Public Mutual launches two funds, provide foreign market exposure

KUALA LUMPUR: Public Mutual had on Tuesday launched two unit trust funds Public Optimal Equity Fund (POEF) and Public Islamic Optimal Equity Fund (PIOEF).

The company, which is a unit of Public Bank, said the two new funds provide flexibility in terms of foreign market exposure.

“POEF seeks to achieve capital growth over the medium- to long-term by investing in a diversified portfolio of index, blue-chip and growth stocks. 

“PIOEF is a Shariah-compliant fund that adopts the same investment approach,” said Public Mutual.

Public Mutual which manages RM66.9bil in funds, pointed out the two new unit trusts provide flexibility in terms of foreign market exposure. 

Generally, the funds will invest 50% of their net asset value (NAV) in equities of selected regional markets and the balance in the domestic market. 

However, when valuations of regional stocks are attractive and growth prospects of these stocks are positive, the Funds may increase their foreign market exposure to up to 98% of their NAV. 

The regional markets that POEF and PIOEF may invest in include China, South Korea, Taiwan, Hong Kong, Singapore, Indonesia, Thailand, the Philippines and other permitted markets.

 The equity content for POEF and PIOEF ranges between 75% and 98% of their NAV with the balance invested in fixed income securities and liquid assets, which include money market instruments and deposits.

 Public Mutual CEO Yeoh Kim Hong said the funds’ flexible strategy allows investors the opportunity to diversify their investments and benefit from the growth potential of regional markets over the medium- to long-term. 

“Therefore, investors seeking to optimise returns from the long-term growth potential of regional markets may consider investing in these two funds,” she said. 

The initial issue price for POEF and PIOEF is 25 sen per unit during the 21-day initial offer period from Tuesday until Aug 15, 2016. 

The minimum initial investment for both funds is RM1,000 and the minimum additional investment is RM100. 

Investors who purchase during the initial offer period can enjoy a promotional sales charge of 5.00% of the initial issue price per unit. Terms and conditions apply.

During the period from Tuesday to Aug 15, 2016, investors who opt for direct debit instruction (DDI) with POEF and PIOEF will enjoy a promotional sales charge of 5.25% of NAV per unit for as long as the direct debit is active.