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Eastspring Malaysia floats three year bond fund

Eastspring Investments Malaysia has launched a three-year close-ended income fund that aims to capture the best yield opportunities in multiple fixed income assets.
Fund Selector Asia

The Eastspring Investments Target Income Fund 3 is targeted at investors with a moderate risk tolerance and aims to provide semi-annual income stream with a ‘potential’ bonus coupon payment upon the maturity of the fund.

According to the asset manager, the fund will aim to offer income twice a year, of up to 4.50% on a per annum basis, thus making it “attractive compared to current fixed deposit rates.”

“Whilst the equities markets have improved compared to previous years, we find that Malaysian investors still seek regular income at yields which are potentially higher than fixed deposits,” said Lynn Cheah, chief executive of Eastspring Investments.

“Keeping this need in mind, we are launching the fund which aims to capture the best yield opportunities in multiple fixed income assets (i.e. foreign debt securities, investment grade and non-investment grade debt securities) through our rigorous internal credit rating process.”

This fund, the third in a series of target income funds, will be managed by Eastspring Investments (Singapore).

Investors can subscribe to the units of the fund with a minimum investment of RM1,000 during the 45-day offer period from 16 April to 2 June.

Eastspring Investments in Malaysia had RM24.2bn in assets under management as of the end of last year.

In November Eastspring Investments, which is the asset management arm of Prudential in Asia, appointed Yap Siok Hoon to oversee sales and marketing in Malaysia.

Part of the Mark Allen Group.