Prudential Investment & Securities Co. Introduces New Product “Prudential Global BIG5 IB Derivatives”
“Prudential Global BIG5 IB Derivatives,” managed by Prudential Asset Management Co. (PAMC), invests in the financial stocks that led the recent downward trending of advanced equity markets. The fund benefits from higher stock prices with 100 percent participation in upside appreciation and offers principal protection if the stocks fall less than 40 percent. The fund attributes are as follows.
First, “Prudential Global BIG5 IB Derivatives” invests in global financial companies that traditionally benefit the most at times of recovery from financial crisis. Various financial crisis that occurred during the past decade in the U.S. have all been resolved and recent financial crisis triggered by the sub prime turmoil has been finding its path towards various types of solutions. Financial stocks, which wrote-off losses and are expected receive government support, should have the biggest upside potential when the financial crisis is resolved as the sector suffered the sharpest drop.
Second, the fund is a structured product that allocates assets to five global investment banks in equal measure, and is less likely to lose principal than aggressive equity products. In addition, the product seeks principal protection if the value of the underlying assets drops less than 40 percent from the base period. Existing Equity Linked Securities (ELS) funds knock in based on the worst performer among the underlying assets, but this fund uses the average stock price, reducing the knock-in risk arising from bad stock selection.
Third, “Prudential Global BIG5 IB Derivatives” is a two-year unit investment trust and open-end fund, which offers early redemption. The fund is also eligible for tax breaks and livelihood-purpose tax exemption. By charging a one percent redemption fee, which is lower than that of existing ELS funds (5-7 percent), the fund has significantly reduced the cost of early redemption, and offers investors an opportunity to take profit and respond flexibly to market conditions.
“Since the U.S. Federal Reserve took measures to stabilize the market, the likelihood of an extreme credit crisis has subdued. The financial sector has experienced a far severe correction than other sectors. Prudential Global BIG5 IB Derivatives is launched to take advantage of the financial sector that has historically benefited the most when the equity market began factoring in economic recovery,” Lee Chang-hoon, CEO of PAMC said. He explained, “The fund offers an opportunity to diversify portfolio as an alternative investment for investors who seek a more attractive return from global financial market correction by investing in attractively valued global financial groups including Credit Suisse, Goldman Sachs, JP Morgan Chase, Merrill Lynch and Morgan Stanley.”
※ Reference: Company Descriptions
Prudential Investment & Securities Co., Ltd. (PISC) currently has a nationwide network of over 70 branches and provides various financial services and investment advice to help customers achieve their financial goals. Prudential Asset Management Co., Ltd., (PAMC) an affiliate of PISC, is one of the biggest asset managers in Korea with approximately 10.095 trillion won of assets under management (including Discretionary Investment Management) as of March 31, 2008.
(For more information, please visit www.pru.co.kr ,Call center: 1588-4588 )
Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately $6,310 billion of assets under management as of March 31, 2008, has operations in the United States, Asia, Europe, and Latin America. Leveraging its heritage of life insurance and asset management expertise, Prudential is focused on helping individual and institutional customers grow and protect their wealth. The company’s well-known Rock symbol is an icon of strength, stability, expertise and innovation that has stood the test of time. Prudential’s businesses offer a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, asset management, and real estate services.
(For more information, please visit www.prudential.com)
웹사이트: http://www.prucyber.com
연락처
Jae-Hwan Lee 822-3770-7373
Kyun-Jang Lee 822-3770-7577
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2008년 7월 21일 10:52
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2008년 5월 20일 10:00