The Advantage Global Equity Volatility Focused Fund is structured as a feeder fund and invests in HSBC Global Investment’s Global Equity Volatility Focused Fund.
“Investors who want to reap the benefits of equity investing and are worried about market uncertainty may consider investing strategies aimed at reducing volatility in a portfolio, while still capturing global market opportunities,” said Datin Maznah Mahbob, chief executive of AmInvest.
The HSBC fund addresses investors’ concerns by investing in a combination of lower and higher volatility securities that have little correlation with each other, resulting in portfolio diversification, Mahbob added.
The investment team looks for companies with strong profits, attractive valuations and sustainable cash flow.
Malaysian asset managers have been increasingly offering feeder funds to diversify their domestic product lines.
RHB Asset Management in June launched its vehicle that invests in companies listed in developed markets. This was followed by Maybank Asset Management’s launch of a fixed income feeder fund in July.
In April, Franklin Templeton Asset Management launched a domestic feeder fund in Malaysia that provides access to its global equity product.
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A look at the performance of AmInvest’s target fund, the HSBC Global Equity Volatility Focused Fund, since its launch in June last year:
