RETAIL FUNDS | Cesar Tordesillas, Malaysia

OSK-UOB sees good market for new fund

OSK-UOB is confident that its Enhanced OSK-UOB Focus Bond Fund will provide stable and regular dividend income.

The fund, with an approved size of 120 million units of RM1 per unit, targets to exceed higher returns than three year fixed deposit rates by providing 3.5 per cent to 4.0 per cent returns.

A subsidiary of OSK Investment Bank Bhd, OSK-UOB said the new fund that adds to its well received Focus Bond Fund Series and that it is very similar to the other previously launched series of Focus Funds except for an added feature of its investment in a three-year over-the-counter call option.

"We see investment opportunities in the market in the fixed income space. Besides investing in global debt instruments/bonds that are able to offer attractive yields and or capital appreciation during the three-year tenure of the fund, it will also invest in an over-the-counter call option that will provide additional returns to the fund," said CEO Ho Seng Yee.

Ho said the option, designed to potentially provide annual coupon payments during its three-year tenure, is denominated in Singapore dollar and the fund would have 150 per cent participation rate in the option's annual returns.

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