Falling Interest Rates - Smart Investment Moves to Make Now

This August, invest via FSMOne and enjoy up to S$100 cashback on eligible investments!

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As Interest Rates Decline, Investors Need to Rethink Their Cash Strategy

In January 2025, the 6-month Singapore T-bill cut-off yield stood at approximately 3.04% p.a. However, by July 2025, that figure had dropped sharply to 1.77% p.a. The 1-year T-bill has also experienced a similar decline, falling from 2.95% p.a. at the start of the year to 1.68%p.a. in July. This steep fall signals a turning point in Singapore’s interest rate cycle, as global central banks begin easing monetary policy in response to moderating inflation and slowing economic growth.

With this shift, the once-attractive yields from T-bills and fixed deposits are no longer sufficient to meet many investors' income expectations. For those seeking better returns while maintaining a focus on stability and resilience, now is the time to explore high-quality income and equity strategies that are positioned to benefit in a lower-rate environment.

This August, FSMOne and UOB Asset Management have teamed up to spotlight two flagship funds that are well-positioned for the current climate — the United SGD Fund and the United Global Durable Equities Fund. To make the deal even sweeter, a cashback promotion of up to S$100 is being offered for net inflows into either fund.

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United SGD Fund — A Steady Source of Income in a Lower-Yield Environment

The United SGD Fund is designed for investors who want to preserve capital while earning a consistent income stream. The fund invests in high-quality, short-duration investment-grade bonds with the aim of delivering stable returns with lower volatility. It is actively managed by UOB Asset Management and has a long-term track record dating back to 1998.

As interest rates trend lower, bond prices tend to rise. The United SGD Fund stands to benefit from this dynamic, especially as it maintains a short duration and focuses on locking in attractive yields from corporate bonds before rates fall further.

Key Benefits:

• Aims to provide monthly income through regular distributions (Distribution Class only)
• Invests primarily in short-duration investment-grade bonds.
• Seeks to offer higher yields than fixed deposits or T-bills while maintaining capital stability.

Assets Under Management (AUM): SGD 2,543.60 million (As of 30 Jun 2025)

Available Fund Classes & Latest Performance (Updated as of 7 Aug 2025):

Fund Class	3 Month Return*	1 Year Return*	3 Year Return*	Dividend Yield#
United SGD Fund Cl A Acc SGD	1.49%	4.08%	3.64%	N.A.
United SGD Fund Cl A Dis SGD	1.15%	3.71%	3.51%	4.00%
United SGD Fund Cl S Dis SGD	1.05%	3.62%	3.50%	5.00%
United SGD Fund Cl A Acc USD-H	1.98%	5.89%	5.04%	N.A.
United SGD Fund Cl A Dis USD-H	1.53%	5.69%	4.90%	4.99%
United SGD Fund Cl S Dis USD-H	1.62%	5.54%	4.93%	5.00%

*The return figures in the table above are calculated using bid-to-bid prices in terms of the respective fund currencies, with any income or dividends reinvested. Performance figures for over 1 year are annualised. (E.g. A 33.1% gain in 3 years works out to a 10% gain per year when annualised.)

^#The indicated yield is obtained by multiplying the most recent dividend paid by the dividend frequency, divided by the NAV value of the last working day of the previous month. Special dividend payouts will not be included. As dividends are not guaranteed and prices fluctuate, the indicated yield is not representative of future dividend yields. The yields displayed do not take into account ad-hoc dividend distribution declared by the fund managers, irregular dividend distributions, fund charges and foreign currency conversion.

The difference between Distribution (Dis) Class A and S lies in their target yield of 4% and 5% respectively. (i.e. Class A aims for a yield of 4% p.a. while Class S aims for a yield of 5% p.a.).  However, the higher pay-out could be from income, capital gains and/or capital. Over a long term, the Class S might see a lower NAV returns due to the higher distribution rate.

For investors who do not need a payout regularly, you can consider Class A Accumulation (Acc), which reinvests the payouts at the fund level.

So to sum up, this fund is for conservative investors or those seeking a bond fund as part of a core income portfolio. The United SGD Fund offers a compelling alternative to cash and other low-yielding instruments.

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United Global Durable Equities Fund — Diversify Beyond the “Magnificent 7”

The equity market rally in recent years has been dominated by a handful of large-cap U.S. technology stocks, often referred to as the “Magnificent 7.” While these companies have delivered strong returns, investors may be overexposed to a narrow slice of the market — and that concentration risk could pose challenges if sentiment shifts.

The United Global Durable Equities Fund offers a solution. Sub-advised by Wellington Management, the fund invests in a carefully curated portfolio of high-quality global companies with strong business models, durable cash flows, and attractive valuations. It is well-suited for investors seeking long-term capital growth and a more balanced global equity exposure.

Key Benefits:

• Diversification across sectors and geographies, with low exposure to mega-cap tech stocks.
• Focuses on companies that can weather market volatility and economic downturns.
• Emphasises valuation discipline and fundamental strength.

Assets Under Management (AUM): SGD 240.20 million (As of 30 Jun 2025)

Available Fund Classes & Latest Performance (Updated as of 7 Aug 2025):

Fund Class	3 Month Return*	1 Year Return*	3 Year Return*	Dividend Yield#
United Global Durable Equities Fund DIS SGD	2.62%	12.14%	8.15%	5.48%
United Global Durable Equities Fund ACC SGD	3.11%	12.67%	8.31%	N.A.
United Global Durable Equities Fund DIS USD	2.67%	15.02%	10.61%	5.58%
United Global Durable Equities Fund ACC USD	3.16%	15.58%	10.77%	N.A.

*The return figures in the table above are calculated using bid-to-bid prices in terms of the respective fund currencies, with any income or dividends reinvested. Performance figures for over 1 year are annualised. (E.g. A 33.1% gain in 3 years works out to a 10% gain per year when annualised.)

^#The indicated yield is obtained by multiplying the most recent dividend paid by the dividend frequency, divided by the NAV value of the last working day of the previous month. Special dividend payouts will not be included. As dividends are not guaranteed and prices fluctuate, the indicated yield is not representative of future dividend yields. The yields displayed do not take into account ad-hoc dividend distribution declared by the fund managers, irregular dividend distributions, fund charges and foreign currency conversion.

For the Distribution (DIS) class, the fund aims for a yield of up to 5.5% p.a. For investors who do not need a payout on a regular basis, you can consider the Accumulation (ACC) Class, which reinvests the payouts at the fund level.

In a nutshell, this fund is ideal for investors who want to build a resilient portfolio that’s not overly dependent on short-term trends or concentrated stock bets.

Investors should also note that the target dividend yields for the United SGD Fund and the United Global Durable Equities Fund are indicative, non-committed, non-guaranteed, and subject to change at any time. Investors should consider both dividends received and capital gains or losses when calculating total returns.

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August Exclusive: Enjoy Up to S$100 Cashback When You Invest

To reward investors during the August campaign, FSMOne is offering up to S$100 cashback when you invest in either the United SGD Fund or the United Global Durable Equities Fund.

Here’s how it works:

• Receive S$10 cashback for every S$25,000 invested.
• The more you invest, the more cashback you earn — up to a cap of S$100.
• Valid for investments made between 1 and 29 August 2025 only.

This promotion offers a great opportunity to boost your portfolio while enjoying cashback rewards.

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Ready to Make Your Move?

As Singapore’s interest rates decline, traditional safe-haven assets like T-bills and fixed deposits no longer offer the yields that many investors desire. The United SGD Fund presents a timely opportunity to earn a more stable income while preserving capital. For those looking for equity growth and diversification beyond the usual suspects, the United Global Durable Equities Fund provides a high-quality, global investment strategy built for the long haul.

Whether your focus is income, growth, or diversification, these two funds from UOB Asset Management can help you navigate today’s changing market environment — and with FSMOne’s cashback campaign, there’s even more reason to act now.

Still unsure about what to invest in? Feel free to email us at advisory@fundsupermart.com where you can receive investment advice and recommendations from our friendly, professional, and non-commission-based investment advisory team.

Disclaimer

Investment products involve risk, including the possible loss of the principal amount invested. Past performance is not indicative of future performance and yields may not be guaranteed.

All materials and contents found in this advertisement are strictly for information purposes only and should not be considered as an offer or solicitation to deal in any capital market products. You should consider carefully if the investment products you are purchasing are suitable for your investment objective, experience, risk tolerance and other personal circumstances. If you are uncertain about the suitability of the investment product, please seek advice from a financial adviser, before making a decision to purchase the investment products.

While iFAST Financial Pte Ltd and/or any of its third-party providers has/have tried to provide accurate and timely information, there may be inadvertent omissions, inaccuracies, and typographical errors. Opinions expressed herein are subjected to change without notice.

This advertisement has not been reviewed by the Monetary Authority of Singapore.