New Fund: TA Total Return Fixed Income Fund

Just another new fund from TA Investment Management (TAIM)? Think again... In fact, this is the first bond fund launched by TAIM and it will take on the other bond funds in the market with a "Wow" effect. Why? Believe me, you gonna put this fund into your radar of unit trust investment. And, you will know why after reading this post.

The TA Total Return Fixed Income Fund is a feeder fund which invests a minimum of 95% of its NAV into the PIMCO Funds: Global Investors Series plc - Total Return Bond Fund (SGD Hedged) and the balance in liquid assets. What? PIMCO !!! Yup, it's the leading global investment management firm, especially on fixed income investment.

5 Reasons Why you should invest into this Fund?

1. Total Return Strategies, Global Diversification & Flexibility
   It aims to maximize the total return, consistent with preservation of capital and prudent investment management by investing 2/3 of its assets in a diversified portfolio of fixed income instruments of varying maturities.
   
   
2. Higher Potential Returns at Lower Risk
   The core bond investment fund is broadly diversified to include all fixed income asset classes. Target fund is 90%-100% invested in investment grade bonds.
   
   
3. Proven Consistent Track Record
   The Target fund has recorded consistent and positive annual returns since launch, even amid the prolonged crises across the globe.
   
   
4. High Recognition
   Superbly high ratings have been assigned by independent investment research providers, such as Morningstar, Lipper and S&P.
   
   
5. Expert Management --- PIMCO
   Once again, it was managed by PIMCO, has been investing money on behalf of a wide range clients including over 70% of Fortune 100 companies. PIMCO has a history of long-term performance in both bull and bear markets, with benchmark-like risk.
   

By investing into this fund, now you can leverage on the expertise of PIMCO to diversify your investment portfolio to include fixed income. It's superb track record already spoke for itself, in which we should rest assured with.

Source: Fund prospectus

New Fund: OSK-UOB Focus Bond Fund - Enhanced

In view of the current volatile markets culminating from the Eurozone debt crisis, investors are concern about the contagion effect on the domestic and global economies. Amid the recent volatility, some believe there are opportunities arising from bond investments that will offer consistent and regular income to investors. Hence, OSK-UOB now offer investors an enhanced bond fund that has the potential to provide higher regular income^{^} during the tenure of the Fund and capital appreciation at its maturity date from a concentrated portfolio of global debt instruments / bonds and from an option structure to provide the potentially higher income.

The OSK-UOB Focus Bond Fund – Enhanced (“the Fund”) is a 3-year close-ended, income fund which aims to provide regular income during the tenure of the Fund and capital appreciation at its maturity date primarily from a concentrated portfolio of global debt instruments / bonds. Generally, the Fund aims to achieve its objective through a two-fold strategy.

1. Fixed Income portionThe first is to invest in a concentrated portfolio of fixed income securities to provide a stable income stream. In managing the fixed income portfolio of the Fund, the External Investment Manager will generally seek out global debt instruments / bonds that are able to offer attractive yields (i.e. yields that are greater than the Fund’s benchmark net of expenses) and/or capital appreciation during the tenure of the Fund. Given the Fund’s 3-year tenure, the External Investment Manager will invest in a concentrated portfolio of not more than 20 global debt instruments / bonds to lock-in the yield.
   
2. Option portionThe Fund will also invest in a 3-year OTC call option that is referenced to a yield enhancement strategy(YES). The YES Option is denominated in Singapore Dollar (SGD) and the Fund will have 150% Participation Rate in the YES Option’s annual returns. As the tenure of the Fund is 3 years, the YES Option is designed to provide 3 annual coupon payments during the 3 years tenure of the YES Option. As such, there will be 3 observation periods for the determination of the performance of the YES Option (i.e. the 3 annual coupon payments).

Its indicative asset allocation is as follows:

• 92% - 100% of Net Asset Value- Investments in global debt instruments/bonds.

• Up to 3% of Net Asset Value- Investments in the YES Option.

• Up to 5% of Net Asset Value- Investments in liquid assets including money market instruments and deposits with financial institutions.

^{^}Note: The income (if any) is in the form of cheque payments.

Source: OSK-UOB Investment Management

Click here to download the prospectus 

New Fund: AmConsumer Select - Capital Protected

AmInvestment Bank is launching a new capital-protected fund and it is optimistic of a good take-up rate for this RM100mil new fund. According to its CEO, the launch of the fund is timely in view of the current macroeconomic uncertainties. Since it is capital protected, the fund offers a safe haven for risk-averse investors looking to hedge against the uncertainty in the global market, she adds.

The Fund is a close-ended fund which aims to provide regular income with an investment horizon of 2.5 years (30 months) whilst providing capital protection on Maturity Date. The Fund seeks to achieve its objective by investing in ZNIDs and/or MGS and an over-the-counter option linked to the price movement of a basket of five (5) consumer related stocks.

For the purpose of the Fund, consumer related stocks refer to stocks of companies that produce products/services that are consumed by individuals. Selection of consumer related stocks is based on fundamental strength of the companies through internal research and brands that the Manager considers to be widely known among investors.

The Strategy...

Generally, the Fund will adopt a two-fold strategy to achieve its objective, i.e.

1. Capital protection* from fixed income portion
   At the Fund’s commencement, a minimum of 85% of the Fund’s NAV will be invested in 2.5-year ZNIDs and/or MGS with shorter or similar maturity tenure to the Fund’s maturity, which upon maturity of the Fund will achieve an amount equivalent to 100% of investor’s initial capital (which includes entry charge payable by investors). A maximum of 5% of the Fund’s NAV will be maintained in cash and/or money market instruments for liquidity purposes.
   
   
   
2. Fund’s return from option portion
   At the Fund’s commencement, up to 10% of the Fund’s NAV will be used to purchase a 2.5-year USD denominated option with an option counter-party, which is a financial institution carrying a minimum long-term rating of “A” by S&P or the equivalent rating by any other global rating agency. The option provides exposure which is linked to the price movement of a basket of five (5) consumer related stocks.

At the end of each quarter, if the closing price of each of the stock is at or above its respective initial level on any day within the quarter, the option counter-party pays a conditional coupon. The income distribution (if any) will however be paid half yearly to investors.

The basket of five (5) consumer related stocks (indicative selection only) currently identified as

follows:

If the Coupon Payout Condition is met at any quarter, the coupon payout from the option

counterparty is calculated as follows:

Coupon (RM) = (Notional Amount / USD/RMInitial) x coupon rate (settled in USD) x

USD/RMEnd

• “USD/RMInitial” refers to the USD/RM exchange rate for the determination of the Notional Amount in USD as at Commencement Date.
• “USD/RMEnd” refers to the actual USD/RM exchange rate for conversion of the coupon (received by the Fund) from USD to RM.

* Investors are advised that the Fund is not a guaranteed fund. Capital protection is provided through investments in ZNIDs and/or MGS and not by a guarantee. Consequently, the return of capital is SUBJECT TO the credit/default risk of the issuers of the ZNIDs and/or MGS and may result in losses.

Source: AmMutual

CIMB-Principle Strategic Income Bond Fund 2

What is CIMB-Principal Strategic Income Bond Fund 2?

Take advantage of the world’s interest in Asia with an investment that aims to provide regular income with potentially higher returns (as compared to Fixed Deposit)! Persistent low interest rates in US and Europe have driven demand for Asian bonds. In addition, credit conditions are improving and may lead to potential rating upgrades in the next few years (Fitch Ratings, ADB, Bloomberg, January 2012). This sustained demand means there will be strong support for Asian bond prices in the future.

The CIMB-Principal Strategic Income Bond Fund 2 portfolio will comprise both investment grade securities and high yield securities. The Fund may also invest into foreign bonds which are more aggressive in nature for potential higher returns. This enables you to benefit in Asia’s high growth prospects via a more stable asset class as compared to equities.

Investment Strategy

The Fund seeks to achieve its investment objective by investing between 70% to 98% (both inclusive) of its NAV in a diversified portfolio of bonds and other fixed and floating rate securities issued by governments, government agencies, supranational organizations and corporate issuers. The Fund may also invest in structured products and/or derivatives such as forward contracts, options, futures contracts or swap agreements, of which the underlying are related/linked to the above-mentioned securities. The Fund may also invest in High Yield Securities, subject to a maximum of 40% of its NAV. At least 2% of the Fund’s NAV are maintained in the form of liquid assets such as money market instruments and/or bank deposits for liquidity purposes.

Why this fund may work to your very benefits?

• Offer potentially higher returns than a fixed deposit account (against current CIMB FD rate of 3.15% p.a)
• Aim to payout income distribution annually
• Gain exposure in fixed income securities in the local and foreign bond markets
• May buffer against future interest rate fluctuations

Please be aware that this fund is a close-end fund, which means you cannot buy into this fund after the offering period.

Source: CIMB-Principal