UOB Asset Management has made its United SGD fund available to investors in Brunei.
Available to all classes of investors, including high-net-worth individuals, the fund is distributed through Baiduri Bank’s wholly-owned entity Baiduri Capital in Brunei.
The fund is UOB’s first fund to be distributed via Baiduri Capital, a company spokesperson told Citywire Asia.
Incepted in 1998, the United SGD fund had about $1.54 billion in assets as of end-February.
So far, the fund has generated an annualised return of 3.27% before sales charge as of end-January 2018 versus its six-month Singapore Interbank Bid Rate benchmark of 1.25%.
In Singapore, the United SGD fund is distributed through UOB’s distributors, which include banks, independent financial advisors, and private banks.
On its decision to make this fund available in Brunei, UOB said both Singapore and Brunei share the same depository terms and almost the same fixed deposit rates.
The two countries share the same depository terms as there is a signed currency interchangeability agreement between the two countries.
The fund is available in both the US and Singapore dollar denominations. It maintains the Singapore dollar as its base currency, however, and hedges all exposure to foreign currencies.
The United SGD fund invests in investment grade bonds with different maturity dates across a three-year timeframe, as well as various bond securities covering a diverse geographical footprint and multiple sectors.