To The Moon

$UNITED FIXED MATURITY BOND FUND 1 "A" (SGDHDG) INC(SGXZ80611742)$

The United Fixed Maturity Bond Fund 1 was launched last November amid rising demand for income paying products.

Offered in collaboration with Tiger Brokers (Singapore) as a three-year fixed maturity solution, the Fund sought to leverage the high interest rate environment and provide regular income, based on annual dividends of 3.50 percent1 paid out every six months.

In June 2023, the Fund will be making its first dividend payment. If you had invested S$100,000 in the Fund at launch, you are set to receive approximately S$1,750 (1).

Over the entire three-year investment period, you are set to receive an estimated amount of S$10,500 in total dividends (1).

Would you like to further capitalise on current high interest rates?

Given its limited tranche, the United Fixed Maturity Bond Fund 1 is no longer accepting new subscriptions after its limited time offering. However, it is worth noting that interest rates continue to stay high.

While interest rates and inflation appear to have peaked, there are no signs as yet that global central banks are ready to start cutting rates. In fact, inflation is proving stickier than many analysts had anticipated.

According to latest data, Singapore’s core inflation rose 5 percent year-on-year in April 2023. This reading was higher than expected and is unlikely to ease anytime soon, given resilient consumer demand and Singapore’s tight labour market.

Given this high and persistent inflation, it is even more important for individuals to supplement their salaries with regular investment income. As such, aside from the United Fixed Maturity Bond Fund 1, you may want to add one or more short term bond funds to your income portfolio.

Other income solutions offered by UOB Asset Management

$UNITED SGD MONEY MARKET "D" (SGD) ACC(SGXZ19187566)$

$UNITED SGD "A" (SGD) ACC(SG9999001382)$

$UNITED SGD "A" (SGD) INC(SG9999010805)$

Similar to the United Fixed Maturity Bond Fund 1, the United SGD Fund and United SGD Money Market Fund are considered low risk investments and may be suitable for conservative investors. They invest in high-quality, short-term investment-grade bonds, which tend to offer stable and resilient returns. Historically, the default rate of investment-grade bonds has been less than 1 percent (2).

In addition, there is no lock in period for these Funds, thereby offering greater flexibility for investors who need ready access to their money.

Here is quick comparison of the features of all three funds:

Please see the United SGD Fund  and the United SGD Money Market Fund page for more details, important notes and disclaimers.

(1) Based on a distribution rate of 3.5% 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. Actual amount could vary.

(2) Source: S&P Global Ratings Research and S&P Global Market Intelligence data from 1981 to 2021, 31 March 2023

Important Notice & Disclaimers

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 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. The Managers reserve 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 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 return of part of your original investment and may result in reduced future returns. Please refer to the Fund’s prospectus for more information. 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 or publication has not been reviewed by the Monetary Authority of Singapore. UOB Asset Management Ltd. Company Reg. No. 198600120Z