16 April 2012

CIMB-Principle Strategic Income Bond Fund 2

What is CIMB-Principal Strategic Income Bond Fund 2?

Take advantage of the world’s interest in Asia with an investment that aims to provide regular income with potentially higher returns (as compared to Fixed Deposit)! Persistent low interest rates in US and Europe have driven demand for Asian bonds. In addition, credit conditions are improving and may lead to potential rating upgrades in the next few years (Fitch Ratings, ADB, Bloomberg, January 2012). This sustained demand means there will be strong support for Asian bond prices in the future.

The CIMB-Principal Strategic Income Bond Fund 2 portfolio will comprise both investment grade securities and high yield securities. The Fund may also invest into foreign bonds which are more aggressive in nature for potential higher returns. This enables you to benefit in Asia’s high growth prospects via a more stable asset class as compared to equities.

Investment Strategy

The Fund seeks to achieve its investment objective by investing between 70% to 98% (both inclusive) of its NAV in a diversified portfolio of bonds and other fixed and floating rate securities issued by governments, government agencies, supranational organizations and corporate issuers. The Fund may also invest in structured products and/or derivatives such as forward contracts, options, futures contracts or swap agreements, of which the underlying are related/linked to the above-mentioned securities. The Fund may also invest in High Yield Securities, subject to a maximum of 40% of its NAV. At least 2% of the Fund’s NAV are maintained in the form of liquid assets such as money market instruments and/or bank deposits for liquidity purposes.

Why this fund may work to your very benefits?

  • Offer potentially higher returns than a fixed deposit account (against current CIMB FD rate of 3.15% p.a)
  • Aim to payout income distribution annually
  • Gain exposure in fixed income securities in the local and foreign bond markets
  • May buffer against future interest rate fluctuations
Please be aware that this fund is a close-end fund, which means you cannot buy into this fund after the offering period.

Source: CIMB-Principal

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