Tiger Brokers (Singapore) and UOB Asset Management Jointly Launch Their First Fixed Maturity Plan in Singapore

The United Fixed Maturity Bond Fund 1 will be exclusively available on Tiger Brokers’ trading platform with no subscription fees and zero management fee

The fund aims to provide income whilst capturing the interest rate peak in a rising interest rate environment by investing in a diversified portfolio of bonds, money market instruments and bank deposits

Media OutReach – 3 November 2022 – Online trading platform Tiger Brokers (Singapore) today announced the launch of its first fixed maturity plan (“FMP”) in Singapore. Managed by UOB Asset Management (UOBAM), the United Fixed Maturity Bond Fund 1 (“the Fund”) is a three-year investment-grade bond fund that will be exclusively available on Tiger Brokers’ trading app, Tiger Trade App. This app is currently used by 2.1 million registered users in Singapore.
This is the first collaboration between Tiger Brokers (Singapore) and UOBAM. The Fund is the first FMP for Tiger Brokers (Singapore), expanding their line of products available to retail investors in Singapore. Amid current interest rate levels and volatile market conditions in an inflationary environment, the Fund is positioned to capture rising yields to deliver enhanced returns.
Denominated in Singapore dollar, the fund class available for investors is Class A SGD Dist (Hedged), with a minimum initial subscription of SGD $1,000, with no subscription fees and zero management fees, ensuring customers get the highest risk-adjusted yield possible in the market. The Fund will be open for subscription on 14 November 2022 and will close for subscription on 28 November 2022. This is a close-ended fund.
With a primary focus on investments in Asia, the fund adopts a buy-and-hold strategy and will invest in short duration bonds with different tenures that closely match the tenure of the Fund. Price stability is maintained by the Fund’s focus on short duration with a primary investment strategy of holding the bonds to maturity to minimise mark-to-market risks.
It is designed to invest in a portfolio of bonds with a weighted average yield-to-maturity of up to 4.95% at time of press in order to achieve a semi-annual coupon distribution of 3.5%.
Henry Toh, Chief Financial Officer, Tiger Brokers
(Singapore) said, “We are delighted to be partnering with like-minded businesses, in this case, UOB Asset Management. Both our objectives in launching the Fixed Maturity Fund have always been to bring maximum benefits to investors. By having zero subscription fees and zero management fees, essentially, we will not be profiting from this product. But it’s the overarching objective to bring value to our customers that drives both Tiger Brokers (Singapore) and UOB Asset Management to be doing this, because we know that in these times of uncertainty, our investors need some certainty in their portfolio.”
Mr Thio Boon Kiat, Group Chief Executive Officer, UOB Asset Management said, “We are proud to partner Tiger Brokers for our initial collaborative launch of this FMP. This fund will help retail investors achieve financial stability with a regular flow of returns. In this volatile market, UOBAM aims to bring value to investors by offering investment solutions that are appropriate for the market environment. The investment portfolios will be optimised according to the changing market conditions by our experienced fund managers.”
The fund is managed by UOBAM’s Asia Fixed Income Team, headed by Joyce Tan, who has received 18 individual awards including ‘Manager of the Year for Asia Fixed Income’ at the 2021 BENCHMARK Fund of the Year Awards.
The fund will provide weekly liquidity and regular semi-annual income distribution for investors. A redemption charge of 2% will apply for premature redemption to safeguard the interest of all investors. The redemption fee collected will be placed back into the fund.
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