Financial Planning

2008-03-27
New Straits Times

PUBLIC Bank Bhd will launch its new Public China Titans Fund (PCTF) on April 1, allowing investors to tap into the growth prospects of large-cap stocks in the Greater China region.

The new fund will be managed by its wholly-owned subsidiary, Public Mutual.

“Returns on funds that focus on large-cap stocks are more stable compared to small-cap funds as large corporations are better positioned to weather economic cycles due to their size and strong cashflow,” Public Mutual chairman Tan Sri Dr Teh Hong Piow said in a statement yesterday.

He said the Greater China region, comprising China, Hong Kong and Taiwan, offers a wide universe of large-cap stocks.

PCTF is an equity fund that seeks to achieve medium- to long- term capital growth by investing in companies with market capitalisation of RM10 billion and above, including in China-based firms listed overseas.

Teh said up to 98 per cent of the fund’s net asset value (NAV) can be invested in selected foreign markets which include Hong Kong, China, Taiwan, Singapore, the US and other approved markets.

“The equity exposure of PCTF will generally range from 75 per cent to 90 per cent of its NAV,” he said.

The initial offer price of the fund is at 25 sen per unit during the 21-day initial offer period from April 1 to 21. Minimum initial investment is RM1,000 and the minimum additional investment is RM100.

(c) 2008 New Straits Times.