KUALA LUMPUR: Eastspring Investments Bhd has announced a gross distribution of 5.92 sen a unit for Eastspring Investments Target Income Fund 5 for the year ended Dec 31, 2018.
In a statement, the company said this represented a dividend yield of 5.75%. The distribution was consistent with the fund’s objective to provide regular income during the tenure of the fund, it said.
“All unit holders who have maintained their unit holdings in the fund as at April 23, will be entitled to the income distribution.”
As for the market outlook, Eastspring said that following the bout of market volatility in 2018, investor sentiment in the Asian credit market experienced a strong turnaround in recent months.
“The dovish shift in the US Federal Reserve and supportive policy measures in China spurred investor demand for yield that resulted in significant spread tightening, particularly in the high yield space.”
Eastspring is cautious about adding risk after the strong market run-up, as it expects market performance to be underpinned by bond carry from here.
“Investor demand for yield is likely to be sustained as interest rate expectation remains anchored amid the slowing growth environment and the benign Fed’s monetary policy path. — Bernama