Eastspring launches Global Balanced Target Return Fund

KUALA LUMPUR (May 19): Asia's leading asset manager, Eastspring Investments Bhd (Eastspring) has launched the Eastspring Investments Global Balanced Target Return Fund, a new fund strategy which invests in a diversified portfolio of local and foreign Collective Investment Schemes (CIS) with exposure to different asset classes including equities and fixed income securities.

In a statement, the company said the fund would invest in at least five CIS or funds at all times, providing investors with greater diversification by investing in a broad portfolio with access to different asset classes and geographical regions.

"Investors have seen how global markets can drop significantly due to a multitude of shocks, ranging from oil prices, trade wars, political instability, and the recent Covid-19 pandemic.

"In these volatile conditions, each asset class behaves differently, with some asset classes viewed as safe havens, while others have attractive value.

“As such, a dynamic portfolio with access to different asset classes in global markets, provides diversification with the opportunity for long-term growth," said chief sales and marketing officer Yap Siok Hoon.

On global market outlook, Eastspring chief investment officer of multi assets Rudie Chan said the company believed that there would be a deep, global synchronised recession not seen since the 1930s.

“While the debate right now is about whether we get a V or a U-shaped recovery, we see a recovery in the next two quarters. Market volatility will remain high in the short term, hence investors will need to be cautious.

"As global monetary easing continues, we believe the best way to play this is to stay invested in fixed income. The selldown in equity markets has basically led to very attractive valuations in emerging markets and some markets in the Asia Pacific,” said Chan.

He added that the Covid-19 infections would taper off eventually, especially when there is news of a vaccine, which would lead to investors’ appetite for riskier assets like equities further.

The fund's 21-day initial offer period commences today and will end on June 7, 2020.

Investors can purchase units of the fund with a minimum lump sum investment of RM1,000 at 50 sen per unit.  Applications for units can be made via authorised unit trust consultants and distributing banks.