This article first appeared in The Edge Financial Daily on September 18, 2019

KUALA LUMPUR: Manulife Asset Management Services Bhd (MAMSB) has launched the Manulife Target Maturity Bond Fund 1 (Fund 1) to address the growing income needs of investors in Malaysia.

MAMSB said the fund is a four-year close-ended bond fund that seeks to provide regular income during its tenure, and offers a unique feature of partial repayment of capital after three years of the commencement date for the fund.

It said investors will receive the partial repayment from matured or liquidated bonds (approximately 20-30% of the Fund’s Net Asset Value (NAV), depending on market conditions) at the end of the third year, and will then receive the remaining NAV at the fund’s maturity date, ie at the end of the fourth year of investing in the fund.

MAMSB said the fund has a target yearly coupon payout of up to 4.9% per annum and aims to achieve this by investing primarily in well-researched local and/or foreign bonds which include sovereign and corporate bonds.

MAMSB chief executive officer Jason Chong said Fund 1 was specifically designed to address investors’ long-term, stable income needs while at the same time offer them flexibility to meet their short- to mid-term financial obligations.

“The launch of this fund complements the three very successful income-oriented funds we have introduced to the market earlier this year, and adds to our expanding range of investment products in the country,” said Chong.

MAMSB head of retail wealth distribution Ng Chze How said Fund 1 leverages the experience and insights of more than 100 Manulife fixed income experts located in 13 markets worldwide to pick quality assets that can meet investors’ evolving income needs.