United SGD Fund

  • United SGD FundUnited SGD Fund

The United SGD Fund is designed to step up your income opportunities with a focus on yield and stability.

About United SGD Fund

The United SGD Fund (the “Fund”) is the flagship fixed income fund from UOB Asset Management Ltd (UOBAM), with a fund size of about S$2.47 billion (Source: UOBAM as of 31 March 2022). It has a strong track record of 23 years and is one of the most popular fixed income funds in Singapore with its low-risk profile offering stable returns to investors.

 

 

United SGD Fund is ESG enhanced

United SGD Fund is ESG enhanced

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What you need to know

What you need to know

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Fun facts

Investors are looking to see how they can do their part for the environment, while generating investment returns. The fund adopts UOBAM's sustainable investment framework.

UOBAM has defined a list of metrics for monitoring the Environmental, Social and Governance (ESG) performance of portfolio companies and this is incorporated into our ESG evaluation process. Below is an overview of how ESG is incorporated into the investment process.

 

Source: UOBAM

 

What does the Fund invest in?

The Fund aims to offer a regular, fixed income payout for investors by investing in global short term, high quality investment grade bonds, with the aim of providing a better yield than Singapore dollar deposits.

 

 

What is the dividend payout?

Class A (Dist)
The current distribution policy is to make regular quarterly distributions of 2.0% p.a.*

Class S (Dist)
The current distribution policy is to make monthly distributions of at least 2.5% p.a.*

*Distributions (in SGD) are not guaranteed. Distributions may be made out of income, capital gains and/or capital. This relates to the disclosed distribution policy as set out in the Fund’s prospectus.

 

Why Invest

Why United SGD Fund?

Enhanced returns over Singapore dollar deposits

In spite of changing market conditions, the Fund aims to achieve yield enhancement over Singapore dollar deposits with a long-term view to preserve capital by mainly buying into investment-grade bonds. The Fund targets a weighted average yield-to-maturity of 4.0% (in SGD terms, as at 31 March 2022).

Focuses on a short duration

The Fund is a global short duration investment-grade bond fund focusing on investments in Asia. Price stability is maintained by the Fund’s focus on short duration. As such, the effective holding duration is 1.53 years (as at 31 March 2022).

Positioned to cope in different market environments

Interest rates fluctuate over time, making it difficult for traditional fixed income funds to deliver consistent returns. To overcome this challenge and smoothen out the impact of fluctuating interest rates, the United SGD Fund utilises a laddered investment strategy. The Fund invests in investment grade bonds with different maturity dates across a three-year timeframe. This way, investment maturities of bonds are spread across one-year, two-year and three-year time frames to enhance the overall return. This strategy works both in environments of rising or falling interest rates.

In an environment of rising interest rates, the capital from matured bonds in the Fund will be reinvested into higher-yielding, shorter-dated bonds. Bonds that mature in the current year will be reinvested at the higher interest rate. Through this, the Fund aims to ride the momentum of rising interest rates for the purposes of enhancing total return for investors.

In an environment of lower interest rates, the capital stays invested in longer maturity bonds and continues to earn higher yields.

 

Proven track record of investment excellence for over 23 years

The Fund has demonstrated resilience and consistent performance since its inception in Jun 1998, with an average return of 2.93% per annum (as at 31 March 2022). Additionally, the Fund has provided enhanced returns over Singapore dollar deposits by investing in undervalued bonds with attractive yield pick-up over fixed deposit rates (in reference to the Fund’s benchmark), as illustrated in the table below.

*Source: UOB Global Markets and Investment Management, as at 31 March 2022. Benchmark used from 19 June 1998 to 2 May 2021 refers to the 6-month Singapore Interbank Bid (SIBID) Rate. Benchmark used from 3 May 2021 to present refers to 12M Bank Deposit Rate. Please refer to www.uobam.com.sg/web-resources/uobam/pdf/uobam/common/benchmark-updates-notice-08-mar-2022.pdf for more information.
**The table is for illustration purposes only. It is calculated based on the assumption of S$100,000 invested in the Fund at a net asset value of S$1 per unit in the Fund on the inception date on 19 June 1998 and staying invested till 31 December 2021, with dividends and distributions reinvested, if any. Past performance is not indicative of future performance.

 

Quality and stability

Protect the downside in midst of market instability

The Fund has thrived over market cycles with its strategy of investing into short-term, high-quality investment-grade bonds and focus on mitigating credit risk.

The Fund seeks to provide capital preservation, and buffers against market instability with lower drawdowns compared to peer asset classes during market instability.

 

Award-winning expertise

Protect the downside in midst of market instability

The Fund has clinched over 20 awards1. The portfolio manager, Joyce Tan, Senior Director and Head of Fixed Income Asia/Singapore at UOBAM has 14 years of expertise in managing the Fund, and has received 15 individual awards including ‘Manager of the Year for Asia Fixed Income’ at the 2021 BENCHMARK Fund of the Year Awards.

More Information

Fund Name United SGD Fund
Investment Objective 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.
Fund Classes Available2 Class A (Acc) SGD; Class A (Dist) SGD
Class A (Acc) USD (Hedged); Class A (Dist) USD (Hedged)
Class S (Dist) SGD
Class S (Dist) USD (Hedged)
Subscription Mode Cash – SGD and USD
SRS – SGD
CPF-OA and CPF-SA – Class A (Acc) SGD
Minimum Subscription3 S$1,000/US$1,000 (initial)
S$500/US$500 (subsequent)
Subscription Fee Currently up to 2%; maximum 5%;
Currently none, maximum none (CPF Units)
Management Fee Currently 0.63% p.a., maximum 1.5% p.a.
Dealing Frequency & Deadline3 Generally every business day, on a forward pricing basis up till 3pm (Singapore time)
Distribution Policy4 Class A (Dist)
The current distribution policy is to make regular quarterly distributions of 2.0% p.a.*

Class S (Dist)
The current distribution policy is to make monthly distributions of at least 2.5% p.a.*

*Distributions (in SGD) are not guaranteed. Distributions may be made out of income, capital gains and/or capital. This relates to the disclosed distribution policy as set out in the Fund’s prospectus.

 

Notes:
1 Past performance is not necessarily indicative of future performance. Refer to www.uobam.com.sg/about-us/awards.page for a full list of UOBAM awards won by the United SGD Fund and by portfolio manager, Joyce Tan.
2 Investors should refer to the Fund’s prospectus for more details on the different classes available.
3 Please check with the distributor or refer to the Fund’s prospectus for more details.
4 Distributions will be made in respect of the Distribution Classes of the Fund. Distributions are based on the NAV per unit of the relevant Distribution Class as at the last business day of the calendar quarter or month. The making of distributions is at the absolute discretion of UOBAM and that distributions are not guaranteed. The making of any distribution shall not be taken to imply that further distributions will be made. UOBAM reserves the right to vary the frequency and/or amount of distributions. Distributions from a fund may be made out of income and/or capital gains and (if income and/or capital gains are insufficient) out of capital. Investors should also note that the declaration and/or payment of distributions (whether out of income, capital gains, capital or otherwise) may have the effect of lowering the net asset value (NAV) of the relevant fund. Moreover, distributions out of capital may amount to a reduction of part of your original investment and may result in reduced future returns. Please refer to the Fund's prospectus for more information.

Fund Prospectus

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Fund Factsheet

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Fund commentaries

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How to Purchase

Investing for Individuals

Investing for Individuals

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Investing for Businesses and Institutions

Investing for Businesses and Institutions

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This document is for general information only. It does not constitute an offer or solicitation to deal in units in the Fund (“Units”) or investment advice or recommendation and was prepared without regard to the specific objectives, financial situation or needs of any particular person who may receive it. The information is based on certain assumptions, information and conditions available as at the date of this document and may be subject to change at any time without notice. No representation or promise as to the performance of the Fund or the return on your investment is made. Past performance of the Fund or UOB Asset Management Ltd (“UOBAM”) and any past performance, prediction, projection or forecast of the economic trends or securities market are not necessarily indicative of the future or likely performance of the Fund or UOBAM. The value of Units and the income from them, if any, may fall as well as rise. Investments in Units involve risks, including the possible loss of the principal amount invested, and are not obligations of, deposits in, or guaranteed or insured by United Overseas Bank Limited (“UOB”), UOBAM, or any of their subsidiary, associate or affiliate (“UOB Group”) or distributors of the Fund. The Fund may use or invest in financial derivative instruments and you should be aware of the risks associated with investments in financial derivative instruments which are described in the Fund's prospectus. The UOB Group may have interests in the Units and may also perform or seek to perform brokering and other investment or securities-related services for the Fund. Investors should read the Fund’s prospectus, which is available and may be obtained from UOBAM or any of its appointed agents or distributors, before investing. You may wish to seek advice from a financial adviser before making a commitment to invest in any Units, and in the event that you choose not to do so, you should consider carefully whether the Fund is suitable for you. Applications for Units must be made on the application forms accompanying the Fund’s prospectus. This advertisement has not been reviewed by the Monetary Authority of Singapore.