Menara AFFIN, TRX
KUALA LUMPUR: Affin Bank Bhd plans to distribute the Islamic version of the recently launched Cross Light Capital Performa Digital Asset Fund.
Head of wealth management Calvin Goon Cheng Yu said this will be achieved through the group's role as a distributor for a fund management company.
“The Cross Light Capital Performa Digital Asset Fund is the first digital asset fund that the group is distributing.
“Given the current trend in the market, where bitcoin’s value has decreased from US$69,000 to trade at about US$60,000, this is a great time to start accumulating digital assets.
“This product will also be a great diversification from traditional assets such as stocks, bonds and gold,” he told StarBiz on the sidelines of a briefing on the Affin Invikta x Malaysia’s Top 30 Women of Excellence Awards 2024.
In June, Affin Bank launched the distribution of Cross Light Capital Performa Digital Asset Fund.
The fund is distributed exclusively via Affin Invikta, Affin’s invitation-only suite of banking solutions for premier banking customers.
It offers investors exposure to diversified investments including bitcoin, ethereum and blockchain-related companies.
Goon said the fund’s take up has been optimistic, given that the market is going through a correction.
“However, the digital asset fund has yet to gain traction. Our aim is to grow this product to reach an asset under management (AUM) of at least US$30mil (both conventional and Islamic),” he said.
Goon added that one of the main challenges is to instill confidence in clients to invest and diversify their portfolio through the Cross Light Capital Performa Digital Asset Fund.
“If we look at history – it began with gold bars, then progressed to coins, dollar notes and credit cards. Therefore, the full acceptance of digital financial products like cryptocurrency and bitcoin is only a matter of time.
“More and more large corporations start to regulate these kind of offerings and assign valuations and this marks a good start towards widespread acceptance,” he said.
Going forward, Goon said Affin Bank will be rolling out more digital-related assets as it is targeting younger investors.
“Younger demographics are increasingly entering the market. Affin, being a non-legacy bank, is aiming to appeal to a different market segment. Therefore, we are developing more attractive offerings to cater to current market demand.”
Unveiled in 2021, Affin Invikta has since grown its AUM to RM22bil and onboarded 32,000 customers.
To date, Affin Bank has rolled out two financial products specifically for women entrepreneurs – the AFFINGEM Financing Scheme and Affinita.
The latter is a mortgage programme that was introduced to the market through a collaboration with OSK Holdings Bhd
, UEM Sunrise Bhd and Setia Awan Holdings Sdn Bhd.
According to Affin Bank spokesperson, Affinita has 897 accounts with an account value of RM458mil as at May 2024.
“Our target for Affinita is to hit an account value of RM600mil. We are almost there. In fact, we may exceed this target.
“As for AFFINGEM, we expect it to reach an account value of RM20mil, given the smaller ticket size of this financing product,” he said.
The Affin Invikta x Malaysia’s Top 30 Women of Excellence Awards 2024 focuses on five core pillars – professional achievements, leadership and influence, community engagement and social impact, innovation and entrepreneurship, as well as personal attributes.
The awards ceremony will be held in September and the deadline for nomination submissions is on Aug 2, 2024.
