Friday 29 Mar 2024
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KUALA LUMPUR (July 31): CIMB-Principal Asset Management Bhd has launched a three-year close-ended bond fund that invests in the potential growth of Asia-Pacific countries such as South Korea, Hong Kong, Indonesia and Australia.

Dubbed "CIMB-Principal Total Return Bond Fund 3", the new fund aims to achieve potentially higher returns than CIMB Bank Bhd’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.

The asset management company is targeting a RM150 million subscription to the fund before its closing date on Aug 24. The minimum initial investment for the fund in Malaysia is RM1,000, with a minimum subsequent investment amount of RM500.

“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," CIMB-Principal chief executive officer Munirah Khairuddin said in a statement today.

"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,"she added.

CIMB-Principal said the fund is suitable for investors with medium term investment goals.

To date, CIMB-Principal has launched a total of 42 unit trust funds, of which 14 are shariah-compliant, 18 are wholesale funds, 10 are private retirement scheme funds and two exchange-traded funds. As of June 20, CIMB-Principal has a total of RM60.3 billion in assets under management.

 

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