PRU Monthly Income Plan

A friend bought into this fund for 5% dividend returns per annual.

http://www.fundsupermart.com/main/fundinfo/viewFund.svdo?sedolnumber=PPMIPM

Currently it is selling close to launch price of $1.

Period	1 yr high	1 yr low	3 yr high	3 yr low	All time high	All time low
Price (SGD)	1.02	0.96	1.02	0.7	1.05	0.7

From the pricing, there isn't much capital gain to be expected, and thus this fund is purely a dividend play. Dividend payout had been consistent at about 5%

A quick look at the bonds/investments that the fund is holding reveals that majority of them are rated BBB and lower.

At 5% dividend, I feel that the return does not commensurate with the risk. UOB preference shares give 5% dividend as well.