PNB Structured Investment Fund, or PNB SIF, marks PNB’s foray into commercial fund management sector and the expansion from traditional individual investors to wider market segment including companies, institutions and corporations.
PNB SIF is the first product launched by AMB since the takeover by ASNB on 3 rd December 2006 from the Maybank Group. Under the flagship of PNB, AMB will be positioned as a manager of funds which is unique, innovative and aiming to generate long term benefits to investors.
This RM3 billion SIF will invest mainly in PNB REITs, structured products and cash equivalent instruments. The structured products is being issued by Deutsche Bank ( Malaysia ) Berhad, while PNB REIT comprised seven properties located at prime locations around KL and JB. All properties under PNB REIT had an impressive occupancy rate that averaged more than 93%. The total market value of properties under PNB REIT was RM1.08 billion as of April 30, 2007 .
How will PNB SIF be managed?
PNB SIF will be actively managed through REITs and trading in Structured Products. REITs will ensure a stable and consistent income through rental yields. The Structured Products portfolio will be reviewed every 3 months to ensure competitive returns.
What is the uniqueness of this product?
It is the only fund in Malaysia with combination of REITs and Structured Products. REITS holds a lot of potentials as it is targeted to be listed after five years. The potential listing of REITS will provide NAV growth as well as more cash to PNB SIF and subsequently, higher yield for unit holders.
The fund has a feature that protects principal investment upon maturity. Principal protection mechanism is embedded in Structured Products and PNB REIT.
The Structured Products have an up to 8 multi options. Its products are flexible and can be replaced as and when the needs arise prior to the maturity date. It invests only in equities, interest rates or other underlying instruments for protection. PNB SIF is taking a non-directional approach which is less risky based on a view that it is not taking any risk that is too high or too low. Its strategies are combined so that the impact will be minimal if the returns from the market is not good, as it will still be able to get the investment back. In the midst of market uncertainties, PNB SIF is an ideal investment vehicle that provides downside protection while still able to capture gains from upside movement of the market.