Eastspring Investments MIP M

Hi,
Any buddies into above investment? Can share your views? TQ!
It's fixed income, mthly distribution of 0.4 cts per unit (for 11 mths), 0.6 cts (for the 12th mth).
The funds are invested into US High Yield bonds and Asian Bonds, sub fund invest into Asia pacific investments (including real estate investment trust, dividend yielding equities.
Launch date: Y2005. Fund size : S$1,099.40 mil.

If price falls below $1, could it be better than FD interest?

I would avoid any bonds or balanced funds coz bonds will probably regress to mean for the next 10 years or more.

(26-10-2013, 11:11 AM)etan Wrote: Hi,
Any buddies into above investment? Can share your views? TQ!
It's fixed income, mthly distribution of 0.4 cts per unit (for 11 mths), 0.6 cts (for the 12th mth).
The funds are invested into US High Yield bonds and Asian Bonds, sub fund invest into Asia pacific investments (including real estate investment trust, dividend yielding equities.
Launch date: Y2005. Fund size : S$1,099.40 mil.

If price falls below $1, could it be better than FD interest?

I was actually thinking about this fund just last week! No action taken yet.

My intention is to put an initial amount of $30k, and using RSP with Fumdsupermart to invest $100 mthly. (They don't have sales charge for RSP).

Basically the investment will be self funded until the day I decide to stop the RSP then start using the monthly income for my own purpose. :D

(26-10-2013, 01:56 PM)NTL Wrote:

(26-10-2013, 11:11 AM)etan Wrote: Hi,
Any buddies into above investment? Can share your views? TQ!
It's fixed income, mthly distribution of 0.4 cts per unit (for 11 mths), 0.6 cts (for the 12th mth).
The funds are invested into US High Yield bonds and Asian Bonds, sub fund invest into Asia pacific investments (including real estate investment trust, dividend yielding equities.
Launch date: Y2005. Fund size : S$1,099.40 mil.

If price falls below $1, could it be better than FD interest?

I was actually thinking about this fund just last week! No action taken yet.

My intention is to put an initial amount of $30k, and using RSP with Fumdsupermart to invest $100 mthly. (They don't have sales charge for RSP).

Basically the investment will be self funded until the day I decide to stop the RSP then start using the monthly income for my own purpose.

Sounds like a good idea.

What is rsp

(26-10-2013, 03:14 PM)pianist Wrote: What is rsp

Regular Savings Plan

(26-10-2013, 11:11 AM)etan Wrote: Hi,
Any buddies into above investment? Can share your views? TQ!
It's fixed income, mthly distribution of 0.4 cts per unit (for 11 mths), 0.6 cts (for the 12th mth).
The funds are invested into US High Yield bonds and Asian Bonds, sub fund invest into Asia pacific investments (including real estate investment trust, dividend yielding equities.
Launch date: Y2005. Fund size : S$1,099.40 mil.

If price falls below $1, could it be better than FD interest?

The total dividend paid by the fund is 5c per unit per year. And it had maintain that record since it started. That is what attracted me to it. With the unit price below $1, that will give more than 5% dividend a year.

Definitely better than FD. But, what is the risk?

(26-10-2013, 10:04 PM)NTL Wrote:

(26-10-2013, 11:11 AM)etan Wrote: Hi,
Any buddies into above investment? Can share your views? TQ!
It's fixed income, mthly distribution of 0.4 cts per unit (for 11 mths), 0.6 cts (for the 12th mth).
The funds are invested into US High Yield bonds and Asian Bonds, sub fund invest into Asia pacific investments (including real estate investment trust, dividend yielding equities.
Launch date: Y2005. Fund size : S$1,099.40 mil.

If price falls below $1, could it be better than FD interest?

The total dividend paid by the fund is 5c per unit per year. And it had maintain that record since it started. That is what attracted me to it. With the unit price below $1, that will give more than 5% dividend a year.

Definitely better than FD. But, what is the risk?

If the investment is not offering capital protection guarantees, why compare with a FD ?

I think the only set back is that this fund has little chance of capital appreciation but it does give out a consistent flow of dividend throughout the years, that's why it's called fixed income.
I run through the history records, the lowest it went was something like in the 70cts region.

I noticed the price fluctuates whenever there is some market crisis. Maybe KIV this fund for the time being until price hits much lower than $1 so that the dividend yield can be higher since we are buying for the long haul. I think it would be good if there is some capital appreciation on top of dividends, just to beat inflation. It's either money getting smaller or things getting more expensive nowadays.

What do you think?

(26-10-2013, 10:04 PM)NTL Wrote:

(26-10-2013, 11:11 AM)etan Wrote: Hi,
Any buddies into above investment? Can share your views? TQ!
It's fixed income, mthly distribution of 0.4 cts per unit (for 11 mths), 0.6 cts (for the 12th mth).
The funds are invested into US High Yield bonds and Asian Bonds, sub fund invest into Asia pacific investments (including real estate investment trust, dividend yielding equities.
Launch date: Y2005. Fund size : S$1,099.40 mil.

If price falls below $1, could it be better than FD interest?

The total dividend paid by the fund is 5c per unit per year. And it had maintain that record since it started. That is what attracted me to it. With the unit price below $1, that will give more than 5% dividend a year.

Definitely better than FD. But, what is the risk?

---

Need to find somewhere to park the $ until it's needed.

(26-10-2013, 10:39 PM)Nick Wrote: If the investment is not offering capital protection guarantees, why compare with a FD ?

By then there will be better offers.

Coz of the price fluctuations, that is why I am thinking of implementing a RSP with it. Buy more when the price is low, and buy less when the price is high. And I don't wish to pump in more than a certain amount of money.

I have already notice the consistent dividend of this fund around 2010, but refuse the pay more than the necessary sales charge. The point it reached 70c was during financial crisis. Every financial instrument was dropping in value, and I think 30% drop is consider pretty little.

That is why when I found out about the zero sales charge for RSP with FundSupermart, the idea is reignited. As the minimum amount for RSP is $100, so with $30k, I will receive $120/mth for the first month, assuming that the unit price is $1. One year later, assuming price stay flat, the monthly dividend would be $124.80, following year will be $129.60. And it will increase on a monthly basis, IF the dividend stay consistent throughout. A 7yr record does saying something about the fund performance.

Anyway, I am still pondering, and just put down my thoughts in the above. Looking at historical prices, it does not move that much, so can afford to wait.