KUALA LUMPUR, Aug 24 – Eastspring Investments Berhad today announced the gross income distribution for Eastspring Investments Target Income Fund 6 (“Fund”):
|Fund Name||Financial Year End||Gross Distribution (RM/Unit)||Dividend Yield as at 10 August 2018||Type of Distribution|
|Eastspring Investments Target Income Fund 6||31 May||0.0206||2.00%||Annual|
All unit holders who have maintained their unit holdings in the Fund as at 23 August 2018 will be entitled to the income distribution.
This 5 year closed-ended bond fund is the sixth in a series of target income funds. This distribution is consistent with the Fund’s objective which endeavours to provide regular income during the tenure of the Fund.
Market Outlook from the External Investment Manager, Eastspring Investments (Singapore) Limited
Over the month of July, Asian USD-denominated bonds delivered a positive return, with the representative JPMorgan Asia Credit Index posting a 0.78% return (in USD terms) over the month. Returns were driven by a narrowing of spreads, although this was partially offset by negative Treasury return effects as US Treasury yields rose over the month. Asian non-investment grade outperformed, as high yield credit spreads narrowed more than their investment-grade counterparts.
July saw a rise in both long-end and short-end US Treasury (UST) yields, with the 2-year and 10-year UST yields gaining 14 bps and 10 bps (to 2.67% and 2.96% respectively).
This came on the back of a strong “advance” estimate for 2Q 18 US GDP, indicating that the US economy grew by a better-than-expected 4.1% (annualised) rate in the quarter, with strength in consumption, non-residential fixed investment and exports even in the face of the ongoing trade spat.
This resilience in growth has continued to fuel expectations of continued monetary policy normalisation by the Federal Reserve, pressuring rates higher in July. After months of weakness, risk appetite for Asian credit rebounded in July, with marked credit spread narrowing accompanied by a reversal of the prior trend of investor outflows from Emerging Market assets.
This stabilisation in Asian credit markets was aided by the diminished uncertainties surrounding Sino-US trade tariffs, while in China, policy language appeared to take a more dovish turn following the recent State Council Meeting (in late-July).
In Pakistan, sovereign bonds rallied even before a controversial election campaign came to a close, driving outperformance for non-investment grade Asian sovereign bonds over the month.
With a more sizable narrowing of credit spreads coupled with marginally-higher UST rates over the month (which had a negative impact on the more rate-sensitive long-dated high investment grade bond segment), non-investment grade Asian bonds handily outperformed their investment-grade counterparts in July.
Within the investment-grade segment, sovereigns outperformed corporates, led by a strong performance from Indonesia sovereign bonds. High yield sovereign bonds were a notable outperformer, led by a strength in Pakistan, Sri Lanka and Mongolia.
 Income declared will be paid out either by way of E-payment according to unit holders’ instructions in the account opening form or by cheque.
ABOUT EASTSPRING INVESTMENTS
Eastspring Investments is a leading asset manager in Asia that manages over USD182 billion assets on behalf of institutional and retail clients as at 30 June 2018. Operating in Asia since 1994 in 10 major markets plus offices in North America and Europe. Eastspring Investments is the Asian asset management business of Prudential plc, one of the world’s largest financial services companies.
ABOUT EASTSPRING INVESTMENTS BERHAD
Established in 2000 and based in Kuala Lumpur, Eastspring Investments Berhad is one of the leading asset management companies in Malaysia in both institutional and retail, with over RM37.6 billion in assets under management in the country as at 30 June 2018. It manages unit trust funds, wholesale funds as well as private mandates.
Source: Eastspring Investments Berhad
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