RHB AM, a unit of RHB Investment Bank Bhd, said on Thursday the fund is for sophisticated investors seeking capital appreciation over the medium to long term period by investing in a diversified portfolio of investments.
The fund is a wholesale feeder fund that invests into HSBC Asia high income bond fund registered in Hong Kong. The target fund is managed by HSBC Investment Funds (Hong Kong) Ltd.
The fund will invest a minimum of 95% of its net asset value (NAV) into the target fund and the rest will be invested in liquid assets including money market instruments, and cash placements.
As for the target fund, it will invest in fixed income securities which provide higher yield compared to their peers with the potential for capital appreciation over a medium to long-term period.
A minimum of 70% of the target fund’s NAV will be invested in a diversified portfolio of fixed income securities issued or guaranteed by government, government agencies or supranational bodies in Asia, or issued by companies which are domiciled in, based in or carry out the larger part of their business in Asia.
RHB AM regional director and managing director Eliza Ong said the versatile portfolio of investment opportunities would help them yield strong potential returns over a medium to long-term period.
“We are optimistic about the performance of this fund and we aim to deliver greater value to our customers through this fund. We anticipate that the demand for the fund will achieve a subscription of approximately RM100mil by the year end.
“RHB AM continues to be dynamic and innovative in identifying opportunities for growth while maintaining a customer-centric focus as it seeks to achieve sustainable growth in becoming a leading Asian fund house with Asean expertise,” Ong added.
The base currency of the fund is in US$. The fund is offered for subscription in seven currency classes, namely US$ class, ringgit-hedged class, S$-hedged class, A$-hedged Class, euro-hedged class, pound sterling-hedged class and renminbi-hedged Class.
The minimum investment amount is RM1,000 for ringgit and $1,000 for US$, S$, A$, euro, poun sterling and renminbi classes.