KUALA LUMPUR, Malaysia, Nov. 28, 2018 /PRNewswire/ -- Affin Hwang Asset Management Berhad ("Affin Hwang AM" or "the Company") announced today that it has entered into a strategic partnership with Samsung Asset Management (Hong Kong) Limited ("SAMHK") to drive product innovation across a range of initiatives, including the development and offering of Leveraged & Inverse (L&I) ETFs on the stock exchange in Malaysia.
This comprehensive alliance will seek to deliver value to investors in Malaysia by providing them access to sophisticated investment instruments at a low-cost and efficient entry point to amplify or hedge returns depending on prevailing market conditions and the investor's own risk-appetite and objective. Under the terms of the partnership agreement, Affin Hwang AM will appoint Samsung as its Investment Advisor to provide advisory services in the management of its derivative type ETFs in Malaysia including L&I products through shared resources and expertise.
Teng Chee Wai, Managing Director of Affin Hwang AM said, "With a shared aspiration to be product innovation leaders in the market, we are excited to join hands with Samsung to pioneer a new range of ETF strategies to meet the growing needs of investors."
"Given Samsung's strong capabilities and success in managing L&I products, we believe that we are able to capitalise on their expertise to complement our growth strategy. Samsung was the first asset management firm in the region to launch futures-based ETFs in Asia, and has been managing L&I products since 2009," continued Teng.
Jaekyu BAE, Chief Investment Officer/ Executive Vice President at Samsung Asset Management Co., Ltd., said, "We are excited with our new partnership with Affin Hwang AM to bring innovative products to Malaysian investors. When first introduced in Korea in 2009, Leveraged and Inverse products acted as a catalyst for the growth of the overall ETF market, with renewed interest from both retail and institution segments for ETFs. We hope to achieve the same in Malaysia."
"Affin Hwang AM's sterling reputation and formidable presence, combined with Samsung's years of accumulated knowledge base on innovative products will be the driving force to bring a much needed breath of fresh air to the Malaysian ETF landscape."
On regulatory developments to spur market vibrancy of ETFs, Teng adds, "The timing of this partnership is also prescient with the recent introduction by the Securities Commission Malaysia (SC) of a new ETF framework which will pave the way for a broader range of ETF offerings beyond plain-vanilla products. This would bolster growth for the industry by stimulating demand and attracting greater investor participation."
"Through continuous investor engagement and education programmes, we believe that demand for such investments will only grow over time, as investors employ more sophisticated forms of enhanced index and hedging strategies as building blocks in their portfolio.
"With the availability of this new framework, issuers such as ourselves are encouraged and galvanised by steps taken by regulators in enabling greater product innovation and also flexibility in terms of different investment strategies. As we aspire to take the lead in our industry, we are preparing a product pipeline in the next one year ranging from L&I as well as smart beta that would complement our current ETF offerings," Teng said.
