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%.

Fixed Deposits have Risks too!

Most people thought that putting money in Fixed Deposits is the safest way to keep money growing and it is risks-free. Though I would agree that FDs is one of the safer way to keep your capital, I disagree that FD actually help your money grow, and surely it is not risks free.

And the risks involve is Inflation Risks. With the current FD rate of 3%, putting your money in your FD is actually making it depreciating, though it give the false impression that it actually appreciating with the interest given. Figure wise, yes, it is appreciating, as the bank give out interest to FDs, and the balance figure keep increasing with the interest added. Value wise, No! It is not appreciating, instead it is depreciating as inflation reach 5%. The money you put into the FDs is actually depreciating at a rate of 2%.

So if you think there is putting your money in FDs alone is enough as it is the safest way, better think again!

Inflation

With the recent hike of petrol prices in the country, one of the inevitable result from it is: Inflation.

With a hike of 41% in petrol prices, no doubt the inflation rate in the country will also rise. Economist are predicting inflation rate of the country will rise to 5%. Not too bad considering there are also significant increase in rice prices. But what most of us didn't noticed is that, everyone's inflation rate is different. This 5% is not applied to every Malaysian in the country. This 5% is the average of the whole country.

That means, if you are living in the capital or big city, your inflation will definitely be more than 5%. Why? Actually you can actually measure your own inflation by jotting down your expenses for this year, and compare the amount with your expenses next year. A month by month comparison will be unnecessary as there will not be much of a difference between this month and next month. I now give an example on how to calculate.

Let's say you drink a cup of coffee everyday. The price now is RM1.00. For 365 days, you will spend RM365 / year. After this petrol hike, assuming the price increases RM0.20, so now the price for one cup is RM1.20. For 365 days, the cost is RM438, an increase of RM73. This increase is 20%, therefore your inflation is 20%, way above the national value of 5%.

This is just a single item example. If you add up your every expenses, more often that the percentage will be even higher, as normally prices of products keep going up!

Another Socially Responsible Action Taken by Public Bank Group

Public Bank on behalf of its wholly-owned subsidiary Public Mutual Berhad contributed RM200,000 to help the victims of the devastated Cyclone Nargis in Myanmar.

This contribution will go towards the relief efforts of rebuilding the life of those affected by the natural disaster.

The contribution is presented by Tan Sri Dato' Sri Dr. Teh Hong Piow, through MERCY Malaysia at Menara Public Bank today.

Tan Sri Teh added that this contribution is in line with the corporate social responsibility programmes or CSR of the Public Bank Group to help deserving communities and needy.

The Public Bank Group's CSR programmes include efforts and projects in key areas such as nation building, education, environmental conservation and health care. The Public Bank Group works with the Malaysian government and non-profit organisations in various community projects.

Public Mutual has more than 35,000 agents throughout Malaysia to sell and distribute its funds. As at 30 April 2008, the total net asset value of the funds managed by Public Mutual was RM27.8 billion.

Public Mutual reaching out to help

Every company has a responsible to the society, and Public Mutual is doing his part. Public Mutual Bhd contributed RM300,000 to earthquake victims in Sichuan Province.

The contribution will go towards efforts of rebuilding the life of those affected by the devastating May 12 disaster.

The donation was presented by the founder and chairman of Public Bank and chairman of Public Mutual, Tan Sri Teh Hong Piow to Mercy Malaysia at Menara Public Bank in Kuala Lumpur.

Public Mutual: Distributions for Financial Year End May 2008

For Financial Year End May 2008, Public Mutual is declaring Final Distributions for 7 of its funds, namely

1) Public Balanced Fund (PBF) - 5.00 sen

2) Public Ittikal Fund (P Ittikal) - 5.00 sen

3) Public Islamic Equity Fund (PIEF) - 1.50 sen

4) Public Dividend Select Fund (PDSF) - 1.50 sen

5) Public Far-East Select Fund (PFES) - 1.50 sen

6) Public Regional Sector Fund (PRSEC) - 1.50 sen

7) Public Select Bond Fund (PSBF) - 4.00 sen

For Funds numbered 1-6, there were interim distributions declared on 30 November 2007. Therefore, the total distributions declared of the funds for the year are

1) Public Balanced Fund (PBF) - 15.00 sen

2) Public Ittikal Fund (P Ittikal) - 15.00 sen

3) Public Islamic Equity Fund (PIEF) - 6.50 sen

4) Public Dividend Select Fund (PDSF) - 5.25 sen

5) Public Far-East Select Fund (PFES) - 5.50 sen

6) Public Regional Sector Fund (PRSEC) - 5.00 sen