DHFL Pramerica Mutual Fund has launched DHFL Pramerica Global Equity Opportunities Fund, according to documents on the fund house’s website. It is an open-ended fund-of-fund (FoF) scheme that will invest in PGIM Jennison Global Equity Opportunities Fund. Formed in August 2015, the underlying fund is a global large-cap equity fund that invests in equity markets of different countries worldwide.
PGIM Jennison Global Equity Opportunities Fund’s has given three year returns of 6.95 percent and five year returns of 13.32 percent (As on Oct. 31, 2018 and in GBP). The returns of the fund in Indian Rupees were lower due to the appreciation of the rupee against the British Pound (GBP) in this period. However the rupee has depreciated sharply against the British Pound since 2017 and hence the trend over the next few years may not be the same.
The underlying fund uses a growth-oriented strategy. Its top five holdings are Amazon.com, Netflix, UnitedHealth Group, Tencent Holdings and Wirecard AG. The top sectors that it has holdings in are technology (31.79 percent), consumer cyclicals (29.89 percent), healthcare (20.60 percent) and financial services (7.75 percent). United States (64.45 percent), Eurozone (15.76 percent), Asia – Emerging (9.36 percent), Japan (2.53 percent), are among the top markets where the fund has holdings.
DHFL Pramerica Global Equity Opportunities Fund will be benchmarked against MSCI All Country World Index. Even the underlying fund’s performance is benchmarked against the same index. The benchmark index covers about 85 percent of the global investable equity opportunity set.
DHFL Pramerica Global Equity Opportunities Fund will be managed by Alok Agarwal, who is the equity fund manager at the fund house. Other schemes managed by Agarwal include DHFL Pramerica Hybrid Equity Fund, DHFL Pramerica Large Cap Fund, DHFL Pramerica Euro Equity Fund. However as a FoF feeding into an international fund, the Indian fund manager has a limited role to play. A one percent exit load will be applicable if scheme units are redeemed or switched out within 12 months of the allotment date. The minimum application amount will be Rs. 5,000.
Reasons to invest:
- Currency Diversification: DHFL Pramerica Global Equity Opportunities Fund will be investing in stocks of different countries, giving you access to the currencies of those countries. This will protect you from rupee depreciation.
- Diversification: DHFL Pramerica Global Equity Opportunities Fund will invest in international stocks such as Netflix, UnitedHealth Group and Tencent which will greatly diversify your portfolio from a 100 percent allocation to Indian stocks.
Date: 21 NOV 2018