- Introduction to the fund
- PAMS
- An introduction
- Prudential Asset Management Limited was originally established in 1994 top take part in investment activities that ranges from stock trades to collective investment schemes in (Singapore) . Though the outfit was officially launched in 1994, the company started trading later in the year 1996. The company has experienced unparalleled growths in leaps and bounds over the years. The company record shows that the company's assets base was S$51.28 billion as of June 2010. This translated to approximately $40.4 billion discretionary funds in Asia
- Name of fund
- PRU Dragon Peacock Fund:
- fund manager:
- Prudential Asset Management (Singapore) Limited
- Fund administrators:
- Trustee:
- HSBC Institutional Trust Services (Singapore) Limited
- The type of funds
- Collective Investment Schemes or unit trusts
- Investment strategy applied by fund managers
- Pru dragon fund is an ……………………, the fund managers wish to maximize the overall return of the fund by investing in the equity related instruments provided by corporations. The company is interested in the maximization of long-term investments. The corporations must meet the following standards: the instruments must either be incorporated in the revenue of the people’s republic of china. However, the instruments must also be listed in and operate primarily from the people republic of chine. Additionally the instrument must also derive significant revenue from the PRC (People republic of china) or the people republic of India
- Funds Managed
- The company manages the following funds:
- IOAI - All Seasons Cl A USD
- IOF China Eqty SGD Cl AS
- Cash Fund
- IOF China Eqty USD Cl A
- IOF Asian Eqty Income SGD Cl ASDQ
- IOF Indonesia Eqty SGD Cl AS
- IOF Asian Eqty Income USD Cl ADQ
- IOF Indonesia Eqty USD Cl A
- IOF Asian Local Bd SGD Cl AS
- PRU Glb Positioning Strategy SGD
- IOF Asian Local Bd SGD Cl ASDM
- IOF- Asian Bd SGD AS
- IOF Asian Local Bd USD Cl A
- IOF- Asian Eqty SGD AS
- IOF Asian Local Bd USD Cl ADM
- IOF- Asian Bd USD A
- IOF- Asian Eqty USD A
- IOF- Glb Mkt Navigator USD A
- IOF- Glb Tech USD A
- IOF- Greater China Eqty USD A
- M&G Eur Fd EUR A
- PRU Asian Infrastructure Eqty SGD
- M&G Eur Smaller Cos Fd EUR A
- PRU Asian Infrastructure Eqty EUR
- M&G Glb Basics Fd EUR A
- PRU Asian Balanced Fund
- M&G Glb Leaders Fd EUR A
- M&G Pan Eur Fd EUR A
- IOF- World Value Eqty USD A
- M&G Corporate Bd Fd EUR A
- IOF- US Invt Grade Bond SGD AS
- M&G American Fd EUR A
- IOF- US Inv Grd Bd USD A
- IOF-Asian Property Sec USD Cl A
- IOF- US High Yld Bd USD A
- IOF-Asian Property Sec SGD Cl ASDQ
- IOF- US High Inv Grd Bd USD A
- IOF-Asian Property Sec SGD Cl AS
- PRU Asian Infrastructure Eqty USD
- PRU Dragon Peacock Fund
- IOF- Pan Eur USD A
- IOF-Asian Bd USD ADQ
- Market overview
- The fund market has had a lot of fluctuation in the recent past; there have been a lot of happening especially in the Indian securities market. The market has faced considerable duration of passive performances. The market closed flat disregard of the concern of the European debt. The country has realized a lot of weakness in the domestic market. The industrial production growth has been very frail while the overall interest rate of the central bank has been increasing steadily over the past couple of months.
- The performances of the Indian securities market have been steady as compared to their counterparts in other countries. However, this can be attributed to the low degree of exposure to the worldwide economy. Conversely, the Chinese market performed poorly compared to their Indian counterpart due to the disappointment by the statements made by the countries premiers.
- The Chinese equity has a very low index; the MSCI china index has reported the worst performance of the decade. However, the statement by the country’s premiers were not just word in smoke, for example, the country made the stabilization of the prices a key priority. On the other hand, the stand taken by the government may worsen things for the Chinese equity market because the government does not plan to ratify its economic policies in the light of the current happenings in the equity market. Investors in the securities market are getting worried by the day about the state of affairs and fear that there is not respite in the near future. There is also speculation by the Chinese equity market players that the country is soon regulating its variable interest entities (VIE). There are also other macroeconomic concerns that are weighing on the market with respect to the Chinese stocks, and are likely to have negative impact on the investors.
- The top contributors to the fund include China Unicorn Ltd (Hong Kong), while the net gain if the month was Huabao International Holdings Ltd. Additionally, Mahindra and Mahindra financial services however, had a remarkable performance n the, market even in the face of aridity in the funds market. Despite the stellar r performances by the companies above, there has been a relative underperformance by the following companies: Everglade Real Estate Group Ltd; Focus Media Holdings Ltd and Sohu.com Inc. the three companies responded t the nervousness in the stock market and failed to impress the shareholders.
- Special characteristics:
- a)Fund structure:
- The portfolio invested in a number of securities that bear interest. This includes bonds , cash, debenture and even money market instruments
- The benchmark
- The benchmark is the bond index
- Suitability
- The fund is suitable for those investors seeking to diversify their multi asset category portfolio, or those investors in the look out for returns that are in excess of these that the money market provides. The investors must also be ready to accept risks especially those related to capital depreciation. This risk is much greater that the crash investment.
- The unit trusts that the group specializes in include mutual funds that have a history of profitability and growth in order to meet the requirements of the shareholders and increase the shareholder wealth. The unit trust has the following special characteristics. The unit trust managed by the company offers wide access to international opportunities and overseer market. The units trust allows anybody to do business anywhere in the world irrespective of the place at which the company is conducting business.
- Redeemable
- The fund issues redeemable securities like the mutual funds; this means that the company can only sell the shares of the investors if the investors have requested that the company redeem the trust. The company on its own cannot unless redeemed by the holder of the trust. Then trust is sold at the approximate NAV. Some companies have exchange-traded funds (ETF) that the company structures as unit trusts. The shares of exchange-traded funds are irredeemable in huge blocks
- Public offering
- Unit trusts are like public offerings of a number of units. The unit trust are just like closed end funds. Many players in the unit trust market makes it possible for the stockholder to sell their units back to the sponsors. Conversely, investors can buy the unit trusts once the investors want to but the trusts.
- Termination
- The units trust special characteristics in that =they have a termination date. On the terminal date the fund is dissolved, the date of termination is determined when the fund is created. In most cases, the termination date of the trust is established by the date of maturity date. However, it should be noted that on the date of termination, the investment portfolio securities that remain is sold and the resulting money divided to the investors.
- Quiescent unit trust
- The unit trust is not actively involved in the trading of investment portfolio. The fund is mainly in the purchasing of fixed portfolios as opposed to short-term portfolios. The fund has an inherent characteristic of holding on to stocks for along time. The investment is generally held for along time making the units trusts quiescent. The investment portfolio of units is always listed in the prospectus of the company.
- Income build and distribution
- The income yield of the fund is high and the distribution is biannual
- Compliance
- The fund is compliance with the Prudential Investment Guidelines
- Investment management fee
- The investment is charged annually in case there is an outperformance of the yardstick. The management adjusts the performance for any expense or cash flow. The following figures are related to this fund:
- Minimum fee: 0.20%
- Fee at benchmark: 0.20%
- Sharing rate: 35%
- Maximum fee: 0.45%
- Total expense ratio (incl. VAT)?
- Totals of the expenses ratio: ….0.30percentage;
- Performance component: …………0.04%;
- Benchmark fee: 0.29%;
- Trading costs: 0.00%;
- Total Expense Ratio (TER)
- Is a measure of a unit trust’s assets that are relinquished as operating expenses? The total operating expenses are expressed as a percentage of the average value of the unit trust, calculated for the year to the end of June 2011. Included in the TER is the proportion of costs that are incurred by the performance component, fee at benchmark, trading costs (including brokerage, STT, STRATE and insider trading levy), VAT and other expenses. These are disclosed separately as percentages of the net asset value. A higher TER ratio does not necessarily imply a poor return, nor does a low TER imply a good return. The current TER cannot be regarded as an indication of future TERs. The information provided is applicable to class A. units.
- Collective Investment Schemes (unit trusts) are generally medium- to long-term investments. The value of participatory interest (units) may go down as well as up and past performance is not necessarily a guide to the future. Unit trusts are traded at ruling prices and can engage in borrowing and scrip lending. A schedule of fees and charges and maximum commissions is available on request from the company/scheme. Commission and incentives may be paid and if so, would be included in the overall costs. Unit trust prices are calculated on a net asset value basis, which, for money market funds, is the total book value of all assets in the portfolio divided by the number of units in issue. The Allan Gray Money Market Fund aims to maintain a constant price of 100 cents per unit. The total return to the investor is primarily made up of interest received but may also include any gain or loss made on any particular instrument held. In most cases, this will have the effect of increasing or decreasing the daily yield, but in some cases, for example in the event of a default on the part of an issuer of any instrument held by the fund, it can have the effect of a capital loss. Such losses will be borne by the Allan Gray Money Market Fund and its investors and in order to maintain a constant price of 100 cents per unit, investors’ unit holdings will be reduced to the extent of such losses. Fluctuations or movements in exchange rates may also be the cause of the value of underlying international investments going up or down. Unit trusts are traded at ruling prices. Commissions and incentives may be paid and if so, would be included in the overall costs. Different classes of units apply to the Allan Gray Equity, Balanced, Stable and Optimal Funds only and are subject to different fees and charges. A detailed schedule of fees and charges and maximum commissions is available on request from the company. Forward pricing is used. A fund of funds unit trust may only invest in other unit trusts, which levy their own charges that could result in a higher fee structure for these portfolios. A feeder fund is a unit trust fund that, apart from assets in liquid form, consists solely of units in a single portfolio of a collective investment scheme. All of the unit trusts except the Allan Gray Money Market Fund may be capped at any time in order for them to be managed in accordance with their mandates. Allan Gray Unit Trust Management Limited is a member of the Association for Savings & Investment SA (ASISA). Allan Gray Proprietary Limited, an authorized financial services provider, is the appointed investment manager of Allan Gray Unit Trust Management Limited. Allan Gray Unit Trust Management Limited has been approved by the Regulatory Authority of Botswana to market its unit trusts in Botswana, however the Company is not supervised or licensed in Botswana. It is incorporated and registered under the laws of South Africa and is supervised by the Financial Services Board.
- Lack of management board
- The unit trusts may not have high level management board, therefore the trust may operate for along time without the
- Keep in mind that just because a UIT had excellent performance last year does not necessarily mean that it will duplicate that performance. For example, market conditions can change, and this year’s winning UIT could be next year’s loser. To understand the factors you should consider before investing in a mutual fund, read Mutual Fund Investing: Look at More Than a Mutual Fund's Past Performance. In addition, before investing in a UIT, you should carefully read all of the UIT’s available information, including its prospectus.
- UITs are regulated primarily under the Investment Company Act of 1940 and the rules adopted under that Act, in particular Section 4 and Section 26.
- A UIT does not have a board of directors, corporate officers, or an investment adviser to render advice during the life of the trust.
- http://www.sec.gov/answers/uit.htm
- a. Access to markets and overseas opportunities
Unit trusts give you the opportunity to invest in specialised and/or overseas markets. Again, it would be difficult or impossible for an individual to access such markets directly due to limited capital resources as well as time required to be spent on careful research to gain in-depth knowledge of these markets. - b. Low minimum investment
With as little as S$1,000 and subsequently S$100, you can invest into a wide range of securities that you might otherwise not have access to. There are also regular savings plans which start from as low as S$100 a month so that you can continuously build on your investments. - c. Professional management
Few of us are investment experts. The great thing about investing in unit trusts is that you leave your money in the hands of experienced professionals who devote their time to ongoing research and managing the funds. - d. Spreading the risks
As a unit trust buys into a range of securities, the investment risk is reduced. This is because if any particular security proves to be a bad investment, the impact on such a diversified portfolio is not as significant as having put all eggs in one basket. - e. Investments to cater to different objectives
There are many types of funds to meet a variety of financial objectives and an investor can use a portfolio of funds to achieve his or her objectives. - Investors would have different objectives when they invest. If you are planning to invest for your retirement 30 years later, you might consider using growth-oriented equity funds that have traditionally delivered healthy returns over a longer period. Other funds such as bond funds are suitable for those who prefer steady returns with lower risks.
- f. Liquidity
Unit trusts have a high liquidity, that is, they can be readily redeemed. Although it is not advisable to redeem these investments in the short term, you have the option of selling whole or partial of your holdings within the stipulated timing by sending a written redemption request to the distributor or fund manager by stipulated means. - Mutual Fund Investing Checklist
- Using the checklist below should help you to extract the most from your mutual fund investment process. We assume that you will be investing largely through mutual funds to meet your targeted asset allocation plan.
- 1. Draw up your asset allocation
- You can use moneycontrol’s Asset Allocator for this. Take a printout of your suggested asset allocation plan so that you can use that to plan your investments across mutual funds.
- 2. Identify funds that fall into your Buy List
- How do you do this? Simple. Just go to Find-A-Fund and run a query specifying the parameters you are seeking.
- Obtain and read the offer documents
- You could do this by either asking your broker or the asset management companies. You might also find some of these documents if you go to our Request-A-Form service.
- Objectives
- Read through the offer documents and check to see whether the mutual funds identified meet your investment needs in terms of equity share and bond weightings, downside risk protection, tax benefits offered, dividend payout policy, sector focus and other parameters of relevance to you. For ease in short listing, you can us e our Find-A-Fund query module.
- index funds
- The company must consider investing in index funds as they give th best hedge against difrent performance over sectors and fun manager over long durations. Ther companyshouls invest in index annual funds.
- `load' costs
- The company must always try t reduce the load costs to the customers. For example, annual funds expense and other related fees should be reduced to minimum. Such expenses are added loads to the customers and has a negative impact on the rating of the compoanys share. The company pland to makes a 1% rule for any mutual unit trust funds it deals with for example, the company must strive to charge a maximum of 1% as management fees and annual expnses. This is done to manage the geberal image f the company as a top performer.
- Change of fund manager
- Consistency is the mother of growth in funds management, the company strives to ensure that the fund manager are maintained and serve for along time to oversee the success of the organization. This is based on the assumption that the investors lok at the stability of tenure as the only way that the customersa can determine the security of their funds
- size and credentials
- Rhe conoany will also strive to developee acredential tack record while bildng a large capital base.cucxtopkmers make decision on the type of fiunds to invest in by looking at the asset base of the company
- Customer Service
- The coiompany must strives to ofer the best customer service in the industry to enable the company clients get in touch with the customer representatibe. Along thi slikne , th company must disburse cach to the customers, launch portfolio updates as wel as re;asted newlesteers. These are the core problems that the investors have thus having such strategy in pace can results into a higher growth or even company overall returns
- Diversify,
- The company must always strive to diversify its investment andrisks , because there are ,alt of risks in holding on to only one fund in very assety class. The best induty rule is to have a maximum of three funds undr eachaset class
- investment phylosophy
- The company must have a disciplined approach, a philosophy that is never swayed by any change in the attractiveness of other mutual funds. Any attractive optionshould be critically analysed befre the company invest inthat option. Optimal caution musyt be employed to ensure that the company stays a heads of its investment competitors
- Monitor regularly and review
- Advice client to redview their mutual funds o n monthly basis while at the same time identifying the best mutuyal funds toi invest in
- wise and regular investment
- The comoany should invets regularly by prioritizing on investing in unit funds more han any other funds. If a company makes investment part of its wealth biliding plan, a company can develop a large wealth base wuthun a very short time. the company mush ofer to client mon5tlhy investment plan optioin.
- Launch Date
- 18-May-2004
- Initial Sales Charge
- CPF
- Max 3%
- Cash
- Max 5%
- Min. Initial Investment
- SGD 1,000+
- Min. Subsequent Investment
- SGD 100
- Annual Management Fee
- 1.5%
- Fund Manager
- Prudential Asset Management (Singapore) Limited
- Sub-Manager of Underlying Funds
- N.A
- Sub-Manager
- Prudential Asset Management (Hong Kong) Limited (China Portfolio Only)
- Benchmark
- 50% MSCI China Index and 50% MSCI India Index
- Subscription Method
- CPF
- CPFIS-OA
- Cash
- Cash, SRS Account
- Fund Size (Millions)
- SGD 921.74 - As at 30-Sep-2011
- Fund Currency
- SGD
- CPFIS Risk Classification
- Higher Risk - Narrowly Focused (Country - Others)
- Share class
- N.A
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3304 Words 12 Pages
