Eastspring Investments Monthly Income Plan
Fund objective
Eastspring Investments Monthly Income Plan seek to provide investors with regular income and capital growth by investing:
- 30% to 70% of its assets into the Luxembourg domiciled Eastspring Investments – US High Yield Bond Fund.
- 30% to 70% of its assets into the Luxembourg domiciled Eastspring Investments – Asian Bond Fund.
The Fund may in addition, at the Manager’s absolute discretion, invest up to 20% of its assets in any other Asia Pacific investments (including real estate investment trusts, dividend-yielding equities and any other subfunds of the Eastspring Investments, subject to the prior approval of the Authority where necessary).
Investment Strategy
Eastspring Investments Monthly Income Plan will invest:
- 30% to 70% of its assets into the US High Yield Bond (which invests primarily in high yield bonds and other fixed income/debt securities denominated in US Dollars, issued in the US market rated below BBB-. Up to 20% of its assets may be invested in investment grade securities (i.e. BBB- and above))
- 30% to 70% of its assets into the Asian Bond (which invests primarily in fixed income/ debt securities issued by Asian entities or their subsidiaries denominated primarily in US Dollars as well as various Asian currencies).
Eastspring Investments Monthly Income Plan may in addition, at the Manager’s absolute discretion, invest up to 20% of its assets in any other Asia Pacific investments (including real estate investment trusts, dividend-yielding equities and any other sub-funds of the Eastspring Investments, subject to the prior approval of the Authority where necessary).
The Manager may use derivative instruments for the purposes of efficient portfolio management (“EPM”) and/or hedging (including to hedge the foreign currency exposure of the Fund by, for instance, entering into one or more foreign exchange forward contracts and/ or cross-currency swap transactions).In managing the Fund, the Manager will
In managing Eastspring Investments Monthly Income Plan, the Manager will first assess the attractiveness of Asian bonds relative to US high-yield bonds by looking at their relative credit spreads as well as versus their own history. The Manager also assesses the attractiveness of Asian equities relative to US Dollars denominated bonds. The Manager will then arrive at the final asset allocation of the Fund after taking into consideration all these factors. The selection of the individual stocks within the Fund is driven by bottom-up stock ideas.
In deciding the asset allocation of the Fund, the Manager adopts a valuation-based investment approach and aims to exploit market inefficiency and dispersion of investment returns.
Who is Eastspring Investments Monthly Income Plan suitable for?
Eastspring Investments Monthly Income Plan is only suitable for investors who:
- Seek regular income and capital growth.
- Are comfortable with the risks of a fund investing mainly in US Dollar denominated bonds
issued in the US and Asia. - Appreciate that their capital will be at risk and that the value of their investment and any derived income may fall as well as rise.
Dividend or Income payout frequency: Monthly
For additional assessments on product suitability, please obtain professional advice from a qualified Financial Adviser.
What are the key risks of Eastspring Investments Monthly Income Plan?
The value of Eastspring Investments Monthly Income Plan and its dividends and coupons (if any) may rise or fall. You may lose some or all of your investment depending on the performance of the underlying securities. Factors that may affect the performance of these securities include, without limitation, market risks, fluctuations in interest rates and foreign exchange rates, political instability, exchange controls, changes in taxation and foreign investment policies.
Some of the key risks associated with Eastspring Investments Monthly Income Plan are described below:
Market and Credit Risks
- You are exposed to market risks in Asian, Asia-Pacific and United States markets
- You are exposed to interest rate and credit risks.
- You are exposed to emerging markets risks.
- You are exposed to currency risks.
- You are exposed to the risks of currency hedging transactions for a hedged share class.
- You are exposed to counterparty risks
- You are exposed to liquidity risks of the underlying funds’ investments.
Liquidity Risks
- The Fund is not listed and you can realise your units only on Dealing Days.
- Your realisation request may be deferred or suspended.
Product-Specific Risks
- The Fund may be subject to Derivatives Risks
- You are exposed to the risks of high-yield bonds which the US High Yield Bond invests in.
- You are exposed to the risk of distributions out of capital.
Investment Fees and Charges
For a limited time (Until 31 Dec 2023), speak to a MAS licensed licensed financial adviser which has committed to offering our readers a flat 1% Subscription fee (Initial Sale Charge) for all Unit Trust Funds investment.
Learn more about the limited time offer on 1% Initial Sales Charge. Terms and conditions may apply.
Where can I get more details about Eastspring Investments Monthly Income Plan
- Eastspring Investments Monthly Income Plan Fund Fact Sheet (Open in New Window)
- Eastspring Investments Monthly Income Plan Product Highlight Sheet (Open in New Window)
- Speak to a licensed licensed financial adviser.
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