KUALA LUMPUR: Public Mutual launched two new funds — Public e-Income Fund (PeINCF) and Public e-Islamic Income Fund (PeISINCF) – on Wednesday which seek to provide annual income over the medium to long-term period.
Public Mutual, a unit of Public Bank, said both funds will invest in fixed income securities and money market instruments.
PeINCF will invest primarily in liquid assets such as deposits as well as money market instruments and may invest up to 50% of its net asset value (NAV) in fixed income securities.
PeISINCF will invests primarily in Islamic deposits, Islamic investment accounts and Islamic money market instruments, and may invest up to 50% of its NAV in sukuk.
“With the mandate of investing up to half of its portfolio in fixed income securities/sukuk and the balance in liquid assets/Islamic liquid assets, these funds provide investors with potentially higher yields than fixed deposits, ” Public Mutual said.
The funds’ holdings of money market instruments/Islamic money market instruments help to provide capital stability to the funds.
Public Mutual said the flexible mandate allows PeINCF and PeISINCF to adjust the asset allocation between fixed income securities/sukuk and money market instruments/Islamic money market instruments when market conditions change.
Public Mutual CEO Yeoh Kim Hong said the funds are suitable for investors who would like to invest in funds which endeavour to provide steady annual income stream.
The funds are available exclusively online with minimum initial and additional investment amounts of RM100 via Public Mutual Online (PMO).
The initial issue price for PeINCF and PeISINCF is RM1.0000 per unit during the 21-day initial offer period from July 1 to 21.
Public Mutual managed a fund size of RM87.6bil at end-May 2020.