Investors will be watching
KUALA LUMPUR: Eastspring Investments Bhd’s new global bond fund, the Eastspring Investments Target Income Fund Eight has raised over RM100mil in the first five days of its offer period.
This is the eighth bond fund Eastspring has launched in the Malaysian market in eight years.
The new fund is a five-year closed-ended bond fund that aims to provide potential regular income distribution of between 4.7% and 5% per annum with lower volatility compared to equity funds.
The targeted payout is derived from coupon income from bonds. The Fund is ideal for investors who seek regular income distribution and have a medium to high risk tolerance.
A unique feature of the Fund is that at the end of the third year of investment, part of the proceeds from matured bonds (approximately 40% of the fund’s net asset value or NAV) are returned to unitholders.
"Against the current backdrop of a challenging equity market, conservative Malaysian investors are looking for income funds without long lock-in periods. Given the uptake in the first week of IOP, the fund has been well received,” says Yap Siok Hoon, chief sales and marketing officer.
The fund has been structured to return about 40% of the portfolio at the end of year three from the commencement date of the Fund, whilst providing the potential for 4.7%-5% per annum in income distribution. This provides some form of liquidity for investors.
With a minimum investment of RM1,000, investors can purchase the fund at RM1 per unit during the 45-day offer period (from July 15 2019 to Aug 28).
The fund will be managed by Eastspring Investments (Singapore) Ltd, one of the largest Asian fixed income managers with S$45.3bil of fixed income assets under management. - Bernama
Limited time offer:
Just RM5 per month.
