Tag Archives: Monthly payout

NTUC Income has launched a new fund, Asian Bond Fund that intends to dis­trib­ute monthly dividend pay­out of 4.5%-5.5% per annum.

The Asian Bond Fund aims to provide a medium to long-term rate of return by invest­ing mainly in Asian Fixed Income Secur­it­ies. The sub-fund is inves­ted in the Black­Rock Global Funds– Asian Tiger Bond Fund A6 SGD Hedged Share Class (the under­ly­ing fund).

The under­ly­ing fund will invest at least 70% of its total assets in the fixed income trans­fer­able secur­it­ies of issuers dom­i­ciled in, or exer­cising the pre­dom­in­ant part of their eco­nomic activ­ity in, Asian Tiger coun­tries (i.e. South Korea, the People’s Repub­lic of China, Taiwan, Hong Kong, the Phil­ip­pines, Thai­l­and, Malay­sia, Singa­pore, Viet­nam, Cam­bodia, Laos, Myan­mar, Indone­sia, Macau, India and Pakistan). The under­ly­ing fund may also invest in the full spec­trum of avail­able secur­it­ies, includ­ing non-investment grade. It may use fin­an­cial deriv­at­ive instru­ments for effi­cient port­fo­lio man­age­ment or to hedge mar­ket, interest rate and cur­rency risk.

The sub-fund offers a monthly pay­out fea­ture and intends to provide a monthly dis­tri­bu­tion with effect from 27 May 2016. The Man­ager intends to pay the dis­tri­bu­tion within 45 days from the declar­a­tion date. The declar­a­tion date is set on the 3rd last busi­ness day of every month. The declar­a­tion date is sub­ject to review and the Man­ager has the sole dis­cre­tion to determ­ine the rate and fre­quency of the dis­tri­bu­tion. Dis­tri­bu­tions are not guar­an­teed and can be made out of income, cap­ital gains, and/or cap­ital of the sub-fund.

More import­antly, NTUC Income will guar­an­tee 105% of the invest­ment amount or cash value, whichever is higher, in the event of untimely death or Total Per­man­ent Dis­ab­il­ity (TPD before age 70) before age 65. After age 65, it is 100% of the invest­ment amount or cash value, whichever is higher, in the event of untimely death. This is on top of the monthly with­drawal of the dividends over the years.

The min­imum single premium to invest is $10,000.

Fund Man­ager: NTUC Income

Sub-Investment Man­ager: Black­Rock (Lux­em­bourg) S.A.

Ini­tial Sales Charge: 3% (For single premium and top-up)

Annual Man­age­ment Fee: 1% p.a.

Annual Policy Fee from 2^nd year onwards: $50, waive if invest­ment amount is $25,000 and above.

For example, below is the hypo­thet­ical illus­tra­tion of how the dividend will be calculated.

Invest­ment	$100,000
Offer Price	$1
Num­ber of units	$100,000/$1 = 100,000
Dividend Rate	$0.004053 per unit
Dividend pay­able	100,000*0.004053 = $405.30

Sub­scrip­tion Method: Cash/SRS

Asian Bond Fund Factsheet is here at http://www.income.com.sg/fund/pdf/2016/asianbond(may).pdf

Asian Bond Fund Product High­light Sheet is here at http://www.income.com.sg/fund/phs/2016/asianbond(dec).pdf