Private credit might be less attractive than it was last year as investors rush into the market, but there are sweet spots to be found.
In terms of the asset splits, up to 70% of the fundÆs NAV will be invested in local fixed income securities, while the remainder will be placed in foreign equities and collective investment securities. The fund will also distribute income every six months.
The approved fund size of PrudentialÆs newest balanced fund has been set by the firm at RM300 million (approximately $88.5million), comprising of 600 million units priced at RM0.50 a piece. The minimum investment into the unit trust is set at RM1,000 ($295).
Based on ten-year of back testing similar funds, Prudential expects its new Enhanced Income Fund to yield around 11% for Malaysian investors. The firm also believes the asset combination will act as a hedge against inflation due to its diversity and exposure to offshore assets.
The firm believes that strong economic conditions in Malaysia were the catalyst for launching the fund, which should allow it to easily hit its target return. Citing analystsÆ forecasts, executives at Prudential believe that the Kuala Lumpur Composite Index will top the 1,500 by yearÆs end, which suggests a climb of over 11% on yesterdayÆs close of 1,343.
The firm also expects to meet demand from increasingly savvy clients this year. Later in 2007, PrudentialÆs Kuala Lumpur unit will offer several new funds to Malaysian retail investors, which assumedly include some offshore funds. Although the number of launches has not been confirmed, the firm confirms that two of new funds will be Islamic. So far this year, the firm has the Global Basics Fund, which invests in international consumer brands.
Since entering the Malaysia unit trust market five years back, Prudential has launched 28 funds and holds assets of RM3.4 billion ($1 billion).
CDPQ's Ivanhoe Cambridge hires ex-GIC real estate expert; NZ Super adds board member; Future Fund appoints chief people officer; BlackRock real estate CIO joins Singapore's Capitaland; AMP Capital hires MD for energy; Northern Trust AM names new CIO; T Rowe Price hires AU and NZ institutional head; Nuveen hires Southeast Asia institutional head; Citi names sustainability head in Singapore; and more
Investors are increasingly turning to private companies and private debt in their hunt for ESG alpha, but the age-old problem of transparency and due diligence remains
Already on the rise pre-Covid, investments into data centre assets in Asia have accelerated in the past year, fuelled by interest from investors across the spectrum.
Actively managed funds were also not found to have better odds of higher returns than more passive funds.