KUALA LUMPUR, July 31 (Bernama) — CIMB-Principal Asset Management Bhd has launched the CIMB-Principal Total Return Bond Fund 3, a three-year close-ended bond fund, enabling investors to benefit from potential growth in the Asia-Pacific region.
CIMB-Principal is targeting a RM150 million subscription to the fund before its closing date on Aug 24, 2016.
Covering countries such as South Korea, Hong-Kong, Indonesia and Australia, the fund is aimed at achieving higher returns than CIMB Bank’s three-year fixed deposit (FD) rate by investing up to 100 per cent of its net asset value in a diversified portfolio of debt instruments, money market instruments and deposits.
“Economies in the Asia-Pacific region continue to show resilience and offer relatively attractive risk-adjusted returns compared with other regional markets, providing favourable conditions for bond issuances.
“The demand for improved infrastructure in many of the target countries, for example, bodes well for the fund’s ability to provide total returns exceeding FD rates to investors, who, through the fund, will be able to access both local and foreign higher-yielding investment-grade bonds,” CIMB-Principal Chief Executive Officer Munirah Khairuddin said in a statement today.
The minimum initial investment for the fund in Malaysia is RM1,000, with a minimum subsequent investment amount of RM500.
It is suitable for investors with medium-term investment goals.
To date, CIMB-Principal has launched 42 unit trust funds, 18 wholesale funds, 10 Private Retirement Scheme funds and two exchange-traded funds.
As at June 20, 2016, CIMB-Principal Group has RM60.3 billion in assets under management.