KUALA LUMPUR – Manulife Investment Management (M) Berhad (Manulife) announced today the launch of the Manulife Global Low Volatility Equity Fund (the Fund), which aims to provide Malaysian investors with stable capital growth over the long run through investments in global companies with sustainable business models, while seeking to limit volatility and emphasize downside protection.
The Fund is a retail feeder fund that invests at least 95% of its net asset value into Alliance Bernstein’s SICAV I – Low Volatility Equity Portfolio (the Target Fund), which follows the disciplined approach and investment philosophy of QSP – investing in high-Quality, Stable companies at the right Price to beat the market and cushion downside.
Companies that produce predictable earnings patterns could potentially outperform the market and have better risk profiles in the longer term. It is also important not forget to buy at a reasonable price and avoid crowded trades as that may quickly reverse.
This sets the basis for the Target Fund that aims to protect against downside risk and beat the market at the same time, It does so by positioning the portfolio so that it is prepared for downturns and poised for recovery – it seeks to capture 90% of the market’s gains in rising markets, and seek to capture only 70% of the market’s declines during down markets.
Performance would smooth out over a long-term cycle, and this has allowed the Target Fund to consistently outperform the MSCI World Index benchmark and with less volatility in both up and down markets since its inception in December 2012.
The Fund is suitable for investors who seek capital appreciation, wish to participate in global equity markets and have a long-term investment horizon. The classes that are offered for subscription by the Fund are A (RM Hedged) Class and A (USD) Class at RM0.5000 and USD0.5000 respectively during the initial offer period from 29 July until 18 August 2020.
The minimum initial investment amount for the Fund is RM1,000 (for A (RM Hedged) Class) or USD1,000 (for A (USD) Class), and the minimum additional investment amount is RM100 or USD100. The Fund is distributed through unit trust advisers of Manulife Investment Management (M) Berhad.
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