TheStar
KUALA LUMPUR: Prudential Fund Management Bhd yesterday launched Prudential Global Emerging Market Fund (PRUgem), which has an approved fund size of 1.2 billion units.
The fund will primarily invest in equity securities of companies in emerging Asian markets as well as other emerging markets in Latin America, the Middle East and Africa.
Chief executive officer Mark Toh said investing in the other emerging markets outside Asia allowed investors to capitalise on the potential of these markets.
“We choose to launch an emerging market fund because emerging markets have been growing at 3% per annum, faster than developed markets since 1999 and representing greater world gross domestic product growth contribution,” he added after the launch of PRUgem.
At least 95% of the fund's net asset value will be invested through a collective investment scheme – the Schroder International Selection Fund Emerging Markets in euro denomination. The scheme is managed by Schroders Investment Management (S) Ltd.
With an approved fund size of 1.2 billion, PRUgem is being offered at 25 sen per unit until Jan 31.
The minimum investment is RM1,000 with subsequent minimal investment of RM100.
It is targeted at retail investors with high-risk tolerance and seeking long-term capital growth.
Toh said there had been massive improvement in the economic fundamentals of emerging markets with debt burden falling, foreign reserves improving, trade balance stronger, inflation well controlled and currencies undervalued and a healthy current account surplus.
“Emerging markets have outperformed global equities for the past six years mainly due to strong earnings growth. We see local investors taking the opportunity to invest offshore to diversify their portfolio.
“Obviously there is demand for them (such funds) as fund houses have been launching offshore programmes in the last three to four months,” he added.
Prudential Fund Management has since Jan 1 taken over management of Prudential Assurance Malaysia Bhd and Prudential BSN Takaful funds, bringing the total funds under management to 33.
With this, its total net assets have grown to over RM12bil consisting of RM3.7bil from the retail unit trust business and about RM8bil from private mandate.
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