KUALA LUMPUR: Prudential Corporation Asia's Eastspring Investments Bhd has launched a new bond fund, the Eastspring Investments Target Income Fund 2.
This 3-year close-ended fund aims to provide semi-annual regular income stream with a potential bonus coupon payment upon the maturity of the fund.
Eastspring Investments CEO Lynn Cheah said due to present low interest rate environment, investors are seeking yields, resulting in strong demand for close-ended bond funds that potentially offers higher return than fixed deposits.
"Keeping this need in mind, we are launching the fund which seeks to capture the best yield opportunities in multiple fixed income assets (that is foreign debt securities, investment grade and non-investment grade debt securities) through our rigorous internal credit rating process," she said.
Cheah said the fund would be for investors with moderate risk tolerance and seeking competitive yields and regular income within a three-year investment horizon.
The fund targets to provide semi-annual income, of up to 4.50% on a per annum basis, which is attractive compared to the current fixed deposit rates.
The minimum investment is RM1,000 and investors can purchase the fund at RM1 per unit during the 45-day offer period starting from Thursday to Aug 12, 2013.
