Investment Objective
There is an available discretionary PMS that will invest in fixed-income assets. In the PMS, they seek to:
- Your whole investment is in debt.
- Provide a steady and reliable income
- Manage portfolios actively by combining trading and investment strategies.
Product Offering
- An offered PMS will invest in fixed-income securities.
- The securities will have ratings ranging from AAA to A-.
- The strategy will mix a hold-to-maturity and a trading approach depending on the market conditions and the availability of arbitrage opportunities. The portfolio can be changed to accommodate investors’ requests for bigger investments.
- They aim for returns between 9% and 10%, depending on the strategy.
- The ideal investment horizon is two to three years.
- Option to register without using a distribution service provider.
Product Rationale
PPFs, debt mutual funds, and bank FDs are only a few investment alternatives available in the current fixed-income market. Each of these choices has advantages and disadvantages. For instance, bank FDs have lower returns despite the capital being insured. Mutual funds receive a tax benefit after three years of investment. Dynamically managing the methodology (time vs. credit) is not possible.
The PMS is an addition to the many investing options. The objective is to provide stable and consistent income through interest income. Periodically, AK Wealth will seize tactical opportunities to generate capital gains in addition to interest income.
Who Can Invest?
Investors interested in earning a reliable income while maintaining their wealth may want to think about this product. This is the best choice for investors who want to maintain a fixed-income portfolio and have a low to moderate risk tolerance as well as a moderate to big spread of returns over comparable-term government debt.
Investment Strategy
The Fund Manager will use a Core-Satellite approach to manage the portfolio.
CORE PORTFOLIO
- Strategy: By employing a value-based investing approach with Their chosen Issuers, AK Wealth believes AK Wealth can pursue the best risk/reward trade-off throughout the credit spectrum.
- Indicative Investment Horizon: 2 – 3 Years
- Objective: Securing your Portfolio YTM will allow you to increase gains consistently.
- Liquidity: Generally little traded and illiquid fixed-income instruments
SATELLITE PORTFOLIO
- Strategy: A method that is actively managed and will make opportunistic investments in ineffective circumstances
- Indicative Investment Horizon: 3 – 6 Months
- Objective: Give excessive returns over the locked-in YTM.
- Liquidity: Liquid and Traded Fixed Income Securities
