Public Mutual launches US Eagle Fund

Public Mutual US Eagle Fund is the first foreign equity fund under the PB series of funds and it targets long-term capital growth by investing 75% to 98% of its net asset value (NAV) in equities.

KUALA LUMPUR: Public Mutual launched a new fund – PB US Eagle Fund (PBUSEF) – on Tuesday.

It said in a statement PBUSEF is the first foreign equity fund under the PB Series of Funds which focuses its investments in the US market.

It targets long-term capital growth by investing 75% to 98% of its net asset value (NAV) in equities.

The equities will comprise blue chip stocks, index stocks and growth stocks primarily in the US market, with the balance invested in fixed income securities and liquid assets.

The initial issue price for PBUSEF is 25 sen per unit during the 21-day initial offer period from Tuesday to Jan 25.

The minimum initial investment amount is RM1,000 while the minimum additional investment amount is RM100.

Public Mutual said US real gross domestic product (GDP) is projected to grow by 3.8% in 2021 as consumer and investment spending recovers on the back of economic stimulus packages as well as the Federal Reserve’s monetary easing measures amounting to US$2.7 trillion.

The potential rollout of an effective Covid-19 vaccine in 2021 and a gradual normalisation in business activities will also help to support the economic recovery.It also said US corporate earnings were expected to rebound by 22.1% in 2021 after contracting by 14.5% in 2020.

Notably, US firms are global leaders in the new growth areas of biotechnology, fintech, cloud computing and autonomous driving.

Public Mutual added the US market comprises a large number of multinational companies which have geographically-diversified revenue streams and are leveraged to growth opportunities across the global economy.

Public Mutual, a wholly-owned subsidiary of Public Bank, is Malaysia’s largest private unit trust company with more than 160 funds under its management.As at end-November 2020, the fund size managed by the company was RM98.1bil.