Barclays has launched the Premier Fixed Income Fund in Singapore, aiming to provide retail investors with the potential for returns of 7% per annum.
The fund invests in global bond funds, high-yield bond funds and emerging-market bond funds. It also provides exposure to inflation indices and inflation-linked bond indices via swaps.
The fund is expected to have inflation exposure to the Barclays Euro, Japan, U.K., U.S. Government Inflation Linked Index, and the Barclays Capital Emerging Markets Global Inflation-Linked Bond - Ex Columbia Tradable Index.
This Fund offers investors relatively attractive returns and the ability to potentially protect against inflation, said Yong Sheng Tan, director of investor solutions at Barclays Capital in Singapore. With Singapores consumer price index for the first two months of 2008 having increased by 6.6% compared with the same period last year, inflation is a real concern for investors.