Public China Ittikal Fund

Launch Date: 20 November 2007
Approved Fund Size: 1.5 Billion Units
Financial Year End: 30 November

Introduction

What’s so attractive about investing in the Greater China?

1. Rapid economic growth in the Greater China region.

China’s real GDP* has been growing at an average of 9.2%¹ annually in the past 10 years

* GDP – Gross Domestic Product
¹Source: Bloomberg, September 2007

Hong Kong and Taiwan are beneficiaries of China’s strong economic growth.

2. Greater China’s GDP growth is expected to be favorable; ranging from 4.5% to 11.2%² in 2007/2008

²Source: Bloomberg, October 2007

Growth is expected to be supported by robust domestic consumption, which is propelled by rising income levels, urbanisation and favourable demographics. The Chinese economy is also poised to continue to benefit from strong private investment, which accounts for 41% (Source: Bloomberg, October 2007) of its GDP.

3. Proposed lifting of restrictions on overseas investments by the Chinese government announced on 20 August 2007 may potentially lead to stronger investor demand for China ‘H’ shares listed in Hong Kong.

All the current P/E of 28.1x, valuations of China ‘H’ shares are still significantly below the valuations of Chinese ‘A’ and ‘B’ shares listed on the mainland exchanges. In comparison, Hong Kong and Taiwan stocks are trading at lower P/Es compares to their regional peers.

Greater China Market Valuations

Indices	Index Level as at 19 Oct ’07	P/E* (times)	Dividend Yield
Shanghai Composite Index	5,818	45.5	0.5%
Hang Seng China Enterprises Index (China ‘H’ Shares)+	19,722	28.1	1.0%
Hong Kong Hang Seng Index+	29,465	20.6	2.1%
Taiwan Stock Market Index	9,612	16.1	3.3%

* For 2007 prospective earnings.
+ Indices on 18 October as the Hong Kong stock exchange was closed on 19 October.
Source: Bloomberg, October 2007

Performance of Greater China Stock Markets

Indices	Index Level as at 19 Oct ’07	Returns (in %)
		2004	2005	2006	2007	(2004-2007)*
Shanghai Composite Index	5,818	-15.4	-8.3	130.4	117.5	288.6
Hang Seng China Enterprises Index (China ‘H’ Shares)+	19,722	-5.6	12.4	94.0	90.7	292.9
Hong Kong Hang Seng Index+	29,465	13.2	4.5	34.2	47.6	134.3
Taiwan Stock Market Index	9,612	4.2	6.7	19.5	22.9	63.2

* Up to 19 October 2007
+ Indices on 18 October 2007 as the Hong Kong stock exchange was closed on 19 October.
Source:Lipper,October 2007

Prospects for the Greater China region remain exciting with the equity markets supported by sustained economic growth, high levels of savings and liquidity.

What is the historical return of Public China Ittikal Fund’s (PCIF) benchmark index?

The benchmark of Public China Ittikal Fund comprises 50% Dow Jones Islamic Market Hong Kong Index^sm and 20% FTSE Bursa Malaysia EMAS Shariah Index.

The returns for the individual components of the benchmark or Public China Ittikal Fund up to 19 October 2007 are as follows:

Index	Performance (%)
	1-Year	3-Year	5-Year
DJIM Hong Kong Indexsm	58.33	123.71	206.46
DJIM Taiwan Indexsm	27.57	78.33	99.38
FTSE Bursa Malaysia EMAS Shariah Index	50.25	61.90	106.36
Benchmark for Public China Ittikal Fund	47.55	98.33	155.83

The returns for the above indices are expressed in Ringgit terms.

Notes:
FTSE Bursa Malaysia EMAS Shariah Index is sourced from Lipper Asia Ltd. DJIM Taiwan Index^sm & DJIM Hong Kong Indexsm are sourced from Dow Jones Indexes^sm.

Past performance of the benchmark index is not an indication of its future performance.

Fund Profile

Fund Category: An equity fund (Shariah)

Fund Objective: To achieve capital growth over the medium-to long-term period by investing in a portfolio of Shariah-compliant investments in the Greater China region ad the balance in the domestic market.

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 China Ittikal Fund by investors. Public Mutual does not impose a repurchase charge on the sale of units of Public China Ittikal Fund by investors.

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

Switching Facilities:
During the offer period of Public China Ittikal Fund from 20 November 2007 to 10 December 2007, switching transactions involving Public China Ittikal Fund are not allowed other than for switching of low-load units of bond and money market funds under the Public Series of Shariah-Based Funds and Public Series of Funds into Public China Ittikal Fund.

After the offer period, unitholders may switch their investments between Public China Ittikal Fund and other funds under the Public Series of Sharia-Based Funds and Public Series of Funds on any Business Day. However, switching from a Shariah-based fund to a conventional fund is discouraged, especially for Muslim unitholders. Please refer to the fund prospectus for more details.

Cooling-Off Period:
Investors who are investing with Public Mutual for the first time may exercise their cooling-off wight within 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 its unit trust funds.

Fees & Charges

Service Charge: Up to 6.5% of NAV per unit
Management Fee: 1.55% per annum of the NAV
Repurchase Charge: Nil

FAQ

Q1: What are the main features of Public China Ittikal Fund?

• Public China Ittikal Fund is an Islamic equity fund that seeks to achieve capital growth over the medium-to long-term period by investing in a portfolio of Shariah-compliant investments in the Greater China region and the balance in the domestic market.
• A minimum of 70% of the fund’s NAV will be invested in the Greater China region namely in Hong Kong, China and Taiwan markets.
• The fund can also invest in China-based companies listed on overseas markets such as Singapore, the United States of America and other approved markets.
• Equity exposure: Generally range from 75% to 90% of its NAV.

Q2: What i the investment strategy for Public China Ittikal Fund?

• Public China Ittikal Fund is actively managed to achieve capital growth by investing in a diversified portfolio of Shariah-compliant blue chip stocks, index stocks and companies with growth prospects in the Greater China region and the balance in the domestic market.
• A minimum of 70% of the fund’s NAV will be invested in the Greater China region namely in Hong Kong, China and Taiwan markets. The fund can also invest in China-based companies listed on overseas markets such as Singapore, the United States of America and other approved markets.
• The fund may also invest in Islamic debt securities such as sovereign debt, corporate debt and Islamic money market instruments to help generate returns.
• The fund’s investments may also include listed Shariah-compliant warrants and options to enhance its returns.

Q3: Why invest in Public China Ittikal Fund?

• The fund allows investors the opportunity to participate in the long-term growth potential of a diversified portfolio of Shariah-compliant blue chip stocks, index stocks, growth stocks and fundamentally undervalued stocks in the Greater China region and the balance in the domestic market.

Q4:What level of risks will we be looking at when investing in Public China Ittikal Fund?

• As the fund’s equity exposure generally ranges from 75% to 90% of its NAV. Public China Ittikal Fund may experience significant volatility in times of adverse market movements. To mitigate risks, the fund may invest in Islamic futures contracts and listed options to hedge against market volatility.
• The asset allocation, liquidity management, diversification and hedging strategies employed are central to the efforts to manage the risks posed to the fund.

Q5: How does the fund manager ensure that all the fund’s investments are in compliance with Shariah requirements?

• For securities listed on the Bursa Securities, compliance to Shariah requirements is primarily determined by the Shariah Advisory Council of the Securities Commission (SC). Otherwise, the Shariah Adviser of the fund, Islamic Banking and Finance Institute Malaysia Sdn Bhd (IBFIM) is consulted to ascertain their Shariah status.
• The fund’s investments in foreign securities will be selected in accordance with the Dow Jones Islamic Market Indexes^sm and/or the securities classified as Shairah-compliant by the Shariah Adviser.
• To ensure strict compliance with Shariah requirements, this list of Shariah-compliant securities will be updated by the Shariah Adviser twice yearly, where securities in the list will be reviewed for inclusion/exclusion from the said list.

Q6: Who are most suited to invest in Public China Ittikal Fund?

• Investors who are upbeat with the long-term capital growth potential of Greater China namely Hong Kong, China and Taiwan markets, including China-based companies listed on overseas markets.
• Existing and prospective investors with aggressive risk-reward temperament and can withstand extended periods of market highs and lows in pursuit of capital growth.

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

• The minimum initial investment is RM1,000 and minimum additional investment is RM100.

Current Fund Prospectus

Prospectus of Public China Ittikal Fund dated 20 November 2007.

The prospectus is obtainable free-of-charge from Public Mutual unit trust consultants, Public Mutual Head Office, branches and agency offices.

“Dow Jones”, “Dow Jones Islamic Market Index^sm” and “Dow Jones Islamic Market Asia Ex-Japan Index^sm” are service marks of Dow Jones & Company, Inc. and have been licensed for use for certain purposes by Public Mutual Berhad. Public Mutual Berhad’s Public China Ittikal Fund based on the Dow Jones Islamic Market Index^sm, are not sponsored, endorsed, sold or promoted by Dow Jones and Dow Jones makes no representation regarding the advisability of investing in such product.

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.

Public China Select Fund

Launch Date: 5 June 2007
Approved Fund Size: 1.5 Billion Units
Financial Year End: 31 July

Fund Profile

Fund Objective: To achieve capital growth over the medium- to long-term period by investing in a portfolio of investments in the greater China region namely in Hong Kong, China and Taiwan markets and including China based companies listed on overseas markets. The fund may also invest in companies which have significant or potentially significant business operations in the greater China region.

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

Selling Price After Offer Period: At Net Asset Value (NAV) per unit plus a service charge of between 5% and 7%, quoted to 4 decimal points.

Repurchase Price After Offer Period: At NAV per unit, quoted to 4 decimal points.

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 5 June 2007 to 25 June 2007, switching transactions involving Public China Select Fund (PCSF) 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 PCSF.

After the offer period, unitholders may switch their investments between PCSF 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. Please refer to the fund prospectus for more details.

Cooling-Off Period: Investors who are investing with Public Mutual for the first time may exercise their cooling-off right within 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. For EPF unitholders, the cooling-off is subject to EPF’s terms and conditions. This cooling-off right, however, shall not extend to a corporation or institution, the staff of Public Mutual, and persons registered to deal in its unit trust funds.

Fees and Charges

Service Charge: 5% to 7% 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 China Select Fund (PCSF)?

• An aggressive equity fund that seeks to achieve capital growth over the medium- to long-term period by investing in a portfolio of investments in the greater China region namely in Hong Kong, China and Taiwan markets and including China based companies listed on overseas markets. The fund may also invest in companies listed on Bursa Securities and other foreign markets which have significant or potentially significant business operations in the greater China region. These companies include companies which have at least 30% of their earnings currently derived from the greater China region or have business operations in the greater China region or have business operations in the greater China region which are projected to contribute at least 30% of group earnings in the next two to three years.
• Up to 98% if the fund’s NAV can be invested in selected foreign markets which include Hong Kong, China, Taiwan, Singapore, United States of America and other approved markets.
• Equity exposure: generally range from 75% to 90% of its NAV.
• Suitable for aggressive investors who can withstand extended periods of market highs and lows in pursuit of capital growth.

Q2: What is the investment strategy for Public China Select Fund?

• Public China Select Fund is actively managed to achieve its goal of achieving capital growth by investing in a diversified portfolio of blue chip stocks, index stocks and companies with growth prospects in the greater China region namely in Hong Kong, China and Taiwan markets.
• The fund will also invest in China based companies listed on overseas markets such as Singapore and United States of America and other approved markets.
• The fund may also invest in companies listed on Bursa Securities and foreign markets which have significant or potentially significant business operations in the greater China region. These companies include companies which have at least 30% of their earnings currently derived from the greater China region or have business operations in the greater China region which are projected to contribute at least 30% of group earnings in the next two to three years.
• Public China Select Fund may also invest in fixed income securities such as sovereign bonds, corporate debt and money market instruments to help generate returns.

Q3: What makes Public China 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 in the greater China region.

Q4: What level of risks will we be looking at when investing in Public China Select Fund?

• As the fund generally maintains its equity exposure at 75% to 90% of its NAV, Public China Select Fund may experience significant volatilities in times of adverse market movements. To mitigate risks, the fund may invest in future contracts and listed options to hedge against market volatility.
• 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 abroad. 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.

Q5: Who will be the most suitable to invest in Public China Select Fund?

• Investors who would like to participate in the growth prospects of the greater China region (namely Hong Kong, China and Taiwan markets) and wish to diversify their investments to participate in the region’s long-term growth potential.
• It is also suitable for existing and prospective investors who have aggressive risk-reward temperament seeking medium- to long-term capital growth.

Q6: 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.

Where to Purchase The Units

You may purchase units of the Public China Select Fund from Public Mutual unit trust consultants who are registered with the Federation of Malaysian Unit Trust Managers (FMUTM) to promote and distribute unit trusts.