Public South-East Asia Select Fund

Public South-East Asia Select Fund

Launch Date: 2 October 2007
Approved Fund Size: 1.5 Billion Units
Financial Year End: 31 October

Introduction

Why invest in South -East Asia?

• The South-East Asia region, grouped together under the Association of South-East Asian Nations (ASEAN) comprising Singapore, Indonesia, Thailand, Philippines, Malaysia, Myammar, Vietnam, Laos, Brunei and Cambodia, is among the world’s fastest growing regions.
• ASEAN has an estimated population of 573 million and its nominal Gross Domestic Product (GDP) growth has averaged 9.0% annually since 2000. In per capita GDP terms, ASEAN redidents have enjoyed a nominal growth of 6.8% per annum over the past six years, exceeding the average global per capita nominal GDP growth of 5.4% per annum over the same period. (source: Bloomberg, September 2007)
• The growth prospects for the ASEAN economies are robust given their strong trade surpluses, high savings rates and accommodative monetary policies with low real interest rates. The ASEAN economies are expected to show sustainable real GDP growth ranging from 4.5% to 8.4% for 2007/2008 as below:

GDP Growth Forecast for Major ASEAN Economies

%	2007F	2008F
Vietnam	8.4	8.1
Indonesia	5.6	6.0
Singapore	6.2	6.0
Malaysia	6.0	5.8
Philippines	5.5	5.0
Thailand	4.8	4.5

Source: Bloomberg, September 2007

What is the track record of South-East Asian economies?

• The ASEAN economies had a combined nominal GDP of US$1.0 trillion in 2006. Due to higher exports growth, stronger agricultural production and resilient domestic demand, ASEAN’s real GDP grew by 6.0% in 2006, above the average growth over the previous 5 years. Domestic demand was propelled by higher employment and increased private investments (source: World Bank/Bloomberg, September 2007).
• The ASEAN countries also enjoy high savings rates ranging from 26% to 46% of their GDPs. (sourse: Asian Development Bank/Central Banks).

What is the historical return of the fund’s benchmark index?

• Public South-East Asia Select Fund’s (PSEASF) benchmark index registered a total return of 83.9% and 155.7% respectively for the 3 years and 5 years period ended 31 August 2007.

Fund Profile

Fund Category: An equity fund

Fund Objective: To achieve capital growth over the medium- to long-term period by investing in a portfolio of investments in South-East Asia markets.

Distribution Policy: Incidental

Risk Profile of Fund: High Risk

Investor Profile:

• aggressive risk-reward temperament
• medium- to long-term investor
• can withstand extended periods of market highs and lows in pursuit of capital growth

Transaction of Units

Service Charge After Offer Period: Up to 6.5% of Net Asset Value (NAV) per unit

Purchase and Redemption of Units After Offer Period:

At NAV per unit

A service charge of up to 6.5% of NAV per unit is levied upon the purchase of units of Public South-East Asia Select Fund by investors. Public Mutual does not impose a repurchase charge on the sale of units of Public South-East Asia Select Fund investors.

Repurchase of Units: Unitholders may redeem units on any business day and receive payment of repurchase proceeds within 10 days.

Switching Facilities:

During the offer period of 2 October 2007 to 22 October 2007, switching transactions involving Public South-East Asia Select Fund are not allowed other than for switching of low-load units of bond and money market funds under the Public Series of Funds and Public Series of Shariah-Based Funds into Public South-East Asia Select Fund.

After the offer period, unitholders may switch their investments between Public South-East Asia Select Fund and other funds under the Public Series of Funds and Public Series of Shariah-Based Funds, in response to their changing financial goals or market conditions.

Cooling-Off Period:

Investors who are investing with Public Mutual for the first time may exercise their cooling-off right withing 6 business days from the date of receipt of the application form by Public Mutual and receive a full refund of the investment paid within 10 days of receipt of cooling-off notice by the Manager. This cooling-off right, however, shall not extend to a corporation or institution, the staff of Public Mutual, and persons registered to deal in tis unit trust funds.

Service Charge

Service Charge: Up to 6.5% of NAV per unit

Management Fee: 1.5% per annum of the NAV

Repurchase Charge: Nil

FAQ

Q1: What are the main features of Public South-East Asia Select Fund?

• Public South-East Asia Select Fund is an aggressive equity fund that seeks to achieve capital growth over the medium- to long-term period by investing in a portfolio off investments in South-East Asia markets.
• Up to 70% of the fund’s NAV can be invested in selected regional markets which include Indonesia, Philippines, Singapore, Thailand, Vietnam and other approved markets.
• Equity exposure: Generally range from 75% to 95% of its NAV.

Q2: What is the investment strategy for Public South-East Asia Select Fund?

• Public South-East Asia Select Fund is actively managed to achieve long-term capital growth by investing in blue chips, index stocks and growth stocks listed on domestic and regional markets in South-East Asia.
• The fund generally maintains equity exposures within a range of 75% to 95% against its NAV. The balance of the fund’s NAV will be invested in fixed income securities such as sovereign bonds, corporate debt and money market instruments to help generate returns.

Q3: What makes Public South-East Asia Select Fund attractive to prospective investors?

• The fund allows investors the opportunity to participate in the long-term growth potential of a diversified portfolio of blue chip stocks, growth stocks, fundamentally undervalued stocks and dividend stocks listed on domestic and regional markets in South-East Asia.

Q4: What is the selected Performance Benchmark for Public South-East Asia Select Fund?

The benchmarks of the fund and their respective percentages are as follows:

• 35% Straits Times Index (STI)
• 30% Kuala Lumpur Composite Index (KLCI)
• 15% Jakarta Composite Index (JCI)
• 15% Stock Exchange of Thailand Index (SET)
• 5% Philippine Stock Exchange Index (PSEi)

Q5:What level ofrisks will we be looking at when investing in Public South-East Asia Select Fund?

• As the fund generally maintains its equity exposure at 75% to 95% of its NAV, Public South-East Asia Select Fund may experience significant volatilities in times of adverse market movements. The fund manager will employ appropriate asset allocation, liquidity management, diversification and hedging strategies to manage the risks.
• The fund’s investments in foreign markets will be monitored to ensure that the potential returns are commensurate with the risks incurred as a result of investing abroa. To mitigate risks arising from factors which include foreign currency exposure and foreign interest rate movements, the fund may employ hedging strategies to manage the risks posed to the fund.

Q6: who will be most suited to invest in Public South-East Asia Select Fund?

• Investors who are optimistic with the growth prospects of South-East Asia countries and wish to diversify their investment into selected regional markets which include Indonesia, Philippines, Singapore, Thailand, Vietnam and other approved markets.
• It is also suitable for existing and prospective investors who have aggressive risk-reward temperament seeking medium- to long-term capital growth.

Q7: What is the minimum initial investment and minimum additional investment of the fund?

• The minimum initial investment is RM1000 and minimum additional investment is RM100.

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