Phillip PMART Dividend Enhanced ESG Portfolio
Portfolio Objective
Discretionary portfolio aims to provide EPF members with capital gain over the long-term period through investing in Malaysian equities with expected high dividend yields that meet ESG (Environment, social and governance) criteria.
Portfolio Type
Conventional & Shariah
Portfolio Risk Classification
Balanced
Portfolio Launch Date
26th April 2018
Factsheet
| Mandates | Download Factsheet |
|---|---|
| Phillip PMART Dividend Enhanced ESG Balanced Portfolio |  |
| Phillip PMART Dividend Enhanced ESG Shariah Balanced Portfolio | |
How Do We Construct The Portfolio
Utilizing the ‘Dogs of the Dow Approach,’ as evidenced by research from Umea University and Wright State University in the USA, indicates that constructing a portfolio with high dividend yield stocks outperforms traditional methods of stock selection in terms of profitability.
Selecting top market capitalization stocks to minimises the unsystematic risk and liquidity risk.
Disciplined and systematic, following a rigorously back tested strategy.
Minimal human interventions bringing about more consistent results.
Income driven focused product generating returns from capital appreciation and income distribution from selecting advantageous dividend yields.
Another filter is applied based on ESG (Environmental, Social, and Governance) rating, retaining only stocks with a rating of 3 stars and above. The ESG Rating utilized is derived from the F4GBM Index.
Equity Risk
The equity paying high dividends could be from slow growth sectors because high-growth sectors such as biotech and IT pay little dividend. Careful selection of stock from universe made up of FBMKL30 and FBM70 minimises the unsystematic and liquidity risk.
Technology Risk
The process of constructing portfolio with high dividend stock is done via Phillip Proprietary Quant Model using Python. Thus, there is a risk of imperfect algorithms which necessitate more stringent back testing.
Liquidity Risk
Certain securities in the composition of the benchmark may be difficult to trade or momentarily unable to be traded, particularly because of the absence of trades on the market or regulatory restrictions. These market disruptions may reduce the net asset value of the Fund.
ESG Sentiment Risk
Investor sentiment towards ESG investing may change over time due to various factors such as market trends, geopolitical events, or economic conditions. A shift in investor preferences away from ESG-focused investments could lead to price fluctuations and potential underperformance of ESG stocks relative to the broader market.
Investment Amount
| Minimum Initial Investment Amount | Subsequent Minimum Investment Amount |
|---|---|
| RM 30,000 (subject to an initial investment of RM 10,000) |
RM 5,000 |
Fee & Charges
| Service Fee | Annual Management Fee (including Taxation) | Custodian Fee |
|---|---|---|
| 3.00% for every capital injection | 1.50% per annum* *An annual management fee of 1.50% on the market value of the portfolio will be charged monthly at the end of each calendar month, and payment will be made quarterly in arrears. |
0.03% per annum * * based on market value of the Assets as at end of each calendar month, payable to the Custodian on a monthly basis. |