UOB bank
The United SGD Fund (the “Fund”) aims to deliver stable and regular returns1, with a fund size of over S$1.70 billion as of 30 June 2024. It has a strong track record of over 25 years and is one of the most popular fixed income funds in Singapore with its low-risk profile offering stable returns to investors.
Why United SGD Fund?
Enhanced returns over Singapore dollar deposits
In spite of changing market conditions, the Fund aims to achieve yield enhancement over Singapore dollar deposits with a long-term view to preserve capital by mainly buying into investment-grade bonds. The Fund targets a weighted average yield-to-maturity of 4.69% p.a. (in SGD terms, as of 30 June 2024).
Focuses on a short duration
The Fund is a global short duration investment-grade bond fund focusing on investments in Asia. Price stability is maintained by the Fund’s focus on short duration. As such, the effective holding duration is 1.28 years (as of 30 June 2024).
Positioned to cope in different market environments
Interest rates fluctuate over time, making it difficult for traditional fixed income funds to deliver consistent returns. To overcome this challenge and smoothen out the impact of fluctuating interest rates, the United SGD Fund utilises a laddered investment strategy. The Fund invests in investment grade bonds with different maturity dates across a three-year timeframe. This way, investment maturities of bonds are spread across one-year, two-year and three-year time frames to enhance the overall return. This strategy works both in environments of rising or falling interest rates.
In an environment of rising interest rates, the capital from matured bonds in the Fund will be reinvested into higher-yielding, shorter-dated bonds. Bonds that mature in the current year will be reinvested at the higher interest rate. Through this, the Fund aims to ride the momentum of rising interest rates for the purposes of enhancing total return for investors.
In an environment of lower interest rates, the capital stays invested in longer maturity bonds and continues to earn higher yields.
Proven track record of investment excellence for over 25 years
The Fund has demonstrated resilience and consistent performance since its inception in Jun 1998, with an average return of 2.90% per annum (as of 30 June 2024). Additionally, the Fund has provided enhanced returns over Singapore dollar deposits by investing in undervalued bonds with attractive yield pick-up over fixed deposit rates (in reference to the Fund’s benchmark), as illustrated in the table below.
Source: Morningstar, as of end 2023. Past performance is not necessarily indicative of future performance. Performance is net of fees and is based on United SGD Fund Class A SGD Acc, in SGD terms, on a net asset value (NAV) basis, with dividends and distributions reinvested, if any.
Quality and stability
Protect the downside in midst of market instability
The Fund has thrived over market cycles with its strategy of investing into short-term, high-quality investment-grade bonds and focus on mitigating credit risk.
Source: Morningstar, as of 30 June 2024. Past performance is not necessarily indicative of future performance. Performance is net of fees and is based on United SGD Fund Class A SGD Acc, in SGD terms, on a NAV basis, with dividends and distributions reinvested, if any.
The Fund seeks to provide capital preservation, and buffers against market instability with lower drawdowns compared to peer asset classes during market instability.
Source: Morningstar, as of 30 June 2024, SGD terms. Performance is based on United SGD Fund Class A SGD Acc portfolio, on a NAV basis, with dividends reinvested if any.
Award-winning expertise
The Fund has clinched 15 awards4. The portfolio manager, Joyce Tan, CFA, Head of Fixed Income Asia & Singapore at UOBAM has over 25 years of investment experience, over 15 years of expertise in managing the Fund, and has received multiple industry awards. Notably in 2022, she received the Highly Commended Award for the Most Astute Investor in Asian local currency bonds by The Asset Benchmark Awards. This marks her 7th Most Astute Investor recognition since 2011 for this category.
In 2023, the Fund won the Outstanding Achiever and Best-in-Class awards for Singapore Fixed Income at the Benchmark Fund of the Year Awards 2022 and 2023, respectively.
ESG enhanced
Investors are looking to see how they can do their part for the environment, while generating investment returns. The Fund adopts UOBAM's sustainable investment framework.
UOBAM has defined a list of metrics for monitoring the Environmental, Social and Governance (ESG) performance of portfolio companies and this is incorporated into our ESG evaluation process. Below is an overview of how ESG is incorporated into the investment process.
Source: UOBAM
Source: Morningstar, as of 30 June 2024.
| Fund Name | United SGD Fund |
| Investment Objective | To invest substantially all its assets in money market and short-term interest-bearing debt instruments and bank deposits with the objective of achieving a yield enhancement over Singapore dollar deposits. |
| Fund Classes Available5 | Class A SGD Acc; Class A SGD Dist Class A USD Acc (Hedged); Class A USD Dist (Hedged) Class B SGD Acc Class S SGD Dist; Class S USD Dist (Hedged) |
| Subscription Mode6 | SGD classes: Cash and SRS USD classes: Cash Class A SGD Acc: CPF-OA and CPF-SA |
| Minimum Subscription6 | Class A/S: S$1000/US$1000 (initial); S$500/US$500 (subsequent) Class B: S$500,000 (initial); S$100,000 (subsequent) |
| Subscription Fee6 | Currently up to 2%; maximum 5% CPF units: Currently none; maximum none |
| Management Fee6 | Class B: Currently 0.33% p.a .; maximum 1.5% p.a All other Classes: Currently 0.63% p.a.; Maximum 1.5% p.a. |
| Fund Classification for Retail Investors | Units of the Fund are Excluded Investments Products (EIP). |
| Dealing Frequency & Deadline6 | Generally every business day, on a forward pricing basis up till 3pm (Singapore time). |
| Distribution Policy (for Dist classes) | Class A SGD Dist The current distribution policy is to make monthly distributions of up to 4.0% p.a.* Class A USD Dist (Hedged) and Class S (Dist) The current distribution policy is to make monthly distributions of up to 5.0% 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. |
1 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 calendar quarter or 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 . UOBAM reserves 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 income, capital gains, 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 reduction of part of your original investment and may result in reduced future returns. Please refer to uobam.com.sg and Fund's prospectus for more information.
2 Source: UOB Global Markets and Investment Management, as of 30 June 2024. Benchmark used from 19 June 1998 to 2 May 2021 refers to the 6 month Singapore Interbank Bid (SIBID) Rate. Benchmark used from 3 May 2023 to 7 April 2022 refers to 12M Bank Deposit Rate. Benchmark used from 8 April 2022 to present refers to the 6M Compounded Singapore Overnight Rate Average (SORA). Please refer here for more information.
3 The table is for illustration purposes only. It is calculated based on the assumption of S$100,000 invested in the Fund at a net asset value of S$1 per unit in the Fund on the inception date on 19 June 1998 and staying invested till 31 December 2023, with dividends and distributions reinvested, if any. Past performance is not indicative of future performance.
4 Please refer to uobam.com.sg/awards for the latest list of UOBAM awards.
5 Investors should refer to the Fund's prospectus for more details on the different classes available.
6 Please check with the distributor or refer to the Fund's prospectus for more details.
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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.
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 calendar month or quarter. 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. UOBAM reserves 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 income, capital gains, 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 reduction of part of your original investment and may result in reduced future returns. Please refer to the Fund's prospectus for more information.
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