New Fund: Eastspring Investments Target Income Fund 2

In the current low interest rate environment, investors continue to chase for yields which resulted in strong demand for close-ended bond funds that potentially offers higher return than fixed deposits. Keeping this in mind, Eastspring Investments is launching a new fund.

The fund endeavors to provide regular income during the tenure of the fund (3 years), by investing in local and/or foreign debt securities.

Investment Strategy

A minimum of 70% will be invested in local and/or foreign debt securities, while the remaining of not more than 40% may be invested either in non-rated debt securities and/or debt securities rated below investment grade rating.

• lower than BBB3 rating by RAM; or
• below investment grade rating by other rating agencies

Although the fund is expected to invest up to 40% in non-rated issuers and/or issuers rated below investment grade, there is a risk that this limit may be exceeded as issuers of investment grade debt securities held within the portfolio may be downgraded by rating agencies and thus resulting in the fund's over exposure in such category.

Additionally, up to 30% may invested in money market instruments, and worth to note that the fund may exercise Early Repayment. As such, this is a moderate risk fund, instead of low risk.

The fund is suitable for investors who:-

• seek regular income distribution;
• have 3 years investment horizon; and
• have a moderate risk tolerance.

Click here to download fund prospectus

New Fund: Hwang AIIMAN Select Income

After the successful performance of AIIMAN series and the superb proven track record of Hwang Select Income fund, it's natural for Hwang to launch this new fund by riding on the story of these.

What is the Hwang AIIMAN Select Income fund?

This is a Shariah-compliant mixed asset (conservative) income unit trust fund that seeks to provide investors with regular income stream through Shariah-compliant investments. It also serves as an alternative investment for investors looking to diversify their portfolio into the fast growing Sukuk market and attractive Shariah-compliant equity market.

What it offers you?

1. Potentially Stable Returns and Regular Income by investing in prudently selected Sukuk and quality dividend yielding equities.
   
   
   
2. Peace of Mind: Managed at Low Volatility rates. It aims to deliver positive returns at low volatility rates through various market cycles.
   
   
   
3. A Diversified and Shariah-compliant Investment. Potential for enhanced return due to the opportunity to tap into new attractive Shariah-compliant investment in view of growing demand for Islamic securities, growth fueled by ample liquidity in the Gulf Corporation Council (GCC) and Asia, coupled with the increasing sovereign Sukuk issuers.

Click here to download prospectus

Source: HwangIM

New Fund: OSK-UOB Multi Asset Regular Income Fund

As investor continue to seek safe investment havens, i.e. investments that are more stable and/or of lower risk and with regular income, OSK-UOB Investment Management see opportunities in the Asia and Asia Pacific (ex Japan) region. Hence, they are now offering investors a fund that utilizes a multi-asset strategy to generate potential regular income and capital growth in a fund that invests in three yielding assets i.e. bonds, equities and REITs (real estate investment trusts) from the Asia and Asia Pacific (ex Japan) region.

The Fund is suitable for investors who:

1. seek regular income and capital growth over medium to long term;
2. are willing to accept moderate risk in their investments; and
3. wish to benefit from investment exposure in the Asian and Asia Pacific (ex Japan) region.

Tactical Asset Allocation?

Of the fund's investments, the External Investment Manager will initially invest in accordance to the allocation stated in the table below. However, for the purpose of tactical asset allocation, the manager may deviate from the stated allocation by a 10% variance for each asset class depending on the market conditions to achieve medium to long term returns.

Thus, this Fund's portfolio will be structured as follows:

• 65% - 98% of NAV
• Investments in Asian (ex Japan) debt instruments / bonds, Asia Pacific (ex Japan) dividend equities and Asia Pacific (ex Japan) REITs.
• 2% - 35% of NAV
• Investments in liquid assets including money market instruments and deposits with financial institutions.

What's the composite benchmark for this fund?

• 50% JP Morgan Asia Credit Index Total Return Composite (RM);
• 30% MSCI AC Asia Pacific ex Japan Index (RM);
• 20% MSCI AC Asia Pacific ex Japan REITs Index (RM).

Distribution Policy:

Depending on the level of income generated at each relevant period, the fund will declare distributions, if any, to unit holders QUARTERLY.

Click here to read fund's prospectus

Source: OSK-UOB Investment Management

New Fund: OSK-UOB Asian Income Fund

If you have a medium risk appetite and are seeking for an investment opportunity in the Asian region, you may want to take a close look at OSK-UOB Asian Income Fund, a balanced fund which was newly launched by OSK-UOB Investment Management Berhad on 5 June 2012.

The fund is a feeder fund that aims to provide income and capital growth over the medium to long term by investing in one target fund, i.e, the Schroder Asian Income (fund's inception date: 24 October 2011 and is denominated in Singapore Dollar), which primarily invests in Asian equities and Asian fixed income securities.

More about Schroder Asian Income

The Schroder Asian Income can invests in Asian high yield bonds (30% - 70%), Asian high dividend yielding equities (30% - 70%), cash (0% - 30%) or other asset classes (0% - 10%). Cash will be used if necessary to limit downside risk during adverse market conditions. Financial derivatives are also used to stabilize the portfolio of the fund by hedging the fund's exposure to foreign currency.

This strategy allows the Schroder Asian Income to adjust its allocation according to the phases of the economic cycle to deliver more consistent returns.

Click here to know more about Schroder Asian Income fund

Click here to download the OSK-UOB Asian Income fund prospectus

Source: OSK-UOB Investment Management

New Fund: AmAsia Pacific Equity Income

If you think that Asia Pacific will remain the main engine growth driver of world economy, then you should look into this fund launched by AmMutual. The Fund is a feeder fund, which will invest into the BlackRock Global Funds-Asia Pacific Equity Income Fund (the “Target Fund”), a sub-fund of the BlackRock Global Funds (BGF) domiciled in Luxembourg.

The Fund seeks to provide income and to a lesser extent Long Term capital growth by investing in the Target Fund which has an investment focus on Asia Pacific ex-Japan equities. The Fund seeks to achieve its investment objective by investing a minimum of 95% of the Fund’s NAV in the BlackRock Global Funds-Asia Pacific Equity Income Fund at all times. This implies that this Fund has a passive strategy.

BLACKROCK GLOBAL FUNDS (BGF)

BlackRock Global Funds (“the Company”) is incorporated in Luxembourg as an open-ended investment company under the laws of the Grand Duchy of Luxembourg and qualifies as a Part I UCITS (Undertaking for Collective Investment in Transferable Securities). 

The Company has adopted an “umbrella structure”, which allows it to offer investors within the same investment vehicle, a choice of investments in one or more sub-funds (each “sub-fund” and collectively the “sub-funds”) in respect of which a separate portfolio of investments is held, which are distinguished by their specific investment objectives, policies and/or currency of denomination.

The Target Fund is a sub-fund under the Company. The Target Fund was launched on 18 September 2009 and the total fund size of the Target Fund was USD64.50 million as at 29 April 2011. The Target Fund is regulated by Luxembourg Supervisory Authority, the Commission de Surveillance du Secteur Financier (“CSSF”).

BGF-ASIA PACIFIC EQUITY INCOME FUND

The Target Fund seeks an above average income from its equity investments without sacrificing long term capital growth. The Target Fund invests at least 70% of its total assets in equity securities of companies domiciled in, or exercising the predominant part of their economic activity in the Asia Pacific region excluding Japan. Predominant part of the economic activity generally means that a major portion of a company’s business (which includes but is not limited to the company’s sales, earnings or assets) is derived from or located in the Asia Pacific region excluding Japan relative to that particular company’s business derived from or located in other regions. The remaining 30% of the total assets may be invested in financial instruments of companies or issuers of any size in any sector of the economy globally.

AmAsia Pacific Equity Income is suitable for investors who seek:

• regular income from their investment;
• Long Term capital growth on their investment;
• participation in the upside potential of the Asia Pacific ex-Japan market; and
• medium to high risk investment vehicle.

Source: Fund Prospectus