Lion Global Investors – Early termination of New Target Return Fund

Back in November 2011, I invested in New Target Return Fund managed by Lion Global Investors.

The fund objective is to achieve a target cumulative net total return of 17.5% on the initial issue price of $1.00 per unit over a five year investment horizon. The fund is invested in debt and equity securities of companies in Asian region. Majority holding is in debt securities.

The fund achieved the target return of 17.5% over 4½ years as at May 2016. Because of that, the fund is now terminated on 22 June 2016 and investors will get back the initial capital sum invested plus income received annually over 4 years + capital appreciation on redemption.

The capital appreciation on redemption is $1.0925 – $1.00 after 4½ years.

The Internal rate of return for this fund works to about 3.3% per annum.

The good thing is that there is no depreciation of this fund at the end of the period and furthermore there is income to be received.

For this fund, I did not have to pay initial sale charge and there is no redemption fee since I held on to the fund till compulsory termination.

Copyright © 2016, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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