The fund is targeted at individuals who prefer a continuous income stream and those who have an appetite for a higher risk investment strategy.
“The fund’s launch is timely, as earnings for Asian companies are expected to recover strongly as Covid-19 vaccinations become more widely available, coupled with the low interest rate environment which will drive appetite for dividend income,” she said. The fund aims to pay dividends on a semi-annual basis, generated from any potential dividend paid by the underlying companies invested by the target fund.
At least 95% of the funds will be invested in an approved Asia Pacific ex Japan equity fund and the remainder in cash and fixed deposits. “We have identified a suitable fund solution that satisfies our criteria to meet the demand,” she said.