Manulife expects its Asia Total Return Bond Fund to exceed RM100 million in sales

PETALING JAYA: Manulife Asset Management Services Bhd ( MAMSB) expects its Manulife Asia Total Return Bond Fund to exceed over RM100 million in sales over the next one to three months.

Head of retail wealth distribution Ng Chze How said this is based on customer demand as MAMSB is adapting its existing strategy for the product.

“Although the fund (the product) is new, the strategy being used is an existing one. We have been sharing the strategy with our existing clients, our researchers and retail distributors, and it shows that they needed this product.

“We are looking at a singledigit return for 2019 based on the current running yield in our portfolios which is at 5.36 per cent, appreciation in Asian currencies of one to two per cent and the flow of funds which will appreciate further once investors start pouring into these instruments,” said Ng at the launch of the fund yesterday.

The fund aims to provide total return from a combination of income and capital appreciation by investing in a collective investment scheme with the investment focus on fixed income securities.

The fund is a feeder fund offered for subscription to retail investors, investing at least 95 per cent of its net asset value into Manulife Global Fund – Asia Total Return Fund (the target fund).

“Asian bonds are in a ‘sweet spot’ due to expectations that US interest rates are pausing their interest rate increase.

“It is also an essential asset class for Malaysian investors looking to diversify their portfolios, and the Manulife Asia Total Return Bond Fund offers investors a diversified source of income along with capital growth potential,” said its chief executive officer Jason Chong.

Chong said Asia is expected to remain the beacon for global economic growth, given the strong fiscal positions and superior growth potential of markets in the region.

“Asian economies have continued to generate growth amidst mild inflation, creating the strong fundamentals for Asian bonds,” he added.

Meanwhile, client portfolio manager, fixed income of Manulife Asset Management ( hong Kong) Ltd Jason Pang said the fund will capitalise on the target fund’s unconstrained “go anywhere” or flexible strategy, seeking returns in three different areas namely interest rate strategies, credit positioning and active currency management.

Pang said the fund does not limit itself to US dollar-issued credits in Asia, but also invests in local currency bonds whilst maintaining its average credit rating of investment- grade quality at all times.

“This flexibility allows the investment team to adopt tactical and strategic positions during different market cycles,” he said.

The fund aims to distribute all or part of its distributable income on a quarterly basis.

The minimum initial investment is RM1,000 or US$ 1,000 or Chinese yuan offshore ( CNH) 1,000 with a minimum additional investment of 100 for each currency. — Bernama