KUALA LUMPUR: Affin Hwang Investment Bank Bhd yesterday launched Equity-Linked Investments (ELIs) to provide investors customised exposure to a broad range of underlying assets while supporting diverse market and risk-return objectives amid ongoing global uncertainties.
Chief executive officer Hanif Ghulam Mohammed said ELIs are well positioned to perform in volatile market environments particularly during periods when uncertainty weighs on traditional investment instruments.
“These structures are engineered to convert the same volatility into enhanced yield.
“This product clearly defines the risk upfront, while earning the investor higher coupon rates relative to traditional products,” he said in his welcoming remarks at the ELIs launch ceremony here.
He said during the press conference that unlike outright equity investments, ELIs enable clients to earn higher coupon returns while also offering the possibility of acquiring underlying shares at prices below prevailing market levels should conversion occur.
“That is why we encourage clients who may not have a strong directional view of the market to consider this type of structured investment as it offers higher coupon income and greater return certainty compared with outright equity investment,” he said.
On returns, he noted that ELIs generally offer yields above those of traditional fixed deposits, which typically provide returns of about 3.5 to four per cent per annum.
“Depending on the underlying equity linked to the structure, coupon rates can range from five per cent to as high as 18, 19 or even 20 per cent.
“However, these products are available only to sophisticated investors, in line with Securities Commission guidelines,” he said.
He emphasised that ELIs are not principal-protected products, meaning investors assume capital risk in exchange for potentially higher returns than those offered by normal traditional products.
Through customised structures, ELIs enable investors to pursue specific portfolio objectives, including enhancing potential yield, managing downside exposure and targeting defined return outcomes.
At present, the ELIs offered by Affin Hwang are linked to individual shares listed on Bursa Malaysia. – BERNAMA
