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Maybank AM rolls out fixed income feeder in Malaysia

The fund aims to distribute income on a bi-monthly basis, targeting 4-4.5% per annum.

Kuala Lumpur-based Maybank Asset Management has launched the Maybank Asian Credit Income Fund in Malaysia, according to a statement from the firm.

The product is a feeder fund that invests at least 90% of its assets in the Singapore-domiciled Maybank Asian Income Fund. The target fund is managed by Maybank AM in Singapore, which is a fully owned subsidiary of Maybank AM Group.

The fund primarily invests in Asian fixed income securities and US government debt, according to the statement. It also aims to provide bi-monthly income distributions of 4-4.5% annually.

The fund will use derivatives such as currency forwards for hedging purposes to manage the currency risk of the fund’s investments, the statement noted.

“We believe that the fund will provide investors consistent and frequent income payout despite the current volatile market and low interest rate environment,” Ahmad Najib Nazlan, Maybank AM’s CEO, said in the statement.

“Investors may also potentially reap the benefits of Asian bonds with higher yields as compared to developed markets,” he added.

Products providing a steady income stream have been popular in Malaysia. Last year, five of the top 10 best-selling funds were income funds, according to data from Morningstar Direct.

Launched in November 2014, the Singapore-domiciled fund, which is managed by Judy Leong, had S$88.2m ($63.7m) in assets as of the end of May, according to its fund factsheet.

Maybank Asian Income Fund

Source: Fund factsheet

As of the end of June, Maybank Asset Management Group’s AUM stood at RM 27.7bn ($6.5bn), according to the statement. Its key markets are Singapore, Malaysia and Indonesia.

In Malaysia, Maybank AM manages around 18 mutual funds, with at least 10 of them investing in the domestic market, according to data from FE Fundinfo. In Singapore, the firm manages five products.

The Singapore-domiciled Maybank Asian Income Fund versus its sector

Source: FE Fundinfo. In US dollars. Note: The fund’s benchmark index, the JP Morgan Asian Credit Index, is not available on FE Fundinfo.

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