TRADE FINANCE | Tony Chua, Singapore

OCBC and Lion Global ink deal to launch new unit trust

The trust intends to provide positive returns and has an investment time frame of five years.

Oversea-Chinese Banking Corporation Limited (OCBC) and Lion Global Investors on Thursday announced the launch of the LionGlobal New Target Return Fund, a new unit trust.

Suitable for investors with a 'moderate risk appetite', the new unit trust aims to deliver potential positive returns and has an investment time frame of five years.

The fund however, does not have a lock-in period. Investors are able to sell the fund any time, subject to a redemption charge.

In addition, at the discretion of the fund manager, if the cumulative net total return of 17.5 per cent is met in less than five years, the fund manager may sell off the investments in the fund, and return the profits and principal sums to the investors.

OCBC said that the fund will invest 'at least 65 per cent into a stable core of carefully selected investment grade bonds', 20 per cent in high yield bond funds and 15 per cent in a dividend paying equity fund.

'Investors may receive dividends of up to half of any net positive return every year,' said OCBC in a statement.

View the full story in Business Times.

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