CIMB-Principal introduces income bond fund
CIMB-Principal Asset Management has introduced the Principal Strategic Income Bond Fund 2, a close-ended fund that will invest in both local and foreign bonds to take advantage of the high demand for Asian bonds.
The fund will invest between 70% to 98% (both inclusive) of its net asset value in a diversified portfolio of bonds and other fixed and floating rate securities issued by governments, government agencies, supranational organizations and corporate issuers, while remaining 40% will be invested in high-yield securities.
It will be distributed by CIMB Bank, CIMB Private Banking, CIMB Investment-Retail Equities, CWA, Citibank and OCBC.
CIMB-Principal Asset Management CEO Campbell Tupling said that 2011 has proved to be a bumpy year for equity markets, causing investors to resort to safe haven assets as worries about the European sovereign debt crisis continue.
"Investors with a three-year investment goal will be able to benefit from the positive growth drivers," Tupling said.