PB China Pacific Equity Fund Taps on China's Solid Growth Prospects (23 October 2007)

Public Bank will launch its first China fund, PB China Pacific Equity Fund on 23 October 2007 (Tuesday). PB China Pacific Equity Fund (PBCPEF) will invest mainly in China stocks and the balance in North Asian markets such as Japan, Korea and Taiwan. The fund will be managed by its wholly-owned subsidiary, Public Mutual.

Public Mutual’s Chairman Tan Sri Dato’s Sri Dr. Teh Hong Piow said PBCPEF offers investors the opportunity to tap on the solid growth prospects in China. In the past five years, equity markets in this region have enjoyed a sustained uptrend amidst the rebound in global economies and strong investor demand to participate in the growth prospects of the Greater China region. “China has emerged as a major growth engine for this region apart from the U.S with real Gross Domestic Product (GDP) sustained at a robust pace averaging 9.2% annually,” he added.

“The China Pacific region which encompasses China, Hong Kong, Taiwan, South Korea and Japan presents significant growth opportunities. The Chinese economy is projected to grow steadily at 11.2% for 2007 and 10.6% for 2008, supported by robust domestic consumption and exports. Driven by strong domestic demand and robust tourist arrivals, Hong Kong’s GDP growth is set to expand at above 5% for 2007/2008. Meanwhile, GDP growth for South Korea and Taiwan is projected at above 4% for 2007/2008 amidst resilient investment spending and global demand for electronic products. In comparison, Japan, being a developed economy, is expected to register moderate GDP growth of about 2% in 2007/2008 on sustained consumption and investment,” said Tan Sri Teh.

Tan Sri Teh believes that PBCPEF will offer investors the opportunity to take advantage of the solid investment prospects in China Pacific markets.

PBCPEF is an equity fund that seeks to achieve capital growth over the medium- to long-term period by investing mainly in China stocks and the balance in North Asian markets. A minimum of 50% and up to a maximum of 98% of the fund’s net asset value (NAV) will be invested in China stocks listed on the China, Hong Kong, United States of America, Singapore and other approved markets. When valuations of China stocks are not compelling, the fund may invest in other North Asian markets which include Japan, Korea and Taiwan. The equity exposure of PBCPEF will generally range from 75% to 90% of its NAV.

Tan Sri Teh added that PBCPEF is suitable for aggressive investors who can withstand extended periods of market highs and lows to achieve medium- to long-term capital growth for their investments.

The issue price / NAV of PBCPEF is at RM0.2500 per unit during the 21-day initial offer period of 23 October 2007 to 12 November 2007. During the offer period, a special promotional service charge of 5.45% of NAV per unit is extended to the purchase of units of PBCPEF by investors. Investors who opt for Direct Debit Instruction with PBCPEF during the offer period will also enjoy the special promotional service charge of 5.45% of NAV per unit for as long as the Direct Debit is active. Terms and conditions apply. The minimum initial investment for the fund is RM1,000 and the minimum additional investment is RM100.

Interested investors can visit any Public Bank branch nationwide or call free-phone at 1-800-88-3323 during normal working hours to find out more about PBCPEF.

The manager of the fund, Public Mutual is the largest private unit trust company in Malaysia, and it manages 50 funds for more than 1,350,000 accountholders. As at 30 September 2007, the total NAV of the funds managed by the company was RM24.5 billion.