adviser for hedging purposes. These instruments may be used to hedge the principal and/or the returns of the foreign-currency denominated investments back to the USD. Islamic profit rate swaps could be used by the Manager to hedge the interest rate exposure of the Fund by mitigating the potential decline in the price of the Fund’s Sukuk investment due to the inverse relationship between yields and prices in a rising interest rate environment. While the hedging strategy will assist with mitigating the potential foreign exchange losses by the Fund, any potential foreign exchange gains from the hedging strategy will be capped as well.
The employment of Shariah-compliant derivatives under these circumstances is expected to reduce the impact of foreign currency movements on the Fund’s NAV.
The Fund may also invest into Shariah-compliant structured products in which the underlying security is linked to or derive its value from a security, asset, commodity or currency of any nation. Investment into these Shariah-compliant structured product 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 its underlying security. As a result, any fluctuation in the price of the Shariah-compliant structured product may also lead to fluctuations in the NAV of the Fund i.e. if the price of the Shariah-compliant structured product sees a drop in price, the NAV of the Fund will also be negatively impacted. As the Shariah-compliant structured product is structured by an external party, investments into a Shariah-compliant structured product will also expose the Fund to counterparty risk, which we will to mitigate by carrying out a stringent selection process on its counterparty prior to an investment being made.
We hold the option to take temporary defensive positions that may be inconsistent with the Fund’s principal strategy and asset allocation to protect the Fund against adverse market conditions that may impact the financial markets. To manage the risk of the Fund, we may shift the Fund’s assets to be temporarily invested in Islamic money market instruments and/or Islamic fixed deposits.
* Islamic liquid assets will include Islamic current deposits and Islamic fixed deposits with Financial Institutions.
|Minimum Initial Investment||
|Minimum Additional Investment||
|Minimum Units Held||
|Distribution Policy||Subject to the availability of income, the Fund will distribute income on an annual basis after the end of the first financial year of the Fund.|
|Sales Charge per Unit||Up to 2.00% of the Initial Offer Price of a Class during the Initial Offer Period and the NAV per Unit of a Class.|
|Annual Management Fee||Up to 1.20% per annum of the NAV of the Fund.|
|Annual Trustee Fee||Up to 0.06% per annum of the NAV of the Fund (excluding foreign custodian fees and charges).|