KUALA LUMPUR: UOB Asset Management (Malaysia) Bhd (UOBM) expects global markets to maintain a positive growth trajectory in the medium term, and the lingering geopolitical risks and US protectionist trade policies are adding further uncertainty to financial markets.
"We expect the US Federal Reserve to continue its path towards gradual interest rate hikes and the European Central Bank to complete its asset purchase programme by next year.
"However, investors are concerned about the impact resulting from these monetary policy decisions and expect volatility to rise," chief executive officer Lim Suet Ling said.
Amid expectations of greater market volatility and uncertainty, UOBM launched the United Global Income Focus Fund (UGIFF) to meet investors’ need for steady and regular income.
The UGIFF is a multi-asset all-weather that seeks to offer investor the potential for regular income and capital appreciation by investing in a broad spectrum of global asset classes that outperform in different economic environments.
It aims to provide investors with returns of between four and five per cent per annum, distributed quarterly, Lim added.
"The launch of UGIFF is timely given investors’ expectation of a rise in volatility and global market uncertainty as central banks around the world begin tapering their quantitative easing programmes, raising interest rates and geopolitical risks persist,” she told a media briefing here.
The UGIFF which will be sub-managed by Wellington Management Singapore Pte Ltd, is targeted to investors with moderate risk tolerance and a medium-to-long term investment horizon.