Aims to provide investors with a smooth and sustainable level of income

Kuala Lumpur: CIMB-Principal Asset Management Berhad ("CIMB-Principal") today launched the CIMB-Principal Global Multi Asset Income Fund ("Fund"), a fund that aims to provide income and potential capital growth to investors by investing in multiple asset classes through one collective investment scheme.

Speaking at the launch, Munirah Khairuddin, Chief Executive Officer, CIMB-Principal said, "The launch of the CIMB-Principal Global Multi Asset Income Fund today is timely in this low interest rate environment where Malaysian fixed deposits offer yields of only 3.0-3.5%. This Fund seeks to offer a higher potential yield of 5.0% payable on a quarterly basis by investing primarily in high-yielding dividend stocks, investment grade credits and high-grade credits, globally. The Fund utilises a dynamic asset allocation strategy which provides the flexibility to maximise income and total return opportunities. Further, by investing in multiples asset classes, the Fund provides investors with the necessary diversification."

At the moment, the Fund sees positive momentum in US high-yield and European investment-grade bonds. Expectations that the European Central Bank will continue to be accommodative for a longer period of time augurs well for investment-grade bonds, whilst US high-yield bonds will benefit from the ongoing US recovery. The portfolio is also able to take advantage of any positive outlook in developed markets equity, mainly in the US and Europe, including the UK.

"We believe the unconstrained multi-asset approach in the Fund's asset allocation strategy allows the Fund to truly take a global view in its search for yield and to offer the best prospective income and total return opportunities," she added.

This Fund is ideal for those seeking exposure in global mixed assets which is structured via a target fund. In order to achieve its objective, the Fund will invest at least 95% of its Net Asset Value (NAV) in the Schroder International Selection Fund Global Multi-Asset Income (the "Target Fund"); a SICAV domiciled in Luxembourg and established on 18 April 2012. The Fund will also maintain up to a maximum of 5% of its NAV in liquid assets.

"Investing in a global multi-asset fund will provide investors with diversification and can ride on the recovery in the US and Europe regions. We are targeting to raise RM300 million for this Fund by the end of financial year 2014," stated Munirah, who recently collected a record eight awards at The Edge-Lipper Malaysia Fund Award 2014 on behalf of CIMB-Principal for the company's overall sterling funds' performance.

The Fund is available with a minimum subscription of RM10,000 priced at RM1.00 per unit. The Fund is available for investors to subscribe from 20 March 2014 and will be distributed by authorised distributors.

As of 28 February 2014, CIMB-Principal manages a total of 59 retail unit trust funds in which 21 are Shariah-compliant, 12 wholesale funds, 10 Private Retirement Scheme (PRS) funds and two exchange-traded funds (ETFs). CIMB-Principal is also one of the largest institutional money managers and CIMB-Principal's total assets under management (AUM) stood at RM48.0 billion, an increase of 19.7% from last year's AUM (RM39.65 billion).

Munirah Khairuddin, Chief Executive Officer, CIMB-Principal (left) and Arnold Lim, Chief Investment Officer (Malaysia), CIMB-Principal (right) officiating the launch of the CIMB-Principal Global Multi Asset Income Fund.


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