UOB Asset Management – United SGD Fund

UOB Asset Management – United SGD Fund Review

Fund objective

UOB Asset Management – United SGD Fund aims to invest substantially all its assets in money market and short term interest bearing debt instruments and bank deposits with the objective of achieving a yield enhancement over Singapore dollar deposits.

Investment Strategy

UOB Asset Management – United SGD Fund seeks to achieve the investment objective of the Sub-Fund by investing substantially all the assets of the Sub-Fund in money market and short-term interest bearing debt instruments and bank deposits. Our research process is fundamental and valuation driven, and bottom-up in approach. For Singapore, Asia and emerging markets, our team of credit analysts conducts a detailed credit analysis that evaluates industry outlook, business review, financial review, management expertise, strength of ownership and specific debt structure.

This results in an implied rating score. Relative valuation will determine corporate credit selection. For rated issuers, mainly US/Europe high-grade issuers, to supplement the fundamental analysis by their G10 credit team, we have implemented a quantitative credit risk approach based from the KMV model. This model uses the Merton option framework to calculate the implied asset volatility or the Expected Default Frequency (EDF) of any corporate bond issue. Other inputs include an asset correlation database, which is generated from a proprietary risk management system. Together, the model will calculate the return-expected loss trade off for any corporate bond issue. The Sub-Fund may use or invest in FDIs for the purposes of hedging existing positions in a portfolio, for efficient portfolio management or a combination of both purposes.

Who is UOB Asset Management – United SGD Fund suitable for?

UOB Asset Management – United SGD Fund is only suitable for investors who:

• seek to achieve a yield enhancement over Singapore dollar deposits
• are comfortable with the volatility and risks of a bond fund which invests in money market and short-term interest bearing debt instruments and bank deposits

Dividend or Income payout frequency: Monthly or Accumulating

For additional assessments on product suitability, please obtain professional advice from a qualified Financial Adviser.

What are the key risks of UOB Asset Management – United SGD Fund?

The value of UOB Asset Management – United SGD Fund and its dividends and coupons (if any) may rise or fall. You may lose some or all of your investment depending on the performance of the underlying securities. Factors that may affect the performance of these securities include, without limitation, market risks, fluctuations in interest rates and foreign exchange rates, political instability, exchange controls, changes in taxation and foreign investment policies.

Some of the key risks associated with UOB Asset Management – United SGD Fund are described below:

Market and Credit Risks

• You are exposed to the market risk in the global markets where the Sub-Fund invests
• You are exposed to credit and default risks

Liquidity Risks

• The Sub-Fund is not listed and you can redeem only on Dealing Days
• You are exposed to liquidity risk in the Sub-Fund’s investments

Product-Specific Risks

• You are exposed to interest rate risk
• You are exposed to derivatives risks
• You are exposed to foreign exchange and currency risk
• You are exposed to risk relating to distributions
• Other risks to your investment include single country, sector or region risk, counterparty risk, broker risk, debt securities risk, exceptional market conditions, actions of institutional investors and investment management risk

Investment Fees and Charges

For a limited time (Until 31 Dec 2023), speak to a MAS licensed licensed financial adviser which has committed to offering our readers a flat 1% Subscription fee (Initial Sale Charge) for all Unit Trust Funds investment.

Learn more about the limited time offer on 1% Initial Sales Charge. Terms and conditions may apply.

Where can I get more details about UOB Asset Management – United SGD Fund

• UOB Asset Management – United SGD Fund Fact Sheet (Open in New Window)
• UOB Asset Management – United SGD Fund Product Highlight Sheet (Open in New Window)
• Speak to a licensed licensed financial adviser

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