CIMB-Principal’s RM150 million bond fund focuses on Asia Pacific’s growth
31 July 2016
Kuala Lumpur: CIMB-Principal Asset Management Berhad (“CIMB-Principal”) has launched the CIMB-Principal Total Return Bond Fund 3 (“the Fund”), a three-year close-ended bond fund enabling investors to benefit from potential growth in the Asia Pacific region, covering countries such as South Korea, Hong-Kong, Indonesia and Australia.
The Fund aims to achieve potentially higher returns than CIMB Bank’s three-year fixed deposit (FD) rate, by investing up to 100% of its net asset value in a diversified portfolio of debt instruments, money market instruments and deposits.
Munirah Khairuddin, Chief Executive Officer of CIMB-Principal said, “Economies in the Asia Pacific region continue to show resilience and offer relatively attractive risk-adjusted returns compared to 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.”
The Fund is suitable for investors with medium term investment goals. CIMB-Principal is targeting a RM150 million subscription to the Fund before its closing date on 24 August 2016. The minimum initial investment for the Fund in Malaysia is RM1,000, with a minimum subsequent investment amount of RM500. Investors can purchase the Fund from CWA unit trust consultants, CIMB Bank and OCBC Bank. HSBC (Malaysia) Trustee Berhad has been appointed as the trustee of the Fund to safeguard unitholders’ interests.
To date, CIMB-Principal has launched a total of 42 unit trust funds (of which 14 are Shariah-compliant), 18 wholesale funds, 10 Private Retirement Scheme (PRS) funds and two exchange-traded funds (ETFs). The Company recently won fund performance awards by The Edge | Lipper Malaysia Fund Awards 2016 for the Best Overall Group, Best Equity Asia Pacific Ex-Japan for the 3 years and 5 years categories, Best Equity Global for the 3 years and 5 years categories as well as the Best Equity Asia Pacific Ex-Japan (Islamic) for the 3 years category. For Morningstar Awards 2016 Malaysia, the Company bagged the award for Best Asia Pacific Equity Fund category. It was also recently named the Best Fund House in Malaysia by AsianInvestor for its Asset Management Awards 2016 and Best Asset & Fund Manager (2007-2016) in Malaysia by Alpha Southeast Asia for its 10th Annual Best Financial Institution Awards in Southeast Asia. As at 20 June 2016, CIMB-Principal Group had a total of RM60.3 billion in assets under management.
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