Eastspring Investments Berhad has launched a fund that offers Malaysian investors a differentiated way to seek a regular income stream while participating in the long-term growth potential of the US equity market.
The Eastspring Investments Partner Series – US Equity High Income Fund invests at least 85% of its assets in the Amundi Funds – US Equity High Income Fund. The target fund typically allocates just over 50% to US equities and up to 50% to equity-linked notes ( “ELNs” ). ELNs are structured instruments whose returns are linked to the performance of underlying equities, and which can provide an additional source of income under specified market conditions.
The fund is designed for investors who want to remain invested in US equities while seeking income from multiple potential sources. It brings together three potential return drivers within a single actively managed portfolio: dividends from selected US companies, income generated through ELNs and potential capital appreciation from equity market participation. This differentiated combination prioritizes income while preserving participation in the long-term growth potential of US equities.
The US equity market offers access to many of the world’s leading companies and compelling long-term growth opportunities. According to Eastspring, an evolving interest-rate environment, persistent inflation uncertainty and changing market leadership are increasing the importance of active management and selectivity.
“US equities continue to offer attractive long-term growth opportunities, but many investors are also seeking a meaningful and regular income stream. Through our partnership with Amundi, this strategy brings together multiple potential sources of return in one actively managed portfolio, helping investors stay invested in the US market while seeking income over the long term,” says Yap Siok Hoon, chief executive officer of Eastspring Investments Berhad.
The strategy is actively managed and combines selected US equities with income-generating ELNs. This differentiated construction seeks to provide a potentially smoother investment experience than investing in the broader equity market alone, although returns and distributions are not guaranteed.
The fund is available in USD, RM-hedged, SGD-hedged and AUD-hedged unit classes through participating banks and the firm’s licensed unit trust consultants. Subject to the availability of income, distributions may be made on a monthly basis. Distributions are not guaranteed and may be made from realized income, capital gains and/or capital.
