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INVESTMENT BANKING | Staff Reporter, Singapore

OCBC and LionGlobal to launch new unit trust

The LionGlobal New Target Return Fund has an investment time frame of five years.

Oversea-Chinese Banking Corporation Limited and Lion Global Investors announced today the launch of a new unit trust – the LionGlobal New Target Return Fund. Over the years, unit trust investors have expressed concerns over the returns on their investment, how the fund is managed, and the vulnerability of their investments in times of market volatility.

In a recent market research conducted by OCBC Bank on 300 respondents, unit trusts were part of the investment portfolio for most investors. However, research findings also showed that those who did not invest in unit trusts found it to be a complex and risky investment instrument. Those who invested in unit trusts indicated that the performance of their funds did not meet expectations.

The majority of respondents felt that while unit trusts remained a good investment instrument, a lot more could be done to make the fund simple to understand and transparent in how returns are achieved. Such transparency will help to manage investors’ expectations of returns, especially in uncertain times.

To address these concerns, OCBC Bank and its subsidiary, Lion GlobaI Investors, collaborated to create the LionGlobal New Target Return Fund – a fund with enhanced features that allows investors to participate in the current volatile market.

Commenting on the current market condition, Mr Simon Flood, Chief Investment Officer of Lion Global Investors, said: “The macro environment has changed drastically in the past few years, characterised by the deleveraging of western economies, a slowdown in global growth and heightened level of risk and uncertainty. The new investment realities of the current environment undermine the ability of those who wish to generate a consistent level of returns from their savings.”

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