Affin Hwang Launches ELIs, Offering Higher Returns to Investors

Affin Hwang Investment Bank has introduced Equity-Linked Investments (ELIs), designed to provide sophisticated investors with opportunities for higher returns, including annual coupons ranging from five to 20 percent, depending on the underlying assets.

According to CEO Hanif Ghulam Mohammed, these structured investment products are crafted to assist investors in capitalizing on current market uncertainties. They offer a more flexible wealth management strategy, potentially yielding more attractive returns compared to traditional investments, especially amidst fluctuating commodity prices and equity market unpredictability.

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This product offers investors the opportunity to generate more attractive returns while capitalizing on market volatility that is factored into the product pricing.

"This product offers investors the opportunity to generate more attractive returns while capitalizing on market volatility that is factored into the product pricing," Hanif explained at the ELIs launch event in Kuala Lumpur. "Additionally, if there is a conversion to the underlying stock, investors stand to acquire shares at a lower price than the current market price."

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Additionally, if there is a conversion to the underlying stock, investors stand to acquire shares at a lower price than the current market price.

The ELIs are currently linked to individual stocks on Bursa Malaysia and are suitable for investors who may not have a clear market outlook but still desire higher returns than direct equity investments. Hanif noted that the product's development aligns with Affin Hwang's strategic plan, AX28, which focuses on strengthening its multi-asset investment and wealth management platform. He added that while there's no specific customer target, the product will be extended to high-net-worth and sophisticated investors.

However, Hanif cautioned that ELIs are not principal-protected products and are exclusively offered to sophisticated investors, adhering to guidelines set by the Securities Commission Malaysia. "Higher returns come with investment risks that customers must fully understand before making investment decisions," he stated.

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Higher returns come with investment risks that customers must fully understand before making investment decisions.