Tiger Brokers (Singapore) and UOB Asset Management Jointly Launch Their First Fixed Maturity Plan in Singapore
- The United Fixed Maturity Bond Fund 1 will be exclusively available on Tiger Brokers' trading platform with no subscription fees and zero management fee
- The fund aims to provide income whilst capturing the interest rate peak in a rising interest rate environment by investing in a diversified portfolio of bonds, money market instruments and bank deposits
SINGAPORE - Media OutReach - 3 November 2022 - Online trading platform Tiger Brokers (Singapore) today announced the launch of its first fixed maturity plan ("FMP") in Singapore. Managed by UOB Asset Management (UOBAM), the United Fixed Maturity Bond Fund 1 ("the Fund") is a three-year investment-grade bond fund that will be exclusively available on Tiger Brokers' trading app, Tiger Trade App. This app is currently used by 2.1 million registered users in Singapore.
This is the first collaboration between Tiger Brokers (Singapore) and UOBAM. The Fund is the first FMP for Tiger Brokers (Singapore), expanding their line of products available to retail investors in Singapore. Amid current interest rate levels and volatile market conditions in an inflationary environment, the Fund is positioned to capture rising yields to deliver enhanced returns.
Denominated in Singapore dollar, the fund class available for investors is Class A SGD Dist (Hedged), with a minimum initial subscription of SGD $1,000, with no subscription fees and zero management fees, ensuring customers get the highest risk-adjusted yield possible in the market. The Fund will be open for subscription on 14 November 2022 and will close for subscription on 28 November 2022. This is a close-ended fund.
With a primary focus on investments in Asia, the fund adopts a buy-and-hold strategy and will invest in short duration bonds with different tenures that closely match the tenure of the Fund. Price stability is maintained by the Fund's focus on short duration with a primary investment strategy of holding the bonds to maturity to minimise mark-to-market risks.
It is designed to invest in a portfolio of bonds with a weighted average yield-to-maturity of up to 4.95% at time of press in order to achieve a semi-annual coupon distribution of 3.5%.
Henry Toh, Chief Financial Officer, Tiger Brokers (Singapore) said, "We are delighted to be partnering with like-minded businesses, in this case, UOB Asset Management. Both our objectives in launching the Fixed Maturity Fund have always been to bring maximum benefits to investors. By having zero subscription fees and zero management fees, essentially, we will not be profiting from this product. But it's the overarching objective to bring value to our customers that drives both Tiger Brokers (Singapore) and UOB Asset Management to be doing this, because we know that in these times of uncertainty, our investors need some certainty in their portfolio."
Mr Thio Boon Kiat, Group Chief Executive Officer, UOB Asset Management said, "We are proud to partner Tiger Brokers for our initial collaborative launch of this FMP. This fund will help retail investors achieve financial stability with a regular flow of returns. In this volatile market, UOBAM aims to bring value to investors by offering investment solutions that are appropriate for the market environment. The investment portfolios will be optimised according to the changing market conditions by our experienced fund managers."
The fund is managed by UOBAM's Asia Fixed Income Team, headed by Joyce Tan, who has received 18 individual awards including 'Manager of the Year for Asia Fixed Income' at the 2021 BENCHMARK Fund of the Year Awards.
The fund will provide weekly liquidity and regular semi-annual income distribution for investors. A redemption charge of 2% will apply for premature redemption to safeguard the interest of all investors. The redemption fee collected will be placed back into the fund.
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About Tiger Brokers (Singapore)
Tiger Brokers (Singapore) Pte Ltd ("Tiger Brokers (Singapore)") is a brokerage firm operating with a Capital Markets Services (CMS) Licence from the Monetary Authority of Singapore (MAS). Its trading platform, Tiger Trade, offers complimentary real-time stock quotes, dedicated multilingual customer service during trading hours and 24/7 finance news updates. The company launched the mobile version of Tiger Trade in February 2020 - accessible on Google Play Store and the Apple App Store - offering mobile-savvy generation of retail investors similar trading opportunities as their online users, such as Equities, Exchange-Traded Funds (ETFs), Futures, Stock Options, Warrants, and Callable Bull/Bear Contracts (CBBCs) on their mobile phones. Both online and mobile app allow users to invest across multiple asset classes traded on the Australian, US, Hong Kong, China and Singapore stock markets such as the New York Stock Exchange (NYSE), NASDAQ, Shanghai/Shenzhen-Hong Kong Stock Connect, the Hong Kong Stock Exchange (HKEX), the Singapore Exchange (SGX) and the Australian Securities Exchange (ASX).
Tiger Brokers (Singapore) is the Singapore entity of UP Fintech Holding Limited, known as "Tiger Brokers" in Asia, a leading online brokerage firm focusing on global investors. Founded in 2014, Tiger Brokers (Singapore) became #1 in the U.S. equity trading by volume among trading platforms catered to Global Chinese investors in less than two years. Tiger Brokers (Singapore) was awarded "2017 Fintech 250" by CB Insights and shortlisted for "China Leading Fintech 50" for two years in a row by KPMG China. The company was listed on NASDAQ under "TIGR" in 2019 and has offices in China, United States, Australia, New Zealand and Singapore. Tiger Brokers (Singapore) has over 1.8 million customers worldwide, with an annual trading volume of more than US$404.3billion as of December 2021. The company is backed by well-known investors such as Xiaomi, as well as investment guru Jim Rogers. For more information, please visit https://www.tigerbrokers.com.sg.
About UOB Asset Management
UOB Asset Management Ltd (UOBAM) is a wholly-owned subsidiary of United Overseas Bank Limited. Established in 1986, UOBAM has been managing collective investment schemes and discretionary funds in Singapore for more than 35 years. We are one of the largest unit trust managers in terms of assets under management. As at 30 September 2022, we managed 58 unit trusts in Singapore and together with our subsidiaries, managed more than S$33 billion in clients' assets.
UOBAM has an extensive presence in Asia with regional business and investment offices in Singapore, Brunei, Indonesia, Japan, Malaysia, Taiwan, Thailand and Vietnam. Our network includes UOB Islamic Asset Management Sdn Bhd in Malaysia. We have a joint venture with Ping An Fund Management Company Limited (China) and we have also forged strategic alliances with UTI International (Singapore) and Wellington Management Singapore.
UOBAM is one of the most awarded fund management companies, winning several awards at the Asia Asset Management Best of the Best Awards 2022, 2021 and 2020. Our robo-adviser, UOBAM Invest, also won 'Fintech Innovation in Asset Management' in Malaysia and Singapore respectively in 2021 and 2020, as well as 'Best Digital Wealth Management' in Thailand for two consecutive years in 2022 and 2021. UOBAM Brunei has also been named 'Best Institutional House' in 2022, 'Best Sukuk Manager' in 2021, as well as the 'Best Investor Education' in 2022, 2020 and 2019. UOBAM was also awarded the prestigious Asia Fund House of the Year Award by AsianInvestor for three consecutive years from 2019 to 2021.
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