KUALA LUMPUR: UOB Asset Management (Malaysia) Bhd (UOBAM) has launched United Target Income Bond Fund that provides retail investors with an annual income stream from Asian bond markets.
In a press release on Wednesday, UOBAM said this bond fund is a "three-year, close-ended fund that invests in a diverse portfolio of Asian sovereign, quasi-sovereign and corporate bonds”.
The fund management company noted that the fund is appropriate for investors with a moderate risk appetite and a short-to-medium term investment horizon.
UOBAM chief executive officer Lim Suet Ling said it has a positive outlook on asian bonds, particularly bonds from China, India and Indonesia.
She added that the global interest rate environment is expected to remain favourable because central banks in Asia’s emerging markets such as China, India and Indonesia have imposed loose monetary policies.
Meanwhile, Ling expects the demand from Asian bonds to boost due to quantitative easing measures in Europe and the shrinking supply of bonds from other markets.
“Given the strong factors supporting Asian bonds, the fund may be terminated earlier if its cumulative returns are achieved above a pre-determined trigger level before its maturity date. If the trigger level is not reached, the fund will continue to invest until its maturity date and proceeds will be paid out thereafter,” UOBAM said.
UOBAM said this bond fund is on offer until April 29, 2015 and would be available for subscription at UOBAM and other selected banks.
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