Public Mutual today launched two new funds, namely Public Strategic SmallCap Fund (PSSCF) and Public Enterprises Bond Fund (PENTBF), and categorized as equity growth and bond fund respectively.
Public Strategic SmallCap Fund seeks to achieve capital appreciation over the medium to long term period through investments primarily in companies with small market capitalization, by investing in stocks with market capitalization of up to RM1.25bn at the point of purchase. The fund may also invest in companies which at the point of purchase form the bottom 15% of the cumulative market capitalization of the market which the stock is listed on, although the fund will focus its investments in the domestic market.
Funds' key data were shown at the end of this post...
To achieve increased diversification, the fund may invest up to 30% of its NAV in selected foreign markets if the returns are assessed to be promising. The fund generally maintains equity exposures within a range of 70% to 98% against its NAV, while balance in fixed income securities and liquid assets.
On the other hand, Public Enterprises Bond Fund seeks to provide annual income through investments in fixed income securities and money market instruments, by investing at least 75% of its NAV in sovereign bonds and corporate bonds issued by entities with total assets exceeding RM3bn at the point of purchase. To achieve diversification, the fund may invest up to 30% of its NAV in foreign fixed income securities.
What would be the credit ratings?
The bonds invested must have minimum credit rating of BBB for long-term instruments and P1 for short-term instruments as rated by local or foreign rating agency, at the point of purchase.
PENTBF Specific Benefits
The fund allows the investor access to the bond market, which is usually inaccessible to the average investor as the standard transaction block amounts to RM5bn. Through this bond fund, it may potentially produce returns that are generally higher than fixed deposits.
Source: Public Mutual and Funds' prospectus
Just want to check what is view for the future of small cap in Malaysia since ut has being outperform for these few years? Thanks.
ReplyDeleteFM Blog don't think that SmallCap will outperform other assets classes given the flight to safety mode from investors. Thanks.
ReplyDeletePublic Strategic SmallCap Fund and Public Enterprises Bond Fund is very useful to me for being a medical supplier in Malaysia.
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