PGIM India’s 3 global FoFs have one thing in common – they go beyond the normal global diversification argument – each of them aim to add alpha in their respective categories, and thus seek to justify their position in Indian investor portfolios. These funds have now reopened for subscriptions.
PGIM’s Global Equity Opportunities Fund invests in 35-40rapidly growing innovators from across the world. Studies suggest that over the last 25 years, 70% of global market performance (5 yr rolling returns) can be attributed to the growth factor, with value coming in much lower. This fund harnesses global growth through focused bets on global innovators.
PGIM’s Emerging Markets Equity Fund invests in markets that are set to account for 80% of incremental world growth going forward. Large EMs not only offer structural domestic growth stories but also provide some world leaders in diverse sectors.
PGIM’s Global Real Estate Fund offers exposure to high quality, high yielding real estate assets that you don’t get in India –including hospital buildings, university buildings, warehouses, retirement homes etc – which account for 70% of the fund’s assets. This is in stark contrast to India – where HNIs get access to commercial RE (offices) and residential RE but not to the institutional segment. The fund’s low correlation with Indian markets and healthy yield profile makes it a good diversifier.
Among the 3 funds, Abhishek will recommend the Global Equity Opportunities Fund as the potential 1st global exposure for Indian investors, followed by the Emerging Markets Equity Fund as a complementary investment to Indian equity funds and the Global Real Estate Opportunities Fund as a good vehicle for HNIs who are seeking differentiated exposure to their real estate allocations.