Role for fixed income fund

  • Business
  • Monday, 04 Aug 2003

DESPITE the equity market upsurge recently, SBB Mutual Bhd still expects fixed income fund to play a significant role in an investor's portfolio. 

Its chief executive officer Paul Low said that to date, the equity market had registered a double-digit growth since April 2003. 

Investors with substantial capital appreciation from their equity investments were expected to seek alternative avenue such as bond fund to preserve some of the capital gain, he said in a statement issued by SBB last week. 

“Bond fund, by its nature as a fixed income fund, will always seek to provide a steady stream of income and protect the principal. 

“By diversifying its investment into different types of interest yielding securities, investor's overall portfolio risk can be reduced substantially,” Low said. 

Meanwhile, the company's SBB Bond Fund, which won a total of five awards in 2002 from The Edge Lipper Awards and The Star-Standard & Poors Awards, has declared a gross distribution of 7 sen for all unitholders last week. 

This distribution was made available to all unitholders who have invested in SBB Bond Fund on or before 5pm on July 30, it said. 

SBB Bond Fund currently has an approved fund size of 700 million units and has posted impressive returns of 18.88% and 43.04% over the 1-year and 3-year periods ending July 4. – Bernama  

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