Public Mutual’s new fund to benefit from Indonesia’s strong growth potential 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
URL:
http://www.publicmutual.com.my/page.aspx?n...rls_100825_1305 
Jul 12 2010, 02:25 AM
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