Bangkok--19 Mar--MFC Asset Management
Mr. Lim Chong Boon Dennis, President, MFC Asset Management Public Company Limited, announced today that MFC will be launching the MFC International Fixed Income Fund 3 Months Series 1 or I-FIX3M1 during 19 – 22 March 2019. The Fund is a global fixed income fund with a 3-month maturity. Investors will receive automatic redemption of returns at a rate of 1.66% per annum of par value (Baht 10.00). When the Fund reaches maturity, all units will be automatically redeemed and switched to MFC Government Money Market Fund (MM-GOV). Since investors may not redeem during the 3 months, should there be any negative factors impacting the investment, investors could lose a significant portion of their investment.
I-FIX 3M1 has the investment policy to invest at the rate not less than 80% of net asset value in global government fixed income instruments and quality debentures such as treasury bills, government bonds, Bank of Thailand bond, state enterprise bonds, fixed income instruments issued by juristic person under specific law, fixed income instruments issued by commercial banks or global banks, deposits or investment grade fixed income instruments issued by private sector with rating of at least BBB-. The Fund will also invest in derivatives to fully hedge against exchange rate risk.
Example of instruments that I-FIX 3M1 will invest are as follows: Agriculture Bank of China deposit rating A1 investment portion 19% return 1.77% p.a. return to Fund 0.34% p.a. / China Construction Bank deposit rating A1 investment portion 14% return 1.72% p.a. return to Fund 0.24% p.a. / Bank of China deposit rating A1 investment portion 10% return 1.67% p.a. return to Fund 0.16% p.a. / Al khaliji Bank deposit rating A3 investment portion 19% return 2.07% p.a. return to Fund 0.39% p.a. / Emirates NBD PJSC deposit rating A3 investment portion 19% return 1.77% p.a. return to Fund 0.34% p.a. / Ratchthani Leasing Plc. Short term debt instrument rating A- investment portion 10% return 1.52% p.a. return to Fund 0.15% p.a. and AP (Thailand) Plc.Short term debt instrument rating A- investment portion 9% return 1.52% p.a. return to Fund 0.14% p.a.
The estimated return from investment is 1.76% per annum with estimated expenses of 0.10% per annum and net return of 1.66% per annum. Should the Asset Management Company not be able to invest as stated due to market conditions or changes in taxes, the Asset Management Company may not redeem units at the aforementioned rate.
The Asset Management Company has the discretion to change the invested assets or the investment ratios when it is deemed that it is necessary and appropriate for the utmost benefit of the investors, without causing the risk of the invested assets to change significantly.
I-FIX 3M1 is suitable for investors who expect higher returns than deposits, can accept a lower return than stocks and are able to invest for a period of 3 months. Investors should study the information available to understand features of the product, conditions of the returns and the risks before making the decision to invest.
Interested investors may invest with minimum subscription of Baht 10,000 by contacting MFC for further information about investment policy, risks, fund performance or the fund prospectus, Investment Planner Dept. tel. 0-2649-2000 ext. 2, Contact Center ext. 0, Chaengwattana Branch tel.0-2835-3055-57, Pinklao Branch tel. 0-2014-3150-2, Khon Kaen Branch tel.043-204-014, Chiangmai Branch tel. 053-218-480-82, Phuket Branch tel.076-307-070, Rayong Branch tel. 033-100-340-2, Phitsanulok Branch tel. 055-008-980-2, Ubon Ratchathani Branch tel.045-422-890-2, Hat Yai Branch tel. 074-232-324 - 25 or visit www.mfcfund.com
Example of instruments that I-FIX 3M1 will invest
Issue/Issuer Credit Rating Expected Return in Thai Bath (p.a.) Proportion Expected Return from Investment in Thai Bath (p.a.)
Deposit : Agriculture Bank of China Moody's : A1 1.77% 19.00% 0.34%
Deposit : China Construction Bank Moody's : A1 1.72% 14.00% 0.24%
Deposit : Bank of China Moody's : A1 1.67% 10.00% 0.16%
Deposit : Al khaliji Bank Moody's : A3 2.07% 19.00% 0.39%
Deposit : Emirates NBD PJSC Moody's : A3 1.77% 19.00% 0.34%
Short term debt instrument: Ratchthani Leasing Plc. TRIS : A- 1.52% 10.00% 0.15%
Short term debt instrument: AP (Thailand) Plc. TRIS : A- 1.52% 9.00% 0.14%
Expected return 1.76%
Expect expense 0.10%
Expect return after expense 1.66%