External Fund Manager

Affin Hwang Asset Management Berhad (“Affin Hwang AM”)

The investment management function is delegated to Affin Hwang AM. As the External Fund Manager of the Fund, they are responsible for the asset allocation, selection of investments and implementation of investment decisions.  They are required to report daily to the Manager the details of all the investment transactions to enable the Manager to compute the NAV of the Fund.  Apart from daily reporting, they are required to provide monthly reports to be presented to the Investment Committee.

SSB has appointed Affin Hwang AM on 1 June 2005 as External Fund Manager of the Fund. Effective 1 February 2007, Affin Hwang AM is managing 100% of the Fund and is responsible for providing investment management services to the Fund in accordance with the terms of the Investment Management Agreement dated 1 June 2005 (the “Principal Agreement”) and the Supplementary Investment Management Agreement dated 1 February 2007.

In consideration for its services, Affin Hwang AM is entitled to a management fee at an annual rate of 0.40% of the daily NAV of the allocated portfolio payable by SSB at every quarter-end. In addition, Affin Hwang AM will also be entitled to an incentive fee of 0.2% on the excess return of the Fund. The excess return is defined as return exceeding the Time Weighted Rate of Return (TWRR) benchmark set by SSB. The incentive fee, if applicable, will be payable by SSB at the end of the financial year.

Affin Hwang AM performance is measured based on TWRR against 70% of the Kuala Lumpur Composite Index (KLCI) + 30% of the MSCI AC Asia Ex. Japan Index (MXASJ).

 

Corporate Profile of Affin Hwang AM

Affin Hwang AM was incorporated in Malaysia on 2 May 1997 under the Companies Act, 1965 and began operations under the name Hwang–DBS Capital Sdn Bhd in 2001. In early 2014, Affin Hwang AM was acquired by the Affin Banking Group (“Affin”) and hence, is now supported by a home-grown financial services conglomerate. Affin has over 39 years of experience in financial industry which focuses on commercial, Islamic and investment banking services, money broking, fund management and underwriting of life and general insurance business. Meanwhile, Affin Hwang AM has fifteen (15) years’ experience in the fund management industry. Additionally, Affin Hwang AM is also 30% owned by Nikko Asset Management International Limited, a wholly-owned subsidiary of Tokyo-based Nikko Asset Management Co. Ltd, an Asian investment management franchise.

Affin Hwang AM distributes its funds through the following various channels:-

(i)   In-house/internal sales team;

(ii)  IUTA & CUTA (Corporate Unit Trust Advisers); and

(iii) Unit trust consultants.

Affin Hwang AM’s head office is located in Kuala Lumpur and has a total of 8 main sales offices located in Peninsular and East Malaysia. The sales offices are in Penang, Ipoh, Johor Bharu, Melaka, Selangor, Kuching, Miri and Kota Kinabalu.

                       

Milestones

As at 30 September 2016, Affin Hwang AM has in its stable a total of forty seven (47) unit trust funds and thirty eight (38) wholesale funds, offering a complete and essential range of products, comprising conventional equity, balanced, bond, money market, capital guaranteed, capital protected, global, structured and feeder funds, as well as Shariah-compliant equity, Islamic money market and Islamic fixed income funds.

As at 30 September 2016, the total asset under management, comprising in-house unit trust funds as well as corporate and discretionary portfolios stood at approximately RM32.9 billion.

As at 30 September 2016, Affin Hwang AM has a staff force of two hundred and ninety eight (298), of whom, two hundred and eighty one (281) are executives and seventeen (17) are non-executives.

 

Affin Hwang AM’s Designated Person Responsible for Management of SAS Portfolio

Mr. Teng Chee Wai – Managing Director

Mr. Teng is the founder of Affin Hwang AM. Over the past fifteen (15) years, he has built the company to its current position with an excess of RM 20 billion in assets under management. In his capacity as the managing director and executive director of Affin Hwang AM, Mr. 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. Mr. Teng’s critical leadership and regular participation in reviewing and assessing strategies and performance has been pivotal in allowing Affin Hwang AM to successfully navigate the economically turbulent decade. Mr. Teng’s investment management experience spans more than 24 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. Mr. 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.

 

Mr. David Ng Kong Cheong  – Chief Investment Officer

Mr. David joined Affin Hwang AM in 2002 as Head of Equities and assumed the role of Chief Investment Officer in September 2006. He has been responsible for successfully steering the Affin Hwang AM’s investments through a tumultuous decade of multiple crisis. His astute and decisive guidance on broad investment strategies which includes interpreting market signals and making timely asset allocation calls has allowed Affin Hwang AM to remain ahead of its peers. A decade later, he has built the investment team from just four (4) fund managers to a forty (40) strong group featuring an impressive resume across different investment specialties, coverage and geographies. Under his foresight and vision, the team has evolved from being equity-heavy to encompass strong local and regional multi-asset and sector investment capabilities. His absolute return investment philosophy and bottom-up stock selection technique has garnered recognition for the Affin Hwang AM with its multiple award wins, having been voted “CIO of the Year” for Malaysia by Asia Asset Management 2013 awards. Mr David’s philosophy of subscribing to the long-term, not taking excessive risk, and investing into quality throughout all the portfolios has set the blueprint for Affin Hwang AM’s investments in years to come. He is well-known in the industry for his discipline, prudence and reasonable attitude to investing. He graduated with a double degree in Bachelor of Commerce (Accounting) and Bachelor of Law from Monash University in Melbourne, Australia and is also a Chartered Financial Analyst (CFA) charterholder.

SAHAM AMANAH SABAH
NAV per unit for 16 November 2017

RM0.3762

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