PETALING JAYA: UOB Asset Management (Malaysia) Bhd has launched the country’s first fixed income fund-of-funds (FoF), enabling retail investors to access different fixed income funds through just one portfolio.
An FoF is a collective investment scheme that invests in other funds instead of investing directly in securities, such as stocks and bonds.
The United Global Income Allocator Fund (UGIAF) aims to provide retail investors with regular income and capital appreciation by allocating at least 80% of its portfolio to fixed income funds.
The remaining 20% of the fund will be allocated to liquid assets such as money market instruments and deposits.
The UGIAF is available in ringgit, Singapore dollar, Australian dollar and US dollar with an initial minimum investment of RM1,000, S$1,000, A$1,000 and US$1,000 respectively.
UOB Asset Management CEO Lim Suet Ling said the UGIAF is suitable for retail investors who have a moderate risk tolerance over a medium- to long-term investment horizon.
“[This] is the first FoF solution in Malaysia that enables retail investors to invest in a diverse range of fixed income funds through one portfolio.
“Fixed income FoFs are typically available only to institutional investors such as pension funds and sovereign wealth funds, but retail investors can now also gain exposure to high-quality institutional fixed income funds previously not accessible to them,” she said in a statement.
Lim also said she believes the launch of the fund is timely, given the low global interest rate environment.
“By investing in different fixed income funds, ranging from investment grade to high yield, the UGIAF aims to provide investors with diversification across the entire fixed income asset class.
“o drive stronger returns, the Fund will allocate to growth-focused fixed income funds. The Fund is also invested across both Asian and global bond funds, with the objective of providing investors with long-term, regular income streams,” she said.
UOB Asset Management is the UGIAF’s investment manager, while UOB Asset Management Ltd and Mercer are the investment adviser and sub-investment adviser, respectively.
