TheStar
KUALA LUMPUR: HwangDBS Investment Management Bhd had on Thursday launched Steady Income Fund (STDIF) targeted at corporate and institutional investors.
The STDIF is the latest addition to its institutional/corporate suite of products and its first corporate feeder fund. It offers steady performance and potentially regular, high income yield.
HwangDBS Investment Management chief executive officer and executive director Teng Chee Wai said the new fund demonstrated its commitment to provide innovative solutions for investors.
“We are also targeting to ramp up our institutional business and are confident that despite market environment, a specialist credit product like the STDIF will be well received locally,” he said.
Teng said institutions and corporations are drawn to unit trust-based cash management products which could enable them to optimise their returns on existing cash by outperforming returns on existing deposit products.
“The additional benefit of performance stability and potentially higher yields will certainly be a key attraction for them,” he added.
STDIF would allocate 70% of its net asset value into an Australian registered managed investment scheme, the AMP Capital Structured High Yield Fund.
The AMP fund -- managed by an Australian specialist investment manager AMP Capital Investors Limited -- comprises of a diversified portfolio of high-yielding private debt assets (PDS). These PDS are ssued by mature global companies in stable infrastructure sectors like utilities and industrial logistics.
These features provide a high level of stability and reliability in terms of income yield as returns are not hinged on equity market movements.
The other 30% of its NAV would be invested in domestic cash and money market instruments, creating an optimal asset allocation balance.
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