Conversation Guide Plan  ·  Bond Income Portfolio
Plan · Bond Income Portfolio

A diversified income engine.

A balanced bond-and-rate-linked portfolio targeting steady quarterly income with capital safety. Recommended for retirees and income-seeking clients with a 3–5 year horizon.

Allocation 4 components Tenor 3–5 years Minimum RM 250,000
Target Yield
4.5–5.5%
Per annum, paid quarterly
Capital Protection
~85%
Weighted across portfolio
Income
Quarterly
Steady cash flow
Minimum
RM 250K
Across 4 components
Section01Allocation

The four-component portfolio.

The portfolio balances principal-protected rate-linked components with conservative duration exposure, blended for steady quarterly cash flow.

ComponentAllocationTarget yieldRole
Range Accrual (principal protected)40%~5.00%Anchor; KLIBOR-linked, capital safe
Inverse Floater (Year 1)25%6.90%Locked-in Year 1 yield; rate-cut hedge
10Y MGS / GII20%3.85%Risk-free duration
Sukuk (corporate, A-rated)15%5.20%Credit spread pickup
Section02Cash flow

Indicative quarterly income on RM 250,000.

Assumes steady-state yield; actuals depend on KLIBOR and bond pricing at trade date.

QuarterRange AccrualInverse FloaterMGSSukukTotal
Q11,2501,078481488RM 3,297
Q21,2501,078481488RM 3,297
Q31,2501,078481488RM 3,297
Annual5,0004,3131,9251,950RM 13,188

Effective yield: 5.28% p.a. on RM 250,000 — versus ~3.20% on an equivalent FD allocation.

Section03Risks

What can go wrong — and what can't.

Capital is largely safe

65% principal protected.Range Accrual + Inverse Floater (capital-guaranteed at maturity).
20% risk-free.MGS/GII — sovereign credit.
15% A-rated credit.Corporate sukuk; small but non-zero credit risk.

Trade-offs

3–5 year lock-up.Not for liquidity-sensitive funds.
KLIBOR risk on Range Accrual.If KLIBOR rises above range, yield drops for those days.
Rate-rise risk on Inverse Floater.If BNM raises rates, Y2–5 coupon falls.
Sukuk credit.15% allocation has issuer credit risk.

Indicative portfolio construction. Yields, allocations, and product terms are subject to change. Past performance not indicative of future results. Confirm individual suitability before any recommendation.

Conversation GuidePlan · Bond Income Portfolio
Plan · Bond Income Portfolio

A diversified income engine.

Balanced bond-and-rate-linked portfolio targeting steady quarterly income with capital safety. 3–5 year horizon.

Target yield
4.5–5.5%
p.a., quarterly
Capital prot.
~85%
Weighted
Components
4
Diversified
Minimum
RM 250K
Across 4

01.Allocation

ComponentAllocYieldRole
Range Accrual (PP)40%5.00%Anchor, capital safe
Inverse Floater Y125%6.90%Locked Y1; rate-cut hedge
10Y MGS / GII20%3.85%Risk-free duration
Sukuk A-rated15%5.20%Credit spread

02.Income on RM 250,000

  • Range Accrual. RM 5,000 p.a.
  • Inverse Floater. RM 4,313 p.a. (Y1 fixed).
  • MGS. RM 1,925 p.a.
  • Sukuk. RM 1,950 p.a.
  • Total annual. RM 13,188 — effective 5.28% p.a.
  • vs FD. RM 8,000 p.a. at 3.2% — outperforms by ~RM 5,200.

03.Risks

  • 3–5 year lock-up. Not for liquidity-sensitive funds.
  • KLIBOR risk on Range Accrual. If KLIBOR rises above range, yield drops.
  • Rate-rise risk on Inverse Floater. Y2–5 coupon falls if rates rise.
  • Sukuk credit risk. 15% allocation has issuer credit exposure.
  • 65% principal protected. Range Accrual + Inverse Floater at maturity.
Indicative portfolio construction. Yields, allocations, and product terms are subject to change. Past performance not indicative of future results. Confirm individual suitability before any recommendation.
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