THE Commerce Trust Lifetime Bond Fund achieved a new milestone when its funds under management exceeded RM1bil on April 30, the company said in a statement.
It said that the Lifetime Bond Fund had been one of the fastest growing funds in the market.
Its chief executive officer Yeoh Keat Seng attributed the success of the Lifetime Bond Fund to the consistent performance of its fund managers.
He said that since the funds inception in November 1995, it had managed to achieve an average return of over 7% annually and had rewarded its investors by giving out over RM75mil in accumulated distributions.
According to Yeoh, the significance of the funds performance lies not just in terms of its attractive distribution rate, but also its relative consistency, and the absolute size of the accumulated distributions paid out.
He said the demand for the bond fund was not surprising given its defensive and high-yield nature when stock market conditions were rather weak.
With the economy and the stock market likely to pick up in the 2nd half of this year, we expect to see some switching to equity funds at some point, he said.
Commerce Trust currently offers a range of five diversified investment funds.
They include the Lifetime Trust Future Goals Fund, Balanced Returns Fund, Income Plus Fund, Lifetime Bond Fund and an Islamic fund, the
Lifetime Dana Putra. Bernama