KUALA LUMPUR: UOB Asset Management (Malaysia) Bhd (UOBAM) has launched its fourth installment of the United Target Income Bond Fund amid growing investor demand for more attractive yields.
The United Target Income Bond Fund 4 seeks to offer investors better income potential by investing in Asian bonds issued by corporates with sound balance sheets and strong fundamentals.
The fund is a three-year, closed-end bond fund that invests in a diverse portfolio of sovereign, quasi-sovereign and corporate bonds predominantly from Asian issuers.
It aims to achieve an annual income distribution of around 4.5% to 5% per annum and is suitable for investors with a moderate risk appetite and a short-to-medium term investment.
UOBAM CEO Lim Suet Ling said sub-par global growth is encouraging investors to prioritise income over growth.
"We believe interest rates in developed markets will generally remain low, which is positive for Asian bonds, as investors search for yield and return amid a low interest rate backdrop.
"As global markets experience high volatility and negative risk sentiment, we prefer to stay prudent in our credit selection with a bias towards quality issuers in our investment," she added, in a statement today.
The United Target Income Bond Fund 4 is on offer until Jan 14, 2016 and is currently available for subscription at UOB branches nationwide. -- BERNAMA
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