Combining an integrated approach to sustainability investing, the newly launched wholesale feeder fund seeks to deliver a stable income stream through infrastructure assets.
Affin Hwang Asset Management Berhad (“Affin Hwang AM” or “the Company”) announced today the launch of Affin Hwang World Series – Global Infrastructure Income Fund (“the Fund”). The Fund is a wholesale feeder fund that provides investors access to global income opportunities through listed infrastructure assets.
The Fund will feed into a collective investment scheme, namely Legg Mason ClearBridge Global Infrastructure Income Fund (“Target Fund”) which is managed by ClearBridge Investments (“Target Fund Manager”), a Specialist Investment Manager from Franklin Templeton. 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, “As we emerge from the pandemic, more cities and governments are looking at prioritising maintenance, facility upgrades and embracing sustainability in its public goods and utilities. This is expected to drive infrastructure spending globally including investments in electricity supply and efficiency, renewable energy generation as well as wireless towers with the advent of 5G.”
“Coupled with a rapid urbanisation rate and the emergence of more mega cities, infrastructure spending could see a further uplift as governments ramp-up fiscal spending to support global recovery and decarbonise cities.
“With little overlap against traditional asset classes such as equities and fixed income, the Fund provides an additional source of diversification to investors through exposure in infrastructure assets that are often regulated and have long-term contracts, where asset lives are typically measured in decades. This offers greater stability to investors especially in volatile periods through more predictable returns and a consistent income stream thanks to the long-term contractual nature of the assets,” Ai Mei said.
ClearBridge Investments Portfolio Manager Shane Hurst says “Infrastructure is in a multi-decade secular growth cycle where the assets will play a pivotal role in the path to net-zero emissions. Trillions of investment dollars need to be made over the coming decades, which will underpin the allowed returns, and ultimately dividends. This will likely drive the asset base growth of these companies and provide a tailwind for infrastructure investors seeking income and the potential for capital appreciation”.
“The strategy aims to provide investors with long-term inflation-linked capital growth over an economic cycle with a focus on providing reliable income targeting 5% p.a., net of fees. Our infrastructure portfolio spans across numerous infrastructure sectors, regions, and regulatory environments, providing greater cash flow stability and dividends across investment cycles,” said Hurst.
The Fund is suitable for Sophisticated Investors who seek capital appreciation, have a medium to long-term investment horizon and have a high risk tolerance. The Base Currency of the Fund is in USD. The Fund is offered in four (4) currency classes, namely USD Class, MYR-Hedged Class, SGD-Hedged Class and AUD Hedged-Class. The minimum investment amount is $5,000 for all listed currency classes.
Investors are advised to read and understand the contents of the Fund’s Product Highlights Sheet and Information Memorandum dated 21 December 2021 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.