Posts

Showing posts with the label credit rating

New Fund: Eastspring Investments Target Income Fund 2

Image
In the current low interest rate environment, investors continue to chase for yields which resulted in strong demand for close-ended bond funds that potentially offers higher return than fixed deposits. Keeping this in mind, Eastspring Investments is launching a new fund. The fund endeavors to provide regular income during the tenure of the fund (3 years), by investing in local and/or foreign debt securities. Investment Strategy A minimum of 70% will be invested in local and/or foreign debt securities, while the remaining of not more than 40% may be invested either in non-rated debt securities and/or debt securities rated below investment grade rating. lower than BBB3 rating by RAM; or below investment grade rating by other rating agencies Although the fund is expected to invest up to 40% in non-rated issuers and/or issuers rated below investment grade, there is a risk that this limit may be exceeded as issuers of investment grade debt securities held within the portfolio m...

New Fund: AmTactical Bond

Image
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 ...

New Fund: AmDynamic Sukuk

Image
After the spectacular performance of AmDynamic Bond fund, AmInvestment Services Bhd would like to replicate the success of the conventional fund into this newly launched shariah compliant fund. The Fund aims to provide capital appreciation by investing primarily in Sukuk both locally and globally.  To achieve the investment objective, the Fund will undertake active management  to enhance and optimize  returns from investing in sovereign, quasi-sovereign and corporate Sukuks. The sectorial weightings maybe  adjusted to maximize the performance. There is no minimum rating for a Sukuk purchased or held by the  Fund. More about the Fund Value-add of the Fund is derived from active tactical duration management, yield curve positioning and  credit spread arbitrage . Credit spread arbitrage and yield curve positioning is part of relative value approach that involves analysis of general economic and market conditions and the use of models to analyz...