New Fund: PB Dynamic Allocation Fund

Another new fund for the month of June, Public Mutual launched PB Dynamic Allocation Fund which allows the investor the opportunity to participate in tactical asset allocation strategy where instruments are allocated between the difference asset classes of equities, fixed income securities and money market instruments based on a flexible investment mandate. The fund may capitalize on potential investment opportunities if the market outlook is positive while reducing its equity exposure when weakness in the equity markets is expected.

As such, its equity content may range between 30% to 98% of the NAV of the fund. The balance of the fund's NAV may be invested in fixed income securities and liquid assets which include money market instruments and deposits.

Investment Strategy

Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities. The fund employs both the top-down and bottom-up approach to evaluate its investments. For its equity investments, the fund will invest in a diversified portfolio of blue chip stocks, index stocks and growth stocks listed in domestic and selected foreign stock markets. In identifying such companies, the fund adopts the bottom-up approach which relies on fundamental research.

The fund's investment may include listed warrants and options to enhance its returns. Also, it may consider investments in unlisted equities, particularly in companies that are expected to seek listing on the Bursa Securities or selected foreign markets within a time frame of 2 years.

Equity Linked Participation Notes?

More detail on equities, the fund may invest in equity linked participation notes for selected foreign stocks listed on the Luxembourg Stock Exchange. Equity linked participation notes are instruments designed to track designated securities. The movement of these notes are similar to the underlying shares listed in their respective markets.

Click here to download the prospectus

Source: Public Mutual

New Fund: AmDynamic Allocator

Another new fund launched by AmMutual in a short period of time (barely few days), AmDynamic Allocator aims to achieve capital growth over the Medium to Long Term and at the same time provide income by investing primarily in collective investment schemes. This is a Fund-of-Funds, which means the fund is comprise of multiple funds.

The Fund will be managed with the aim of achieving positive investment returns over the Medium to Long Term regardless of market conditions. To achieve the investment objective, the Investment Manager applies a strategy that seeks to generate returns through investments in Collective Investment Schemes (CIS), which has exposure to various asset classes including but not limited to equity, fixed income securities and money market instruments. There will be no cross-holding between the Fund and CIS.

More about Investment Strategy

In selecting the asset classes for the Fund, the Investment Manager will adopt an active asset allocation process. The Investment Manager will first review the macroeconomic trends in the global and local equity markets. Under general market conditions, the Fund’s investment will be tilted towards equities. When the Investment Manager believes that the equity markets are overvalued, experiencing excessive volatility or expected prolonged declines, the Fund may invest a substantial portion of its assets in fixed income securities and/or money market CIS to achieve the Fund’s investment objective in bearish or non-performing equity markets.

Once the asset allocation has been decided, the Investment Manager will then select CIS to fit the asset classes. In evaluating the suitability of a CIS for investment, the Investment Manager will, amongst other factors, review the track record, investment objective, investment policies and strategies, fund performance, income distribution policy and cost factors of the CIS. The Investment Manager will review the asset allocation of the Fund at least on a monthly basis. The Fund intends to ONLY invest in CIS that are managed by AmInvestment Services Berhad.

The Fund is suitable for investors who:

• wish to have capital growth with yearly income;

• have a Medium to Long Term investment horizon; and

• wish to invest in a fund that potentially gives higher return than fixed deposit rates.

Source: Fund Prospectus