Tiger Brokers (Singapore), on Nov 3, launched its first fixed maturity plan in Singapore. The United Fixed Maturity Bond Fund 1 is a three-year investment-grade bond fund that will be managed by UOB Asset Management (UOBAM). The fund is also exclusively available on the Tiger Trade App.
With a primary focus on investments in Asia, the fund adopts a buy-and-hold strategy and will invest in short duration bonds with different tenures that closely match the tenure of the fund. Price stability is maintained by the fund’s focus on short duration with a primary investment strategy of holding the bonds to maturity to minimise mark-to-market risks.
The fund, which is designed to invest in a portfolio of bonds with a weighted average yield-to-maturity of up to 4.95% in order to achieve a semi-annual coupon distribution of 3.5%, is the first fixed maturity plan for Tiger Brokers (Singapore). The collaboration between both parties is also the first.
The fund will be denominated in Singapore dollars; the fund class available for investors is Class A SGD Dist (Hedged) with a minimum subscription of $1,000. No subscription or management fees will be charged.
The fund will be open for subscription on Nov 14. The subscription will close on Nov 28.
“We are delighted to be partnering with like-minded businesses, in this case, UOB Asset Management. Both our objectives in launching the fixed maturity fund have always been to bring maximum benefits to investors. By having zero subscription fees and zero management fees, essentially, we will not be profiting from this product. But it’s the overarching objective to bring value to our customers that drives both Tiger Brokers (Singapore) and UOB Asset Management to be doing this, because we know that in these times of uncertainty, our investors need some certainty in their portfolio,” says Henry Toh, chief financial officer (CFO) at Tiger Brokers (Singapore).
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Thio Boon Kiat, group CEO of UOBAM says, “We are proud to partner Tiger Brokers for our initial collaborative launch of this fixed maturity plan. This fund will help retail investors achieve financial stability with a regular flow of returns. In this volatile market, UOBAM aims to bring value to investors by offering investment solutions that are appropriate for the market environment. The investment portfolios will be optimised according to the changing market conditions by our experienced fund managers.”
