Time to reassess investment portfolios

KUALA LUMPUR: Investors should reassess their investments and
rebalance their portfolios to ensure portfolio risk levels are in line
with financial goals which factor in market conditions, said Pacific
Mutual Fund Bhd.

Pacific Mutual executive director and chief
executive officer Gary Gan said as the global equity markets ended the
year 2011 with less than stellar performances, certain investment
categories may not have performed to expectations in highly volatile
market conditions.

"It is essential that investors continue to
practice portfolio rebalancing or revise their investment styles, so
that their investments are both in a proper mix of asset classes - be
it in equities, money markets, bonds or cash - and the accumulation
strategy is one that is suited to address the severe volatility," he
said in a statement.

However, he said most of Pacific Mutual
investors still remain invested, adding that the company has seen the
importance of the boring-old money market fund in times like these and
how it adds value to the entire portfolio mechanics.





He said despite the severe market volatility last year, Pacific Mutual's funds managed to generate decent incomes.

The fund manager declared an income distribution of RM19.68 million
for the three of its funds with financial years ended December 31 2011.

It announced an income distribution of five sen per unit for Pacific
Dividend Fund, 0.4 sen per unit for Pacific Cash Fund (quarterly
distribution) and 1.3 sen per unit for Pacific SELECT Bond Fund
(quarterly distribution).

Pacific Mutual, the investment arm of
PacificMas Bhd and a member of the OCBC Group, currently manages 29
funds, which include 14 funds with foreign investment mandates and two
wholesale Funds.

As at end-December 2011, Pacific Mutual
manages RM2.13 billion on behalf of its unit trust investors and private
mandate clients.