UOBAM launches United Target Income Bond Fund 6

KUALA LUMPUR: UOB Asset Management (Malaysia) Bhd (UOBAM) has launched the United Target Income Bond Fund 6 to cater to investors’ demand for attractive yields amid a low interest rate environment.

UOBAM said the three-year closed-ended bond fund seeks to provide investors with an annual income distribution of between 4.5 and five per cent and is suitable for investors with a moderate risk appetite and a short- to mediumterm investment horizon.

“The fund seeks to offer investors better returns than fixed deposits by investing in a diversified portfolio of Asian corporate, sovereign and quasi-sovereign bonds.

“UOBAM adopts a rigorous bottom-up security selection process to identify bonds issued by Asian governments and corporates with sound balance sheets and robust fundamentals,” it said in a statement yesterday,

Chief Executive Officer Lim Suet Ling said UOBAM’s bottom–up approach to security selection enables the bank to focus on securities that offer value often overlooked by investors.

“As such, despite the shortterm macroeconomic volatility, we are able to seek out Asian bonds issued by corporates with healthy balance sheets, and governments with relatively low debt levels and the ability to service their debt.

“Singapore, Malaysia, Thailand, the Philippines and China have relatively sound fiscal positions and should be able to afford their respective stimulus packages aimed at softening any potential global economic impact,” she said.

As such, Ling said, their sovereign securities make attractive investments.

OUBAM said the fund may be terminated before its maturity date if it achieves cumulative returns above a pre determined trigger level.

However, if the trigger level is not reached, the fund will continue to be invested until its maturity date and proceeds will be paid out thereafter, it added.

The United Target Income Bond Fund 6 is on offer until May 27, 2016 and is available for subscription at United Overseas Bank Bhd branches and selected banks nationwide. — Bernama