BPI Asset Management and Trust Corporation (BPI AMTC) recently launched the BPI US Dollar Income Feeder Fund, the first dollar-denominated income fund in the country.

BPI AMTC President Sheila Marie Tan said this is its first income-paying unit investment trust fund for investors who want to earn more from their foreign currency investments given the strength of the dollar and current market conditions.

“The product is aimed at investors with an aggressive risk appetite who primarily seek income with secondary focus on capital growth to building their wealth,” said Tan.

Designed to distribute attractive and regular income every June and December, the new fund feeds into its target fund, the Singapore-domiciled United Income Focus Trust. As such, it brings together the thought-leadership and collaboration among three fund house giants – UOB Asset Management as target fund provider, Wellington Management as target fund sub-manager and BPI AMTC as product provider of the new feeder fund.

Returns are derived from a diversified portfolio of global assets that looks beyond traditional sources of income in various asset classes. As of June 2018, the target fund holds 48 percent in global equities, 42 percent in global bonds and 10 percent in cash equivalents. In terms of its country allocation, more than half or 54 percent is invested in US assets.

“The investment strategy for this fund takes into consideration multiple uncorrelated sources of return and income which is why it is an opportune time for us to be introducing this product that has built-in resilience and flexibility, particularly in the current volatile market environment,” said Tan.

Investors may buy into the BPI US Dollar Income Feeder Fund for as low as $1,000, with a holding period of 180 days.

BPI AMTC manages a total of P570B in assets under management and makes available more than 25 UITF through multiple distribution channels.