Eastspring Investments says its first retail fixed maturity fund in Singapore drew almost S$115 million (US$84.67 million), and its fixed maturity products in Asia have now raised around $1.5 billion since the firm was established in 1994.
According to Xavier Meyer, the company’s head of distribution, the sum raised for the new Eastspring Investments Unit Trust – Fixed Income Plan Series 2 shows investor confidence in “our team’s expertise, track record and ability to customise compelling investment solutions that cater to their needs”.
“The success of our first retail fixed maturity product launch in Singapore is underpinned by strong investor demand for unique products that offer regular pay out over a fixed term,” he says in a statement on November 5.
A fixed maturity fund typically invests in bonds that mature in a specific year, and generally seeks to hold the securities until they mature.
Mr. Meyer says risk management is key in designing these products, especially when they are targeted at retail investors.
“We spent a considerable amount of time working on the portfolio specifications to ensure diversification not just across regions, but also countries and sectors,” he says. “As part of our risk management process, our portfolio managers also established additional country, sector and issuer limits to help deliver the fund’s investment objective.”
Eastspring Investments, the Asian asset management arm of UK insurer Prudential plc, had $216 billion of assets under management as of end-June 2019.