TMB’s Launch of TMB-ES-GSBOND Fund Hits New Subscription Record With ACE Strategy Applied

TMB’s Launch of TMB-ES-GSBOND Fund Hits New Subscription Record With ACE Strategy Applied

the Fund is Expected to Provide High Yield, Low Volatility and Well-Risk Control

TMB Bank Plc’s newly launched TMB Eastspring Global Smart Bond (TMB-ES-GSBOND) received an overwhelming response from investors, booking a record high of THB4.2 billion worth of subscription. With ACE strategy, the fund relatively provides high yield, low volatility and well-risk control. The fund is suitable for investors looking for low risk investment products, which yield higher return than interest from savings. 

Mrs. Kidakarn Chudsuwan, Head of Mutual Funds Products, TMB Bank Plc, said the market outlook has been improved, thanks to the US-China phase 1 trade deal and positive sign from Brexit. However, 2020 investment sentiment is still subdued by several factors, including global economic slowdown, trade war and political tensions in several countries. As a result, market fluctuation remains amid the low interest rate environment. To yield higher return, investment diversification in diversified asset classes is recommended. With this view, TMB Bank, together with TMB Eastspring, have launched TMB Eastspring Global Smart Bond (TMB-ES-GSBOND) to serve customers’ need. The response was overwhelmed with THB6 billion worth of subscription during the IPO offered between 13-21 January. Among this amount, TMB, the lead manager, booked THB4.2 billion worth of subscription. The amount is the record high offered by TMB Bank and TMB Eastspring. 

TMB Eastspring Global Smart Bond is a foreign fixed income fund, which mainly invests in JPMorgan Funds-Income Fund (Master fund), Class C. The fund is offered to institutional investors with no dividend policy. The Master fund has a policy to invest in various types of debt securities issued by governments and corporate debt securities worldwide. Invested in USD currency, the fund is listed on the Luxembourg Stock Exchange and managed by JP Morgan Asset Management (Europe) S.a.r.l.

“This IPO offer is very successful because the interest rate remains low. Investors look for investment products that can give higher return than interest from savings while risk-control is intact. This fund meets this demand as it’s managed under the three principles called ACE. 

A stands for ATTRACTIVE INCOME OPPORTUNITIES. Currently, the fund’s yield to maturity is at 5%. C stands for CONTROLLED RISK. The fund has invested in diverse fixed income securities. Over the past three years, the fund’s volatility remains low at 2.2%. Lastly, E stands for Effective Downside Protection. Over the past three years, the lowest return of this fund was recorded at -1.0%,” said Mrs. Kidakarn. 

Mrs. Kidakarn added that “fixed income tools are likely to remain attractive this year although the yield may not be as much as that earned in the previous year. Amid the low interest rate environment, fixed income securities stand a good chance to yield higher returns as well as mitigating volatility for investment portfolio. This fund has a good track record. Since inception on 10 December 2015, the return on average is at 6.6% per annum. Over the past year, the return was at 11.77% because of its active management policy and its agility and optimisation applied to tackle changes in market condition. More importantly, the fund has been rated 5 stars by Morningstar.” 

This fund is recommended for investors, who would like to diversify their investment overseas. It’s a long-term investment type that requires investors to accept risks from investing in global fixed-income securities, foreign exchange rate and fluctuation of net asset value change of the Master fund. This fund is not recommended for short-term investors nor investors, who cannot accept the volatility of investment capital and volatility of short-term and long-term return.

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