UOB Asset Management – United Asian High Yield Bond Fund Review
Fund objective
UOB Asset Management – United Asian High Yield Bond Fund seeks to achieve a total return consisting of high income and capital appreciation by investing primarily in high yield fixed income or debt securities (including money market instruments) issued by Asian corporations, financial institutions, governments and their agencies.
Investment Strategy
UOB Asset Management – United Asian High Yield Bond Fund intends to achieve the investment objective of the Sub-Fund by investing in a diversified portfolio of Asian fixed income or debt securities, which primarily comprises of high yield fixed income or debt securities that may be non-investment grade and/or unrated. Notwithstanding the foregoing, the SubFund may from time to time invest in Asian investment grade fixed income or debt securities if Asian high yield fixed income or debt securities are not available at acceptable prices or volume. Non-investment grade fixed income or debt securities would include those securities with a long term credit rating of below “BBB-” by Standard and Poor’s “Baa3” by Moody’s Investors Service, “BBB-” by Fitch Inc, or their equivalent. The geographic regions in which the Sub-Fund will invest include but are not limited to Singapore, Malaysia, Thailand, Indonesia, Philippines, Hong Kong SAR, South Korea, Taiwan, China, Australia, New Zealand and Japan.
UOB Asset Management – United Asian High Yield Bond Fund will invest in a broad range of fixed income or debt securities which may or may not be listed and which may be denominated in any currency. The Sub-Fund will be actively managed with a focus on yield at an acceptable risk premium. There is no bias towards sovereign or corporate bonds. The emphasis is on the credit spread as the main source of incremental return. Our investment style is based on the credit fundamentals of the relevant company and the extent to which the pricing has been reflected in the credit in question. The Sub-Fund’s portfolio of investments will be reviewed regularly so as to enable the Sub-Fund to switch out of overvalued securities to undervalued securities.
A long-term view is taken when assessing an investment opportunity. At the same time, we recognise that Asian markets are subject to greater volatility than developed markets and may therefore require a greater level of trading than originally envisaged. Our policy is to have the Sub-Fund fully invested save where there is overwhelming evidence to suggest that the markets are excessively overvalued. The Sub-Fund may use or invest in FDIs for the purposes of hedging existing positions in a portfolio, for efficient portfolio management or a combination of both purposes.
Who is UOB Asset Management – United Asian High Yield Bond Fund suitable for?
UOB Asset Management – United Asian High Yield Bond Fund is only suitable for investors who:
- seek a total return consisting of high income and capital appreciation
- are looking for exposure to Asian high yield fixed income or debt securities
- are comfortable with the volatility and risk of a fund that invests in noninvestment grade and/or unrated Asian fixed income or debt securities
Dividend or Income payout frequency: Monthly or Accumulating
For additional assessments on product suitability, please obtain professional advice from a qualified Financial Adviser.
What are the key risks of UOB Asset Management – United Asian High Yield Bond Fund?
The value of UOB Asset Management – United Asian High Yield Bond Fund 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 UOB Asset Management – United Asian High Yield Bond Fund are described below:
Market and Credit Risks
- You are exposed to market risk in the Asian bond markets
Liquidity Risks
- The Sub-Fund is not listed and you can redeem only on Dealing Days
- You are exposed to liquidity risk in the Sub-Fund’s investments
Product-Specific Risks
- You are exposed to derivatives risk
- You are exposed to political risk
- You are exposed to foreign exchange and currency risk
- You are exposed to risk relating to distributions
- You are exposed to debt securities risk
- Other risks to your investment include small and medium capitalisation companies risk, regional risk, risk of use of rating agencies and other third parties, counterparty risk, broker risk and investment management risk
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 UOB Asset Management – United Asian High Yield Bond Fund
- UOB Asset Management – United Asian High Yield Bond Fund Fact Sheet (Open in New Window)
- UOB Asset Management – United Asian High Yield Bond Fund Product Highlight Sheet (Open in New Window)
- Speak to a licensed licensed financial adviser
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