Prudential Launches Prudential MY Focus Fund
27 March 2011
Prudential Fund Management Berhad (PFMB) today announced the launch of their latest fund, the Prudential MY Focus Fund: an equity fund that aims to provide capital appreciation in the medium-to-long term by investing in a portfolio of up to but not limited to 30 Malaysian securities.
“Focus value investing is a proven investment methodology that has been adopted by many investment gurus which has been successfully rewarded and it allows the fund to invest in under-valued stocks that have great potential to outperform the market over a medium to long-term period” says Lynn Cheah, Chief Executive Officer of PFMB.
A focused fund typically invests in a smaller number of stocks, usually between 20-40 stocks which the fund manager rates as the best investment ideas.
Focus funds differ from other funds in mainly three ways:
o Unconstrained investing – allows fund managers to focus on potential market-moving sectors or stocks without being constrained by benchmark or market capitalization requirements (subject to minimum liquidity requirements).
o Concentrated number of stocks – the fund invests up to (but not limited to) 30 Malaysian stocks, which, through research and analysis, show up as undervalued and have the best potential for appreciation.
o Value-oriented, bottom-up approach – allows fund managers to selectively look for undervalued & high potential stocks through a certain set of criteria.
Lynn adds, “Despite a slow start, 2010 brought about many events that will continue to shape the concerns and outlook of 2011. The equity markets ended the year higher on confidence that the global economy is improving. Domestically, we expect more Entry Point Projects (EPP) to be announced under the Economic Transformation Programme (ETP) and look to the implementation of the EPP projects that have already been announced. These, plus the impending snap election may prove to be the catalyst to drive our equity market further.
Prudential MY Focus Fund compliments the portfolio of investors who are looking to maximize their returns from existing investment opportunities in Malaysia over the medium-to-long term and they accept the risks as part of equity investments.”
Investors can invests at RM0.50 per unit until 21 March 2011, starting with a minimum of RM1,000.