RHB Asset Management has launched the RHB-OSK Focus Income Bond Fund Series 4, a three-year close-ended bond that aims to maximize returns at the fund’s maturity date from a concentrated portfolio of global debt instruments.

 

RHBAM has structured this product to retain the investment strategy similar to the previous RHB-OSK Focus Income Bond Fund series.

 

Eliza Ong, managing director  and regional head of group asset management said, “The RHB-OSK Focus Income Bond Fund offers our investors a potential annual income distribution of around 4.5% to 5.0% per annum. These returns would potentially be higher compared to a three-year fixed deposit rate as the annual income distribution is supported by coupon pay-outs and underlying quality bonds.”

 

The investment strategy of the Fund consists of a concentrated portfolio of not more than 20 global debt instruments such as bonds, commercial papers, bankers’ acceptances and notes with attractive yields and capital appreciation during tenure of the Fund. These are debt instruments issued by corporations, financial institutions, supra-nationals, governments and their agencies globally.

 

Launched on December 3 2014, the RHB-OSK Focus Income Bond Fund Series 4 will invest between 90%-100% of its net asset value (NAV) in global debt instruments, of which at least 70% of the NAV will be invested in bonds and at least 10% in liquid assets including money market instruments and deposits.

It is aimed at investors who have a medium term investment horizon and who seek a moderate risk appetite with returns from the income accumulated and capital appreciation from a global debt instruments portfolio.



The Fund was offered for subscription on December 3 2014 with a minimum investment of 1,000 ringgit  with each unit costing one ringgit , during the 45-day initial offer period until January 16 2014. All additional units can be purchased at a minimum of 1,000 ringgit .

 

Ong added that RHBAM’s assets under management (AUM) is now close to meeting its target of 50 billion ringgit; it is now at 49 billion ringgit. “In December 2013, RHB Asset Management’s total AUM stood at 39.25 billion rinhggit. This 24% growth was accomplished through the 21 conventional and Islamic funds launched this year, strategic partnerships, institutional business and the healthy performance of our existing funds.”