Pramerica Mutual Fund, the Indian asset management venture of Prudential Financial Inc (PFI) of USA, has launched two equity-based funds –Pramerica Equity Fund and Pramerica Dynamic Fund.
The schemes will open for subscription on November 19, 2010 and cloaes on 03 December 2010. They will be opened for ongoing sales and repurchase from December, 13 2010.
Pramerica Equity Fund seeks to achieve long-term capital appreciation by investing in an actively managed diversified portfolio consisting of equity and equity-related securities including derivatives, debt and money market instruments. Pramerica Equity Fund will have a large-cap bias.
Pramerica Dynamic Fund is a dynamic asset scheme, which will allocate the funds based on Pramerica DART (Dynamic Asset Rebalancing Tool), a tool that measures the relative attractiveness of different asset classes and suggest an optimum asset allocation mix between debt and equity. The fund will aim to buy equities when prices are down and sell when they are up. The scheme will allocate up to 100 per cent in equities with a minimum of 30 per cent in equities and the balance in debt and money market securities, on the basis of the ‘Pramerica DART Score’ which is generated daily.
Both schemes will be managed by Mr. Ravi Gopalakrishnan, Executive Director and Chief Investment Officer (CIO) – Equity and Mahendra Jajoo, Executive Director and CIO – Fixed Income.
Vijai Mantri, Managing Director and CEO of Pramerica Asset Managers, said: “While Indian equity markets have given impressive returns over the long term, the typical Indian investor has not seen similar returns in his/her portfolio. This basically boils down to the impact of investors’ psychology to try and time their market entry and exit in the hope to make better returns. Needless to say, this strategy does not pay off in the long run. Pramerica Dynamic Fund, powered by Pramerica DART, aims to buy equities when they are cheap and sell when they are expensive, thus taking the burden off the investor. It is an ideal product for investors who seek equity comparable returns coupled with reduced volatility.”
Talking about the firm’s other new scheme Pramerica Equity Fund, Gopalakrishnan said “Pramerica Equity Fund is designed to capture India’s growth story by investing primarily in large caps using sector rotation identifying right sectors) and special situations (identifying value-unlocking potential) which will benefit investors in the long term.”
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