Public Far-East Telco & Infrastructure Fund (PFETIF)

Public Mutual will launch its first regional telecommunications and infrastructure fund, Public Far-East Telco & Infrastructure Fund (PFETIF)on 8 July 2008 (this coming Tuesday).

PFETIF enables investors to participate in the rollout of infrastructure services to meet the growing needs of the Far-East region. In recent years much has been said about improving the telecommunication sectors, with Wimax and Wireless network being implemented to create a society that can obtain information anytime anywhere.

Besides, to ensure that infrastructure services are adequate to support their growth, Asian economies will continue to invest in the infrastructure sector over the medium to long term. For example in Malaysia, the electrified double tracking railway project between Padang Besar and Ipoh (a joint venture project between Gamuda and MMC Corporation), and the 2nd Penang bridge.

Based on a CLSA Asia Pacific Markets report, “Ramping Up Asia’s Infrastructure Stimulus, March 2008”, Asian countries are expected to spend an estimated US$1.8 trillion on construction of roads, railways, power plants, telecommunications and other infrastructure projects over the 5-year period until 2012.

Infrastructure assets also offer positive long-term prospects as the underlying cash flows of concession companies are usually stable and linked to an inflation index through a negotiated pricing formula. Following the retracement in regional equity markets for the year to date, selected telecommunications and infrastructure stocks are currently trading at valuations that are below their longterm average.

PFETIF mainly investing in securities, mainly equities, in the telecommunications, infrastructure, and utilities sector in Far-East markets. Up to 98% of PFETIF’s net asset value (NAV) can be invested in selected foreign markets which include South Korea, China, Japan, Taiwan, Hong Kong, Philippines, Indonesia, Singapore, Thailand and other approved markets. PFETIF will looking to profit into the long-term growth potential of a portfolio of regional stocks in sectors which include telecommunications, construction, building materials, expressways, transportation, water works, infrastructure and utilities.

The equity exposure of PFETIF will generally range from 75% to 90% of its NAV.

Risk Profile: Aggressive

Initial offer price: RM0.2500 per unit

Offer period: 8 July 2008 to 28 July 2008.

During the offer period, a special promotional service charge of 5% of NAV per unit is extended to the purchase of units of PFETIF by investors. Normal service charge rate is at 5.45%.