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

Comments

Post a Comment

Popular posts from this blog

"You Can Keep Your Existing Health Insurance"

I wondered about this statement at the time Obama made it.  Clearly, by changing all the rules of health care insurance and mandating conformity, it was unlikely that the vast majority of Americans would not find themselves forced by 'The Affordable Care Act' to have to deal with a completely different health insurance plan and completely different set of health care providers. I now understand what Obama meant.   He was speaking to his immediate family and (politician) friends.  They are exempt from the "Affordable Care Act."  Clearly what he meant to say was: "if you are exempt from Obamacare, like me and my family, you can keep your existing health insurance."  He never meant to mislead.
Read more

Things We Now Know

The poor are losing ground in the new Obama world.  The facts are showing up even in the halls of collectivist extremes like the New York Times.  The rich are getting richer and poor are being locked in place.  Big government is throttling the economy and the hopes and dreams of lower and middle class Americans. Today's Wall Street Journal's article by Simon Constable lays out some of the simple and obvious facts of the Obama era: "The richest 20% of households account for 38% of spending, according to government data for 2011, the latest available.  Compare that with 2003 when the top earners spent 26% of the total."  The article goes on to say..."it could get even worse."  It will. Who really benefits when the regulators strangle the banks?  Do banks really need to get much more conservative in their lending practices?  Why does the government know best?  How far can you stretch the FDIC guarantees before American banking is simply a subsidiary of the US g
Read more

Why Gold and Silver? Why Online Store?

Image
Are you first time gold and silver buyers? Why don't you invest in these popular metals? If you did so, you have had a wonderful investing experience after 2008 global financial crisis. But, do you really understand these metals? Were they really precious (especially now)? Traditionally, gold and silver were one form of exchange. Because of the invention of fiat money, they were being turned into some short of "back-up" currency , in case our fiat money system go burst. It's natural when things go wrong, gold and silver tends to appreciate in value. In other words, people hold precious metals to preserve the value of their assets. 3 Reasons Why Gold and Silver... Still hot in demand , especially by emerging affluent Chinese. Traditionally, Chinese loves gold. They bought it for events such as new born baby, new year, wedding and even funeral ceremony. Strengthening USD ??? Yes. It's a correct reason also. Why? Because of news that US going to stop QE3, USD is str
Read more