NTUC AIM funds

Over the past week, NTUC in collaboration with Schroders UK has launched its AIM series of funds with the objective of helping investors and policyowners enhance their net worth.

In essence, the AIM fund is a multi-asset multi-strategy life-stage fund i.e. it’s a fund with the following characteristics:

• Allocate investment funds to various asset classes (e.g. equities, bonds, cash, commodities, alternatives) to deliver investment objective.
• Adopt appropriate investment strategy via right asset mix according to understanding of market cycle.
• Provide dynamic asset allocation according to investment horizons (or life stage) in order to preserve investment returns

It comes in various series e.g. Aim NOW, Aim 2015, Aim 2025, Aim 2035, Aim 2045, pegged to various maturities to match investment objectives of individuals be it for kids’ education funding, retirement planning, buying a new home etc.

There are 2 flavours for investors to choose from via:

a)      Regular Savings Plan (“Vivolink”)

b)      Single Premium Plan (“Growthlink”).

Interesting fund since it basically is a no-fuss hassle-free way of investing. Fund management fee is expected to be < 1%pa and bid-offer spread is 3.5%. Caveat being that fund performance in such managed funds is contingent on fund manager and that remains to be seen. Otherwise, it does seem an attractive alternative for investing.