UOB Asset Management has filed an application with the Monetary Authority of Singapore (MAS) to launch the United Enhanced Income Select Fund and the United Enhanced Growth Select Fund, according to the regulator’s website.
Once approved, they will be available to retail investors in the Lion City.
FSA sought UOB AM for more information, but the firm declined to provide additional details.
The two products are both Singapore-domiciled and denominated in Singapore dollars, according to the prospectus.
The United Enhanced Income Select Fund is a fund-of-funds product, in which it will invest in various underlying global- and Asia-focused funds managed by other managers that have demonstrated track record of providing sustainable payouts, according to its prospectus.
“The focus is to invest in underlying entities that generate regular income from equities, bonds, or other asset classes that provide stable income stream,” the prospectus said. “To qualify, the target funds should have long term returns that are higher than their distribution payout rate.”
The fund intends to make regular monthly distributions based on the weighted average distribution payout of the underlying funds minus 0.50%, it added.
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.
Other firms operating in the Lion City are also preparing to launch income funds in the Lion City, including Lion Global Investors, Allianz Global Investors, Aviva Investors and Fullerton Fund Management. MAS records show that all of these products have received approval from the regulator.
Meanwhile, UOB AM’s Enhanced Growth Select Fund is also a growth-focused fund-of-fund.
“The focus is to invest in underlying entities that buy stocks in companies that are growing faster than the market average, hence delivering higher capital growth than the general market,” the prospectus said, noting that the product may have higher volatility compared with other products.
UOB AM’s move comes after the firm registered with MAS to launch the United Sustainable Credit Income Fund in January this year, which is a fund of funds aiming for capital growth and income. MAS record shows that the fund has received approval from the regulator.
UOB AM has S$36bn ($25.8bn) in assets under management as of the end of last year, according to its website.
