Still remember one fund called AmDynamic Bond fund? If yes, you definitely knew the superb performance of that bond fund, which had became the flagship fund for AmMutual for past years. However, it was sad that, since few months ago, no more subscription was being allowed for AmDynamic Bond fund because it has reached the maximum limit set by regulators. In other words, too hot the demand for that fund. Then how?
Because of that reason, AmMutual is proud to launch another new fund, AmTactical Bond fund, which was managed by using the same strategy, but with a little bit more flexibility. The Fund aims to provide income and to a lesser extent capital appreciation by investing primarily in bonds.
How Flexible is it?
The Fund seeks to achieve its objective by investing primarily in sovereign, quasi-sovereign and corporate bonds including convertible bonds. There is NO minimum rating for a security purchased or held by the Fund.
To construct the portfolio of the Fund, the Investment Manager will analyse the general economic and market conditions. The Investment Manager will also analyse and compare securities in terms of expected returns against assumed risk by analyzing credit rating and duration of the securities, where the Investment Manager will select securities that will deliver better returns for a given level of risk. In addition, the Investment Manager may also consider securities with a more favorable or improving credit or industry outlook that provide potential capital appreciation. The Fund’s investment is subject to active tactical duration management, where duration of the Fund will be monitored and modified according to interest rate outlook without any portfolio maturity limitation.
- 70% - 98% invested in bonds;
- 0% - 28% invested in other permitted investments; and
- a minimum of 2% will be invested in Liquid Assets.
AmTactical Bond is suitable for investors who:
- are willing to assume risks associated with investing in securities with long duration (i.e. there will be no portfolio maturity limitation) and low credit ratings (i.e. there will be no minimum rating for the securities purchased or held by the Fund); and
- have an investment horizon of more than three (3) years.