Public Mutual launches two new funds to capitalise on vibrant Asean, China markets

KUCHING: Public Bank’s wholly-owned subsidiary, Public Mutual, is launching two new funds, Public Asean Growth Fund ( PASGF) and Public Greater China Fund (PGCF) on October 26, 2017.

According to a press statement, PASGF seeks to achieve capital growth over the medium- to long-term by investing in a diversified portfolio of blue chip, index and growth stocks in Asean markets.

“PASGF is well- positioned to benefit from the economic growth of the Asean region as the Fund may invest up to 98 per cent of its net asset value (NAV) in selected Asean markets including Malaysia, Singapore, Thailand, Indonesia, the Philippines, Vietnam and other permitted markets,” says Public Mutual’s chief executive officer, Yeoh Kim Hong.

“To achieve capital growth, PGCF will invest 75 per cent to 98 per cent of its NAV in equities, with the balance invested in fixed income securities and liquid assets.

“Unlike our other China focused equity funds, this Fund may invest up to 25 per cent of its NAV in other regional and global markets outside of the Greater China region which allows the Fund to benefit from diversification,” she explained.

Asean’s rapid urbanisation, favourable population dynamics and relatively young labour force would help support the Asean’s economic performance in the years ahead, it said.

It said the equity markets in Asean are expected to benefit from the robust economic outlook, improved corporate earnings growth, accommodative monetary policies and currency strength amid a weakening US dollar.

“While PASGF focuses on Asean region markets, PGCF on the other hand, aims to ride on the rise of the vibrant Greater China markets and provide investors the opportunity to participate in the long-term growth potential of the region.

“The fund invests in a diversified portfolio of blue chip, index and growth stocks primarily in the China, Hong Kong and Taiwan markets, as well as China-based companies listed on overseas markets,” it added.

The initial issue price for both PASGF and PGCF is RM0.25 per unit during the 21-day initial offer period from October 26 to November 15, 2017.