The LionGlobal New Target Return Fund, which is open for subscription between 27 October and 22 December 2011, will target a return of 17.5% over the next five years. To achieve this, the fund will be invested in a portfolio containing at least 65% “carefully selected” bonds, 20% high yield and a further 15% within in a dividend paying equity fund.
Although designed for a five year time frame, investors can exit at any time. In addition, if the cumulative net total return reaches 17.5% in less than five years, investors could receive their capital and interest early.
Lim Wyson, head of global wealth management at OCBC Bank, said: “In today’s environment of low interest rates and market volatility, we need a different approach to generating wealth and addressing market uncertainty.
“This is especially essential given the uncertainties of the market in the next two to three years at least. We want customers to know exactly what they are investing in and, at the end of the investment time frame, the potential returns that they can expect.”
