KUALA LUMPUR: Public Mutual launched the Public e-Asia Pacific REITs Flexi Fund (PeAPREITF) on Tuesday which will focus on real estate investment trusts (REITs) that generate sustainable dividend yields and also offer capital growth.
Public Mutual, a unit of Public Bank, said REITs are an attractive dividend-yielding investment because their income is generally exempt from tax.
PeAPREITF may invest 60% to 98% of its net asset value (NAV) in REITs and up to 40% in equities and equity-related securities, with the balance invested in liquid assets.
The fund may riase its allocation in REITs when the outlook for REITs is positive amid falling interest rates.
In an environment of rising interest rates, the fund may increase its allocation to equity and equity-related securities and/or liquid assets.
Public Mutual’s CEO Yeoh Kim Hong said: “The fund is suitable for long-term investors who seek income and to a lesser extent capital growth from dividend-yielding REITs within the Asia Pacific region while tapping into growth opportunities in the regional equity markets."
The minimum initial and additional investment amounts are only RM100 and the sales charge is as low as 3.75%.
The initial issue price for PeAPREITF is 25 sen per unit during the 21-day initial offer period from Feb 18 to March 9,2020.
Investors can invest in PeAPREITF via Public Mutual Online (PMO).
Public Mutual has more than 140 unit trust funds under its management. As at end-December 2019, the fund size managed was RM86.6bil.
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