Hong Leong Asset Mgmt unveils new fixed income fund

Hong Leong bank

KUALA LUMPUR: Hong Leong Asset Management Bhd (HLAM) on Wednesday introduced an open-end fixed income fund named Hong Leong Regular Income Fund (HLRIF) to provide regular income at moderate risk levels for its investors. 

In a statement, the asset management company said the HLRIF was an actively managed, fixed income fund that aimed to provide regular income and medium- to long-term capital growth.

“It invests into a diversified investment portfolio comprising a mixture of fixed income instruments, equities and equity-related securities. 

“The fund seeks to pay regular monthly income to its investors, subject to availability of income,” it said.

Meanwhile, chief executive officer Hoo See Kheng said the fund was an ‘all season’ fund given its low volatility as the focus was to invest in quality credits. 

“The aim is to provide regular income in whatever market conditions as well as to provide diversification to our investors’ investment portfolio.

“Building long-term investor confidence is core to our investment approach and this is reflected in HLAM’s stringent credit selection process and conservative asset allocation for HLRIF,” he said.

To achieve the fund’s objective, HLRIF aims to capture opportunities across the local fixed income universe under various economic cycles in addition to achieve potential gains through equity investments in the local market and in the Asia Pacific ex-Japan region.

“The funds flexible asset allocation provides portfolio risk diversification and lower volatility than a comparative pure equity portfolio while offering investors attractive returns potentially. 

“Portfolio risk is further minimised with the fixed income investments, as the core asset class is invested locally,” Hoo added. 

HLRIF was priced at RM0.50 per unit during the initial offer period until August 2016. The minimum initial investment for the fund is RM1,000 while the minimum additional investment is RM100. 

The fund is exclusively distributed at over 270 branches of Hong Leong Bank Bhd nationwide and at HLAM branches.

As at end of June 2016, HLAM’s total assets under management stood at RM11.3bil. - Bernama