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Public Bank's wholly-owned subsidiary,
Public Mutual is launching a new fund, Public Indonesia Select Fund
(PINDOSF) on 1 September 2010. The fund invests in a diversified
portfolio of blue chips, index stocks and growth stocks primarily in the
Indonesian market, with up to 30% of its net asset value (NAV) invested
in the Malaysian and other global markets.
Public Mutual's Chief Executive
Officer Ms. Yeoh Kim Hong said Indonesia, which has the largest economy
in South East Asia, is poised to be one of the fastest growing economies
in Asia after China and India. "Supported by the fourth largest
population in the world and rich in resources, the Indonesian market
offers good long-term capital growth opportunities," she said.
Yeoh further added that Indonesia charted a healthy growth rate averaging 5.1%1
per annum over the 2000-2009 period as it was underpinned by resilient
domestic demand and a series of economic reforms. "Due to its large
domestic base, Indonesia's economic performance is envisaged to be more
resilient than other economies in the event of slower global growth,"
she said.
Meanwhile, Indonesia's fiscal position
has improved in recent years due to its sound fiscal and debt
management. The government maintained a fiscal deficit of less than 3%2 of Gross Domestic Product (GDP) over the 2000-2009 period. Its GDP growth is expected to rebound from 4.5%2 in 2009 to 5.8%2 in 2010 and to grow at 6.2%2
in 2011 on the back of resilient consumer and investment spending as
well as strong global demand for commodities. Its domestic demand is
expected to remain resilient amidst an accommodative interest rate
environment and manageable inflationary pressures.
In addition, Indonesia was one of the best performing regional markets in 2009 with a 114.7%3 return. The Indonesian stock market registered a further gain of 17.5%3 on a year-to-date basis to 28 July 2010 amidst robust economic activities.
Yeoh said PINDOSF would focus on
sectors which include banking & finance, commodities, building
materials and consumer. "The banking & finance sector in Indonesia
has experienced strong growth in loans and financial services, whereas
strong output growth is projected for its commodities sector. Meanwhile,
the building materials sector benefited from sustained infrastructure
spending, and improved purchasing power has benefited the consumer
sector," she said.
PINDOSF's equity exposure will
generally range from 75% to 98% of its NAV. The fund is a niche product
suitable for investors with aggressive risk appetite who wish to
capitalise on the long-term growth prospects of the Indonesian market.
The initial issue price of PINDOSF is RM0.2500 per unit during the 21-day initial offer period from 1 to 21 September 2010. The
minimum initial investment for the fund is RM1,000 and the minimum
additional investment is RM100. During the offer period, special
promotional service charges as low as 5% of initial issue price per unit
are extended to the purchase of units of PINDOSF. Investors who opt for
Direct Debit Instruction with PINDOSF during the offer period will
enjoy a special promotional service charge of 5.25% of NAV per unit for
as long as the Direct Debit is active. Terms and conditions apply.
Interested investors can contact any Public Mutual unit trust consultant or call its Customer Service Hotline at
03-6207 5000 for more details of the fund.
Public Mutual is Malaysia's largest
private unit trust company with 79 funds under management. It has over
2,320,000 accountholders and as at 30 July 2010, the total net asset
value of the funds managed by the company was RM37.8 billion.
1 Bloomberg, July 2010
2 Asian Development Bank and Bank Indonesia
3 Lipper, July 2010 | 
