The Global Bond Fixed Maturity 2025 Fund (“The Fund”) has an attractive indicative gross yield of 3.63% p.a over a fixed 4-year period. If you have taken out an equity loan on your property, take advantage of the yield differential to boost your returns to over 15%! (See example below)
Why use financing to subscribe to Fixed Maturity Funds?
The Initial Offer Period has now started. If you are keen to subscribe, please indicate your interest above by 2 April 2021.
Note that The Fund is classified as a Specified Investment Product and is available to Accredited Investors only or if you invest at least $200,000.
Fixed Maturity Funds are usually available through private banks only. InvestDIY is proud to be the exclusive distributor in Singapore offering this tranche of Aberdeen Standard Fixed Maturity Fund!
Have a question you need answered?
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Indicate your interest above by 2 April 2021.
We will invite you to fill an online application form after we review your eligibility.* You will be setting up an account with FAME during the application.
Transfer your funds into the trading account by 6 April 2021.
You will receive a notification to authorise the trade. Please authorise it in order to proceed.
Note: The Information Memorandum and all relevant documents will be emailed to you after you complete the online application form (Step 2 above).
Financing is commonly applied to Fixed Maturity Funds to boost returns because of the expected yield differential. Check out the Case Study below to see on how this works. You may already have an existing equity loan on your property that is only earning you fixed deposit rates which is lower then the loan rate.
Ms. A, wants to invest $15,000 in The Fund. She recently took out an equity loan of $200,000 on her property and the cash is currently only earning a fixed deposit rate of 0.5% p.a. She would like to make her money work harder and decides to invest a total of $215,000 in Aberdeen's Fixed Maturity Fund.
Ms. A's $200,000 is currently earning a fixed deposit rate of 0.5% p.a. and she is paying a loan interest of 1.2% p.a.. So she is effectively "losing" 0.7% p.a. (1.2% - 0.5%) of the value of her equity loan over time.
Ms. A decides to invest the $200,000 from her equity loan into The Fund and additional cash amount of $15,000.
Each year, she gets $2,609.50 in dividends net of fees and loan interest repayments+.
Total Investment Amount
Cash outlay without financing
Expected dividend over 4 years after fees and loan interest repayment
($2,609.50 x 4 years)
(Based on cash outlay and high dividend from total investment)
+ Assuming 3.63% p.a. gross return on The Fund, less ongoing fund charges of 0.7% p.a., wrap fees of 0.6% p.a. and loan interest assumed at 1.2% p.a.. Returns are not guaranteed and your loan interest rate may differ from the illustration. Your final return will also be dependent on the ratio of your cash outlay and amount invested from financing. Portfolio financing is available with your unit trusts with iFast. See Case Study 2.
The Fund has a 4-year term provides an indicative gross return of 3.63% p.a.
|Fund date inception||12 April 2021|
|Maturity date||4 years from inception|
|Subscriptions/redemptions||Closed for subscriptions after inception; Daily liquidity for redemption|
Yes, a redemption charge or dilution adjustment will apply. **
|Ongoing charge (SGD Hedged)||
|Wrap fee p.a.||
AUM at or below S$500,000: 60 bps p.a.
AUM above S$500,000: 50 bps p.a.
Platform fee p.a.
With portfolio financing on iFast:
First S$100,000: 28bps
Next S$150,000: 25bps
Next S$250,000: 20bps
Above S$500,000: 10bps
AUM above S$1m with iFast: Waived
Without portfolio financing on FAME:
1. Will the fund definitely launch?
The fund will launch only if there is a total minimum amount of US$100m from all its investors. So there is a chance that the fund will not launch.
2. What happens to my money if The Fund is not launched?
Your monies will be returned to your trading account with no penalties.
3. I already have a FAME account tagged to InsureDIY. Do I need another account?
No, you do not need to set up another account. However, if you intend to invest less than S$200,000 in The Fund, we will request documentation from you to evidence that you are an Accredited Investor.
4. Why do I have to apply for a wrap account? I already have an account with FAME with another advisor.
* You will be asked to complete the online application form when the Initial Offer Period starts. As part of the application, a wrap account will be opened for you.
The platform is authorised to collect monies during the Initial Offering Period and to execute trades with fund managers like Aberdeen Standard. Your monies will be held in custody in trust. We do not collect your funds or handle your money directly.
As we are working with Aberdeen exclusively to distribute The Fund in Singapore, you would need to open a FAME account that is tagged to us so that we can help to execute the trade. The Fund is not available through any other distributor in Singapore.
5. Is the return or capital guaranteed?
The Fund invests in about 50 issuers to ensure that it is not overly exposed to any one issuer. While this reduces the risk of defaults, both the return and capital are not guaranteed for this product and the value of the units in the scheme and the income accruing to the units, if any, may fall or rise.
6. What is the minimum and maximum invesment amounts?
The minimum invesment is S$20,000. There is no maximum investment amount.
7. Is there a penalty if I redeem my funds during the 4-Year period?
** The penalty is either the redemption charge or the dilution adjustment. The redemption charge is as follows:
|Years to Maturity Date||Redemption charge as a percentage of relevant share price (maximum)|
If the sum of:
(a) any dealing charges; and/or
(b) any bid/offer spread applied
is greater than the redemption charge, then the dilution charge will be applied. Please see details in documentation that will be provided during the Initial Offering Period.
9. Do I qualify as an Accredited Investor? Are only Accredited Investors allowed to invest in The Fund?
You would qualify as an Accredited Investor if:
As required by the regulations, we will be requesting documentary proof of the above before you can proceed to invest in The Fund.
In addition to Accredited Investors, you can also invest in The Fund if your investment amount is at least $200,000.
10. When should I be thinking about investing into such fixed maturity funds?
If you are keen on savings or investment products and have enough assets such that this investment is not a substantial part of your portfolio, you can consider investing in fixed maturity funds.
In addition, there should not be any factors that are expected to impact you net assets significantly. e.g. expect to use the funds to purchase property soon.
This product provides an indicative return that is higher than guaranteed return products and fixed deposits, but it also has no guarantees.
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