TA Investment Management Bhd (TAIM) announced the launch of its TA Rainbow Income Fund , a fixed income close-ended fund investing in fixed income instruments and options /structured warrants to provide potential annual returns.

The Fund aims to provide income whilst preserving capital on maturity date.

“The new Fund is an exclusive partnership with OCBC Bank and will be exclusively distributed by OCBC Bank.

“The Fund is specifically designed to cater to current volatile and uncertain market as during uncertain market direction, diversified investment is one of the most common strategies used.

“However, the most common strategy performance will only be average of the portfolio’s underlying assets and on top of that, the return of the best performance underlying assets will be dragged down by the lower performing underlying assets in the portfolio,” said TAIM·chief executive officer, Wong Mien.

However, with TA Rainbow Income Fund, the key feature is dynamic performance-based allocation strategy.

The Fund is linked to the performance of the three award winning underlying assets allocated in the Fund. Based on actual performance of the underlying assets, the unique strategy will automatically allocate higher weightage (per cent) to the best performing underlying assets.

That is, the Fund will be allocating 45 per cent weightage to the best performing underlying assets, followed by 30 per cent weightage to the second-best performing underlying assets and the remaining 25 per cent weightage to the third-best performing underlying assets.

TAIM foresee that this strategy will enhance the total return of the diversified portfolio allocation and will far outweigh the equal weightage’s average return.

To generate good returns for the Fund, TAIM have selected a diversified portfolio of three award winning underlying assets with absolute return and mixed assets strategy to ease the uncertain and volatile market.

The Fund also provides a potential annual return to investors unlike in time of market volatility, with the normal investment strategy, the returns may subject to negative return, it is otherwise for this Fund.

With this Fund, investor will be at ease, there is no negative return for this Fund as investor’s capital will be preserved as long as they keep invested for three years until maturity.

In summary, TA Rainbow Income Fund comprises of three award winning underlying assets and has a unique dynamic performance-based allocation strategy which will help investors navigate through the volatile market by enhancing their diversified portfolio annual returns while preserving their capital at the end of three years upon maturity.

The Fund seeks to achieve its investment objective by investing at least 90 per cent of its Net Asset Value (“NAV”) in fixed income instruments which aim to repay the initial investment of investors at maturity date (including sales charges).

Up to 10 per cent of the Fund’s NAV will be invested in options / structured warrants linked to the performance of the three award winning underlying assets to generate return.

The 45-day initial offer period will start from January 23 to March 8.

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