Public Mutual To Launch South-East Asia Select Fund (2 October 2007)

Public Bank’s wholly-owned subsidiary, Public Mutual will launch a new fund on 2 October 2007 (Tuesday), i.e. the Public South-East Asia Select Fund (PSEASF).

PSEASF is an equity fund that seeks to achieve capital growth over the medium- to long-term period by investing in a portfolio of investments in South-East Asia markets. The fund seeks to achieve its goal of capital growth by investing in a diversified portfolio of blue chips, index stocks and growth stocks listed on South-East Asia stock markets. PSEASF may also invest in fixed income securities such as sovereign bonds, corporate debt and money market instruments to help generate returns. "Up to 70% of the fund’s net asset value (NAV) can be invested in selected regional markets which include Indonesia, Philippines, Singapore, Thailand, Vietnam and other approved markets." The equity exposure of PSEASF will generally range from 75% to 95% of its NAV.

The South-East Asian economies have vast growth prospects. The region continues to be driven by strong export performance from its efficient and flexible manufacturing base, while its relatively young population of 573 million people represents a large and rapidly growing consumer market.

"Since 2000, the South-East Asian region has forged ahead to expand its nominal gross domestic product at a robust pace of averaging 9 per cent annually," Public Mutual chairman Tan Sri Dr Teh Hong Piow said in a statement yesterday.

According to Teh, the region's real GDP growth is projected to range from 4.5 per cent to 8.4 per cent in 2007/2008, and is confident that consumer spending in the region will grow as the region's residents aspire to achieve a more comfortable lifestyle.

Launched at an issue price of RM0.25 per unit, PSEASF is suitable for aggressive investors who can withstand extended periods of market highs and lows in pursuit of capital growth. During the 21-day initial offer period of 2 October 2007 to 22 October 2007, a promotional service charge of 5.45% of NAV per unit is extended to the purchase of units of PSEASF by investors. Investors who opt for Direct Debit Instruction with PSEASF during the offer period will also enjoy the 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.

PSEASF is distributed by the 20,000-strong Public Mutual unit trust consultants. Interested investors can contact any Public Mutual unit trust consultant or call its Customer Service Hotline at 03-6279 5252 for more details of the fund.

The manager of the fund, Public Mutual is the largest private unit trust company in Malaysia, and it manages 49 funds for more than 1,200,000 accountholders. As at 31 July 2007, the total NAV of the funds managed by the company was RM23 billion.