|Prudential launches new global fund|
|Tuesday, 21 April 2009 15:33|
The target fund implements asset allocation views using exchange-traded funds (ETFs) and has diversified range of global assets including equities, currencies, bonds and cash. The target fund launched March last year, seeks to achieve positive absolute returns over the medium term. “Since its debut till date, the fund has been down by 15% as compared to the global markets, which fell 38%,” says Kelvin Blacklock, chief investment officer – global asset allocation, Prudential Asset Management, Singapore. The fund held an average 30% of global equity over the period and thus, avoided the large fall in global markets, he adds. “Currently, the fund holds about 10% in global equities. And, year-to-date, the fund is up by approximately 3% while the global markets are down by 2%.”
Broad-based ETFs enables investors to diversify across boundaries and mitigates risks by spreading exposures across many holdings, says Christopher Chan, chief officer – product and marketing, Prudential Fund Management Bhd. “Unlike the normal ETFs, which are by nature, passive, the new feeder fund has an additional feature of flexibility in asset allocation. The fund employs an unconstrained investment approach to allocate up to 100% in equities, bonds or cash, depending on the market condition. This is where the value add comes in for the investors.”
The minimum investment for Prudential Global Market Navigator Fund is RM 1,000 and any subsequent additional investment is RM 100. The fund is suitable for those who seek capital appreciation, have high risk tolerance and with a medium term investment horizon. Its sales charge is up to 6% of the NAV per unit of the fund.