Public Mutual’s new fund to capitalise on growth potential of the Australian market

[Yong Chu Eu]

Public Mutual’s new fund to capitalise on growth potential of the Australian market

Public Bank’s wholly-owned subsidiary, Public Mutual is launching a new fund, Public Australia Equity Fund (PAUEF) on 8 September 2009. Public Mutual’s Chief Executive Officer Ms. Yeoh Kim Hong said PAUEF will give investors the opportunity to capitalise on the long term growth potential of the Australian market, given the country’s strong position in natural resources and its diversified services sector. Commodity exports in Australia are likely to benefit from a pick-up in demand from emerging economies such as China and India. Meanwhile, Australia’s services sector is supported by a wide range of services such as the property, financial, health, transportation and educational services. “In addition, the Australian government’s fiscal stimulus measures and expansionary monetary policies are expected to stimulate domestic demand and benefit both the services and consumer sectors,” she said. She added that despite the recent market rebound, both Australian and New Zealand markets have lagged the performance of the Asian markets. Thus, long-term investors should tap on the opportunities to accumulate undervalued blue-chip stocks, index stocks and growth stocks in the Australian market. PAUEF is an equity fund that seeks to achieve capital growth over the medium- to long-term period by investing primarily in the Australian market with the balance invested in the New Zealand and domestic markets. The fund will mainly focus on sectors such as the natural resources, banking, real estate and consumer sectors. The equity exposure of PAUEF will generally range from 75% to 90% of its net asset value (NAV). Yeoh said PAUEF is suitable for investors with an aggressive risk-reward profile who can withstand extended periods of market volatility in order to achieve their objective of long-term capital growth. It is also suitable for investors who seek to hedge their children’s future educational expenses in Australia. “Investing in Australian equities are expected to keep pace with the rising cost of Australia’s university education over the long term,” she pointed out. The initial issue price of PAUEF is RM0.2500 per unit during the 21-day initial offer period from 8 to 28 September 2009. The minimum initial investment for the fund is RM1,000 and the minimum additional investment is RM100. Public Mutual is Malaysia’s largest private unit trust company with 70 funds under management. It has over 2,000,000 accountholders serviced by 40,000 unit trust consultants. As at 31 July 2009, the total net asset value of the funds managed by the company was RM32.7 billion.

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