Lion Global Investors has filed an application with the Monetary Authority of Singapore (MAS) to launch two products, which are the Lion-Great Eastern Prestige Income Fund and the Lion Global Asia High Dividend Equity Fund, according to the regulator’s website.
The Great Eastern Prestige Income Fund is a mixed-asset income-generating product that invests in fixed income securities and real estate investment trusts (Reits), according to its prospectus. Managed by Goh Soo May, the product aims to provide fixed quarterly distributions of 3.5% annually.
Meanwhile, the Lion Global Asia High Dividend Equity Fund, which is managed by Nigel Tan, will invest in Asia-Pacific (ex-Japan) equities that offer attractive dividend yields and sustainable dividend payments, the prospectus reads. The prospectus did not indicate whether there is a targeted income level for the fund, however.
FSA sought more information from Lion Global, but the firm was not able to provide additional details in time for publication.
The firm manages S$57.8bn ($40.6bn) in assets as of the end of March, according to its website.
In Singapore, the firm manages 30 funds for accredited investors and 28 for retail investors, according to FE Fundinfo.
Separately, the firm announced plans last year to expand its distribution business to include regional markets such as Thailand and Indonesia, as well as South Korea.
Income trend
The firm joins other fund managers in the Lion City that have launched income-generating products in the past year, which include UOB Asset Management, Allianz Global Investors, Aviva Investors and Fullerton Fund Management.
Robo-advisors have also joined the trend, with Singapore-based Stashaway launching a Singapore dollar-denominated income portfolio that invests in ETFs.
In Hong Kong, three other firms, including Manulife Investment Management, Goldman Sachs Asset Management and GF International Investment Management, also received regulatory approval to launch income-generating products.
The search for income-generating assets has intensified after central banks globally brought interest rates down further as they sought to backstop markets during the Covid-19 pandemic.
But even before the coronavirus outbreak, income funds already dominated the top-selling list of Singapore-domiciled funds last year. Two of those income products are relatively new to the market: the Fullerton SGD Heritage Income Fund, which was launched in May last year, while the Phillip Sing Income ETF was rolled out in mid-2018.
