• Emerging Market bonds, fairly flexible investment mandate
• Government bonds, hard currency focus
• Targets monthly distributions from income of at least 5% per annum
• Managed from a SGD perspective

The fund offers exposure to the Emerging Market debt segment with a bias towards sovereign and quasi-sovereign debt denominated in USD. Despite its bias, the fund has the ability to invest in corporate issues and Emerging Market debt denominated in local currencies, which enables it to take advantage of high yields and currency appreciations.

The fund managers are able to utilise credit, country and currency selection to generate returns, as seen in its wide variety of holdings in different countries and across sectors. Although the fund manager prefers to be fully-invested in normal market conditions, the fund manager has the ability to shift a substantial portion of his portfolio into cash to await attractive opportunities or avoid losses, as indicated by holding over 17% in cash as of the end of December 2011.

The fund’s intention to make monthly distributions from income of at least 5% per annum underlines the high yield aspect of its portfolio, which had over 49% of its holdings in non-investment grade and non-rated securities as of the end of December 2011.

As the fund managers actively manage currency risk and the fund is managed from a SGD perspective, the fund uses currency hedges to protect its positions and investors from fluctuations against the SGD. The fund's strong track record vis-a-vis its peers along with our preference for higher-yielding debt segments in the current low interest rate environment warrants a recommendation for the fund.

[Data as of 30 March 2012]

The fund is managed by UOB Asset Management Ltd.