KUALA LUMPUR: Public Bank’s unit, Public Mutual, launched two new global funds, Public Japan Global Equity Fund (PJGEF) and Public Islamic Global Balanced Fund (PISGBLF) on Tuesday.
It said PJGEF's objective is to achieve capital growth over the long term by investing 75% to 98% of its net asset value (NAV) in equities.
At least 30% will be invested in the Japan market and the balance in the US, Europe and Asia Pacific markets.
“This fund will primarily invest in a portfolio of blue chips, index stocks and growth stocks in Japan and the global markets which are underpinned by resilient fundamentals, attractive growth prospects and reasonable valuations, ” it said.
Public Mututal said Japan, the world’s third-largest economy, is supported by a healthy job market as well as robust inbound tourism.
It also said Japanese equities are underpinned by below-trend valuations, with the Tokyo Stock Price Index (TOPIX) trading at a prospective price-to-earnings (P/E) ratio of 13.1 times as at Oct 31,2019, which is 23.4% below its 10-year historical average.
It added Japanese companies are also poised to capitalise on opportunities in the U.S. and China markets due to the ongoing trade dispute between the two countries.
As for PISGBLF will invest 40% to 60% of its NAV in Shariah-compliant equities while the balance is invested in sukuk and Islamic liquid assets.
Up to 98% of its NAV may be invested in the global markets, including the US, Europe and Asia Pacific.
This fund seeks to achieve capital growth over the long term through a balanced asset allocation approach which makes it less volatile than a portfolio comprised solely of equity investments.
Public Mutual said the initial issue price for both PJGEF and PISGBLF is 25 sen per unit during the 21-day initial offer period from Tuesday to Dec 23.
The minimum initial investment amount is RM1,000 while the minimum additional investment amount is only RM100.
As at end-October 2019, Public Mutual managed RM85.3bil of funds.