Kuala Lumpur: CIMB-Principal Asset Management Berhad (CIMB-Principal) recently declared income distributions for 3 unit trust funds - one money market fund and two fixed income funds - for the period ended 31 January 2009. The money market fund is the CIMB-Principal Xcess Income Fund and the fixed income funds are CIMB Islamic Short Term Sukuk Fund and CIMB-Principal Multi-Maturity Income Fund 1.

J. Campbell Tupling, Chief Executive of CIMB-Principal, said: “The recent distributions of these funds show that our funds remain steady despite the challenging market. Due to the nature of bonds having an inverse relationship to interest rates, we believe bond funds will perform better this year subsequent to Bank Negara Malaysia’s decision to cut Overnight Policy Rate further. In this environment, we expect the price of bonds to appreciate giving more potential capital gain to investors.”

The CIMB-Principal Xcess Income Fund, which mainly invests in short-term money market instruments, generated a return of 10.51% as at 31 January 2009 since it was first launched in April 2006. It declared a gross distribution of 0.10 sen per unit.

As for the fixed income funds, CIMB Islamic Short Term Sukuk Fundgave a gross distribution of 0.28 sen per unit, or a distribution yield of 0.27%. This Shariah-compliant fund offers investors exposure to an income-yielding liquid investment that is usually less volatile than conventional bond funds. Meanwhile, the CIMB-Principal Multi-Maturity Income Fund 1 declared a gross distribution of 2.55 sen per unit which amounts to a distribution yield of 2.51%.

CIMB-Principal’s total gross distributions declared in January 2009 are as follows:

» Top