Investing Updates : Some Thoughts Regarding Mari Invest Income Solution and its Underlying Income Unit Trust.

Source:

https://investmentmoats.com/money/mari-invest-income-solution/

Apple Intelligence:

• MariBank Ownership: Owned by Sea Group, a Singapore-based technology conglomerate.

• MariBank Services: Offers personal and business banking services through its mobile application.

• Mari Invest Income: A new investment product released by MariBank, currently available by invitation only.

• Investment Goal: Mari Invest Income aims to provide regular payouts.

• Investment Risk: Considered a higher risk investment compared to Mari Invest SavePlus.

• Fund Performance: Depends on the performance of the PIMCO GIS Income Fund, an actively managed fund.

• Ongoing Fee: 1.05% p.a., including management fee and trailer fees.

• Fund Performance: Historically good return (4.09% p.a. since inception) and a consistent monthly payout (nearly 6.49% p.a. based on historical distribution as of 31 Dec 2024).

• Payout Characteristics: Not guaranteed and may differ from past performance, despite consistent and increasing per unit payout history.

• Fund Composition: PIMCO GIS holds a significant portion (36%) in Federal National Mortgage Association (FNMA) mortgage-backed securities.

• FNMA MBS Characteristics: Offer high yields, benefit from rising interest rates, implicitly backed by the US government, sensitive to interest rate changes, and may not appreciate as much when interest rates fall.

• PIMCO GIS Fund Classes: Various classes exist, including hedged and unhedged options in different currencies (AUD, EUR, GBP, HKD, SGD, USD).

• Fund Class Fees: Different fund classes have varying ongoing fees: ADMIN (1.05% p.a.), E (1.45% p.a.), HINST (0.72% p.a.), INST (0.55% p.a.), INVST (0.90% p.a.).

• Fee Distribution: Fees paid for the PIMCO GIS Income fund are distributed among PIMCO, fund distributors (e.g., Maribank), and advisory firms.

• Investor Considerations: Investors should focus on understanding the fees, the underlying investment (PIMCO GIS Income fund), the investment risk, its role in their overall financial plan, and the associated risks.