Affin Bank to Launch Islamic Digital Asset Fund

KUALA LUMPUR:  Affin Bank Bhd is making headlines with its plan to distribute the Islamic version of the newly launched Cross Light Capital Performa Digital Asset Fund. This initiative is a significant step as it introduces the first digital asset fund by Affin Bank, catering to the increasing market demand for Sharia-compliant financial products. By offering diversified investments in cryptocurrencies and blockchain-related equities, this fund aims to meet the growing needs of investors seeking halal financial solutions.

Growing Demand for Digital Assets

Affin Bank’s Head of Wealth Management, Calvin Goon Cheng Yu, highlighted the strategic timing of this launch. Despite the recent market corrections, such as Bitcoin’s value drop from US$69,000 to around US$60,000, Goon emphasized that now is an opportune moment to invest in digital assets. He noted that this fund offers a unique diversification from traditional investments like stocks, bonds, and gold, which is particularly appealing in the current financial climate​ (WargaBiz)​.

Composition and StrategyThe Performa Digital Asset Fund provides exposure to diversified investments, including major cryptocurrencies like Bitcoin and Ethereum, and stocks of blockchain-related companies. The fund aims to achieve a balanced approach, with one-third of investments in Bitcoin ETPs, another third in Ether ETPs, and the remainder in equities tied to blockchain technology. This strategic allocation is designed to mitigate risks while capitalizing on the growth potential of digital assets.

Targeting Sophisticated Investors

Tailored for sophisticated investors with a high-risk tolerance, the fund requires a minimum investment of US$1,000, an initial sales charge of up to 5%, and an annual management fee of 2%. Importantly, there are no withdrawal fees, offering flexibility for active investors. The fund aims to reach an asset under management (AUM) of at least US$30 million, encompassing both conventional and Islamic segments.

Regulatory and Market Support

This initiative is supported by a robust regulatory framework, ensuring investor protection under the guidelines set by the Securities Commission Malaysia. Additionally, the collaboration between Affin Bank and Cross Light Capital underscores the growing institutional interest in digital assets, reflecting a broader trend toward mainstream acceptance and regulation of cryptocurrencies and related products​. Looking ahead, Affin Bank plans to roll out more digital asset products, targeting younger, tech-savvy investors. This strategic focus aligns with the bank’s aim to appeal to a diverse market segment, offering innovative financial solutions that meet the evolving needs of modern investors. Since its inception in 2021, Affin Invikta, the bank’s premier banking suite, has grown substantially, managing RM22 billion in assets and catering to 32,000 customers.

Affin Bank’s distribution of the Cross Light Capital Performa Digital Asset Fund marks a pivotal advancement in integrating digital assets into mainstream investment portfolios. This initiative not only opens up new opportunities for sophisticated investors but also underscores the bank’s commitment to providing innovative, Sharia-compliant financial solutions. By embracing digital assets like cryptocurrencies and blockchain equities, Affin Bank is positioning itself at the forefront of the expanding digital economy, offering diversified investment options that align with modern market demands.