The Pru Global Positioning (GPS) Fund is a fairly new fund that adopts a top down, macro approach to investing in over 33 markets via exchange traded funds, index futures and bonds.
It has an unconstrained investment approach with flexibility to go from 0-100% in equities and bonds. Currently, the cash portion of the fund is held in USD.
As the fund is an absolute return fund (aims to achieve positive returns over the medium term), it uses a slightly different benchmark of US 3-month LIBOR + 3%.
The fund is a kind of “idiot-proof” fund suitable for investors who do not want to do their own asset and sector allocation. It does not employ leverage or takes any short positions.
The fund has a 50% maximum exposure to each developed market, namely US, Japan, UK, Germany and France. For other countries, the maximum exposure is capped at 10%.
The annual management fee is 1.5%. As the fund size is currently very small (S$2.6 million as of 30th Jan 2009), the expense ratio is a bit on the high side (>2%).