• These three funds have all averaged S$500 dividend payout per month based on an investment of S$120,000 at the start of this year (in some cases higher!).
• The funds are
• Fidelity Asian HY AMDIST SGD Hedged
• Eastspring Investments MIP M
• United Emerging Markets Bond Fund
• All have managed to maintain high dividend payouts for a long time (One fund for 5 years!)
• Not only are these funds now at zero sales charge, during this promotional period from 23 July 2012 till 31 August 2012 only, we will write you a cheque of S$100 when you invest S$100,000 or more into any of these three funds! Terms and conditions apply.

Dividends are appealing to many investors, regardless of age or experience. The idea of being able to sit back and collect a monthly dividend from an investment without having to do anything is very attractive. This creates another income stream which can be used to add to existing income, or even replace it altogether. That these dividends are tax free when you get it through unit trusts is the icing on the cake. And as part of our WISE program, these funds’ returns are calculated based on bid to bid prices, meaning you pay 0% sales charge.

If this sounds good to you, read on about these 3 funds, which are all high dividend payout funds!

FUND 1: FIDELITY ASIAN HY AMDIST SGD HEDGED – HIGH PAYOUTS, VOLATILE

• This fund has the highest dividend payouts amongst the three funds in its dividend history. If you had invested S$120,000 at the start of the year, the fund would have paid out a high average dividend of S$727 each month since. The fund has paid out monthly dividends since March 2010.
• The fund, which is an Asian high yield bond fund, has shown higher volatility than the other two funds historically, falling 7.9% in the year 2011, but rebounding up 10.5% year to date (as at 13 July 2012, based on bid to bid prices with dividends reinvested, in SGD terms).
• The fund is also SGD Hedged, which means that the fund will not suffer any currency loss even if the US dollar weakens against the SGD.

Fund 2: Eastspring Investments MIP M – Very Stable Dividends

• This fund has the most stable dividends paid out over the past 6 months, averaging S$537. The fund has also maintained this very consistently high dividend payout for more than 5 years now! In fact, if you look up the fund’s dividend history, it’s paid regular monthly dividends since July 2005.
• The fund is a global high yield bond fund, and has returned positive performances in 4 out of its last 5 calendar years. It was down 22.3% in its worst year (2008), though it rebounded 32.0% in 2009. The fund has returned an annualised 10.6% over the last 3 years and an annualised 4.9% over the last 5 years (as at 13 July 2012, based on bid to bid prices with dividends reinvested, in SGD terms).
• The fund is managed from a SGD perspective, which also means that it is unlikely to suffer losses even if the USD weakens against the Sing dollar.

Fund 3: United Emerging Markets Bond Fund – High Dividends with Strong performance

• The fund is an emerging markets bond fund, and amongst the three funds, although it does not have the highest dividends, it has returned the strongest performances. The fund has returned an annualized 6.6% over the last 5 years and an annualized 6.6% over the last 10 years! (as at 13 July 2012, based on bid to bid prices with dividends reinvested, in SGD terms).
• This fund has historically also been the least volatile of the three funds, falling only 5.2% during the global financial crisis in year 2008, while rebounding 27.5% in year 2009. The fund used to pay an annual dividend, but has switched to paying a monthly dividend since October 2010.
• The fund manager actively manages currency risk, and the fund is managed from a SGD perspective.

• Retirement income: Possibly the most popular application of dividends, building multiple streams of cash flow can help support investors’ monthly expenses, without eroding their savings.
• Monthly expenses: Some investors take this a step further, placing a large amount of cash to help subsidise regular expenses, such as monthly bills and even allowance.