Public Mutual PDF

Responsibility Statement

This Master Prospectus has been reviewed and approved by the directors of Public Mutual Berhad and they collectively and individually accept full responsibility for the accuracy of the information. Having made all reasonable inquiries, they confirm to the best of their knowledge and belief, there are no false or misleading statements, or omission of other facts which would make any statement in this Master Prospectus false or misleading.

Statements of Disclaimer

The Securities Commission Malaysia has approved the issue of, offer for subscription or purchase, or issue an invitation to subscribe for or purchase units of the funds and a copy of this Master Prospectus has been registered with the Securities Commission Malaysia.

The approval, and registration of this Master Prospectus, should not be taken to indicate that the Securities Commission Malaysia recommends the funds or assumes responsibility for the correctness of any statement made or opinion or report expressed in this Master Prospectus.

The Securities Commission Malaysia is not liable for any non-disclosure on the part of the management company responsible for the funds and takes no responsibility for the contents in this Master Prospectus. The Securities Commission Malaysia makes no representation on the accuracy or completeness of this Master Prospectus, and expressly disclaims any liability whatsoever arising from, or in reliance upon, the whole or any part of its contents.

INVESTORS SHOULD RELY ON THEIR OWN EVALUATION TO ASSESS THE MERITS AND RISKS OF THE INVESTMENT. IN CONSIDERING THE INVESTMENT, INVESTORS WHO ARE IN DOUBT AS TO THE ACTION TO BE TAKEN SHOULD CONSULT THEIR PROFESSIONAL ADVISERS IMMEDIATELY.

Additional Statement

Investors are advised to note that recourse for false or misleading statements or acts made in connection with this Master Prospectus is directly available through sections 248, 249 and 357 of the Capital Markets and Services Act 2007.

No units will be issued or sold based on this Master Prospectus later than one year after the date of this Master Prospectus.

This Master Prospectus encompasses the following thirty nine (39) unit trust funds:

1. Public Savings Fund2. Public Growth Fund3. Public Index Fund4. Public Industry Fund5. Public Aggressive Growth Fund6. Public Regular Savings Fund7. Public SmallCap Fund8. Public Equity Fund9. Public Focus Select Fund10. Public Dividend Select Fund11. Public Far-East Select Fund12. Public Regional Sector Fund13. Public Global Select Fund14. Public Far-East Dividend Fund15. Public China Select Fund16. Public Far-East Property & Resorts Fund17. Public South-East Asia Select Fund18. Public Sector Select Fund19. Public Far-East Consumer Themes Fund20. Public China Titans Fund21. Public Far-East Telco & Infrastructure Fund22. Public Select Alpha-30 Fund23. Public Natural Resources Equity Fund24. Public Australia Equity Fund25. Public Far-East Alpha-30 Fund26. Public Optimal Growth Fund27. Public Indonesia Select Fund28. Public Singapore Equity Fund29. Public Strategic SmallCap Fund30. Public Tactical Allocation Fund31. Public Balanced Fund32. Public Far-East Balanced Fund33. Public Bond Fund34. Public Institutional Bond Fund35. Public Enhanced Bond Fund36. Public Select Bond Fund37. Public Strategic Bond Fund38. Public Enterprises Bond Fund39. Public Money Market Fund

You may refer to pages 10 to 38 of Chapter 1: Key Features of the Funds for a better understanding of the objective and key strategies of each of the funds, risks of investing in the funds, profile of investors suitable to invest in the funds and fees and charges payable when investing in the funds, and to help you to decide on the fund that is most compatible with your personal investment temperament and long term financial goals.

Units of the funds can be bought from our unit trust consultants who are registered with the Federation of Investment Managers Malaysia. Public Mutual branch offices are located throughout the state capitals and major towns of Malaysia to service unitholders who may need to do an enquiry or a transaction with us. Please refer to pages 247 to 250 for the Directory of Public Mutual Branch and Agency Offices.

Yeoh Kim HongChief Executive Officer

PREFACE

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CONTENTS

GLOSSARY OF TERMS/ABBREVIATIONS 3-6

MANAGER, TRUSTEES AND ADVISERS 7-9

1. KEY FEATURES OF THE FUNDS 10-38

1.1 Summary of Key Data of The Funds 101.2 Fees and Charges 311.3 Information on Transaction of Units 331.4 Free Insurance for PBF, PFEBF and PTAF 361.5 Distribution Policy 36

2. ABOUT UNIT TRUST FUNDS 39-41

2.1 The Unit Trust Fund 392.2 Benefits of Investing in Unit Trusts 392.3 Risk Factors 392.4 Dollar-Cost Averaging Principle 41

3. DETAILED INFORMATION ON THE FUNDS 42-141

3.1 Categories of Funds 423.2 Fund Profiles 433.3 Investment Risks 1323.4 Permitted Investments 1333.5 Investment Restrictions 1343.6 Valuation of Permitted Investments 1393.7 Policy on Gearing 1403.8 A Glance At the Terms Used in This Chapter 141

4. PERFORMANCE OF THE FUNDS 142-178

5. HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS 179-200

5.1 Extracts of Financial Statements of The Funds 1795.2 Expenses Incurred by The Funds 198

6. GETTING STARTED WITH PUBLIC MUTUAL 201-204

6.1 Investing with Public Mutual 2016.2 How to Buy, Sell or Switch Units of The Funds 2016.3 Statements and Reports 2036.4 Keeping Track of the Daily Prices of Units 204

Dedicated Services to Unitholders of Public Mutual 205

7. TRANSACTION INFORMATION 206-208

7.1 Determination of Prices 2067.2 Computation of Prices 2077.3 Computation of Cooling-Off Proceeds 208

8. FEES, CHARGES AND EXPENSES 209-211

8.1 Charges Imposed on Sale and Purchase of Units 2098.2 Fees and Expenses of The Funds 2108.3 Policy on Stockbroking Rebates and Soft Commissions 211

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CONTENTS (CONT’D)

9. THE MANAGER 212-230

9.1 Corporate Profile of Public Mutual 2129.2 Organisation of Public Mutual 2129.3 Unit Trust Funds under Public Mutual 2139.4 Functions, Duties and Responsibilities of The Manager 2159.5 Compliance Unit 2159.6 Financial Performance of Public Mutual 2169.7 The Board of Directors 2169.8 Profile of Key Management Staff 2199.9 Profile of Key Investment Personnel 2219.10 Awards Won by Public Mutual 2269.11 Investment Management Function of The Manager 2269.12 Related Party Transactions/Conflict of Interest 2299.13 Policies and Procedures on Money Laundering Activities 2309.14 Documents Available for Inspection 230

10. THE TRUSTEES 231-236

10.1 The Trustees’ Willingness to Assume Position 23110.2 Duties and Responsibilities of The Trustees 23110.3 Profile of AmanahRaya Trustees Berhad 23110.4 Profile of Maybank Trustees Berhad 23210.5 Profile of CIMB Commerce Trustee Berhad 235

11. SALIENT TERMS OF THE DEED 237-244

11.1 Unitholders’ Rights and Liabilities 23711.2 Jointholders 23711.3 Maximum Fees and Charges Permitted by The Deed 23811.4 Permitted Expenses Payable Out of The Funds 24211.5 Retirement, Removal and Replacement of The Manager 24311.6 Retirement, Removal and Replacement of The Trustee 24311.7 Termination of The Funds 24411.8 Unitholders’ Meeting 24411.9 The Deed 244

TAXATION OF THE FUNDS AND UNITHOLDERS 245-246

NETWORK OF PUBLIC MUTUAL BRANCH OFFICES 247-249

NETWORK OF PUBLIC MUTUAL AGENCY OFFICES 250

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GLOSSARY OF TERMS/ABBREVIATIONS

ART AmanahRaya Trustees Berhad (766894-T)

Bursa Malaysia Bursa Malaysia Berhad

Bursa Securities Bursa Malaysia Securities Berhad

Business Day(s) Each weekday in which Bursa Securities is open for dealing.

Note: The Manager may declare certain Business Day to be a non-Business Day, although Bursa Securities is open for business, if one or more of the foreign markets in which the funds are invested therein are closed for business. This is to ensure that investors will be given a fair valuation of the funds at all times, be it when buying or redeeming units of the funds.

CCTB CIMB Commerce Trustee Berhad (313031-A) (formerly known as BHLB Trustee Berhad)

CMSA 2007 Capital Markets and Services Act 2007

Cooling-off right The right of a unitholder who is investing with Public Mutual for the first time, to change his mind and cancel an investment within 6 Business Days from the date of receipt by Public Mutual, of the application form and payment and will obtain a full refund of the said investment within 10 days of receipt of cooling-off notice by Public Mutual. For EPF unitholders, the cooling-off period will commence from the date of receipt of the application form by Public Mutual.

The cooling-off right, however, does not extend to a corporation or institution, the staff of Public Mutual, and persons registered to deal in unit trust funds.

Eligible Market A market that –(a) is regulated by a regulatory authority;(b) operates regularly;(c) is open to the public; and(d) has adequate liquidity for the purposes of the fund in question.

EPF Employees Provident Fund

Extraordinary Resolution A resolution passed at a meeting of unitholders duly convened and held in accordance with the provisions of the Deed and carried by a majority consisting of not less than three quarters of the unitholders voting thereat upon a show of hands or if a poll is duly demanded and taken by a majority consisting of not less than three-quarters in number of the votes given on such poll. For the purposes of termination or winding-up of a fund, an extraordinary resolution is passed by a majority in number representing at least three-fourth of the value of the units held by unitholders at the meeting duly convened and held in accordance with the provisions of the Deed.

FIMM The Federation of Investment Managers Malaysia

Forward Pricing The selling or buying of units is based on the NAV per unit next determined or calculated after the application/repurchase order from unitholder(s) is received by the Manager in proper form.

Fund Manager Designated Fund Manager/co-Fund Manager of the respective funds.

MER Management Expense Ratio (MER) is the ratio of the sum of the fees and the recovered expenses of the unit trust fund to the average value of the unit trust fund calculated on a daily basis, i.e.:

(Fees + Recovered expenses) of the unit trust fund x 100

Average value of the unit trust fund calculated on a daily basis

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Where:

Fees = All ongoing fees deducted/deductible directly from the unit trust fund in respect of the year/period covered by the management expense ratio, expressed as a fixed amount calculated on a daily basis. This would include the annual management fee, the annual trustee fee and any other fees deducted/deductible directly from the unit trust fund.

Recovered = All expenses recovered from/charged to the unit trust fund as a result of the expenses incurred by the operation of the unit trust fund, expressed as a fixed amount.

Average = The NAV of the unit trust fund, including net income value of the fund, less expenses on an accrued basis, in respect of the year/period covered by the management expense ratio, calculated on a daily basis.

This expense ratio is directly comparable with that of other funds (under the same fund category) in determining the fund that is more cost effective, all other things being equal or held constant. The lower the expense ratio of a fund the better, in the universal comparison of the expenses of funds.

MSCI AC Far East Ex-Japan Morgan Stanley Capital International All Country Far East Ex-Japan IndexIndex

MSCI All Country World Morgan Stanley Capital International All Country World IndexIndex

MTB Maybank Trustees Berhad (5004-P) (formerly known as Mayban Trustees Berhad)

NAV Net Asset Value (“NAV”) of the fund is determined by deducting the value of all the fund’s liabilities (include all amounts payable by the fund, accrued expenses and taxes, and any appropriate provisions for contingencies) from the value of the fund’s assets, at the valuation point. For the purpose of computing the annual management fee and the annual trustee fee, the NAV of the fund should be inclusive of the management fee and trustee fee for the relevant day.

NAV per unit The NAV per unit is the NAV of a fund divided by the number of units in circulation at the valuation point. It forms the basis upon which the prices of units of a fund are calculated.

Portfolio Turnover Ratio (Total acquisitions of the fund for the year + total disposals of the fund for the year) / 2 (PTR) Average value of the fund for the year calculated on a daily basis

The annual portfolio turnover ratio will indicate whether the fund buys and sells securities frequently or whether it takes a longer term approach to investment management. A portfolio turnover ratio of 1 time means that the fund has been turned over once for that particular year/period.

Public Bank Public Bank Berhad (6463-H)

Public Mutual or Public Mutual Berhad (23419-A)the Manager

Public Series of Funds This series of funds comprises the thirty nine (39) non-Shariah-based unit trust funds covered under this Master Prospectus.

GLOSSARY OF TERMS/ABBREVIATIONS (CONT’D)

value of the unit trust fund

expenses

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Shariah-Based FundsPublic Series of This series of funds comprises twenty six Shariah-based unit trust funds, namely

Public Ittikal Fund, Public Islamic Equity Fund, Public Islamic Opportunities Fund, Public Islamic Dividend Fund, Public Asia Ittikal Fund, Public Islamic Asia Dividend Fund, Public Islamic Sector Select Fund, Public China Ittikal Fund, Public Islamic Select Treasures Fund, Public Islamic Optimal Growth Fund, Public Islamic Select Enterprises Fund, Public Islamic Asia Leaders Equity Fund, Public Islamic Alpha-40 Growth Fund, Public Islamic Treasures Growth Fund, Public Ittikal Sequel Fund, Public Islamic Savings Fund, Public Islamic Mixed Asset Fund, Public Islamic Asia Tactical Allocation Fund, Public Islamic Bond Fund, Public Islamic Enhanced Bond Fund, Public Islamic Select Bond Fund, Public Islamic Infrastructure Bond Fund, Public Islamic Strategic Bond Fund, Public Sukuk Fund, Public Islamic Income Fund and Public Islamic Money Market Fund which are governed by a separate Master Prospectus dated 30 April 2012 and expires on 29 April 2013.

RM Ringgit Malaysia

SC Securities Commission Malaysia

SC Guidelines Guidelines on Unit Trust Funds issued by SC on 3 March 2008, and shall include any Guidance Notes, Circulars, schedules, appendices and guidelines contained therein or made pursuant thereto.

the Deed The Deed means the master deed dated 28 January 1999 and all supplemental deeds entered into between the Trustee and the Manager for the registered holders of the funds.

“the funds”/”the fund” The following thirty nine (39) funds covered under this Master Prospectus are collectively called “the funds” and individually called “the fund”:

Public Savings FundPublic Growth FundPublic Index FundPublic Industry FundPublic Aggressive Growth FundPublic Regular Savings FundPublic SmallCap FundPublic Equity FundPublic Focus Select FundPublic Dividend Select FundPublic Far-East Select FundPublic Regional Sector FundPublic Global Select FundPublic Far-East Dividend FundPublic China Select FundPublic Far-East Property & Resorts Fund Public South-East Asia Select FundPublic Sector Select FundPublic Far-East Consumer Themes FundPublic China Titans FundPublic Far-East Telco & Infrastructure FundPublic Select Alpha-30 FundPublic Natural Resources Equity FundPublic Australia Equity FundPublic Far-East Alpha-30 FundPublic Optimal Growth FundPublic Indonesia Select FundPublic Singapore Equity Fund

PSF PGFPIXPIFPAGFPRSFP SmallCapPEFPFSFPDSFPFESPRSECPGSFPFEDFPCSFPFEPRFPSEASFPSSFPFECTFPCTFPFETIFPSA30FPNREFPAUEFPFA30FPOGFPINDOSFPSGEF

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Public Strategic SmallCap FundPublic Tactical Allocation Fund (formerly known as Public Global Balanced Fund)Public Balanced FundPublic Far-East Balanced FundPublic Bond Fund Public Institutional Bond FundPublic Enhanced Bond FundPublic Select Bond FundPublic Strategic Bond FundPublic Enterprises Bond FundPublic Money Market Fund

UIC Units in circulation (“UIC”) refers to the total number of units in issue at a point in time.

Valuation point Valuation point refers to such a time(s) on a Business Day as may be decided by the Manager wherein the Net Asset Value (“NAV”) of the fund is calculated. Under normal circumstances, only one valuation is conducted on each Business Day.

For funds with no foreign investments, the valuation of NAV of funds is conducted on each Business Day at the close of Bursa Securities. For funds with foreign investments, the valuation of funds will be conducted after the close of business of Bursa Securities for the relevant day, as certain of the foreign markets in which the funds may invest in have yet to close due to the different time zones of these countries. As such, the valuation point will thus be after the close of Bursa Securities but not later than 9:00 a.m. (or any other such time as may be permitted by the relevant authorities from time to time) on the following day in which the Manager is open for business.

PSSCFPTAF

PBFPFEBFP BONDPIN BONDPEBFPSBFPSTBFPENTBFPMMF

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MANAGER, TRUSTEES AND ADVISERS

MANAGERPublic Mutual Berhad (23419-A)Registered and business address:Block B, Sri Damansara Business ParkPersiaran Industri, Bandar Sri Damansara52200 Kuala LumpurTel: 03-6279 6800 Fax: 03-6277 9800Hotline: 03-6207 5000e-mail: [email protected]: http://www.publicmutual.com.my

Board of DirectorsTan Sri Dato’ Sri Dr. Teh Hong Piow (Non-Executive Director/Chairman)Tan Sri Datuk Seri Utama Thong Yaw Hong (Non-Executive Independent Director/Co-Chairman)Tan Sri Dato’ Sri Tay Ah Lek (Non-Executive Director)Dato’ Sri Lee Kong Lam (Non-Executive Director)Dato’ (Dr) Haji Mohamed Ishak Bin Haji Mohamed Ariff (Non-Executive Independent Director)Dato’ Haji Abdul Aziz Bin Dato’ Dr. Omar (Non-Executive Independent Director)Mr. Quah Poh Keat (Non-Executive Independent Director)Ms. Yeoh Kim Hong (Chief Executive Officer/Executive Director)

Members of the Investment CommitteeTan Sri Datuk Seri Utama Thong Yaw Hong (Independent)Tan Sri Dato’ Sri Tay Ah LekDato’ Sri Lee Kong LamDato’ (Dr) Haji Mohamed Ishak Bin Haji Mohamed Ariff (Independent)Dato’ Haji Abdul Aziz Bin Dato’ Dr. Omar (Independent)Mr. Quah Poh Keat (Independent)Ms. Yeoh Kim Hong

Members of the Audit and Compliance CommitteeTan Sri Datuk Seri Utama Thong Yaw HongTan Sri Dato’ Sri Tay Ah LekDato’ Sri Lee Kong LamDato’ (Dr) Haji Mohamed Ishak Bin Haji Mohamed AriffDato’ Haji Abdul Aziz Bin Dato’ Dr. OmarMr. Quah Poh Keat

Company SecretariesMs. Tang Pueh Fong (MIA 8078)c/o Public Mutual Berhad2nd Floor, Block B, Sri Damansara Business ParkPersiaran Industri, Bandar Sri Damansara52200 Kuala Lumpur

Ms. Pang Siew Han (MIA 6968)c/o Public Mutual Berhad2nd Floor, Block B, Sri Damansara Business ParkPersiaran Industri, Bandar Sri Damansara52200 Kuala Lumpur

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MANAGER, TRUSTEES AND ADVISERS (CONT’D)

TRUSTEESAmanahRaya Trustees Berhad (766894-T)Registered address: Business address:Tingkat 11, Wisma AmanahRaya Tingkat 2, Wisma TASNo. 2, Jalan Ampang No. 21, Jalan Melaka50508 Kuala Lumpur 50100 Kuala LumpurTel: 03-2055 7388 Tel: 03-2036 5000 Fax: 03-2072 0322Web: http://www.artrustees.com.my Web: http://www.artrustees.com.my

Trustee’s DelegateCitibank, NA, Singapore BranchRegistered address: Business address:8 Marina View 8 Marina View#21-00 Asia Square Tower 1 #16-00 Asia Square Tower 1Singapore 018960 Singapore 018960 Tel: 65-6657 5440 Tel: 65-6657 5440Web: http://www.citibank.com Web: http://www.citibank.com

Maybank Trustees Berhad (5004-P)(formerly known as Mayban Trustees Berhad)Registered and business address:34th Floor, Menara Maybank100, Jalan Tun Perak50050 Kuala LumpurTel: 03-2078 8363/03-2070 8833email: [email protected]

Trustee’s DelegatesMalayan Banking Berhad (3813-K)Custody ServicesRegistered address: Business address:14th Floor, Menara Maybank 4th Floor, Menara Maybank100, Jalan Tun Perak 100, Jalan Tun Perak50050 Kuala Lumpur 50050 Kuala Lumpur Tel: 03-2074 8158

Citibank, NA, Singapore BranchRegistered address: Business address:8 Marina View 8 Marina View#21-00 Asia Square Tower 1 #16-00 Asia Square Tower 1Singapore 018960 Singapore 018960Tel: 65-6657 5440 Tel: 65-6657 5440Web: http://www.citibank.com Web: http://www.citibank.com

CIMB Commerce Trustee Berhad (313031-A) (formerly known as BHLB Trustee Berhad)Registered address: Business address:5th Floor, Bangunan CIMB Level 7, Wisma Amanah Raya BerhadJalan Semantan Jalan SemantanDamansara Heights Damansara Heights50490 Kuala Lumpur 50490 Kuala LumpurTel: 03-2084 8888 Tel: 03-2084 8888Web: http://www.cimb.com

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Trustee’s DelegatesCIMB Group Nominees (Tempatan) Sdn Bhd (274740-T)Registered address: Business address:5th Floor, Bangunan CIMB Level 7, Wisma Amanah Raya BerhadJalan Semantan Jalan SemantanDamansara Heights Damansara Heights50490 Kuala Lumpur 50490 Kuala LumpurTel: 03-2084 8888 Tel: 03-2084 8888Web: http://www.cimb.com

Citibank, NA, Singapore BranchRegistered address: Business address:8 Marina View 8 Marina View#21-00 Asia Square Tower 1 #16-00 Asia Square Tower 1Singapore 018960 Singapore 018960 Tel: 65-6657 5440 Tel: 65-6657 5440Web: http://www.citibank.com Web: http://www.citibank.com

AUDITORSErnst & YoungLevel 23A, Menara MileniumJalan DamanlelaPusat Bandar DamansaraDamansara Heights50490 Kuala Lumpur

TAX AGENTKPMG Tax Services Sdn BhdLevel 10, KPMG Tower8, First AvenueBandar Utama47800 Petaling JayaSelangor, Malaysia

LEGAL ADVISERSoon Gan Dion & Partners1st Floor, No.73 Jalan SS21/1ADamansara Utama47400 Petaling JayaSelangor Darul Ehsan

PRINCIPAL BANKERPublic Bank BerhadMenara Public BankNo. 146, Jalan Ampang50450 Kuala Lumpur

FEDERATION OF INVESTMENT MANAGERS MALAYSIA19-07-3, 7th FloorPNB DamansaraNo 19, Lorong DungunDamansara Heights50490 Kuala Lumpur

MANAGER, TRUSTEES AND ADVISERS (CONT’D)

The Trustees and Delegates, Auditors, Tax Agent, Legal Adviser and Principal Banker have given and have not withdrawn their written consent to the inclusion in this Master Prospectus of their names and statements in the manner and context in which such names and statements appear.

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1.1 SUMMARY OF KEY DATA OF THE FUNDS

KEY FEATURES OF THE FUNDS1

The Manager Public Mutual Berhad (23419-A)

Fund Name Launch Date

Category of Fund

Type of Fund

Trustee Approved Fund Size

(Billion Units)

UIC as at 2.4.2012 (Billion Units)

Public Savings Fund 29.3.1981 Equity Capital Growth

ART 3.375 2.542

Public Growth Fund 11.12.1984 Equity Capital Growth

ART 4.50 2.146

Public Index Fund 2.3.1992 Equity Capital Growth

ART 2.25 1.439

Public Industry Fund 18.11.1993 Equity Capital Growth

MTB 1.00 0.337

Public Aggressive Growth Fund 25.4.1994 Equity Capital Growth

MTB 1.50 0.948

Public Regular Savings Fund 25.4.1994 Equity Capital Growth

MTB 6.75 4.444

Public SmallCap Fund 13.6.2000 Equity Capital Growth

ART 1.30 1.090

Public Equity Fund 15.8.2001 Equity Capital Growth

ART 5.00 2.993

Public Focus Select Fund 25.11.2004 Equity Capital Growth

CCTB 1.85 1.353

Public Dividend Select Fund 3.5.2005 Equity Income ART 4.50 3.025

Public Far-East Select Fund 22.11.2005 Equity Capital Growth

ART 3.50 1.735

Public Regional Sector Fund 21.3.2006 Equity Capital Growth

CCTB 3.00 1.324

Public Global Select Fund 28.9.2006 Equity Capital Growth

ART 3.00 0.477

Public Far-East Dividend Fund 28.11.2006 Equity Income ART 7.50 2.003

Public China Select Fund 5.6.2007 Equity Capital Growth

ART 15.00 5.781

Public Far-East Property & Resorts Fund

10.7.2007 Equity Capital Growth and Income

ART 3.375 1.428

Public South-East Asia Select Fund

2.10.2007 Equity Capital Growth

ART 7.50 1.927

Public Sector Select Fund 13.11.2007 Equity Capital Growth

ART 3.00 1.846

Publ ic Far-East Consumer Themes Fund


ART 1.50 0.673

Public China Titans Fund 1.4.2008 Equity Capital Growth

ART 1.50 0.335

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Fund Name Launch Date

Category of Fund

Type of Fund

Trustee Approved Fund Size

(Billion Units)

UIC as at 2.4.2012 (Billion Units)

Public Far-East Telco &Infrastructure Fund


ART 1.50 0.272

Public Select Alpha-30 Fund 7.4.2009 Equity Capital Growth

ART 1.50 0.203

Public Natural Resources Equity Fund


ART 1.50 1.199

Public Australia Equity Fund 8.9.2009 Equity Capital Growth

ART 2.25 1.208

Public Far-East Alpha-30 Fund 6.4.2010 Equity Capital Growth

ART 1.50 0.664

Public Optimal Growth Fund 8.6.2010 Equity Income and Capital Growth

ART 1.50 0.116

Public Indonesia Select Fund 1.9.2010 Equity Capital Growth

ART 1.50 0.364

Public Singapore Equity Fund 7.6.2011 Equity Capital Growth

ART 1.50 0.740

Public Strategic SmallCap Fund 20.3.2012 Equity Capital Growth

ART 1.50 0.078

Public Tactical Allocation Fund 23.1.2007 Mixed Asset

Capital Growth

ART 1.50 0.301

Public Balanced Fund 7.6.1995 Balanced Income and Capital Growth

MTB 1.50 0.577

Public Far-East Balanced Fund 23.1.2007 Balanced Income and Capital Growth

ART 3.80 1.168

Public Bond Fund 11.6.1996 Bond Income MTB 2.50 1.329

Public Institutional Bond Fund 30.4.2003 Bond Income ART 3.00 1.676

Public Enhanced Bond Fund 19.1.2005 Bond Income and Capital Growth

ART 1.00 0.295

Public Select Bond Fund 22.11.2005 Bond Income ART 2.25 1.321

Public Strategic Bond Fund 30.12.2010 Bond Income ART 0.75 0.373

Public Enterprises Bond Fund 20.3.2012 Bond Income ART 0.50 0.006

Public Money Market Fund 16.12.2003 Money Market

Income MTB 1.50 0.337

Total 113.45 50.073

This section is only a summary of the salient information about the funds and investors should read and understand the whole Master Prospectus before making investment decisions.

KEY FEATURES OF THE FUNDS (CONT’D)

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The fund objective, strategy, principal risks and investor profile of each of the funds is tabulated below.

Fund Name Fund Objective Investment Strategy Principal Risks

Investor Profile

Benchmark

Public Savings Fund

To achieve long-term capital appreciation while at the same time producing a reasonable level of income*.

The fund invests a minimum of 40% of its NAV in index stocks with the balance invested in a diversified portfolio of blue chip stocks and companies with good growth prospects that are listed primarily on Bursa Securities. To achieve increased diversification, the fund may invest in foreign markets. The fund may also invest in fixed income securities to generate additional returns. Its equity content in terms of NAV will range in the region of 70% to 98% of the NAV of the fund. The balance of the fund’s NAV will be invested in fixed income securities and liquid assets which include money market instruments.

Market risk, specific security risk and liquidity risk.

Moderate FTSE Bursa Malaysia KLCI.

Public Growth Fund

To achieve long-term capital appreciation with income* considered incidental.

The fund focuses on a diversified portfolio of blue chip stocks and companies with good growth prospects that are listed primarily on Bursa Securities. To achieve increased diversification, the fund may invest in foreign markets. The fund may also invest in fixed income securities to generate additional returns. Its equity content in terms of NAV will range in the region of 70% to 98% of the NAV of the fund. The balance of the fund’s NAV will be invested in fixed income securities and liquid assets which include money market instruments.




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Investor Profile

Benchmark

Public Index Fund

To achieve long-term capital appreciation while at the same time attempting to outperform the FTSE Bursa Malaysia Top 100 Index.

The fund invests a minimum of 60% of its NAV in index stocks with the balance invested in a diversified portfolio of blue chip stocks and companies with good growth prospects that are listed on Bursa Securities. The fund may also invest in fixed income securities to generate additional returns. Its equity content in terms of NAV will range in the region of 80% to 98% of the NAV of the fund. The balance of the fund’s NAV will be invested in fixed income securities and liquid assets which include money market instruments.


Moderate FTSE Bursa Malaysia Top 100 Index.

Public Industry Fund

To achieve a high level of capital appreciation over the medium to long term period through investments in growth industries.

The fund focuses on a diversified portfolio of stocks in industries undergoing earnings recovery and growth stocks that are listed primarily on Bursa Securities. To achieve increased diversification, the fund may invest in foreign markets. The fund may also invest in fixed income securities to generate additional returns. Its equity content in terms of NAV will range in the region of 70% to 98% of the NAV of the fund. The balance of the fund’s NAV will be invested in fixed income securities and liquid assets which include money market instruments.

Market risk, specific security risk, liquidity risk and industry/ sector risk.



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Investor Profile

Benchmark

Public Aggressive Growth Fund

To seek high capital growth over the medium to long term period through investments in situational and high growth stocks.

The fund focuses on a diversified portfolio of situational stocks and high growth stocks listed primarily on Bursa Securities. To achieve increased diversification, the fund may invest in foreign markets. The fund may also invest in fixed income securities to generate additional returns. Its equity content in terms of NAV will range in the region of 75% to 98% of the NAV of the fund. The balance of the fund’s NAV will be invested in fixed income securities and liquid assets which include money market instruments.


Aggressive FTSE Bursa Malaysia KLCI.

Public Regular Savings Fund

To achieve consistent capital growth over the medium to long term period and to achieve a steady growth in income*.

The fund focuses on a diversified portfolio of blue chip stocks and companies with good growth prospects that are listed on Bursa Securities. The fund may also invest in fixed income securities to generate additional returns. Its equity content in terms of NAV will range in the region of 70% to 98% of the NAV of the fund. The balance of the fund’s NAV will be invested in fixed income securities and liquid assets which include money market instruments.


Moderate FTSE Bursa Malaysia Top 100 Index.


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Investor Profile

Benchmark

Public SmallCap Fund

To achieve high capital growth through investments in companies with small market capitalisation with special focus on growth stocks.

Notes:

The fund will invest in companies with small market capitalisation at the point of purchase.

The fund may remain invested in such counters should the stocks become medium sized companies due to movement in market price and if the growth prospects and valuation of the stocks continue to be attractive.

The fund focuses on a diversified portfolio of companies with small market capitalisation with good growth prospects that are listed on Bursa Securities. To achieve increased diversification, the fund may invest in foreign markets. The fund may also invest in fixed income securities to generate additional returns. Its equity content in terms of NAV will range in the region of 70% to 98% of the NAV of the fund. The balance of the fund’s NAV will be invested in fixed income securities and liquid assets which include money market instruments.


Aggressive FTSE Bursa Malaysia Small Cap Index.

Public Equity Fund

To achieve capital growth through the aggressive selection of growth stocks from diversified economic sectors.

The fund focuses on a diversified portfolio of index linked companies, blue chip stocks and growth stocks that are listed primarily on Bursa Securities. To achieve increased diversification, the fund may invest in foreign markets. The fund may also invest in fixed income securities to generate additional returns. Its minimum equity content is 80% of the NAV of the fund. The balance of the fund’s NAV will be invested in fixed income securities and liquid assets which include money market instruments.




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Investor Profile

Benchmark

Public Focus Select Fund

To achieve capital growth through investments in medium-sized companies in terms of market capitalisation from diversified economic sectors.

The fund focuses on a diversified portfolio of companies with good growth prospects with market capitalisation of between RM1.25 billion and RM6 billion that are listed on Bursa Securities. To achieve increased diversification, the fund may invest in foreign markets. The fund may also invest in fixed income securities to generate additional returns. Its equity content in terms of NAV will range in the region of 70% to 98% of the NAV of the fund. The balance of the fund’s NAV will be invested in fixed income securities and liquid assets which include money market instruments.


Aggressive FTSE Bursa Malaysia Mid 70 Index.

Public Dividend Select Fund

To provide steady recurring income* by investing in a portfolio of stocks which offer or have the potential to offer attractive dividend yields.

The fund seeks to achieve its goal of providing steady recurring income by investing in a diversified portfolio of stocks that offer or have the potential to offer attractive dividend yields. To achieve increased diversification, the fund may invest in foreign markets. The fund may also invest in fixed income securities to generate additional returns. Its equity content in terms of NAV will range in the region of 75% to 98% of the NAV of the fund. The balance of the fund’s NAV will be invested in fixed income securities and liquid assets which include money market instruments.


Moderate 90% FTSE Bursa Malaysia Top 100 Index and 10% 3-Month Kuala Lumpur Interbank Offered Rates (KLIBOR).


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Investor Profile

Benchmark

Public Far-East Select Fund

To seek long-term capital appreciation by investing in blue chips and growth stocks in domestic and regional markets.

The fund seeks to achieve its goal of capital growth by investing in blue chip stocks and growth stocks listed on Bursa Securities and selected regional markets. The fund may also invest in fixed income securities to generate additional returns. Its equity content in terms of NAV will range in the region of 75% to 98% of the NAV of the fund. The balance of the fund’s NAV will be invested in fixed income securities and money market instruments.

Market risk, specific security risk, liquidity risk, currency risk and country risk.

Aggressive MSCI AC Far East Ex-Japan Index.

Public Regional Sector Fund

To seek long-term capital appreciation by investing in selected market sectors.

The fund seeks to achieve its goal of capital growth by investing in the most promising market sectors in the domestic and regional equity markets. The fund will invest in a maximum of 6 sectors but will maintain its investments in a minimum of 3 sectors at all times. The fund generally maintains equity exposures within a range of 75% to 98% against its NAV. The balance of the fund’s NAV will be invested in fixed income securities and liquid assets which include money market instruments.

Market risk, specific security risk, liquidity risk, currency risk, country risk and industry/ sector risk.

Aggressive 90% MSCI AC Far East Ex-Japan Index and 10% 3-Month Kuala Lumpur Interbank Offered Rates (KLIBOR).


18


Investor Profile

Benchmark

Public Global Select Fund

To seek long term capital appreciation by investing in equities and collective investment schemes in domestic and global markets.

The fund seeks to achieve its goal of capital growth by investing directly or in collective investment schemes which focus on a diversified portfolio of blue chip stocks, index stocks and growth stocks listed on selected global stock markets. The fund will also invest in blue chip stocks, index stocks and growth stocks listed on selected global stock markets. The fund generally maintains equity exposures within a range of 75% to 98% against its NAV. The balance of the fund’s NAV will be invested in fixed income securities and money market instruments.


Aggressive 90% MSCI All Country World Index and 10% 1-Month Kuala Lumpur Interbank Offered Rates (KLIBOR).

Public Far-East Dividend Fund

To provide income* by investing in a portfolio of stocks in domestic and regional markets which offer or have the potential to offer attractive dividend yields.

The fund seeks to achieve its goal of providing income by investing in a diversified portfolio of stocks in domestic and regional markets that offer or have the potential to offer attractive dividend yields. The fund may also invest in fixed income securities to generate additional returns. The fund generally maintains equity exposures within a range of 75% to 98% against its NAV. The balance of the fund’s NAV will be invested in fixed income securities and money market instruments.


Moderate 90% MSCI AC Far East Ex-Japan Index and 10% 3-Month Kuala Lumpur Interbank Offered Rates (KLIBOR).


19


Investor Profile

Benchmark

Public China Select Fund

To achieve capital growth over the medium to long-term period by investing in a portfolio of investments in the greater China region namely in Hong Kong, China and Taiwan markets and including China based companies listed on overseas markets. The fund may also invest in companies listed on Bursa Securities and other foreign markets which have significant or potentially significant business operations in the greater China region.

The fund seeks to achieve its goal of capital growth by investing in a portfolio of investments in the greater China region namely in Hong Kong, China and Taiwan markets and China based companies listed on overseas markets. The fund may also invest in companies listed on the domestic and other foreign markets which have significant or potentially significant business operations in the greater China region. The fund generally maintains equity exposures within a range of 75% to 98% against its NAV. The balance of the fund’s NAV will be invested in fixed income securities and money market instruments.


Aggressive MSCI Golden Dragon Index.

Public Far-East Property & Resorts Fund

Seeks to achieve capital growth over the medium to long term period by investing in companies that are principally engaged in property investment and development, hotel and resorts development and investment and real estate investment trusts (REITs) in domestic and regional markets. The fund may also invest in companies which have significant property or real estate assets.

The fund seeks to achieve its goal of capital growth by investing in companies that are principally engaged in property investment and development, hotel and resorts development and investment and real estate investment trusts (REITs) in domestic and regional markets. The fund may also invest in companies which have significant property or real estate assets, i.e. companies which have at least 70% of their assets comprised of property or real estate assets. Its equity content in terms of NAV will range in the region of 75% to 98% of the NAV of the fund. The balance of the fund’s NAV is invested in fixed income securities and liquid assets which include money market instruments.


Moderate A customized index based on the constituents within the real estate sector of S&P BMI Asia Pacific Index customised to 20% Japan, 20% Australia, 20% Malaysia and the balance 40% for the rest of the countries within the index universe currently including China ‘H’ Shares, Hong Kong, Indonesia, New Zealand, Philippines, Singapore, Taiwan, South Korea and Thailand. The real estate sector is as defined by the then-current Global Industry Classification Standard (GICS)


20


Investor Profile

Benchmark

Public South-East Asia Select Fund

To achieve capital growth over the medium to long-term period by investing in a portfolio of investments in South-East Asia markets.

The fund seeks to achieve its goal of capital growth by investing in a diversified portfolio of blue chip stocks, index stocks and growth stocks listed on South-East Asia stock markets. The fund may also invest in fixed income securities (such as sovereign bonds and corporate debt) and money market instruments to help generate returns. The fund generally maintains equity exposures within a range of 75% to 98% against its NAV. The balance of the fund’s NAV will be invested in fixed income securities and money market instruments.


Aggressive FTSE/ASEAN 40 Index.

Public Sector Select Fund

To seek long-term capital appreciation by investing in a portfolio of securities from selected market sectors in the domestic market.

The fund seeks to achieve the long-term goal of capital growth by identifying the market sectors in the domestic market which offer the most promising investment returns. The fund will invest in a maximum of 6 of the most promising sectors determined by the Fund Manager. To ensure sufficient diversification, the fund will maintain investments in a minimum of 3 sectors at all times. The fund generally maintains equity exposures within a range of 75% to 98% against its NAV. The balance of the fund’s NAV will be invested in fixed income securities and liquid assets which include money market instruments.

Market risk, specific security risk, liquidity risk and industry/ sector risk.

Aggressive FTSE Bursa Malaysia Top 100 Index.


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Investor Profile

Benchmark

Public Far-East Consumer Themes Fund

To achieve long term capital appreciation by investing in securities, mainly equities, in the consumer sector in the domestic and foreign markets.

The fund seeks to achieve the long-term goal of capital growth by investing in securities, mainly equities, in the consumer sector in the domestic and foreign markets. The fund may also invest in multinational corporations in the consumer sector which have a presence in the Far-East region and are listed on the United States, Europe and Australian markets. The fund generally maintains equity exposures within a range of 75% to 98% against its NAV. The balance of the fund’s NAV will be invested in fixed income securities and liquid assets which include money market instruments.


Aggressive A customised index based on constituents within the selected sectors of the S&P BMI Asia Ex-Japan Index comprising Malaysia, Singapore, Thailand, Indonesia, Philippines, Hong Kong, China ‘H’ Shares, Taiwan and South Korea. The selected sectors are the Consumer Discretionary and Consumer Staples sectors as defined by the then-current Global Industry Classification Standard (GICS).

Public China Titans Fund

To achieve capital growth over the medium to long-term period by investing in companies with market capitalisation of RM10 billion and above in the greater China region namely China, Hong Kong and Taiwan markets and including China based companies listed on overseas markets.

The fund invests in companies with market capitalisation of RM10 billion and above in the greater China region namely China, Hong Kong and Taiwan markets and including China based companies listed on overseas markets. The fund generally maintains equity exposures within a range of 75% to 98% against its NAV. The balance of the fund’s NAV will be invested in fixed income securities and money market instruments.


Aggressive 40% Hang Seng China Enterprises Index, 30% Hang Seng Index and 30% TSEC Taiwan 50 Index.


22


Investor Profile

Benchmark

Public Far-East Telco & Infrastructure Fund

To achieve capital growth over the medium to long term period by investing in securities, mainly equities, in the telecommunications, infrastructure and utilities sectors in Far-East markets.

The fund seeks to achieve long-term capital growth by focusing its investment in the telecommunications, infrastructure and utilities sectors in the domestic and foreign markets. The fund generally maintains equity exposures within a range of 75% to 98% against its NAV. The balance of the fund’s NAV will be invested in fixed income securities and liquid assets which include money market instruments.


Aggressive A customised index based on the constituents within the selected sectors of the S&P BMI Asia Ex-Japan Index comprising Malaysia, Singapore, Thailand, Indonesia, Philippines, Hong Kong, China ‘H’ Shares, Taiwan and South Korea. The selected sectors are customised to 40% Telecommunication Service, 30% Construction & Materials and 30% Utilities sectors as defined by the then-current Global Industry Classification Standard (GICS).

Public Select Alpha-30 Fund

To achieve capital growth over the medium to long term period by investing in up to a maximum of 30 stocks primarily listed on Bursa Securities.

The fund seeks to achieve its goal of capital growth by investing in up to a maximum of 30 stocks primarily listed on Bursa Securities. To achieve increased diversification, the fund may invest in selected foreign markets. The fund generally maintains equity exposures within a range of 75% to 98% against its NAV. The balance of the fund’s NAV may be invested in fixed income securities and money market instruments to generate additional returns.




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Investor Profile

Benchmark

Public Natural Resources Equity Fund

To achieve capital growth over the medium to long-term period by investing in a portfolio of equities and equity-related securities of companies that are engaged in or are substantially related to the natural resources sectors in the domestic and overseas markets.

The fund seeks to achieve its goal of achieving capital growth by investing in a portfolio of equities and equity-related securities of companies that are engaged in or are substantially related to the natural resources sectors in the domestic and overseas markets. The natural resources sectors which the fund will invest in include energy (oil and gas exploration, extraction, production, transportation and power producers), metals and mining (industrial and precious metals exploration, extraction, production and transportation), agriculture, forestry and paper. The fund generally maintains equity exposures within a range of 75% to 98% against its NAV. The fund may also invest in fixed income securities and money market instruments to generate additional returns.


Aggressive A customised index based on selected sectors within the S&P/Citigroup BMI Asia Ex-Japan Index comprising Malaysia, Singapore, Thailand, Indonesia, Philippines, Hong Kong, China ‘H’ Shares, Taiwan, South Korea, Australia and New Zealand. The selected sectors are customised to 40% Energy Sector, 30% Metals & Mining Industry and 30% Agricultural Product Sub-Industry as defined by the then-current Global Industry Classification Standard (GICS).

Public Australia Equity Fund

To achieve capital growth over the medium to long-term period by investing in the Australian market with the balance invested in the New Zealand and domestic markets.

The fund seeks to achieve its goal of capital growth by investing in a diversified portfolio of blue chip stocks, index stocks and growth stocks listed on the Australian market with the balance invested in the New Zealand and domestic markets. The fund generally maintains equity exposures within a range of 75% to 98% against its NAV. The fund may also invest in fixed income securities and money market instruments to help generate additional returns.


Aggressive S&P/ASX 200 Index.


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Investor Profile

Benchmark

Public Far-East Alpha-30 Fund

To achieve capital appreciation over the medium to long term period by investing in the domestic and regional markets.

The fund seeks to achieve its goal of capital growth by investing in up to a maximum of 30 stocks in the domestic and regional markets. The fund generally maintains equity exposures within a range of 75% to 98% against its NAV. The balance of the fund’s NAV may be invested in fixed income securities and money market instruments to generate additional returns.


Aggressive 80% MSCI AC Far-East Ex-Japan Index, 10% Tokyo Stock Price Index and 10% 3-Month Kuala Lumpur Interbank Offered Rates (KLIBOR).

Public Optimal Growth Fund

To provide income* and capital growth by investing in stocks which offer attractive dividend yields and growth stocks in the domestic market.

The fund seeks to achieve its goal of achieving income and capital growth by investing in stocks which offer attractive dividend yields and growth stocks in the domestic market. 50% of the fund’s equity investment will be invested in a diversified portfolio of stocks which offer attractive dividend yields in the domestic market. The remaining 50% of the fund’s equity investment will be invested in a diversified portfolio of growth stocks that are listed on the Bursa Securities. The fund generally maintains equity exposure within a range of 75% to 98% against its NAV. The fund may also invest in fixed income securities and money market instruments.


Aggressive FTSE Bursa Malaysia Top 100 Index.


25


Investor Profile

Benchmark

Public Indonesia Select Fund

To achieve capital growth over the medium to long-term period by investing in a portfolio of investments primarily in the Indonesia market.

The fund seeks to achieve its goal of capital growth by investing in a diversified portfolio of blue chip stocks, index stocks and growth stocks listed on the Indonesia market with the balance of up to 30% of its NAV in the domestic and global markets. The fund generally maintains equity exposures within a range of 75% to 98% against its NAV. The fund may also invest in domestic and foreign fixed income securities and money market instruments.


Aggressive Jakarta LQ-45 Index (LQ 45).

Public Singapore Equity Fund

To achieve capital growth over the medium to long-term period by investing in a portfolio of investments primarily in the Singapore market.

The fund seeks to achieve its goal of capital growth by investing in a diversified portfolio of blue chip stocks, index stocks and growth stocks listed on the Singapore market with the balance of up to 30% of its NAV in the domestic and global markets. The fund generally maintains equity exposures within a range of 75% to 98% against its NAV. The fund may also invest in domestic and foreign fixed income securities and money market instruments.


Aggressive Straits Times Index.


26


Investor Profile

Benchmark

Public Strategic SmallCap Fund

To achieve capital appreciation over the medium to long term period through investments primarily in companies with small market capitalisation.

Notes:

The fund will invest in small sized companies at the point of purchase.

The fund may remain invested in such counters should the stocks become medium sized companies, if the growth prospect and valuation of the stocks continue to be attractive.

The fund focuses on a diversified portfolio of companies with small market capitalisation with good growth prospects that are listed on Bursa Securities. To achieve increased diversification, the fund may invest in foreign markets. The fund may also invest in fixed income securities to generate additional returns. The fund generally maintains equity exposures within a range of 70% to 98% against its NAV. The balance of the fund’s NAV may be invested in fixed income securities and liquid assets which include money market instruments.


Aggressive FTSE Bursa Malaysia Small Cap Index.

Public Tactical Allocation Fund

(formerly known as Public Global Balanced Fund)

To achieve capital growth over the medium to long-term period by investing in equities, collective investment schemes and fixed income securities in domestic and foreign markets.

The fund seeks to achieve its goal of providing capital growth by adopting a tactical asset allocation strategy of investing in equities, collective investment schemes and fixed income securities in domestic and foreign markets. Its equity content will range in the region of between 30% to 98% of the NAV of the fund. The balance of the fund’s NAV will be invested in fixed income securities and liquid assets which include money market instruments and deposits.

Market risk, specific security risk, interest rate risk, credit risk, liquidity risk, currency risk and country risk.

Aggressive 70% MSCI AC Far-East Ex-Japan Index and 30% 3-Month Kuala Lumpur Interbank Offered Rates.


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Investor Profile

Benchmark

Public Balanced Fund

To provide a steady income* and capital growth over the medium to long-term period.

The fund invests 40% to 60% of its NAV in a diversified portfolio of blue chip stocks and companies with good growth prospects that are listed primarily on Bursa Securities. To achieve increased diversification, the fund may invest in foreign markets. The balance of fund’s NAV will be invested in fixed income securities to generate the required recurring income.

Market risk, specific security risk, interest rate risk, credit risk and liquidity risk.

Conservative to moderate

Public Balanced Equity Index (PBEIX) is a hybrid index whose value is subject to the daily changes in the FTSE Bursa Malaysia KLCI and the 3-Month Kuala Lumpur Interbank Offered Rates on a 60:40 basis.

Public Far-East Balanced Fund

To provide income* and capital growth over the medium to long-term period.

The fund invests 40% to 60% of its NAV in a diversified portfolio of blue chip stocks and companies with good growth prospects that are listed on selected regional markets. The balance of fund’s NAV will be invested in fixed income securities to generate the required recurring income.

Market risk, specific security risk, interest rate risk, credit risk, liquidity risk, currency risk and country risk.


60% MSCI AC Far East Ex-Japan Index and 40% 3-Month Kuala Lumpur Interbank Offered Rates (KLIBOR).

Public Bond Fund

To provide a steady stream of income* returns through investment in the money market and private debt securities.

The fund invests in a diversified portfolio of fixed income securities (comprising sovereign bonds and private debt securities) and money market instruments. The fund may also invest in redeemable loan stocks with convertible features to enhance overall returns. To achieve increased diversification, the fund may invest in foreign fixed income securities. The fund generally maintains bond exposures within the range of 75% to 98% against its NAV. The balance of the fund’s NAV will be invested in money market instruments.

Interest rate risk, credit risk and liquidity risk.

Conservative 12-month fixed deposits rate quoted by Malayan Banking Berhad**.


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Investor Profile

Benchmark

Public Institutional Bond Fund

To provide annual income* through investment in private debt securities.

The fund invests in a diversified portfolio of fixed income securities (comprising sovereign bonds and private debt securities) and money market instruments. 50% of the fund’s holdings of fixed income securities must be in bonds of credit ratings no lower than AA with the balance of its bond holdings invested in bonds with minimum credit ratings of A. The fund may also invest in redeemable loan stocks with convertible features to enhance overall returns. The fund generally maintains bond exposures within the range of 75% to 98% against its NAV. The balance of the fund’s NAV will be invested in money market instruments.


Conservative Corporate Bond Index – 1 Year And Above.

Public Enhanced Bond Fund

Seeks to provide a combination of annual income* and modest capital growth primarily through a portfolio allocation across quality bonds and equities.

The fund invests primarily in a diversified portfolio of fixed income securities (comprising sovereign bonds and private debt securities), redeemable loan stocks with convertible features and money market instruments. To achieve increased diversification, the fund may invest in foreign markets. The fund generally maintains bond exposures within the range of 70% to 85% against its NAV. The fund may invest up to 20% of its NAV in equities comprising largely defensive stocks to enhance the fund’s returns. The balance of the fund’s NAV will be invested in money market instruments.



12-month fixed deposits rate quoted by Malayan Banking Berhad**.


29


Investor Profile

Benchmark

Public Select Bond Fund

To provide annual income* through investments in fixed income securities which have a remaining maturity of 7 years and below and money market instruments.

The fund seeks to provide annual income by investing in a portfolio of fixed income securities which have a remaining maturity of 7 years and below. Investments in redeemable loan stocks with convertible features to enhance the fund’s returns are also considered. The fund generally maintains bond exposures within the range of 75% to 98% against its NAV. The balance of the fund’s NAV will be invested in money market instruments.


Conservative 12-month fixed deposits rate quoted by Malayan Banking Berhad**.

Public Strategic Bond Fund

To provide annual income* to investors through investments in fixed income securities and money market instruments.

The fund seeks to provide annual income to investors through investments in fixed income securities and money market instruments. The fund will invest at least 75% of its NAV in bonds. 50% of the fund’s bond investment will be invested in fixed income securities which have remaining maturities of 5 years and below. The remaining 50% of the fund’s bond investment will be invested in fixed income securities which have remaining maturities of more than 5 years. The balance of the fund’s NAV will be invested in deposits and money market instruments. To achieve increased diversification, the fund may invest up to 25% of its NAV in foreign bonds.


Conservative 12-months fixed deposit rates quoted by Public Bank Berhad**.


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Investor Profile

Benchmark

Public Enterprises Bond Fund

To provide annual income* through investments in fixed income securities and money market instruments.

The fund seeks to meet its objective of providing annual income by investing at least 75% of its NAV in sovereign bonds and corporate bonds issued by entities with total assets exceeding RM3 billion at the point of purchase. The bonds invested must have minimum credit rating of BBB for long-term instruments and P1 for short-term instruments as rated by a local or foreign rating agency, at the point of purchase. The balance of the fund’s NAV will be invested in other corporate bonds and money market instruments. To achieve increased diversification, the fund may invest up to 30% of its NAV in foreign fixed income securities.


Conservative 12-month fixed deposit rates quoted by Public Bank Berhad**.

Public Money Market Fund

To provide liquidity and current income*, while maintaining capital stability.

The fund invests in short-term money market instruments comprising bankers’ acceptances and negotiable instruments of deposits (NIDs) and short-dated private debt securities which include commercial papers. The fund is permitted to invest up to 10% of its NAV in fixed income instruments with maturity periods exceeding 365 days but not longer than 732 days. The fund generally invests up to 100% of its NAV in money market instruments and deposits.


Conservative 1-Month Kuala Lumpur Interbank Offered Rates (KLIBOR).

Notes:

* Distribution (if any) will be reinvested unless unitholders opt for distribution to be paid out. Please refer to pages 36 and 37 for more information on distribution policy.

** The funds have the potential to deliver higher returns than its benchmark in view that the funds carry higher risk than their respective benchmark.

You may refer to Chapter 3: Detailed Information on The Funds for a better understanding of the characteristics and objective of each fund, and help you to decide on the fund that is most compatible with your personal investment temperament and long term financial goals.

The names of the designated Fund Managers are tabulated in Chapter 3: Detailed Information on The Funds. For profiles of designated Fund Managers, please refer to pages 221 to 226 of Chapter 9: The Manager. For more information on the Trustees, please refer to Chapter 10: The Trustees.


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There are risks involved in investing with the funds. The general risks of investing with unit trust funds are tabulated in Chapter 2: About Unit Trust Funds, while information on specific fund risks are presented in Chapter 3: Detailed Information on The Funds.

The funds are governed by a master deed dated 28 January 1999, a first supplemental master deed dated 30 April 1999, a second supplemental master deed dated 28 October 1999, a third supplemental master deed dated 22 May 2000, a fourth supplemental master deed dated 29 May 2000, a fifth supplemental master deed dated 23 October 2000, a seventh supplemental master deed dated 24 July 2001, an eighth supplemental master deed dated 30 April 2002, a ninth supplemental master deed dated 22 April 2003, a tenth supplemental master deed dated 1 December 2003, an eleventh supplemental master deed dated 3 November 2004, a twelfth supplemental master deed dated 27 December 2004, a thirteenth supplemental master deed dated 13 April 2005, a sixteenth supplemental master deed dated 25 October 2005, an eighteenth supplemental master deed dated 22 February 2006, a twentieth supplemental master deed dated 1 September 2006, a twenty first supplemental master deed dated 6 November 2006, a twenty second supplemental master deed dated 20 December 2006, a twenty fourth supplemental master deed dated 13 April 2007, a twenty fifth supplemental master deed dated 28 May 2007, a twenty sixth supplemental master deed dated 27 June 2007, a twenty seventh supplemental master deed dated 10 July 2007, a twenty ninth supplemental master deed dated 20 July 2007, a thirty first supplemental master deed dated 26 September 2007, a thirty fourth supplemental master deed dated 17 December 2007, a thirty fifth supplemental master deed dated 17 December 2007, a thirty sixth supplemental master deed dated 17 March 2008, a thirty seventh supplemental master deed dated 11 April 2008, a thirty eighth supplemental master deed dated 27 May 2008, a thirty ninth supplemental master deed dated 11 June 2008, a forty first supplemental master deed dated 8 July 2008, a forty third supplemental master deed dated 8 July 2008, a forty fifth supplemental master deed dated 7 July 2009, a forty seventh supplemental master deed dated 12 November 2009, a forty eighth supplemental master deed dated 8 April 2010, a fiftieth supplemental master deed dated 13 April 2010, a fifty forth supplemental master deed dated 21 October 2010, a fifty fifth supplemental master deed dated 1 March 2011, a fifty eighth supplemental master deed dated 21 July 2011 and a fifty ninth supplemental master deed dated 19 September 2011.

1.2 FEES AND CHARGESA summary of all fees and charges of the funds is shown below:

Charges Imposed on Sale or Purchase of Units

This table describes the charges that you may directly incur when you buy or redeem units of the funds.

Charges% / RM

Equity, Mixed Asset and Balanced Funds

Bond and Money Market Funds

Service Charge per Unit

Purchase of units through unit trust consultants: Up to 5.5% of NAV per unit.

Purchase of units through the Manager: Up to 5.5% of NAV per unit.

Investors investing under the EPF Members’ Investment Scheme will be levied a service charge of up to 3% of NAV per unit, as regulated by EPF.

The Manager may at its discretion charge a lower service charge based on the size of investment and/or other criterion as may be determined from time to time.

Purchase of units through unit trust consultants: Up to 0.25% of NAV per unit.

Purchase of units through the Manager: Up to 0.25% of NAV per unit.


Repurchase Charge per Unit

Nil.

Switching Charges

Unitholders may incur charges on their switching transactions. Please refer to pages 34 and 35 for the charges that are involved.

Transfer Charges An administration fee of RM25 will be charged for each transfer transaction.


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Bank charges, courier charges and any other indirect charges incurred as a result of redemptions will be borne by the investor.

Fees Incurred on Investing in The Funds

There are annual operating expenses involved in running a fund such as the management fee, fees for trustee, custodian, audit, and other direct administrative costs. These expenses are deducted from the gross income of the fund.

This table describes the fees that you may indirectly incur when you invest in the funds.

Fees% / RM


Bond Funds Money Market Fund

Annual Management Fee

PSF, PGF, PIX, PIF, PAGF, PRSF, P SmallCap, PEF, PFSF, PDSF, PSSF, PSA30F, POGF, PSSCF and PBF: 1.5% per annum of the NAV.

PFES, PRSEC, PFEDF, PCSF, PSEASF, PCTF, PFA30F, PSGEF and PFEBF: 1.60% per annum of the NAV.

PAUEF and PTAF: 1.65% per annum of the NAV.

PFEPRF, PFECTF, PFETIF, PNREF and PINDOSF: 1.70% per annum of the NAV.

PGSF: 1.80% per annum of the NAV

P BOND, PSBF, PSTBF and PENTBF: 0.75% per annum of the NAV.

PIN BOND: 0.5% per annum of the NAV.

PEBF: 1.0% per annum of the NAV.

PMMF: 0.375% per annum of the NAV.

Annual Trustee Fee

0.06% per annum of NAV, subject to a minimum fee of RM18,000 and a maximum fee of RM600,000 per annum.



Any other fees payable by an investor

Nil.

For more details on fees, charges and expenses of the funds, you may refer to Chapter 7: Transaction Information and Chapter 8: Fees, Charges and Expenses.

There are fees and charges involved and investors are advised to consider them before investing in the funds.


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1.3 INFORMATION ON TRANSACTION OF UNITS

Unit Transactions Units may be bought or sold daily on any Business Day*.

Public Mutual buys from and sells units to unitholders during Business Days. This ensures that there will always be a market for the units.

There is a single price for the buying and selling of units of the funds which is at NAV per unit of the respective funds. Upon the purchase of units of the funds by investors, a service charge of up to 5.5% of NAV per unit is levied for equity, mixed asset and balanced funds, whilst a service charge of up to 0.25% of NAV per unit is levied for bond and money market funds.

For investors investing under the EPF Members’ Investment Scheme, a service charge of up to 3% of NAV per unit is levied for equity, mixed asset and balanced funds (as regulated by EPF).

The Manager may at its discretion charge a lower service charge based on the size of investment and/or other criterion as may be determined from time to time. The Manager does not impose a repurchase charge on the sale of units of funds by investors. (Please refer to pages 207 and 208 for illustrations on purchase and redemption of units by investors).

Unit prices of the funds are published daily under the Unit Trusts Column in major newspapers**.

Note: The Manager may declare certain days to be non-Business Days, although Bursa Securities is open for business, if one or more of the foreign markets in which the funds are invested therein are closed for business. This is to ensure that investors will be given a fair valuation of the funds at all times, be it when buying or redeeming units of the funds. A notice will be posted on Public Mutual’s website to notify investors. (Please refer to page 140 for more information on valuation of investments in such circumstances).

Minimum Initial & Minimum Initial Minimum AdditionalAdditional Investment Investment Investment PIN BOND : RM10,000,000 RM5,000,000 PEBF : RM100,000 RM100,000 PMMF : RM1,000 RM1,000 All other funds : RM1,000 RM100

Minimum Account Balance PIN BOND : 1,000,000 units All other funds : 1,000 units

Notes:

* In the event that purchase and repurchase requests are received by the Manager on days which are non-Business Days, then such requests will automatically be carried forward to the first Business Day following therefrom. This elaboration holds particular significance on the issue of entitlement to distribution payable by a fund at the close of its financial year/period.

** While the Manager can ensure that the prices forwarded to the press for publication are accurate, it, however, cannot be held liable for any error in prices finally published in the press since that would be beyond its realm of control. Investors may contact the Customer Service or branch to further confirm the unit prices if they so desire.


34

Cooling-Off Period Investors who are investing with Public Mutual for the first time may exercise their cooling-off right within 6 Business Days from the date of receipt by Public Mutual, of the application form and payment and will receive a full refund of the investment paid within 10 days of receipt of cooling-off notice by the Manager. For EPF unitholders, the cooling-off period will commence from the date of receipt of application form by Public Mutual. This cooling-off right, however, shall not extend to a corporation or institution, the staff of Public Mutual and persons registered to deal in unit trust funds. (Please refer to page 208 for more information on cooling-off proceeds).

Repurchase of Units Unitholders may redeem units on any Business Day and receive payment of repurchase proceeds within 10 days. There is no restriction on the frequency of repurchase.

Minimum Repurchase Units PIN BOND : 1,000,000 units All other funds : 1,000 units

In the case of partial repurchase, the Manager may elect to repurchase the entire account if the effect thereof would be that the unitholder holds less than 1,000 units (1,000,000 units in the case of PIN BOND) in his account with the fund.

Switching Between Funds Switching of units is considered a withdrawal/redemption of investment from a unit trust fund and an application to purchase units of another unit trust fund.

Unitholders may switch their investments between funds under the Public Series of Funds and Public Series of Shariah-Based Funds on any Business Day subject to terms and conditions.

The minimum transaction per switch is 1,000 units for all funds except PIN BOND which is at 1,000,000 units.

Switching of units may be subject to switching fee or service charge which is deductible from the redemption proceeds as set out below:-

(A) For switching made within 90 days from the date of purchase of units/ switching into that fund:

To Recipient Fund

Switch-out / (Exit) From

Equity/Mixed Asset/

Balanced funds

Bond/Fixed Income funds

Money Market funds

Equity/Mixed Asset/Balanced funds

Switching Fee of

0.75%*

Switching Fee of

0.75%*

Switching Fee of

0.75%*

Bond funds - Loaded units #

Switching Fee of

0.25%*

Switching Fee of

0.25%*

Switching Fee of

0.25%*

- Low-load units ## Service Charge of up

to 5.5%

Switching Fee of

0.25%*

Switching Fee of

0.25%*

Money Market funds- Loaded units #

Switching Fee of RM50




to 5.5%




35

Note:

* Subject to a minimum of RM50, whichever is the higher. Switching fee in excess of administration cost may be retained by the switch-out funds.

(B) For switching made after 90 days from the date of purchase of units/ switching into that fund:

To Recipient Fund

Switch-out / (Exit) From

Equity/Mixed Asset/

Balanced funds

Bond/Fixed Income funds

Money Market funds

Equity/Mixed Asset/Balanced funds



No Switching fee

Bond funds - Loaded units #



No Switching fee


to 5.5%


No Switching fee

Money Market funds- Loaded units #



No Switching fee


to 5.5%


No Switching fee

Notes:

# Loaded units are units which have incurred a service charge of 3% or more at the point of purchase.

## Low-load units are units which have incurred a service charge of 0.25% or less at the point of purchase.

The Manager reserves the right to reject any switching requests of unitholders of the funds if it regards the switching requests as disruptive to efficient portfolio management of the targeted funds; or if deemed by the Manager to be contrary to the best interest of the targeted funds. Switching requests that are rejected by the Manager would be treated as a redemption of units.

Transfer of Units A unitholder may fully or partially transfer his units in the fund to another unitholder subject to terms and conditions. An administration fee of RM25 will be charged for each transaction.

The minimum transaction per transfer is 1,000 units.

This transfer facility is not available to PIN BOND.


36

1.4 FREE INSURANCE FOR PBF, PFEBF and PTAF

For PBF, free Group Term Life with Total and Permanent Disability plus Group Personal Accident Insurance is provided for unitholders aged between 18 to 59 years with a minimum investment of 5,000 units at any point of time. The amount of insurance is equal to the number of units invested in the ratio of RM1 insurance coverage for 1 unit each, subject to a maximum amount of RM100,000 per unitholder of the fund.

For PFEBF and PTAF, free Group Term Life with Total and Permanent Disability plus Group Personal Accident Insurance is provided for unitholders aged between 18 to 59 years with a minimum net asset value of RM5,000 at any point of time. The amount of insurance is equal to the net asset value of units held in the ratio of RM1 insurance coverage for every RM1 net asset value of units held, subject to a maximum amount of RM100,000 per unitholder of the funds.

Only individual investors who are first holders (i.e. persons who are first named in the account/register) are entitled to the free insurance. Unitholders under the EPF Members Investment Scheme are also entitled to the free insurance.

The terms and conditions of free insurance shall apply. Please refer to the brochure on Free Insurance for PBF, PFEBF and PTAF.

1.5 DISTRIBUTION POLICY

Fund Name Distribution Policy

Equity Funds

Public Savings Fund Incidental

Public Growth Fund Incidental

Public Index Fund Incidental

Public Industry Fund Incidental

Public Aggressive Growth Fund Incidental

Public Regular Savings Fund Incidental

Public SmallCap Fund Incidental

Public Equity Fund Incidental

Public Focus Select Fund Incidental

Public Dividend Select Fund Annual income

Public Far-East Select Fund Incidental

Public Regional Sector Fund Incidental

Public Global Select Fund Incidental

Public Far-East Dividend Fund Annual income

Public China Select Fund Incidental

Public Far-East Property & Resorts Fund Annual income

Public South-East Asia Select Fund Incidental

Public Sector Select Fund Incidental

Public Far-East Consumer Themes Fund Incidental

Public China Titans Fund Incidental

Public Far-East Telco & Infrastructure Fund Incidental

Public Select Alpha-30 Fund Incidental

Public Natural Resources Equity Fund Incidental

Public Australia Equity Fund Incidental


37

Fund Name Distribution Policy

Equity Funds (cont’d)

Public Far-East Alpha-30 Fund Incidental

Public Optimal Growth Fund Annual income

Public Indonesia Select Fund Incidental

Public Singapore Equity Fund Incidental

Public Strategic SmallCap Fund Incidental

Mixed Asset Fund

Public Tactical Allocation Fund Incidental

Balanced Funds

Public Balanced Fund Incidental

Public Far-East Balanced Fund Incidental

Bond Funds

Public Bond Fund Annual income

Public Institutional Bond Fund Annual income

Public Enhanced Bond Fund Annual income

Public Select Bond Fund Annual income

Public Strategic Bond Fund Annual income

Public Enterprises Bond Fund Annual income

Money Market Fund

Public Money Market Fund Annual income

Each of the funds carries a distribution policy which is in line with the objective of the funds. Any distribution(s) so paid will be subject to the availability of income and/or realised gains and the provisions of the SC Guidelines. Please refer to Chapter 3: Detailed Information on The Funds for more information on the distribution policy and Chapter 4: Performance of The Funds for past distributions of the respective funds. Distribution, if any, is declared at the end of each financial year, or for any specified period as may be approved by the trustee.

Distribution (if any) will be reinvested unless unitholders opt for distribution to be paid out via ‘e-distribution’ by selecting the appropriate option in the Application Form. Unitholders who opt for the pay out option via ‘e-distribution’ must provide their bank account details to the Manager.

Distribution reinvestments will be reinvested at NAV per unit, computed at the close of the first Business Day following the distribution date. No service charge will be imposed on distribution reinvestments.

A unitholder must notify the Manager within 14 Business Days prior to each date fixed for the distribution of any change in his distribution instructions.

Auto-Reinvestment of Distribution Amount of Less Than RM100

Payment of distribution, if any, of an amount less than RM100 per account will automatically be reinvested (as deemed uneconomical to pay out) on behalf of the unitholder at NAV per unit, computed at the close of the first Business Day following the distribution date.


38

Unclaimed Monies

Any monies payable to unitholders which remain unclaimed after such period (currently being 1 year) will be paid to Register of Unclaimed Monies by the Manager in accordance with the requirements of the Unclaimed Moneys Act 1965 and (Amendment) 2002.

Prospective unitholders should read and understand the contents of the Master Prospectus and, if necessary, consult their adviser(s).

Unit prices and distributions payable, if any, may go down as well as up.

For information concerning certain risk factors which should be considered by prospective investors, see “risk factors” commencing on page 39.

Past performance of the funds is not an indication of their future performance.


39

2.1 THE UNIT TRUST FUND

A unit trust fund is a professionally managed, collective investment scheme that pools unitholders’ monies and invests it toward a specific goal as declared by the investment objective of the scheme. Such a scheme usually aims to provide above-average returns in the form of income distribution and capital growth with reasonable risks, to medium-to-long term investors through investing in a broadly diversified portfolio of stocks and bonds, or other specialised instruments.

A unit trust scheme may be illustrated as a tripartite relationship between the Manager, the trustee and unitholders governed by a legally binding deed registered with the SC. The SC regulates the industry as well as the operations and administration of unit trust schemes through the CMSA 2007 and the Guidelines on Unit Trust Funds.

2.2 BENEFITS OF INVESTING IN UNIT TRUSTS

Besides the potential for capital growth over the long-term period, unit trusts also provides other recognised benefits that makes them attractive relative to other investment avenues. Among them are as follows:

1. Diversification: Diversification involves the process of spreading risk over a broad portfolio of stocks and bonds in different companies, sectors, countries or regions. This can only be done with substantial amounts of monies to buy a wide variety of stocks. Unit trusts facilitate the diversification process through providing small investors with an avenue to pool their savings for the purchase of a diversified portfolio of stocks and bonds that will bring returns at lower risks to unitholders compared with investing directly in stock markets.

2. Professional Management: Unit trusts are managed by professional Fund Managers with the expertise and resources to manage the assets of the fund. The investors thus benefit from this professional fund management of their investments in the fund at an affordable (shared) cost.

3. Liquidity: Unitholders may redeem all or part of their units on any Business Day and have their proceeds mailed to them within 10 days.

4. Ease of Transactions: Unit trusts do not require cumbersome administrative or paperwork or record keeping on the part of unitholder in managing his investments.

5. Capital Gains: Through participation in securities, unit trust investments provide the opportunity to reap capital growth as part of the return on a unitholder’s investment.

2.3 RISK FACTORS

Any investment carries with it an element of risk. Keeping one’s savings in fixed term deposits may probably be the safest on an investment risk-return continuum, but it, nevertheless, carries with it the risk of negative return when the rate of inflation is higher than the rate of interest return received on fixed deposits, leading thus to the loss in purchasing power per Ringgit principal to the saver; otherwise known as the inflation or purchasing power risk. Direct investment in the share market or stocks will subject the investor to the specific risk of falling share prices without reprieve offered by the benefit of portfolio diversification or fund management expertise available under collective investment schemes.

A unit trust fund is exposed to a variety of risks by nature of the investment schemes it is engaged in.

Where the unit trust participates in stock market-related investments, the following risks become key considerations:

1. Market Risk: The purchase of equities represents a risk since the prices of stocks underlying the NAV of the fund fluctuate in response to various factors. Stock prices fluctuate in response to the circumstances affecting individual companies as well as general market or economic conditions. Such movements in the underlying prices of the shares of the investment portfolio will cause the fund’s NAV or prices of units to fall as well as rise.

ABOUT UNIT TRUST FUNDS2

40

ABOUT UNIT TRUST FUNDS (CONT’D)

2. Specific Security Risk: Adverse price movements of a particular security invested by the fund may adversely affect the fund’s NAV and unit price. This impact can, however, be mitigated through the process of portfolio diversification by the Fund Managers.

3. Liquidity Risk: Liquidity risk is defined as the ease with which a security can be disposed at or near its fair value depending on the volume traded on the market. If the fund has a large portfolio of securities that are less liquid or difficult to dispose, the securities may have to be sold at a discount to fair value, hence affecting the value of the fund. In the event that the fund experiences large redemptions, the Fund Manager may be required to liquidate the fund’s holdings of securities at prevailing prices to meet the redemption requirement. This impact can, however, be mitigated through the process of security selection and portfolio diversification by the Fund Managers.

The fund’s investments in warrants, options, futures and over-the-counter (OTC) options (if any) may result in the following risks:

1. Derivatives Risk: Derivatives allow for the use of leverage which may increase the volatility of the fund’s NAV during periods of adverse market movements. The use of non-exchange traded or over-the-counter (OTC) derivatives involve counterparty risk arising from counterparty default or a decline in the latter’s credit rating. In such circumstances, efforts will be taken to liquidate the derivative position or another counterparty will be sought to provide a similar derivative exposure. The use of derivatives also present liquidity risk, whereby an illiquid market could impact the efficient pricing of derivative products or prevent the fund from closing out its derivative position.

Further, investment in bonds brings forth the following specific investment risks:

1. Interest Rate Risk: Interest rates movements impact bond valuations with bond prices moving inversely with interest rates. When interest rates rise, bond prices decline and this will lower the market value of a bond fund’s investment in bonds. The reverse applies when interest rates fall.

2. Credit Risk: Credit risk refers to an issuer’s ability to make timely payments of interest and principal. In the event that the issuer of an instrument defaults in the payment of interest and principal, the value of the fund may be adversely affected. Credit risk can be managed by holding a diversified portfolio of bonds and monitoring the issuers’ fundamentals on an ongoing basis.

In addition to the above, investors of unit trust funds need also to consider the following:

1. Manager’s Risk: The risk that investment decisions pertaining to asset allocation and stock selection undertaken by the Manager may adversely impact the performance of the fund if the investment strategy adopted is not in tandem with market movements.

2. Loan Financing Risk: It is not advisable for unitholders to finance the fund units through borrowings. The price/value of units will fluctuate with the underlying fund portfolio and unitholders may find themselves faced with the scenario of being forced to provide additional funds to top up on their loan margins (where units are used as collateral) when the market goes down, or suffer the higher cost of financing when interest rates trend upwards; both these events increase the potential for capital loss. In addition, the returns on unit trusts are not guaranteed and may not be earned evenly over time.

3. Risk of Non-Compliance: The risk arising from non-conformance with regulations and internal policies and procedures by the Manager due to situations such as system failures and oversight may adversely affect the investment of unitholders. However the risk can be mitigated by internal controls put in place by the Manager.

4. Currency Risk: Where a percentage of the value of a fund is invested in foreign currency or assets denominated in foreign currency, the fund may be exposed to currency fluctuation risks. Fluctuations in foreign exchange rates will affect the value of the fund’s foreign investments upon conversion to local currency and subsequently impact the value of the unitholders’ investments.

5. Country Risk: Overseas investments of the fund may be affected by changes in the political and economic conditions of the country in which the investments are made. Such political and economic factors may influence the growth and development of business enterprises and impact the financial markets (i.e. equity and/or bond markets).

Please refer to Chapter 3: Detailed Information on The Funds for information on the fund specific risks and risk management.

41

Table 1 : Upmarket Scenario Table 2 : Downmarket Scenario

Month NAV Monthly No. of Units Month NAV Monthly No. of Units Per Unit Investment Units Accumulated Per Unit Investment Units Accumulated (RM) (RM) Credited (RM) (RM) Credited

1 0.5453 400.00 733.54 733.54 13 0.5453 400.00 733.54 733.54

2 0.5461 400.00 732.47 1,466.01 14 0.5450 400.00 733.94 1,467.48

3 0.5553 400.00 720.33 2,186.34 15 0.5330 400.00 750.47 2,217.95

4 0.5615 400.00 712.38 2,898.72 16 0.5320 400.00 751.88 2,969.83

5 0.5695 400.00 702.37 3,601.09 17 0.5210 400.00 767.75 3,737.58

6 0.6115 400.00 654.13 4,255.22 18 0.5200 400.00 769.23 4,506.81

7 0.6225 400.00 642.57 4,897.79 19 0.5185 400.00 771.46 5,278.27

8 0.6248 400.00 640.20 5,537.99 20 0.5100 400.00 784.31 6,062.58

9 0.6315 400.00 633.41 6,171.40 21 0.5025 400.00 796.02 6,858.60

10 0.6338 400.00 631.11 6,802.51 22 0.4997 400.00 800.48 7,659.08

11 0.6415 400.00 623.54 7,426.05 23 0.4970 400.00 804.83 8,463.91

12 0.6662 400.00 600.42 8,026.47 24 0.4960 400.00 806.45 9,270.36

ABOUT UNIT TRUST FUNDS (CONT’D)

2.4 DOLLAR-COST AVERAGING PRINCIPLE

The principle of dollar-cost averaging involves a disciplined regular investment technique which may be applied to maximum effect in unit trust investing. Based on this principle, all that an investor has to do is to invest a regular sum of money with a selected unit trust fund over a period of time. This way, he does not have to worry about market timing, or where shares prices or interest rates are headed. His regular investment amount will buy him less units when the market is up, and more units when the market is down. He will thus be able to accumulate units at an average cost which is lower than the average NAV per unit over the same period. This represents the dollar-cost averaging effect.

However, investors should note that regular investments do not assure a profit and do not protect against loss in declining markets. Since such regular investment technique involves continuous investment in a selected unit trust fund, investors should consider their financial ability to continue purchases through periods of low price levels. Past performance is no guarantee of future results.

Let’s take a walk through the illustration below and see for yourself the benefits of dollar-cost averaging through regular savings/investments in a unit trust fund called Fund A.

Illustration:

Let us assume that Investor A decided to invest a monthly savings of RM400 with the fund over a period of 24 months.

As shown in the tables below, with monthly investments of RM400, Investor A was able to buy/accumulate more units per investment amount of RM400 per month when the NAV per unit was lower, and less units when the NAV per unit was higher. In the first 12 months (Table 1), Investor A thus managed to accumulate a total of 8,026.47 units at an average cost of RM0.5980 per unit when the market was on the uptrend. Note that the units have an average cost of RM0.5980 whereas the average NAV per unit over the period was higher at RM0.6008. During the next 12 months (Table 2), Investor A managed to accumulate a total of 9,270.36 units at an average cost of RM0.5178 per unit when the market was on a downtrend. Once again, note that the units have an average cost of RM0.5178 which is lower than the average NAV per unit over the period at RM0.5183.

By regularly investing the same amount of money in the fund irrespective of price fluctuations, the units will be bought at an actual cost which is lower than the average NAV per unit over the same period. This represents the dollar-cost averaging effect of regular investments.

Although the dollar-cost averaging process can work with a series of lump sum investments, it operates better with investments made on a regular basis (ideally monthly) to maximise the advantage of the averaging process.

First 12 months: Next 12 months:Principal investment (RM400x12) = RM4,800 Principal investment (RM400x12) = RM4,800Units accumulated = 8,026.47 Units accumulated = 9,270.36Average cost of units procured = RM0.5980 Average cost of units procured = RM0.5178Average NAV per unit over the period = RM0.6008 Average NAV per unit over the period = RM0.5183

42

DETAILED INFORMATION ON THE FUNDS3

3.1 CATEGORIES OF FUNDS

Public Mutual currently promotes various categories of funds, namely equity fund, mixed asset fund, balanced fund, bond/fixed income fund and money market fund. In terms of these fund categories, the difference among them lies with the (asset) allocation among the various asset classes i.e. between equities, bonds and money market instruments, resulting thus in different emphasis being placed on capital growth and income.

Generally, to be categorised as an equity fund denotes that a higher proportion of the fund assets will be invested in stocks/shares in order to secure capital growth for unitholders, with income considered incidental. A mixed asset fund adopts a mixed asset/tactical asset allocation strategy where investments are allocated across the different asset classes based on its investment mandate. A balanced fund, in turn, would focus on attaining a balance between long-term capital growth and income by investing partly in stocks/shares (though not to the same extent as an equity fund), and partly in fixed income securities (but to a lesser extent than a bond fund). A bond/fixed income fund, concentrates chiefly on investing in fixed income securities to secure and distribute annual income to unitholders, with capital growth considered incidental to the investment process. A money market fund, on the other hand, invests primarily in short-term debentures and money market instruments to secure and distribute annual income to unitholders.

For the equity funds managed by Public Mutual, it is important to note that whilst the general investment strategies pertaining to the respective funds are almost similar, however, the key difference between them lies in the selection of equity range of the individual funds and their fund-specific investment strategies as set out in this Master Prospectus.

The forthcoming paragraphs under this Chapter provides further information on the funds’ profiles (paragraph 3.2), investment risks (paragraph 3.3), permitted investments (paragraph 3.4), investment restrictions (paragraph 3.5), valuation of permitted investments (paragraph 3.6), policy on gearing (paragraph 3.7) and a glance at the terms used in this chapter (paragraph 3.8).

43

DETAILED INFORMATION ON THE FUNDS (CONT’D)

3.2 FUND PROFILES

The following section lays out the investment objective, policy, strategy and other key features of each of the funds to assist the investor in making an informed judgement of the distinctive features of each fund in relation to his/her personal investment and financial goals. Investors are requested to read the fund profile(s) carefully before making an investment decision.

Equity Funds AbbreviationPublic Savings Fund PSF Pages 44-45Public Growth Fund PGF Pages 46-47Public Index Fund PIX Pages 48-50Public Industry Fund PIF Pages 51-52Public Aggressive Growth Fund PAGF Pages 53-54Public Regular Savings Fund PRSF Pages 55-56Public SmallCap Fund P SmallCap Pages 57-58Public Equity Fund PEF Pages 59-60Public Focus Select Fund PFSF Pages 61-63Public Dividend Select Fund PDSF Pages 64-65Public Far-East Select Fund PFES Pages 66-67Public Regional Sector Fund PRSEC Pages 68-69Public Global Select Fund PGSF Pages 70-71Public Far-East Dividend Fund PFEDF Pages 72-73Public China Select Fund PCSF Pages 74-75Public Far-East Property & Resorts Fund PFEPRF Pages 76-77Public South-East Asia Select Fund PSEASF Pages 78-79Public Sector Select Fund PSSF Pages 80-81Public Far-East Consumer Themes Fund PFECTF Pages 82-84Public China Titans Fund PCTF Pages 85-87Public Far-East Telco & Infrastructure Fund PFETIF Pages 88-90Public Select Alpha-30 Fund PSA30F Pages 91-92Public Natural Resources Equity Fund PNREF Pages 93-94Public Australia Equity Fund PAUEF Pages 95-96Public Far-East Alpha-30 Fund PFA30F Pages 97-98Public Optimal Growth Fund POGF Pages 99-100Public Indonesia Select Fund PINDOSF Pages 101-102Public Singapore Equity Fund PSGEF Pages 103-104Public Strategic SmallCap Fund PSSCF Pages 105-107

Mixed Asset FundPublic Tactical Allocation Fund PTAF Pages 108-110(formerly known as Public GlobalBalanced Fund)

Balanced FundsPublic Balanced Fund PBF Pages 111-113Public Far-East Balanced Fund PFEBF Pages 114-116

Bond FundsPublic Bond Fund P BOND Pages 117-118Public Institutional Bond Fund PIN BOND Pages 119-120Public Enhanced Bond Fund PEBF Pages 121-123Public Select Bond Fund PSBF Pages 124-125Public Strategic Bond Fund PSTBF Pages 126-127Public Enterprises Bond Fund PENTBF Pages 128-129

Money Market FundPublic Money Market Fund PMMF Pages 130-131

44


PUBLIC SAVINGS FUND (PSF)

Fund Profile

Category of Fund Equity fund

Type of Fund Capital growth

Equity Range of Fund 70% to 98%

Stock Selection Profile of Fund Minimum of 40% in index stocks, with the balance in growth stocks

Distribution Policy Incidental

Investor’s Risk Profile Moderate

Suggested Minimum Investment Period 3 years

Designated Fund Managers Tan Chee Chin and Lum Meng Seng

The fund may adopt temporary defensive strategies by lowering its equity exposure below the above stated range and increasing its investments in fixed income securities and liquid assets which include money market instruments if the investment climate is deemed to be unfavourable and weakness in the equity markets is

expected.

Fund Objective

To achieve long-term capital appreciation while at the same time producing a reasonable level of income*.

Notes: * Distribution (if any) will be reinvested unless unitholders opt for distribution to be paid out. Please refer to pages 36 and 37 for more information on distribution policy.

Any material changes to the investment objective of the fund would require unitholders’ approval.

Investor Profile

• moderaterisk-rewardtemperament• mediumtolong-terminvestor• canwithstandextendedperiodsofmarkethighsandlowsinpursuitofcapitalgrowth

Investment Policy

PSF invests in a diversified portfolio of primarily Malaysian equities and fixed income securities to meet its investment objective. Its equity content in terms of NAV will range in the region of 70% to 98% of the NAV of the fund. The balance of the fund’s NAV will be invested in fixed income securities and liquid assets which include money market instruments.

Investment Strategy

PSF is actively managed to achieve the long-term goal of capital growth by maintaining a reasonable level of exposure to equities over time. The equity investment of the fund primarily focuses on a diversified portfolio of index-linked companies, blue chip stocks and companies with growth prospects that are listed on the Bursa Securities. Generally, companies with reasonable earnings growth prospects over the medium to long-term are sought. In identifying such companies, the fund relies on fundamental research where the financial health, industry prospects, management quality and past track records of the companies are considered. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities.

To achieve increased diversification, the fund may invest in foreign markets which include Singapore, Taiwan, South Korea, Japan, Hong Kong, China, Thailand, Indonesia, Philippines and other permitted markets. The fund’s investment in foreign markets is incidental to its primary focus of investing in the domestic market. Necessary approvals from relevant foreign regulatory authorities will be obtained before investing into the above-mentioned permitted markets.

45


The fund’s investments may also include listed warrants to enhance its returns. The fund may consider investments in Initial Public Offerings (IPOs) of companies seeking a listing on the Bursa Securities or other permitted foreign markets. The fund may also invest in collective investment schemes both in the domestic and foreign markets. The fund may also invest in fixed income securities (such as sovereign bonds and corporate debt) and money market instruments to help generate income returns.

Fund Specific Benefits

The fund allows the investor the opportunity to participate in the long-term growth potential of the equity market through investments in a diversified portfolio of index stocks, blue chip stocks and growth stocks. The equity exposures of the fund are managed actively with exposures ranging from 70% to 98% depending on the market and economic environment such that it may outperform the equity market over the long run. It also maintains investments in fixed income securities to help generate income to the fund.

Fund Specific Risk Management

The asset allocation, liquidity management and diversification strategies employed are therefore central to the efforts to manage the risks posed to the fund. Hence, there may even be situations such as when a severe downturn in the equity markets is expected and liquidity risks are high, that the equity exposure is reduced to below the levels indicated as a temporary defensive strategy. With regards to the bond portfolio of the fund, it should be noted that the performance of the portfolio might be adversely affected should interest rates rise sharply. The value of bonds may also fluctuate based on the credit quality of the issuer. As such, exposure to bonds in the portfolio are managed to minimise such risks to levels that are commensurate with the potential returns.

The fund’s overseas investments will be monitored to focus in markets with promising prospects and acceptable risk levels as the fund seeks potential returns that are commensurate with country risks, currency risks and liquidity risks.

Investments in listed warrants can potentially enhance the fund’s returns and also increase the volatility of the fund’s returns. As such, the fund’s investments in listed warrants will be assessed on an ongoing basis and managed accordingly.

Furthermore, the above investments are subject to limits and restrictions that are precisely spelt out in the sections titled “Permitted Investments” and “Investment Restrictions”.

Selected Performance Benchmark for PSF

As PSF will focus its investments in the domestic market, the benchmark for PSF is the FTSE Bursa Malaysia KLCI (FBM KLCI), a free-float adjusted market capitalisation weighted index which comprises the Bursa Malaysia Main Market’s 30 largest companies by full market capitalisation. As it is also a very widely followed and easily understood representation of the Bursa Securities, it is deemed the most appropriate benchmark for this fund.

To obtain the latest information on the FBM KLCI, investors can refer to the Bursa Malaysia website (www.bursamalaysia.com under Market Information Section) for a list of the component stocks of the FBM KLCI and transactional information such as last traded price, previous closing price, volume traded, high and low for the day and other information. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my.

“”FTSE®”, “FT-SE®” and “Footsie®” are trade marks of the London Stock Exchange Plc and The Financial Times Limited and are used by FTSE International Limited (“FTSE”) under licence. “BURSA MALAYSIA” is a trade mark of Bursa Malaysia Berhad (“BURSA MALAYSIA”).

The FTSE BURSA MALAYSIA KLCI is calculated by FTSE. All intellectual property rights in the index values and constituent list vests in FTSE and BURSA MALAYSIA. Neither FTSE nor BURSA MALAYSIA sponsor, endorse or promote this product and are not in any way connected to it and do not accept any liability. Public Mutual Berhad has obtained full licence from FTSE to use such intellectual property rights in the creation of this product.”

46


PUBLIC GROWTH FUND (PGF)

Fund Profile




Stock Selection Profile of Fund High concentration of growth stocks




Designated Fund Managers Lum Ming Jang and Lum Peck Woon


expected.

Fund Objective

To achieve long-term capital appreciation with income* considered incidental.



Investor Profile


Investment Policy

PGF invests in a diversified portfolio of primarily Malaysian equities and fixed income securities to meet its investment objective. Its equity content in terms of NAV will range in the region of 70% to 98% of the NAV of the fund. The balance of the fund’s NAV will be invested in fixed income securities and liquid assets which include money market instruments.

Investment Strategy

PGF is actively managed to achieve the long-term goal of capital growth by maintaining a reasonable level of exposure to equities over time. The equity investment of the fund comprise of a diversified portfolio of index-linked companies, blue chip stocks and companies with growth prospects that are listed on the Bursa Securities. In particular, companies with reasonable earnings growth prospects over the medium to long-term are selected to maximise the growth potential of the fund. In identifying such companies, the fund relies on fundamental research where the financial health, industry prospects, management quality and past track records of the companies are considered. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities.

To achieve increased diversification, the fund may invest in foreign markets which include Singapore, Taiwan, South Korea, Japan, Hong Kong, China, Thailand, Indonesia, Philippines and other permitted markets. The fund’s investment in foreign markets is incidental to its primary focus of investing in the domestic market. Necessary approvals from the relevant foreign regulatory authorities will be obtained before investing into the above-mentioned permitted markets.

47


The fund’s investments may also include listed warrants to enhance its returns. The fund may consider investments in Initial Public Offerings (IPOs) of companies seeking a listing on the Bursa Securities or other permitted foreign markets. The fund may also invest in collective investment schemes both in the domestic and foreign markets. The fund may also invest in fixed income securities (such as sovereign bonds and corporate debt) and money market instruments to help generate returns.


The fund allows the investor the opportunity to participate in the long-term growth potential of the equity market through investments in a diversified portfolio of index stocks, blue chip stocks and growth stocks. There is however greater emphasis on capital growth with lower emphasis on income and as such its equity exposures are in the range of between 70% and 98%. It is thus potentially a stronger performer in a rising market than a savings oriented equity fund. Commensurate with that, it is also likely to be more volatile in terms of returns.






Selected Performance Benchmark for PGF

As PGF will focus its investments in the domestic market, the benchmark for PGF is the FTSE Bursa Malaysia KLCI (FBM KLCI), a free-float adjusted market capitalisation weighted index which comprises the Bursa Malaysia Main Market’s 30 largest companies by full market capitalisation. As it is also a very widely followed and easily understood representation of the Bursa Securities, it is deemed the most appropriate benchmark for this fund.




48


PUBLIC INDEX FUND (PIX)

Fund Profile

Category of Fund Equity - Index fund



Stock Selection Profile of Fund Minimum of 60% index stocks




Designated Fund Managers Chiang Kang Pey and Liew Mun Hon


expected.

Fund Objective

To achieve long-term capital appreciation while at the same time attempting to outperform the FTSE Bursa Malaysia Top 100 Index.

Note: Any material changes to the investment objective of the fund would require unitholders’ approval.

Investor Profile

• moderaterisk-rewardtemperament• mediumtolong-terminvestor• canwithstandextendedperiodsofmarketvolatilitiesinpursuitofcapitalgrowth

Investment Policy

PIX invests in a diversified portfolio of Malaysian equities and fixed income securities to meet its investment objective. Its equity content in terms of NAV will range in the region of 80% to 98% of NAV of the fund; with a minimum of 60% of NAV invested in index stocks. The balance of the fund’s NAV will be invested in fixed income securities and liquid assets which include money market instruments.

Investment Strategy

PIX is actively managed and invests mainly in index stocks with the objective of outperforming the Index and achieving capital growth over the long-term. The fund aims to achieve this by maintaining a reasonably high level of exposure to equities over time with a minimum of 60% of NAV invested in index stocks at all times. PIX is not a passive index fund but will invest in a diversified portfolio of index-linked companies, blue chip stocks and companies with growth prospects that are listed on the Bursa Securities. Generally, companies with reasonable earnings growth prospects over the medium to long-term are selected. In identifying such companies, the fund relies on fundamental research where the financial health, industry prospects, management quality and past track records of the companies are considered. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities.

As a result of the high equity exposure and heavy emphasis on index stocks, the fund is likely to track the benchmark very closely. However, there may exist differences in the fund’s performance when compared to the benchmark due to various reasons such as investments in non-index stocks, variation in equity weightings and the weighting strategies employed for the index components. As a result, the fund will not exactly replicate or track the underlying benchmark’s return. The fund undergoes portfolio rebalancing on an ongoing basis with the view of outperforming the benchmark.

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The fund’s investments may also include listed warrants to enhance its returns. The fund may participate in Initial Public Offerings (IPOs) of companies seeking a listing on Bursa Securities. The fund may also invest in collective investment schemes in the domestic market. The fund may also invest in fixed income securities (such as sovereign bonds and corporate debt) and money market instruments to help generate returns.

The close link between the performance of the fund and that of the benchmark that it tracks may result in the fund experiencing significant volatilities in times of adverse market movements. The diversification and asset allocation strategies employed would help in mitigating the market risks and result in improving the performance of the fund.


The fund allows the investor the opportunity to participate in the long-term growth potential of the equity market through investments in a diversified portfolio of index stocks, blue chip stocks and growth stocks that are primarily components of the FBM 100. As it also maintains a fairly high equity exposure range between 80% and 98%, its performance tends to track the benchmark more closely than non-index funds. It is not a passive index fund but nevertheless is a useful investment vehicle for investors who wish to use it for market timing purposes.





Selected Performance Benchmark for PIX

PIX is set up to outperform the FTSE Bursa Malaysia Top 100 Index (FBM 100). Hence, the FBM 100 is the benchmark for the fund. The FBM 100 is a free-float adjusted market capitalisation weighted index which comprises the Bursa Malaysia Main Market’s top 100 large and mid cap companies by full market capitalisation.

To obtain the latest information on the FBM 100, investors can refer to the Bursa Malaysia website (www.bursamalaysia.com under Market Information Section) for a list of the component stocks of the FBM 100 and transactional information such as last traded price, previous closing price, volume traded, high and low for the day and other information. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my.


The FTSE BURSA MALAYSIA TOP 100 INDEX is calculated by FTSE. All intellectual property rights in the index values and constituent list vests in FTSE and BURSA MALAYSIA. Neither FTSE nor BURSA MALAYSIA sponsor, endorse or promote this product and are not in any way connected to it and do not accept any liability. Public Mutual Berhad has obtained full licence from FTSE to use such intellectual property rights in the creation of this product.”

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Top 10 Holdings in % of NAV as at 2 April 2012

FBM 100 % Weight PIX % of in Index NAV

1 Malayan Banking Berhad 8.0 Malayan Banking Berhad 8.0

2 Public Bank Berhad 7.6 Public Bank Berhad 7.9

3 Sime Darby Berhad 7.0 CIMB Group Holdings Berhad 7.1

4 CIMB Group Holdings Berhad 6.8 Axiata Group Berhad 5.2

5 Axiata Group Berhad 5.2 Telekom Malaysia Berhad 5.2

6 Genting Berhad 4.8 Genting Berhad 4.8

7 Tenaga National Berhad 4.2 LPI Capital Berhad 4.5

8 IOI Corporation Berhad 4.1 Tenaga National Berhad 4.1

9 Digi.Com Berhad 3.6 RHB Capital Berhad 3.3

10 Petronas Chemicals Group Berhad 3.4 Petronas Chemicals Group Berhad 3.2

Additional Disclosure

The FBM 100 is a market capitalisation weighted index of 100 stocks designed to measure the performance of Bursa Securities. The index is constructed to reflect the performance of listed companies that are representative of the major sectors of the Malaysian economy. The index is rebalanced periodically based on criteria as determined by the FTSE Bursa Malaysia Advisory Committee.

A minimum of 60% of the fund’s NAV will be maintained in component stocks of the FBM 100. PIX is not a passive index fund and will also invest in non-FBM 100 stocks with good growth prospects and attractive valuations to enhance its investment performance.

Tracking error of the fund’s movements vs the FBM 100 may arise as the fund may invest in non-index stocks. Differences in weights of index stocks held by the fund vs the respective stock’s weightings in the FBM 100 will also contribute to tracking errors. As a result, there is no guarantee that the fund will exactly replicate or track the underlying benchmark’s return. However the fund will be rebalanced on an ongoing basis to manage its tracking error versus the benchmark.

The risk of investing in equity index funds relate to risks arising from its equity holdings which will fluctuate in line with the stockmarket’s movements. Risk of price movements on a stock specific basis can also affect the fund’s overall returns.

There is no guarantee or assurance of exact or identical replication at any time of the performance of the index.

The index composition may change and component securities of the underlying index may be delisted.

The investment of the fund may be concentrated in securities of a single issuer or several issuers.

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PUBLIC INDUSTRY FUND (PIF)

Fund Profile




Stock Selection Profile of Fund High concentration of stocks in recovering or high growth sectors




Designated Fund Managers Chiang Kang Pey and Tan Kok Keong


expected.

Fund Objective

To achieve a high level of capital appreciation over the medium to long term period through investments in growth industries.


Investor Profile


Investment Policy

PIF invests in a diversified portfolio of primarily Malaysian equities and fixed income securities to meet its investment objective. Its equity content in terms of NAV will range in the region of 70% to 98% of the NAV of the fund. The balance of the fund’s NAV will be invested in fixed income securities and liquid assets which include money market instruments.

Investment Strategy

PIF is actively managed to achieve the medium to long-term goal of capital growth by maintaining a reasonably high level of exposure to equities over time. The equity investment of the fund comprise of a diversified portfolio of index-linked companies, blue chip stocks and companies with growth prospects that are listed on the Bursa Securities. Companies with reasonable earnings growth prospects over the medium to long term particularly in sectors or industries that have good growth potential or are showing signs of making good recovery are selected to maximise the growth potential of the fund. In identifying such companies, the fund relies on fundamental research where the financial health, industry prospects, management quality and past track records of the companies are considered. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities.


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The fund allows the investor the opportunity to participate in the long-term growth potential of the equity market through investments in a diversified portfolio of index stocks, blue chip stocks and growth stocks with particular attention paid to the industrial themes with good growth potential or undergoing cyclical recovery. The fund typically maintains a fairly high equity exposure range of between 70% and 98%. It is thus potentially a stronger performer in a rising market than a savings oriented equity fund. Commensurate with that, it is also likely to be more volatile in terms of returns.






Selected Performance Benchmark for PIF

As PIF will focus its investments in the domestic market, the benchmark for PIF is the FTSE Bursa Malaysia KLCI (FBM KLCI), a free-float adjusted market capitalisation weighted index which comprises the Bursa Malaysia Main Market’s 30 largest companies by full market capitalisation. As it is also a very widely followed and easily understood representation of the Bursa Securities, it is deemed the most appropriate benchmark for this fund.




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PUBLIC AGGRESSIVE GROWTH FUND (PAGF)

Fund Profile




Stock Selection Profile of Fund High concentration of high growth stocks and situational stocks


Investor’s Risk Profile Aggressive


Designated Fund Managers Tan Yan Heong and Lum Peck Woon


expected.

Fund Objective

To seek high capital growth over the medium to long term period through investments in situational and high growth stocks.


Investor Profile

• aggressiverisk-rewardtemperament• mediumtolong-terminvestor• canwithstandextendedperiodsofmarkethighsandlowsinpursuitofcapitalgrowth

Investment Policy

PAGF invests in a diversified portfolio of primarily Malaysian equities and fixed income securities to meet its investment objective. Its equity content in terms of NAV will range in the region of 75% to 98% of the NAV of the fund. The balance of the fund’s NAV will be invested in fixed income securities and liquid assets which include money market instruments.

Investment Strategy

PAGF is actively managed to achieve the medium to long-term goal of capital growth by maintaining a reasonably high level of exposure to equities over time. The equity investment of the fund comprise of a diversified portfolio of index-linked companies, blue chip stocks and companies with growth prospects that are listed on the Bursa Securities. In particular, companies with reasonable earnings growth prospects over the medium to long-term are selected to maximise the growth potential of the fund. In identifying such companies, the fund relies on fundamental research where the financial health, industry prospects, management quality and past track record of the companies are considered. The fund will also invest in situational plays where the risks are deemed reasonably mitigated. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities.


54




The fund allows the investor the opportunity to participate in the long-term growth potential of the equity market through investments in a diversified portfolio of index stocks, blue chip stocks and growth stocks with the aim of maximising medium to long-term capital growth. In doing so, its equity exposures is typically maintained within a high equity exposure range of between 75% and 98%. It is thus set up to perform in a more aggressive manner through a more active trading strategy. Commensurate with that, it is also likely to be significantly more volatile in terms of returns. It is amongst the funds that have the highest risk-reward profiles.


The asset allocation, liquidity management and diversification strategies employed are therefore central to the efforts to manage the risks posed to the fund. Hence, there may even be situations such as when a severe downturn in the equity markets is expected and liquidity risks are high, that the equity exposure is reduced to below the levels indicated as a temporary defensive strategy. With regards to the bond portfolio of the fund, it should be noted that the performance of the portfolio might be adversely affected should interest rates rise sharply. The value of bond may also fluctuate based on the credit quality of the issuer. As such, exposure to bonds in the portfolio are managed to minimise such risks to levels that are commensurate with the potential returns.




Selected Performance Benchmark for PAGF

As PAGF will focus its investments in the domestic market, the benchmark for PAGF is the FTSE Bursa Malaysia KLCI (FBM KLCI), a free-float adjusted market capitalisation weighted index which comprises the Bursa Malaysia Main Market’s 30 largest companies by full market capitalisation. As it is also a very widely followed and easily understood representation of the Bursa Securities, it is deemed the most appropriate benchmark for this fund.




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PUBLIC REGULAR SAVINGS FUND (PRSF)

Fund Profile




Stock Selection Profile of Fund Blue chip stocks and growth stocks




Designated Fund Managers Lum Ming Jang and Chen Yuet Fong


expected.

Fund Objective

To achieve consistent capital growth over the medium to long term period and to achieve a steady growth in income*.



Investor Profile


Investment Policy

PRSF invests in a diversified portfolio of Malaysian equities and fixed income securities to meet its investment objective. Its equity content in terms of NAV will range in the region of 70% to 98% of the NAV of the fund. The balance of the fund’s NAV will be invested in fixed income securities and liquid assets which include money market instruments.

Investment Strategy

PRSF is actively managed to achieve the goal of medium to long-term capital growth by maintaining a reasonable level of exposure to equities over time. The equity investment of the fund primarily focuses on a diversified portfolio of index-linked companies, blue chip stocks and companies with growth prospects that are listed on the Bursa Securities. Generally, companies with reasonable earnings growth prospects over the medium to long-term are sought. In identifying such companies, the fund relies on fundamental research where the financial health, industry prospects, management quality and past track records of the companies are considered. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities.

The fund’s investments may also include listed warrants to enhance its returns. The fund may participate in Initial Public Offerings (IPOs) of companies seeking a listing on Bursa Securities. The fund may also invest in collective investment schemes in the domestic market. The fund may also invest in fixed income securities (such as sovereign bonds and corporate debt) and money market instruments to help generate income returns.

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The fund allows the investor the opportunity to participate in the long-term growth potential of the equity market through investments in a diversified portfolio of index stocks, blue chip stocks and growth stocks. The equity exposures of the fund are managed actively with exposures ranging from 70% to 98% depending on the market and economic environment such that it may outperform the equity market over the long run. It also maintains investments in fixed income securities to help generate income to the fund.





Selected Performance Benchmark for PRSF

The FTSE Bursa Malaysia Top 100 Index (FBM 100) is the benchmark for the fund. The FBM 100 is a free-float adjusted market capitalisation weighted index which comprises the Bursa Malaysia Main Market’s top 100 large and mid cap companies by full market capitalisation.





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PUBLIC SMALLCAP FUND (P SmallCap)

Fund Profile

Category of Fund Equity – SmallCap fund



Stock Selection Profile of Fund Companies with small market capitalisation, at the point of purchase, with special focus on growth stocks.




Designated Fund Managers Tan Yan Heong and Loo See Seong


expected.

Fund Objective

To achieve high capital growth through investments in companies with small market capitalisation with special focus on growth stocks.

Notes: The fund will invest in companies with small market capitalisation at the point of purchase.

The fund may remain invested in such counters should the stocks become medium sized companies due to movements in market price and if the growth prospects and valuation of the stocks continue to be attractive.


Investor Profile

• aggressiverisk-rewardtemperament• mediumtolong-terminvestor• canwithstandwidefluctuationsinunitpricesandextendedperiodsofvolatility

Investment Policy

P SmallCap invests in a diversified portfolio of primarily Malaysian equities and fixed income securities to meet its investment objective. The fund will invest in stocks with market capitalisation of up to RM1.25 billion at the point of purchase. The fund may also invest in companies which at the point of purchase form the bottom 15% of the cumulative market capitalisation of the market which the stock is listed on. The fund will maintain an equity exposure of between 70% to 98% of its NAV. The balance of the fund’s NAV will be invested in fixed income securities and liquid assets which include money market instruments.

Investment Strategy

P SmallCap is actively managed and focuses primarily on investing in companies with small market capitalisation, with the aim of achieving high capital growth over the long-term through investments in such companies that possess the capacity to grow strongly. The fund seeks to achieve this goal by maintaining a reasonable level of exposure to equities over time in a diversified portfolio of small to medium sized companies with growth prospects that are listed on the Bursa Securities. Such stocks are likely to be found in business sectors that focus on high value-added manufacturing and infrastructural development, modern telecommunications, utilities, consumer products, services and information technology sectors. Generally, companies with reasonably good earnings growth prospect over the medium to long-term are selected. In identifying such companies, the fund relies on fundamental research where the financial health, industry prospects, management quality and past track record of the companies are considered. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities.

58


The fund’s investments may also include listed warrants and options to enhance its returns. The fund may consider investments in unlisted equities particularly in companies that are expected to seek listing on the Bursa Securities or other permitted foreign markets within a timeframe of two years. The fund may also invest in collective investment schemes both in the domestic and foreign markets. The fund may also invest in fixed income securities (such as sovereign bonds and corporate debt) and money market instruments to help generate returns.

The fund’s equity exposures may result in the fund experiencing significant volatilities in times of adverse market movements. To mitigate such risk, the fund may invest in futures contracts and options to hedge against market volatility.


The fund allows the investor the opportunity to participate in the long-term growth potential of a diversified portfolio of promising companies with small market capitalisation which as an investment group is generally under researched by the investment community. The focus of the fund is on identifying companies that have strong growth potential and trade at attractive valuations.


The asset allocation, liquidity management, diversification and hedging strategies employed are therefore central to the efforts to manage the risks posed to the fund. Hence, there may even be situations such as when a severe downturn in the equity markets is expected and liquidity risks are high, that the equity exposure is reduced to below the levels indicated as a temporary defensive strategy. With regards to the bond portfolio of the fund, it should be noted that the performance of the portfolio might be adversely affected should interest rates rise sharply. The value of bonds may also fluctuate based on the credit quality of the issuer. As such, exposure to bonds in the portfolio are managed to minimise such risks to levels that are commensurate with the potential returns.

The fund’s overseas investments will be monitored to focus in markets with promising prospects and acceptable risk levels as the fund seeks potential returns that are commensurate with country risks, currency risks and liquidity risks. To mitigate risks arising from factors which include foreign currency exposure and foreign interest rate movements, the fund may employ hedging strategies to manage the risks posed to the fund.

Participation in future contracts and options for hedging purposes and investments in listed warrants can potentially enhance the fund’s returns and also increase the volatility of the fund’s returns. As such, the fund’s participation in these instruments will be assessed on an ongoing basis and managed accordingly.


Selected Performance Benchmark for P SmallCap

As P SmallCap will focus its investments in the domestic market, the benchmark for P SmallCap is the FTSE Bursa Malaysia Small Cap Index which comprises of eligible companies within the top 98% of the Bursa Malaysia Main Market excluding constituents of the FTSE Bursa Malaysia Top 100 Index.

To obtain the latest information on the FTSE Bursa Malaysia Small Cap Index, investors can refer to the Bursa Malaysia website (www.bursamalaysia.com under Market Information Section) for a list of the component stocks of the FTSE Bursa Malaysia Small Cap Index and transactional information such as last traded price, previous closing price, volume traded, high and low for the day and other information. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my.


The FTSE BURSA MALAYSIA SMALL CAP INDEX is calculated by FTSE. All intellectual property rights in the index values and constituent list vests in FTSE and BURSA MALAYSIA. Neither FTSE nor BURSA MALAYSIA sponsor, endorse or promote this product and are not in any way connected to it and do not accept any liability. Public Mutual Berhad has obtained full licence from FTSE to use such intellectual property rights in the creation of this product.”


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PUBLIC EQUITY FUND (PEF)

Fund Profile



Equity Range of Fund At least 80%

Stock Selection Profile of Fund Growth stocks




Designated Fund Managers Lum Ming Jang and Lum Peck Woon


expected.

Fund Objective

To achieve capital growth through the aggressive selection of growth stocks from diversified economic sectors.


Investor Profile


Investment Policy

PEF invests in a diversified portfolio of primarily Malaysian equities and fixed income securities to meet its investment objective. Its minimum equity content is 80% of the NAV of the fund. The balance of the fund’s NAV will be invested in fixed income securities and liquid assets which include money market instruments.

Investment Strategy

PEF is actively managed to achieve the long-term goal of capital growth by maintaining a high level of exposure to equities of 80% and above at all times. The equity investment of the fund primarily focuses on a diversified portfolio of index-linked companies, blue chip stocks and companies with growth prospects that are listed on the Bursa Securities. Generally, companies with reasonable earnings growth prospects over the medium to long-term are selected. In identifying such companies, the fund relies on fundamental research where the financial health, industry prospects, management quality and past track records of the companies are considered. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities.



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The fund allows the investor the opportunity to participate in the long-term growth potential of the equity market through investments in a diversified portfolio of index stocks, blue chip stocks and growth stocks. The fund however places a lower emphasis on asset allocation by committing at least 80% of total funds to the equity market at all times. As such, the fund is likely to benefit very meaningfully from a bullish equity market. On the downside, it may have little leeway in avoiding the full brunt of a bearish market. It is thus potentially a stronger performer in a rising market than a savings oriented equity fund. Commensurate with that, it is also likely to be significantly more volatile in terms of returns.


The liquidity management and diversification strategies employed are therefore central to the efforts to manage the risks posed to the fund. Nonetheless, there may even be situations such as when a severe downturn in the equity markets is expected and liquidity risks are high, that the equity exposure is reduced to the minimum levels indicated. With regards to the bond portfolio of the fund, it should be noted that the performance of the portfolio might be adversely affected should interest rates rise sharply. The value of bonds may also fluctuate based on the credit quality of the issuer. As such, exposure to bonds in the portfolio are managed to minimise such risks to levels that are commensurate with the potential returns.




Selected Performance Benchmark for PEF

As PEF will focus its investments in the domestic market, the benchmark for PEF is the FTSE Bursa Malaysia KLCI (FBM KLCI), a free-float adjusted market capitalisation weighted index which comprises the Bursa Malaysia Main Market’s 30 largest companies by full market capitalisation. As it is also a very widely followed and easily understood representation of the Bursa Securities, it is deemed the most appropriate benchmark for this fund.




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PUBLIC FOCUS SELECT FUND (PFSF)

Fund Profile




Stock Selection Profile of Fund Medium-sized companies with market capitalisation of between RM1.25 billion and RM6 billion, at the point of purchase, with special focus on growth stocks.






expected.

Fund Objective

To achieve capital growth through investments in medium-sized companies in terms of market capitalisation from diversified economic sectors.

Notes: The fund may remain invested in such counters should the stock’s market capitalisation move above or fall below the range stated in the Investment Policy due to movements in market price and if the growth prospects and valuation of the stocks continue to be attractive.


Investor Profile


Investment Policy

PFSF invests in a diversified portfolio of primarily Malaysian equities and fixed income securities to meet its investment objective. PFSF will invest in stocks with market capitalisation of between RM1.25 billion and RM6 billion at the point of purchase.

Emphasis is placed on the accumulation of stocks with promising high earnings growth prospects in the medium to long-term horizon. Such stocks are found in a wide variety of business sectors from plantations to banking to information technology.

The fund generally maintains equity exposures within a range of between 70% and 98% against its NAV. However the equity range of the fund may be lower depending on the fund manager’s assessment of the stock market. The balance of the fund’s NAV will be invested in fixed income securities and liquid assets which include money market instruments.

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Investment Strategy

PFSF is actively managed and focuses primarily on investments in medium-sized companies with market capitalisation of between RM1.25 billion and RM6 billion at the point of purchase, with the aim of achieving high capital growth over the long-term through investments in companies with good long-term growth potential. The fund seeks to achieve this goal by maintaining a reasonable level of exposure to equities in a diversified portfolio of medium sized companies with good growth prospects that are listed on the Bursa Securities. The fund may remain invested in such counters should the stock’s market capitalisation move above or fall below the range stated in the Investment Policy due to movements in market price and if the growth prospects and valuation of the stocks continue to be attractive. Generally, companies with reasonable earnings growth prospects over the medium to long-term are selected. In identifying such companies, the fund relies on fundamental research where the financial health, industry prospects, management quality and past track record of the companies are considered. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities.


The fund’s investments may also include listed warrants to enhance its returns. The fund may consider investments in Initial Public Offerings (IPOs) of companies seeking a listing on the Bursa Securities or other permitted foreign markets. The fund may also invest in collective investment schemes both in the domestic and foreign markets. The fund may also invest in fixed income securities (such as sovereign bonds and corporate debt) and money market instruments to generate additional returns.


The fund allows the investor the opportunity to participate in the long-term growth potential of a diversified portfolio of promising medium sized companies with market capitalisation of between RM1.25 billion and RM6 billion. The focus of the fund is on identifying companies that have good growth potential and trade at attractive valuations.


The fund faces liquidity risk especially with regard to investments in shares of medium sized companies. For that reason, the equity exposures of the fund are managed within a fairly conservative range of between 70% and 98%. Essentially, the asset allocation, liquidity management and diversification strategies employed are central to the efforts to manage the risks posed to the fund. There may be situations such as when a severe downturn in the equity markets is expected and liquidity risks are high, that the fund’s equity exposure is reduced to below the levels indicated as a temporary defensive strategy.

With regards to the bond portfolio of the fund, it should be noted that the performance of the portfolio might be adversely affected should interest rates rise sharply. The value of bonds may also fluctuate based on the credit quality of the issuer. As such, exposure to bonds in the portfolio are managed to minimise such risks to levels that are commensurate with the potential returns.



Furthermore, the above investments are subject to limits and restrictions that are precisely spelt out in the sections titled ‘Permitted Investments” and “Investment Restrictions”.


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Selected Performance Benchmark for PFSF

As PFSF will focus its investments in the domestic market, the benchmark for PFSF is the FTSE Bursa Malaysia Mid 70 Index which comprises of the remaining 70 companies in the FTSE Bursa Malaysia Emas Index ranked by full market capitalisation, excluding the 30 members in the FTSE Bursa Malaysia KLCI.

To obtain the latest information on the FTSE Bursa Malaysia Mid 70 Index, investors can refer to the Bursa Malaysia website (www.bursamalaysia.com under Market Information Section) for a list of the component stocks of the FTSE Bursa Malaysia Mid 70 Index and transactional information such as last traded price, previous closing price, volume traded, high and low for the day and other information. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my.


The FTSE BURSA MALAYSIA MID 70 INDEX is calculated by FTSE. All intellectual property rights in the index values and constituent list vests in FTSE and BURSA MALAYSIA. Neither FTSE nor BURSA MALAYSIA sponsor, endorse or promote this product and are not in any way connected to it and do not accept any liability. Public Mutual Berhad has obtained full licence from FTSE to use such intellectual property rights in the creation of this product.”


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PUBLIC DIVIDEND SELECT FUND (PDSF)

Fund Profile


Type of Fund Income


Stock Selection Profile of Fund Stocks which offer or have the potential to offer attractive dividend yields.

Distribution Policy Annual income



Designated Fund Managers Tan Chee Chin and Liew Mun Hon


expected.

Fund Objective

To provide steady recurring income* by investing in a portfolio of stocks which offer or have the potential to offer attractive dividend yields.


Stocks which offer attractive dividend yields refer to stocks with consistency in rewarding shareholders via dividend payouts.


Investor Profile

• moderaterisk-rewardtemperament• mediumtolong-terminvestor• preferenceforreceivingregularincomewhilecapitalgrowthissecondary

Investment Policy

PDSF invests in a diversified portfolio of primarily Malaysian equities and fixed income securities to meet its investment objective. Its equity content in terms of NAV will range in the region of 75% to 98% of the NAV of the fund. The balance of the fund’s NAV is invested in fixed income securities and liquid assets which include money market instruments.

Investment Strategy

The fund is actively managed to achieve its goal of providing steady recurring income by investing in a diversified portfolio of stocks that offer or have the potential to offer attractive dividend yields. In terms of stock selection, the fund essentially focuses on investing in companies that have demonstrated consistency in rewarding their shareholders via dividend pay outs. There is a growing number of companies listed on Bursa Securities that have demonstrated their consistency in dividend payments over the years. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities. Notwithstanding this, the fund may also invest in growth or recovery stocks that have the potential to eventually adopt a dividend payout policy. In identifying such companies, the fund relies on fundamental research where the financial health, industry prospects, management quality and past track records of the companies are considered.


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The fund’s investments may also include listed warrants to enhance its returns. The fund may consider investments in Initial Public Offerings (IPOs) of companies seeking a listing on the Bursa Securities or other permitted foreign markets. The fund may also invest in collective investment schemes both in the domestic and foreign markets. The fund may also invest in fixed income securities (such as sovereign bonds and corporate debt) and money market instruments to help generate interest income.


The fund allows the investor the opportunity to participate in a diversified portfolio of stocks which distribute or have the potential to distribute reasonably attractive dividends. The equity exposures of the fund are managed actively with exposures ranging from 75% to 98% depending on the Fund Manager’s assessment of the market and economic environment. However, the fund’s equity range may be lower depending on the Fund Manager’s assessment of the stock market outlook. It also maintains investments in fixed income securities to help generate interest income for the fund.


The asset allocation, liquidity management and diversification strategies employed are therefore central to the efforts to manage the risks posed to the fund. Hence, there may be situations such as when a severe downturn in the equity markets is expected and liquidity risks are high, that the equity exposure is reduced to below the levels indicated as a temporary defensive strategy. With regards to the bond portfolio of the fund, it should be noted that the performance of the portfolio might be adversely affected should interest rates rise sharply. The value of bonds may also fluctuate based on the credit quality of the issuer. As such, exposure to bonds in the portfolio are managed to minimise such risks to levels that are commensurate with the potential returns.




Selected Performance Benchmark for PDSF

The benchmarks of the fund and their respective percentages are as follows:• 90%FTSEBursaMalaysiaTop100Index(FBM100),and• 10%3-MonthKualaLumpurInterbankOfferedRates(KLIBOR).

As PDSF generally maintains an equity exposure ranging between 75% to 98% of its NAV, the benchmark chosen for PDSF is a composite benchmark index comprising a hypothetical investment in the FBM 100 and 3-Month KLIBOR in a ratio of 90:10. Therefore, the returns for the benchmark index for any given period of time would comprise of 90% from the returns of the FBM 100 and 10% from 3-Month KLIBOR interest earned for the same period of time. The component stocks of FBM 100 comprise top 100 large and mid cap stocks listed on Bursa Securities. The 3-Month KLIBOR is reflective of the returns earned from the money market instruments held by the fund. This composite benchmark index represents an appropriate performance benchmark for PDSF as the fund is an equity fund which generally has an equity weight of 90% of its NAV over the medium to long-term.

Information on the 3-Month KLIBOR is provided by Bank Negara Malaysia, which is published in the business sections of the daily newspapers. To obtain the latest information on the FBM 100, investors can refer to the Bursa Malaysia website (www.bursamalaysia.com under Market Information Section) for a list of the component stocks of the FBM 100 and transactional information such as last traded price, previous closing price, volume traded, high and low for the day and other information. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my.



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PUBLIC FAR-EAST SELECT FUND (PFES)

Fund Profile




Stock Selection Profile of Fund Blue chip stocks and growth stocks






expected.

Fund Objective

To seek long-term capital appreciation by investing in blue chips and growth stocks in domestic and regional markets.


Investor Profile


Investment Policy

PFES invests in a diversified portfolio of blue chip stocks and growth stocks listed on Bursa Securities and selected regional stock markets to meet its investment objective. The fund generally maintains equity exposures within a range of 75% to 98% against its NAV. However, the equity range of the fund may be lower depending on the Fund Manager’s assessment of the equity markets. The balance of the fund’s NAV will be invested in fixed income securities and money market instruments.

Investment Strategy

PFES is actively managed to achieve the long-term goal of capital growth by investing in a diversified portfolio of blue chip stocks and companies with growth prospects listed on Bursa Securities and selected regional stock markets. Generally, companies with reasonable earnings growth prospects over the medium to long-term are selected. In identifying such companies, the fund relies on fundamental research where the financial health, industry prospects, management quality and past track records of the companies are considered. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities.

Up to 98% of the fund’s NAV can be invested in selected regional markets which include South Korea, China, Hong Kong, Taiwan, Singapore, Philippines, Thailand, Indonesia and other permitted markets. Necessary approvals from relevant foreign regulatory authorities will be obtained before investing into the above-mentioned permitted markets.


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The fund allows the investor the opportunity to participate in the long-term growth potential of a diversified portfolio of blue chip stocks and growth stocks listed on Bursa Securities and selected regional stock markets.


The asset allocation, liquidity management, diversification and hedging strategies employed are therefore central to the efforts to manage the risks posed to the fund. Hence, there may be situations such as when a severe downturn in the equity markets is expected and liquidity risks are high, that the equity exposure is reduced to below the levels indicated as a temporary defensive strategy. With regards to the bond portfolio of the fund, it should be noted that the performance of the portfolio might be adversely affected should interest rates rise sharply. The value of bonds may also fluctuate based on the credit quality of the issuer. As such, exposure to bonds in the portfolio are managed to minimise such risks to levels that are commensurate with the potential returns.


Participation in futures contracts and options for hedging purposes and investments in listed warrants can potentially enhance the fund’s returns and also increase the volatility of the fund’s returns. As such, the fund’s participation in these instruments will be assessed on an ongoing basis and managed accordingly.


Selected Performance Benchmark for PFES

The benchmark of the fund is MSCI AC Far-East Ex-Japan Index. The daily closing index for the MSCI AC Far East Ex-Japan Index is available on Bloomberg L.P. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my.


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PUBLIC REGIONAL SECTOR FUND (PRSEC)

Fund Profile




Stock Selection Profile of Fund Index stocks, blue chip stocks and growth stocks




Designated Fund Managers Lum Ming Jang and Julian Ng


expected.

Fund Objective

To seek long-term capital appreciation by investing in selected market sectors.


Investor Profile


Investment Policy

PRSEC invests in a diversified portfolio of equities and fixed income securities to meet its investment objective. The fund will invest in a maximum of 6 sectors but will maintain its investments in a minimum of 3 sectors at all times. The fund generally maintains equity exposures within a range of 75% to 98% against its NAV. However the equity range of the fund may be lower depending on the Fund Manager’s assessment of the equity markets. The balance of the fund’s NAV will be invested in fixed income securities and liquid assets which include money market instruments.

Investment Strategy

PRSEC is actively managed to achieve the long-term goal of capital growth by identifying the market sectors which offer the most promising investment returns. The fund will invest in a maximum of 6 of the most promising sectors determined by the Fund Manager. To ensure sufficient diversification, the fund will maintain investments in a minimum of 3 sectors at all times. To facilitate the transition of one sector to another, the fund may temporarily invest in more than 6 sectors when it is undertaking the above portfolio rebalancing exercise. The selection of market sectors to be invested by the fund is based primarily on the growth prospects of the sectors. The equity investment of the fund primarily focuses on a diversified portfolio of index-linked companies, blue chip stocks and companies with growth prospects. Generally, companies with reasonable earnings growth prospects over the medium to long-term are selected. In identifying such companies, the fund relies on fundamental research where the financial health, industry prospects, management quality and past track records of the companies are considered. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities.

A minimum of 50% of the fund’s NAV and up to a maximum of 98% of the fund’s NAV can be invested in selected regional markets which include South Korea, China, Japan, Hong Kong, Taiwan, Singapore, Philippines, Thailand, Indonesia and other permitted markets. Necessary approvals from relevant foreign regulatory authorities will be obtained before investing into the above-mentioned permitted markets.

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The fund allows the investor the opportunity to participate in the long-term growth potential of a diversified portfolio of index stocks, blue chip stocks and growth stocks of performing market sectors.






Selected Performance Benchmark for PRSEC

The benchmarks of the fund and their respective percentages are as follows:

• 90%MSCIACFar-EastEx-JapanIndex*,and• 10%3-MonthKualaLumpurInterbankOfferedRates(KLIBOR)

As PRSEC generally maintains an equity exposure ranging between 75% to 98% of its NAV, the benchmark chosen for PRSEC is a composite benchmark index comprising a hypothetical investment in the MSCI AC Far-East Ex-Japan Index and 3-Month KLIBOR in a ratio of 90:10. Therefore, the returns for the benchmark index for any given period of time would comprise of 90% from the returns of the MSCI AC Far-East Ex-Japan Index and 10% from 3-Month KLIBOR interest earned for the same period of time. The component stocks of MSCI AC Far-East Ex-Japan Index comprise major stocks in several sectors from key regional markets including China, Hong Kong, Indonesia, South Korea, Malaysia, Philippines, Singapore, Taiwan, and Thailand. The 3-Month KLIBOR is reflective of the returns earned from the money market instruments held by the fund. This composite benchmark index represents an appropriate performance benchmark for PRSEC as the fund is an equity fund which generally has an equity weight of 90% of its NAV over the long-term.

* As indices which focus on Far-East markets have a relatively high index weight for Japanese stocks, an index which excludes the Japan market is used as the fund’s equity benchmark as it is more representative of the fund’s investment strategy.

Information on the 3-Month KLIBOR is provided by Bank Negara Malaysia, which is published in the business sections of the daily newspapers. The daily closing index for the MSCI AC Far East Ex-Japan Index is available on Bloomberg L.P. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my.


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PUBLIC GLOBAL SELECT FUND (PGSF)

Fund Profile




Stock Selection Profile of Fund Blue chip stocks, index stocks and growth stocks




Designated Fund Managers Lum Ming Jang and Liew Mun Hon


expected.

Fund Objective

To seek long-term capital appreciation by investing in equities and collective investment schemes in domestic and global markets.


Investor Profile


Investment Policy

PGSF invests in collective investment schemes which focus in a diversified portfolio of blue chip stocks, index stocks and growth stocks listed on selected global markets. The fund will also invest in a diversified portfolio of blue chip stocks, index stocks and growth stocks listed on selected global stock markets to meet its investment objective. The fund generally maintains equity exposures within a range of 75% to 98% against its NAV. However the equity range of the fund may be lower depending on the Fund Manager’s assessment of the equity markets. The balance of the fund’s NAV will be invested in fixed income securities and money market instruments.

Investment Strategy

PGSF is actively managed to achieve the long-term goal of capital growth by investing in collective investment schemes which focus on a diversified portfolio of blue chip stocks, index stocks and growth stocks listed on selected global stock markets. The fund will also invest in blue chip stocks, index stocks and growth stocks listed on selected global markets. In identifying such companies, the fund relies on fundamental research where the financial health, industry prospects, management quality and past track records of the companies are considered. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities.

Up to 98% of the fund’s NAV can be invested in selected global markets which include United States of America, Canada, United Kingdom, Germany, France, Finland, Switzerland, Spain, Italy, Luxembourg, Australia, New Zealand, South Korea, China, Japan, Hong Kong, Taiwan, Singapore, Malaysia, India, Philippines, Thailand, Indonesia and other permitted markets. Necessary approvals from relevant foreign regulatory authorities will be obtained before investing into the above-mentioned permitted markets.

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The fund’s investments may also include listed warrants and options to enhance its returns. The fund may also consider investments in unlisted equities particularly in companies that are expected to seek listing on the Bursa Securities or selected global markets within a timeframe of two years. The fund may also invest in fixed income securities (such as sovereign bonds and corporate debt) and money market instruments to help generate returns.



The fund allows the investor the opportunity to participate in the long-term growth potential of a diversified portfolio of blue chip stocks, index stocks and growth stocks listed on selected global stock markets.






Selected Performance Benchmark for PGSF


• 90%MSCIAllCountryWorldIndex(MSCIACWI),and• 10%1-MonthKualaLumpurInterbankOfferedRates(KLIBOR)

As PGSF generally maintains an equity exposure ranging between 75% to 98% of its NAV, the benchmark chosen for PGSF is a composite benchmark index comprising a hypothetical investment in the MSCI ACWI and 1-Month KLIBOR in a ratio of 90:10. Therefore, the returns for the benchmark index for any given period of time would comprise of 90% from the returns of the MSCI ACWI and 10% from 1-Month KLIBOR interest earned for the same period of time. The component stocks of MSCI ACWI comprise major stocks from key global markets including United States of America, Europe, Japan, Asia and Australia. The 1-Month KLIBOR is reflective of the returns earned from the money market instruments held by the fund. This composite benchmark index represents an appropriate performance benchmark for PGSF as the fund is an equity fund which generally has an equity weight of 90% of its NAV over the long-term.

Information on the 1-Month KLIBOR is provided by Bank Negara Malaysia, which is published in the business sections of the daily newspapers. The daily closing index for the MSCI All Country World Index is available on Bloomberg L.P. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my.


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PUBLIC FAR-EAST DIVIDEND FUND (PFEDF)

Fund Profile


Type of Fund Income


Stock Selection of Fund Stocks which offer or have the potential to offer attractive dividend yields.




Designated Fund Managers Chiang Kang Pey and Tan Chee Chin


expected.

Fund Objective

To provide income* by investing in a portfolio of stocks in domestic and regional markets which offer or have the potential to offer attractive dividend yields.

Notes:* Distribution (if any) will be reinvested unless unitholders opt for distribution to be paid out. Please refer to pages 36 and 37 for more information on distribution policy.



Investor Profile

• moderaterisk-rewardtemperament• mediumtolong-terminvestor• preferenceforreceivingincomewhilecapitalgrowthissecondary

Investment Policy

PFEDF invests in a diversified portfolio of equities and fixed income securities to meet its investment objective. Its equity content in terms of NAV will range in the region of 75% to 98% of the NAV of the fund. The balance of the fund’s NAV is invested in fixed income securities and liquid assets which include money market instruments.

Investment Strategy

The fund is actively managed to achieve its goal of providing income by investing in a diversified portfolio of stocks that offer or have the potential to offer attractive dividend yields. In terms of stock selection, the fund essentially focuses on investing in companies that have demonstrated consistency in rewarding their shareholders via dividend pay outs. There is a growing number of companies listed on Bursa Securities and regional stock markets that have demonstrated their consistency in dividend payments over the years. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities. Notwithstanding this, the fund may also invest in growth or recovery stocks that have the potential to eventually adopt a dividend payout policy. In identifying such companies, the fund relies on fundamental research where the financial health, industry prospects, management quality and past track records of the companies are considered.

Up to 98% of the fund’s NAV can be invested in selected regional markets which include South Korea, China, Taiwan, Hong Kong, Philippines, Indonesia, Singapore, Thailand and other permitted markets. Necessary approvals from relevant foreign regulatory authorities will be obtained before investing into the above-mentioned permitted markets.

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The fund’s investments may also include listed warrants and options to enhance its returns. The fund may also consider investments in unlisted equities particularly in companies that are expected to seek listing on the Bursa Securities or selected regional markets within a timeframe of two years. The fund may invest in collective investment schemes both in the domestic or selected regional markets. The fund may invest in fixed income securities (such as sovereign bonds and corporate debt) and money market instruments to help generate interest income.



The fund allows the investor the opportunity to participate in a diversified portfolio of stocks which distribute or have the potential to distribute reasonably attractive dividends. The equity exposures of the fund are managed actively with exposures ranging from 75% to 98% depending on the Fund Manager’s assessment of the market and economic environment. However, the fund’s equity range may be lower depending on the Fund Manager’s assessment of the outlook for equity markets. It also maintains investments in fixed income securities to help generate interest income for the fund.






Selected Performance Benchmark for PFEDF


• 90%MSCIACFar-EastEx-JapanIndex,and• 10%3-MonthKualaLumpurInterbankOfferedRates(KLIBOR)

As PFEDF generally maintains an equity exposure ranging between 75% to 98% of its NAV, the benchmark chosen for PFEDF is a composite benchmark index comprising a hypothetical investment in the MSCI AC Far-East Ex-Japan Index and 3-Month KLIBOR in a ratio of 90:10. Therefore, the returns for the benchmark index for any given period of time would comprise of 90% from the returns of the MSCI AC Far-East Ex-Japan Index and 10% from 3-Month KLIBOR interest earned for the same period of time. The component stocks of MSCI AC Far-East Ex-Japan Index comprise major stocks from key regional markets including China, Hong Kong, Indonesia, South Korea, Malaysia, Philippines, Singapore, Taiwan and Thailand. The 3-Month KLIBOR is reflective of the returns earned from the money market instruments held by the fund. This composite benchmark index represents an appropriate performance benchmark for PFEDF as the fund is an equity fund which generally has an equity weight of 90% of its NAV over the medium to long-term.

Information on the 3-Month KLIBOR is provided by Bank Negara Malaysia, which is published in the business sections of the daily newspapers. The daily closing index for the MSCI AC Far-East Ex-Japan Index is available on Bloomberg L.P. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my.


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PUBLIC CHINA SELECT FUND (PCSF)

Fund Profile








Designated Fund Managers Lum Ming Jang and Chiang Kang Pey


expected.

Fund Objective

To achieve capital growth over the medium to long-term period by investing in a portfolio of investments in the greater China region namely in Hong Kong, China and Taiwan markets and including China based companies listed on overseas markets. The fund may also invest in companies listed on Bursa Securities and other foreign markets which have significant or potentially significant business operations in the greater China region.


Investor Profile


Investment Policy

PCSF invests in a diversified portfolio of investments in the greater China region namely in Hong Kong, China and Taiwan markets. The fund will also invest in China based companies listed on overseas markets such as Singapore, United States of America and other permitted markets to meet its investment objective. The fund may also invest in companies listed on Bursa Securities and foreign markets which have significant or potentially significant business operations in the greater China region. The fund generally maintains equity exposures within a range of 75% to 98% against its NAV. However the equity range of the fund may be lower depending on the Fund Manager’s assessment of the equity markets. The balance of the fund’s NAV will be invested in fixed income securities and money market instruments.

Investment Strategy

PCSF is actively managed to achieve its goal of achieving capital growth by investing in a diversified portfolio of blue chip stocks, index stocks and companies with growth prospects in the greater China region namely in Hong Kong, China and Taiwan markets. The fund will also invest in China based companies listed on overseas markets such as Singapore and United States of America and other permitted markets. The fund may also invest in companies listed on Bursa Securities and foreign markets which have significant or potentially significant business operations in the greater China region. In identifying such companies, the Fund Manager relies on fundamental research where the financial health, industry prospects, management quality and past track records of the companies are considered. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities.

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Up to 98% of the fund’s NAV can be invested in selected foreign markets which include Hong Kong, China, Taiwan, Singapore, United States of America and other permitted markets. Necessary approvals from the relevant foreign regulatory authorities will be obtained before investing into the above-mentioned permitted markets.

The fund’s investments may also include listed warrants and options to enhance its returns. The fund may also consider investments in unlisted equities particularly in companies that are expected to seek listing on the markets within a timeframe of two years. The fund may also invest in collective investment schemes both in the domestic and foreign markets. The fund may also invest in fixed income securities (such as sovereign bonds and corporate debt) and money market instruments to help generate returns.



The fund allows the investor the opportunity to participate in the long-term growth potential of a diversified portfolio of blue chip stocks, index stocks and growth stocks in the greater China region.



Country risks, currency risks and liquidity risks associated with the fund’s investments in the greater China region will be monitored on an ongoing basis. To mitigate risks arising from factors which include foreign currency exposure and foreign interest rate movements, the fund may employ hedging strategies to manage the risks posed to the fund. The fund’s other overseas investments will also be monitored to focus in markets with promising prospects and acceptable risk levels as the fund seeks potential returns that are commensurate with the associated risks.



Selected Performance Benchmark for PCSF

The benchmark for PCSF is the MSCI Golden Dragon Index which is a market capitalisation weighted index designed to represent the performance of the equity markets of China, Taiwan, and Hong Kong.

The daily closing index for MSCI Golden Dragon Index is available on Bloomberg L.P. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my.


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PUBLIC FAR-EAST PROPERTY & RESORTS FUND (PFEPRF)

Fund Profile


Type of Fund Capital growth and income


Stock Selection of Fund Property, hotel and resorts stocks and Real Estate Investment Trusts




Designated Fund Managers Tan Yan Heong and Tan Chee Chin


expected.

Fund Objective

Seeks to achieve capital growth over the medium to long term period by investing in companies that are principally engaged in property investment and development, hotel and resorts development and investment and real estate investment trusts (REITs) in domestic and regional markets. The fund may also invest in companies which have significant* property or real estate assets.

Notes: * Companies which have at least 70% of their assets comprised of property or real estate assets.


Investor Profile

• moderaterisk-rewardtemperament.• mediumtolong-terminvestor.• canwithstandextendedperiodsofmarkethighsandlowsinpursuitofcapitalgrowth.

Investment Policy

PFEPRF invests in a diversified portfolio of equities, REITs and fixed income securities to meet its investment objective. Its equity content in terms of NAV will range in the region of 75% to 98% of the NAV of the fund. The balance of the fund’s NAV is invested in fixed income securities and liquid assets which include money market instruments.

Investment Strategy

The fund is actively managed to achieve its goal of providing capital growth by investing in companies that are principally engaged in property investment and development, hotel and resorts development and investment and real estate investment trusts (REITs) in domestic and regional markets. The fund may also invest in companies which have significant property or real estate assets, i.e. companies which have at least 70% of their assets comprised of property or real estate assets. Given the positive demographic factors and rising affluence of the population base in the regional markets, the long term outlook for companies involved in property investment and development, hotel and resorts development and REITs is promising. In identifying such companies, the fund relies on fundamental research where the financial health, industry prospects, management quality and past track records of the companies are considered. The fund’s investment process also includes assessing various valuation ratios such as the Price Earnings Ratio (PER) and Price to Net Tangible Asset ratio (Price/NTA) of the stock/REIT. The dividend yields of property stocks and REITs are also considered. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities.

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Up to 98% of the fund’s NAV can be invested in selected regional markets which include South Korea, China, Japan, Taiwan, Hong Kong, Australia, New Zealand, Philippines, Indonesia, Singapore, Thailand and other permitted markets. The fund may invest in equity linked participation notes for selected regional stocks listed on the Luxembourg Stock Exchange. Equity linked participation notes are instruments designed to track designated securities. The movement of these notes are similar to the underlying shares listed in their respective markets. These notes are issued by international foreign broking houses for investment by investors who are not able to invest directly in the underlying foreign shares. These notes are purchased and sold by investors in a similar manner to the trading of shares. Investments in equity linked participation notes involve counterparty risk whereby the issuer of the Notes may not be able to fulfil its obligation. It also presents market risk as these notes may not track the movement of their underlying shares closely. Necessary approvals from the relevant foreign regulatory authorities will be obtained before investing into the above-mentioned permitted markets.

The fund’s investments may also include listed warrants and options to enhance its returns. The fund may also consider investments in unlisted equities particularly in companies that are expected to seek listing on the Bursa Securities or selected regional markets within a timeframe of two years. The fund may invest in collective investment schemes both in the domestic or selected regional markets. The fund may also invest in fixed income securities (such as sovereign bonds and corporate debt) and money market instruments to help generate returns.



The fund allows the investor the opportunity to participate in the long-term growth potential of a diversified portfolio of stocks of companies that are principally engaged in property investment and development, hotel and resorts development and investment and real estate investment trusts (REITs) in domestic and regional markets.






Selected Performance Benchmark for PFEPRF

The benchmark of the fund is based on the constituents within the real estate sector of S&P BMI Asia Pacific Index which is customised to the following weights i.e. 20% Japan, 20% Australia, 20% Malaysia and the balance of the 40% for the rest of the countries within the index universe currently including China ‘H’ Shares, Hong Kong, Indonesia, New Zealand, Philippines, Singapore, Taiwan, South Korea and Thailand. The real estate sector is as defined by the then-current Global Industry Classification Standard (GICS). Therefore, the returns for the customised index for any given period of time would comprise of the returns from the real estate sector of S&P BMI Asia Pacific Index in Japan, Australia, Malaysia and other countries in a ratio of 20:20:20:40. This customised benchmark index represents an appropriate performance benchmark for PFEPRF as it is representative of the markets that the fund is permitted to invest in over the medium to long-term.

Information on the fund’s benchmark is sourced from Standard & Poor’s. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my.

“The PFEPRF’s benchmark (the “Index”) is the exclusive property of Standard & Poor’s Financial Services LLC (“S&P”). Public Mutual Berhad has contracted with S&P to maintain and calculate the Index. S&P shall have no liability for any errors or omissions in calculating the Index.”


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PUBLIC SOUTH-EAST ASIA SELECT FUND (PSEASF)

Fund Profile










expected.

Fund Objective

To achieve capital growth over the medium to long-term period by investing in a portfolio of investments in South-East Asia markets.


Investor Profile


Investment Policy

PSEASF will invest in a diversified portfolio of blue chip stocks, index stocks and growth stocks listed on domestic and regional markets in South-East Asia to meet its investment objective. The fund generally maintains equity exposures within a range of 75% to 98% against its NAV. The balance of the fund’s NAV will be invested in fixed income securities and money market instruments.

Investment Strategy

PSEASF is actively managed to achieve the medium to long-term goal of capital growth by investing in blue chip stocks, index stocks and growth stocks listed on domestic and regional markets in South-East Asia. In identifying companies for investment, the fund relies on fundamental research where the financial health, industry prospects, management quality and past track records of the companies are considered. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities.

Up to 98% of the fund’s NAV can be invested in selected regional markets which include Indonesia, Philippines, Singapore, Thailand, Vietnam and other permitted markets. The fund may invest in equity linked participation notes for selected regional stocks listed on the Luxembourg Stock Exchange. Equity linked participation notes are instruments designed to track designated securities. The movement of these notes are similar to the underlying shares listed in their respective markets. These notes are issued by international foreign broking houses for investment by investors who are not able to invest directly in the underlying foreign shares. These notes are purchased and sold by investors in a similar manner to the trading of shares. Investments in equity linked participation notes involve counterparty risk whereby the issuer of the notes may not be able to fulfil its obligation. It also presents market risk as these notes may not track the movement of their underlying shares closely. Necessary approvals from the relevant foreign regulatory authorities will be obtained before investing into the above-mentioned permitted markets.

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The fund’s investments may also include listed warrants and options to enhance its returns. The fund may also consider investments in unlisted equities particularly in companies that are expected to seek listing on domestic and regional markets in South-East Asia markets within a timeframe of two years. The fund may invest in collective investment schemes both in the domestic or selected regional markets. The fund may also invest in fixed income securities (such as sovereign bonds and corporate debt) and money market instruments to help generate returns.



The fund allows the investor the opportunity to participate in the long-term growth potential of a diversified portfolio of blue chip stocks, index stocks and growth stocks listed on domestic and regional markets in South-East Asia.






Selected Performance Benchmark for PSEASF

The benchmark of the fund is FTSE/ASEAN 40 Index. To obtain the latest information on the FTSE/ASEAN 40 Index, investors can refer to the Bursa Malaysia website (www.bursamalaysia.com under Market Information Section) for a list of the component stocks of the FTSE/ASEAN 40 Index and transactional information such as last traded price, previous closing price, volume traded, high and low for the day and other information. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my.

“The PSEASF is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“FTSE”) or by the London Stock Exchange Plc (“LSE”) or by The Financial Times Limited (“FT”) and neither FTSE nor LSE nor FT makes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE/ASEAN 40 Index (“the Index”) and/or the figure at which the said Index stands at any particular time on any particular day or otherwise. The Index is compiled and calculated by FTSE in conjunction with Indonesia Stock Exchange, Bursa Malaysia Berhad, The Philippine Stock Exchange, Inc., Singapore Exchange Securities Trading Limited and the Stock Exchange of Thailand (The “Exchanges”). However, neither FTSE nor LSE nor the Exchanges nor FT shall be liable (whether in negligence or otherwise) to any person for any error in the Index and neither FTSE nor the LSE nor the Exchanges nor FT shall be under any obligation to advise any person of any error therein.”

“FTSE®”, “FT-SE®” and “Footsie®” are trade marks of the London Stock Exchange Plc and the Financial Times Limited and are used by FTSE International Limited under licence. “All-World”, “All-Share”, “All-Small” and “FTSE4Good” are trademarks of FTSE International Limited.”

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PUBLIC SECTOR SELECT FUND (PSSF)

Fund Profile










expected.

Fund Objective

To seek long-term capital appreciation by investing in a portfolio of securities from selected market sectors in the domestic market.


Investor Profile


Investment Policy

PSSF invests in a diversified portfolio of equities and fixed income securities to meet its investment objective. The fund will invest in a maximum of 6 sectors in the domestic market but will maintain its investments in a minimum of 3 sectors at all times. The fund generally maintains equity exposures within a range of 75% to 98% against its NAV. The balance of the fund’s NAV will be invested in fixed income securities and liquid assets which include money market instruments.

Investment Strategy

PSSF is actively managed to achieve the long-term goal of capital growth by identifying the market sectors in the domestic market which offer the most promising investment returns. Market sectors are defined as industry groups which the companies are classified based on Bloomberg classification. There are a total of 10 sectors under Bloomberg’s classification namely Basic Materials, Communications, Consumer Cyclical, Consumer Non Cyclical, Diversified Groups, Energy, Financials, Industrials, Technology and Utilities. The fund will invest in a maximum of 6 of the most promising sectors determined by the Fund Manager. To ensure sufficient diversification, the fund will maintain investments in a minimum of 3 sectors at all times. To facilitate the transition of one sector to another, the fund may temporarily invest in more than 6 sectors when it is undertaking the above portfolio rebalancing exercise.

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The selection of market sectors to be invested by the fund is based primarily on the growth prospects of the sectors. This analysis will include a consideration of key macro factors such as business cycles of selected sectors and income levels and demographic trends which have an effect on various industries’ growth prospects. After the sectors are identified, the Fund Manager will subsequently review the stocks available in the market for selected sectors and build up the fund’s investment portfolio accordingly. Stocks will be selected by assessing earnings growth potential and various valuation ratios such as Price Earnings Ratio (PER), Price to Net Tangible Asset ratio (Price/NTA) and dividend yield.

The sector allocations for PSSF will be monitored on an ongoing basis and fund’s sector exposure will be rebalanced on a dynamic basis to ensure that the fund’s sector allocations are positioned to optimise the fund’s returns. Information on the sector selections of PSSF are updated monthly and can be obtained from Public Mutual’s website.

The equity investment of the fund primarily focuses on a diversified portfolio of index-linked companies, blue chip stocks and companies with growth prospects. Generally, companies with reasonable earnings growth prospects over the medium to long-term are selected. In identifying such companies, the fund relies on fundamental research where the financial health, industry prospects, management quality and past track records of the companies are considered. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities.

The fund’s investments may also include listed warrants to enhance its returns. The fund may participate in Initial Public Offerings (IPOs) of companies seeking a listing on Bursa Securities. The fund may also invest in collective investment schemes in the domestic market. The fund may also invest in fixed income securities (such as sovereign bonds and corporate debt) and money market instruments to help generate returns.


The fund allows the investor the opportunity to participate in the long-term growth potential of a diversified portfolio of index stocks, blue chip stocks and growth stocks of performing market sectors.


The asset allocation, liquidity management and diversification strategies employed are therefore central to the efforts to manage the risks posed to the fund. Hence, there may be situations such as when a severe downturn in the equity markets is expected and liquidity risks are high, that the equity exposure is reduced to below the levels indicated as a temporary defensive strategy. With regards to the bond portfolio of the fund, it should be noted that the performance of the portfolio might be adversely affected should interest rates rise sharply. The value of bonds may also fluctuate based on the credit quality of the issuer. As such, exposure to bonds in the portfolio are managed to minimise such risks to levels that are commensurate with the potential returns.



Selected Performance Benchmark for PSSF






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PUBLIC FAR-EAST CONSUMER THEMES FUND (PFECTF)

Fund Profile




Stock Selection Profile of Fund Consumer sector stocks




Designated Fund Managers Lum Ming Jang and Tan Chee Chin


expected.

Fund Objective

To achieve long term capital appreciation by investing in securities, mainly equities, in the consumer sector in the domestic and foreign markets.


Investor Profile


Investment Policy

PFECTF invests in a diversified portfolio of equities and fixed income securities to meet its investment objective. The fund will focus its investments in stocks in the consumer sector in the domestic and foreign markets. The fund may also invest in multinational corporations in the consumer sector which have their products sold in Far East markets or have distribution outlets/establishments in the Far East region and are listed in United States, Europe and Australian markets. The fund generally maintains equity exposures within a range of 75% to 98% against its NAV. The balance of the fund’s NAV will be invested in fixed income securities and liquid assets which include money market instruments.

Investment Strategy

PFECTF is actively managed to achieve the long-term goal of capital growth by focusing its investment in stocks in the consumer sector in the domestic and foreign markets. The fund may also invest in multinational corporations in the consumer sector which have their products sold in Far East markets or have distribution outlets/establishments in the Far East region and are listed in United States, Europe and Australian markets. These companies should have at least 25% of their existing revenue derived from the Far East region or are projected to derive at least 25% of revenue from the Far East region in the next two to three years. The sales contribution of these companies from the Far East region will be evaluated annually.

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Given the positive demographic factors and rising affluence of the population base in the Far East region, the long term outlook for companies in the consumer sector is promising. Robust economic growth and rising disposable incomes in the Far East region is projected to lead to increased consumer spending which will benefit companies in the consumer sector. These companies include companies involved in the food, beverage, tobacco, household goods, fashion, textiles, apparel, footwear, and consumer electronics and appliances industries. The services segment within the consumer sector include companies in retailing, restaurants, services and leisure industries. Generally, companies with reasonable earnings growth prospects over the medium to long-term are selected. In identifying such companies, the fund relies on fundamental research where the financial health, industry prospects, management quality and past track records of the companies are considered. The fund’s investment process also involves assessing the various valuation ratios such as the Price Earnings Ratio (PER), Price to Net Tangible Asset Ratio (Price/NTA) and dividend yield of the stocks. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities.

Up to 98% of the fund’s NAV can be invested in selected foreign markets which include Japan, Korea, Taiwan, China, Hong Kong, Singapore, Thailand, Philippines, Indonesia, United States, Europe, Australia and other permitted markets. The fund may invest in equity linked participation notes for selected regional stocks listed on the Luxembourg Stock Exchange. Equity linked participation notes are instruments designed to track designated securities. The movement of these notes are similar to the underlying shares listed in their respective markets. These notes are issued by international foreign broking houses for investment by investors who are not able to invest directly in the underlying foreign shares. These notes are purchased and sold by investors in a similar manner to the trading of shares. Investments in equity linked participation notes involve counterparty risk whereby the issuer of the notes may not be able to fulfil its obligation. It also presents market risk as these notes may not track the movement of their underlying shares closely. Necessary approvals from the relevant foreign regulatory authorities will be obtained before investing into the above-mentioned permitted markets.




The fund allows the investor the opportunity to participate in the long-term growth potential of a diversified portfolio of stocks in the consumer sector listed on the domestic and foreign markets.





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Selected Performance Benchmark for PFECTF

The benchmark of the fund is a customised index based on the constituents within the selected sectors of the S&P BMI Asia Ex-Japan Index* comprising Malaysia, Singapore, Thailand, Indonesia, Philippines, Hong Kong, China ‘H’ Shares, Taiwan and South Korea. The selected sectors are the Consumer Discretionary and Consumer Staples sectors as defined by the then-current Global Industry Classification Standard (GICS). Therefore, the returns for the customised index for any given period of time would comprise of the returns from the Consumer Discretionary and Consumer Staples sectors of S&P BMI Asia Ex-Japan Index. This customised benchmark index represents an appropriate performance benchmark for PFECTF as the fund invests in a portfolio of stocks in the consumer sector in the domestic and foreign markets.

* As indices which focus on Asian markets have a relatively high index weight for Japanese stocks, an index which excludes the Japan market is used as the fund’s equity benchmark as it is more representative of the fund’s investment strategy.


“The PFECTF’s benchmark (the “Index”) is the exclusive property of Standard & Poor’s Financial Services LLC (“S&P”). Public Mutual Berhad has contracted with S&P to maintain and calculate the Index. S&P shall have no liability for any errors or omissions in calculating the Index.”


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PUBLIC CHINA TITANS FUND (PCTF)

Fund Profile




Stock Selection Profile of Fund Companies with market capitalisation of RM10 billion and above, at the point of purchase.




Designated Fund Managers Lum Ming Jang and Tan Chee Chin


expected.

Fund Objective

To achieve capital growth over the medium to long-term period by investing in companies with market capitalisation of RM10 billion and above in the greater China region namely China, Hong Kong and Taiwan markets and including China based companies listed on overseas markets.


Investor Profile


Investment Policy

The fund will invest in companies with market capitalisation of RM10 billion and above in the greater China region namely China, Hong Kong and Taiwan markets and including China based companies listed on overseas markets. Should the stock’s market capitalisation move below the stated range for a period of six consecutive months, the fund’s holdings of the stock will be disposed within a 6 month period subject to the availability of market liquidity. The Fund Manager will take into consideration factors which include trading liquidity and availability of market bids at prevailing market valuations before deciding on the manner and time frame of divestment.

The fund generally maintains equity exposures within a range of 75% to 98% against its NAV. The balance of the fund’s NAV will be invested in fixed income securities and money market instruments.

Investment Strategy

PCTF is actively managed and focuses on investing in companies with market capitalisation of RM10 billion and above in the greater China region namely China, Hong Kong and Taiwan markets and including China based companies listed on overseas markets with the aim of achieving capital growth over the medium to long-term. Generally companies with promising growth prospects over the medium to long-term are selected. The fund may also invest in companies listed on Bursa Securities and other foreign markets which have significant or potentially significant business operations in the greater China region. In identifying companies for investment, the Fund Manager relies on fundamental research where the financial health, industry prospects, management quality and past track records of the companies are considered. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities.

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Up to 98% of the fund’s NAV can be invested in selected foreign markets which include Hong Kong, China, Singapore, United States of America and other permitted markets. The fund may invest in equity linked participation notes for selected regional stocks listed on the Luxembourg Stock Exchange. Equity linked participation notes are instruments designed to track designated securities. The movement of these notes are similar to the underlying shares listed in their respective markets. These notes are issued by international foreign broking houses for investment by investors who are not able to invest directly in the underlying foreign shares. These notes are purchased and sold by investors in a similar manner to the trading of shares. Investments in equity linked participation notes involve counterparty risk whereby the issuer of the notes may not be able to fulfil its obligation. It also presents market risk as these notes may not track the movement of their underlying shares closely. Necessary approvals from the relevant foreign regulatory authorities will be obtained before investing into the above-mentioned permitted markets.

The fund’s investments may also include listed warrants and options to enhance its returns. The fund may also consider investments in unlisted equities particularly in companies that are expected to seek listing on the markets within a timeframe of two years. The fund may also invest in collective investment schemes both in the domestic and foreign markets. The fund may also invest in fixed income securities (such as sovereign bonds and corporate debt) and money market instruments to help generate returns.



The fund allows the investor the opportunity to participate in the long-term growth potential of a diversified portfolio of companies with market capitalisation of RM10 billion and above in the greater China region namely China, Hong Kong and Taiwan markets and including China based companies listed on overseas markets. The focus of the fund is on identifying companies that have strong growth potential and companies that trade at attractive valuations with sound fundamentals.



Country risks, currency risks and liquidity risks associated with the fund’s investments in the greater China region will be monitored on an ongoing basis. To mitigate risks arising from factors which include foreign currency exposure and foreign interest rate movements, the fund may employ hedging strategies to manage the risks posed to the fund. The fund’s other overseas investments will also be monitored to focus in markets with promising prospects and acceptable risk levels as the fund seeks potential returns that are commensurate with the associated risks.




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Selected Performance Benchmark for PCTF


• 40%HangSengChinaEnterprisesIndex(HSCEI);• 30%HangSengIndex(HSI);and• 30%TSECTaiwan50Index

The benchmark chosen for PCTF is a composite benchmark index comprising a hypothetical investment in the HSCEI, HSI and TSEC Taiwan 50 Index in a ratio of 40:30:30. Therefore, the returns for the benchmark index for any given period of time would comprise of 40% from the returns of the HSCEI, 30% from HSI and 30% from TSEC Taiwan 50 Index. The component stocks of these 3 indexes comprise major stocks from their respective markets namely China ‘H’ Shares, Hong Kong and Taiwan. This composite benchmark index represents an appropriate performance benchmark for PCTF as it is representative of the markets that the fund is permitted to invest in over the medium to long-term.

The information on Hang Seng China Enterprises Index, Hang Seng Index and TSEC Taiwan 50 Index is obtainable from Bloomberg L.P. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my.


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PUBLIC FAR-EAST TELCO & INFRASTRUCTURE FUND (PFETIF)

Fund Profile




Stock Selection Profile of Fund Telecommunications, infrastructure and utilities stocks






expected.

Fund Objective

To achieve capital growth over the medium to long term period by investing in securities, mainly equities, in the telecommunications, infrastructure and utilities sectors in Far-East markets.


Investor Profile


Investment Policy

PFETIF invests in a diversified portfolio of equities and fixed income securities to meet its investment objective. The fund will focus its investments in stocks in the telecommunications, infrastructure and utilities sectors in the domestic and foreign markets. The fund generally maintains equity exposures within a range of 75% to 98% against its NAV. The balance of the fund’s NAV will be invested in fixed income securities and liquid assets which include money market instruments.

Investment Strategy

PFETIF is actively managed to achieve the medium to long-term goal of capital growth by focusing its investment in the telecommunications, infrastructure and utilities sectors in the domestic and foreign markets. Generally, companies with reasonable earnings growth prospects over the medium to long-term are selected. In identifying such companies, the fund relies on fundamental research where the financial health, industry prospects, management quality and past track records of the companies are considered. The fund’s investment process also involves assessing the various valuation ratios such as the Price Earnings Ratio (PER), Price to Net Tangible Asset Ratio (Price/NTA) and dividend yield of the stocks. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities.

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Up to 98% of the fund’s NAV can be invested in selected foreign markets which include South Korea, China, Japan, Taiwan, Hong Kong, Philippines, Indonesia, Singapore, Thailand and other permitted markets. The fund may invest in equity linked participation notes for selected regional stocks listed on the Luxembourg Stock Exchange. Equity linked participation notes are instruments designed to track designated securities. The movement of these notes are similar to the underlying shares listed in their respective markets. These notes are issued by international foreign broking houses for investment by investors who are not able to invest directly in the underlying foreign shares. These notes are purchased and sold by investors in a similar manner to the trading of shares. Investments in equity linked participation notes involve counterparty risk whereby the issuer of the notes may not be able to fulfil its obligation. It also presents market risk as these notes may not track the movement of their underlying shares closely. Necessary approvals from the relevant foreign regulatory authorities will be obtained before investing into the above-mentioned permitted markets.




The fund allows the investor the opportunity to participate in the long-term growth potential of a diversified portfolio of stocks in the telecommunications, infrastructure and utilities sectors in the domestic and foreign markets.







90

Selected Performance Benchmark for PFETIF

The benchmark of the fund is a customised index based on the constituents within the selected sectors of the S&P BMI Asia Ex-Japan Index* comprising Malaysia, Singapore, Thailand, Indonesia, Philippines, Hong Kong, China ‘H’ Shares, Taiwan and South Korea. The selected sectors are customised to the following weights i.e. 40% Telecommunication Service, 30% Construction & Materials and 30% Utilities sectors as defined by the then-current Global Industry Classification Standard (GICS). Therefore, the returns for the customised index for any given period of time would comprise of the returns from the Telecommunication Service, Construction & Materials and Utilities sectors of S&P BMI Asia Ex-Japan Index in a ratio of 40:30:30. This customised benchmark index represents an appropriate performance benchmark for PFETIF as it is representative of the sectors that the fund is permitted to invest in over the medium to long-term.

* As indices which focus on Asian markets have a relatively high index weight for Japanese stocks, an index which excludes the Japan market is used as the fund’s equity benchmark as it is more representative of the fund’s investment strategy.


“The PFETIF’s benchmark (the “Index”) is the exclusive property of Standard & Poor’s Financial Services LLC (“S&P”). Public Mutual Berhad has contracted with S&P to maintain and calculate the Index. S&P shall have no liability for any errors or omissions in calculating the Index.”


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PUBLIC SELECT ALPHA-30 FUND (PSA30F)

Fund Profile








Designated Fund Managers Lum Ming Jang and Andrew Seah Saik Weng


expected.

Fund Objective

To achieve capital growth over the medium to long term period by investing in up to a maximum of 30 stocks primarily listed on Bursa Securities.


Investor Profile


Investment Policy

PSA30F will invest in up to a maximum of 30 stocks primarily listed on Bursa Securities to meet its investment objective. The fund generally maintains equity exposures within a range of 75% to 98% against its NAV. The balance of the fund’s NAV may be invested in fixed income securities and money market instruments.

Investment Strategy

PSA30F is actively managed to achieve its goal of achieving capital growth by investing in up to a maximum of 30 stocks primarily listed on Bursa Securities. To achieve increased diversification, the fund may invest in selected foreign markets which include Singapore, Taiwan, South Korea, Japan, Australia, New Zealand, Hong Kong, China, Thailand, Indonesia, Philippines and other markets. The fund may invest in equity linked participation notes for selected regional stocks listed on the Luxembourg Stock Exchange. Equity linked participation notes are instruments designed to track designated securities. The movement of these notes are similar to the underlying shares listed in their respective markets. These notes are issued by international foreign broking houses for investment by investors who are not able to invest directly in the underlying foreign shares. These notes are purchased and sold by investors in a similar manner to the trading of shares. Investments in equity linked participation notes involve counterparty risk whereby the issuer of the notes may not be able to fulfil its obligation. It also presents market risk as these notes may not track the movement of their underlying shares closely. The fund’s investment in foreign markets is incidental to its primary focus of investing in the domestic market. Necessary approvals from the relevant foreign regulatory authorities will be obtained before investing into the above-mentioned permitted markets. In identifying companies for investment, the Fund Manager relies on fundamental research where the financial health, industry prospects, management quality and past track records of the companies are considered. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities.

92

The fund’s investments may also include listed warrants to enhance its returns. The fund may consider investments in Initial Public Offerings (IPOs) of companies seeking a listing on the Bursa Securities or other permitted foreign markets. The fund may also invest in collective investment schemes in the domestic and foreign markets. The fund may also invest in fixed income securities (such as sovereign bonds and corporate debt) and money market instruments to help generate returns.


The fund allows the investor the opportunity to participate in the long-term growth potential of a portfolio comprising of up to 30 selected stocks listed primarily on Bursa Securities.


The asset allocation, liquidity management and diversification strategies employed are central to the efforts to manage the risks posed to the fund. Hence, there may be situations such as when a severe downturn in the equity markets is expected and liquidity risks are high, that the equity exposure is reduced to and below the levels indicated as a temporary defensive strategy. With regards to the bond portfolio of the fund, it should be noted that the performance of the portfolio might be adversely affected should interest rates rise sharply. The value of bonds may also fluctuate based on the credit quality of the issuer. As such, exposure to bonds in the portfolio are managed to minimise such risks to levels that are commensurate with the potential returns.




Selected Performance Benchmark for PSA30F

As PSA30F will focus its investments in the domestic market, the benchmark for PSA30F is the FTSE Bursa Malaysia KLCI (FBM KLCI), a free-float adjusted market capitalisation weighted index which comprises the Bursa Malaysia Main Market’s 30 largest companies by full market capitalisation. As it is also a very widely followed and easily understood representation of the Bursa Securities, it is deemed the most appropriate benchmark for this fund.





93


PUBLIC NATURAL RESOURCES EQUITY FUND (PNREF)

Fund Profile




Stock Selection Profile of Fund Equities and equity-related securities of companies that are engaged in or are substantially related to the natural resources sectors.




Designated Fund Managers Tan Yan Heong and Chen Yuet Fong


expected.

Fund Objective

To achieve capital growth over the medium to long-term period by investing in a portfolio of equities and equity-related securities of companies that are engaged in or are substantially related to the natural resources sectors in the domestic and overseas markets.


Investor Profile


Investment Policy

PNREF will invest in a portfolio of equities and equity-related securities of companies that are engaged in or are substantially related to the natural resources sectors in the domestic and overseas markets. The natural resources sectors which the fund will invest in include energy (oil and gas exploration, extraction, production, transportation and power producers), metals and mining (industrial and precious metals exploration, extraction, production and transportation), agriculture, forestry and paper. The fund generally maintains equity exposures within a range of 75% to 98% against its NAV. The fund may also invest in fixed income securities and money market instruments.

Investment Strategy

PNREF is actively managed to achieve its goal of achieving capital growth by investing in a portfolio of equities and equity-related securities of companies that are engaged in or are substantially related to the natural resources sectors in the domestic and overseas markets. In identifying companies for investment, the Fund Manager relies on fundamental research where the financial health, industry prospects, management quality and past track records of the companies are considered. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities.

The resources sectors which the fund will invest in include energy (oil and gas exploration, extraction, production, transportation and power producers), metals and mining (industrial and precious metals exploration, extraction, production and transportation), agriculture, forestry and paper.

94

Up to 98% of the fund’s NAV can be invested in selected foreign markets which include Singapore, Thailand, Indonesia, Philippines, Hong Kong, China, Taiwan, South Korea, Australia, New Zealand and other permitted markets. Necessary approvals from the relevant foreign regulatory authorities will be obtained before investing into the above-mentioned permitted markets.

The fund’s investments may also include listed warrants and options to enhance its returns. The fund may also consider investments in unlisted equities particularly in companies that are expected to seek listing on the Bursa Securities or other markets within a timeframe of two years. The fund may also invest in collective investment schemes in the domestic and foreign markets. The fund may also invest in fixed income securities (such as sovereign bonds and corporate debt) and money market instruments to help generate returns.



The fund allows the investor the opportunity to participate in the long-term growth potential of companies that are engaged in or are substantially related to the natural resources sectors.


The asset allocation, liquidity management and diversification strategies employed are central to the efforts to manage the risks posed to the fund. Hence, there may be situations such as when a severe downturn in the equity markets is expected and liquidity risks are high, that the equity exposure is reduced to below the levels indicated as a temporary defensive strategy. With regards to the bond portfolio of the fund, it should be noted that the performance of the portfolio might be adversely affected should interest rates rise sharply. The value of bonds may also fluctuate based on the credit quality of the issuer. As such, exposure to bonds in the portfolio are managed to minimise such risks to levels that are commensurate with the potential returns.




Selected Performance Benchmark for PNREF

The benchmark of the fund is a customised index based on selected sectors within the S&P/Citigroup BMI Asia Ex-Japan Index comprising Malaysia, Singapore, Thailand, Indonesia, Philippines, Hong Kong, China ‘H’ Shares, Taiwan, South Korea, Australia and New Zealand. The selected sectors are customised to the following weights i.e. 40% Energy Sector, 30% Metals & Mining Industry and 30% Agricultural Product Sub-Industry as defined by the then-current Global Industry Classification Standard (GICS). Therefore, the returns for the customised index for any given period of time would comprise of the returns from the Energy Sector, Metals & Mining Industry and Agricultural Product Sub-Industry of S&P/Citigroup BMI Asia ex Japan Index in a ratio of 40:30:30. This customised benchmark index represents an appropriate performance benchmark for PNREF as it is representative of the sectors that the fund is permitted to invest in over the medium to long-term.

Information on the fund’s benchmark is sourced from Standard & Poor’s Indexes. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my.

“The Public Natural Resources Equity Fund’s benchmark (the “Index”) is the exclusive property of Standard & Poor’s Financial Services LLC (“S&P”). Public Mutual Berhad has contracted with S&P to maintain and calculate the Index. S&P shall have no liability for any errors or omissions in calculating the Index.”


95


PUBLIC AUSTRALIA EQUITY FUND (PAUEF)

Fund Profile








Designated Fund Managers Tan Yan Heong and Chen Yuet Fong


expected.

Fund Objective

To achieve capital growth over the medium to long-term period by investing in the Australian market with the balance invested in the New Zealand and domestic markets.


Investor Profile


Investment Policy

PAUEF will invest primarily in the Australian market. Up to 30% of the fund’s NAV can be invested in the New Zealand and domestic markets. PAUEF will invest in a diversified portfolio of blue chip stocks, index stocks and growth stocks to meet its investment objective. The fund generally maintains equity exposures within a range of 75% to 98% against its NAV. The fund may also invest in fixed income securities and money market instruments.

Investment Strategy

PAUEF is actively managed to achieve its goal of achieving capital growth by investing in a diversified portfolio of blue chip stocks, index stocks and growth stocks listed on the Australian stock market to meet its investment objective. The fund can also invest in the New Zealand and domestic markets. In identifying companies for investment, the Fund Manager relies on fundamental research where the financial health, industry prospects, management quality and past track records of the companies are considered. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities.

The fund’s investments may also include listed warrants and options to enhance its returns. The fund may also consider investments in unlisted equities particularly in companies that are expected to seek listing on the Australian, New Zealand and domestic markets within a timeframe of two years. The fund may also invest in collective investment schemes with similar investment objectives in the Australia, New Zealand and domestic markets. The fund may also invest in fixed income securities (such as sovereign bonds and corporate debt) and money market instruments to help generate returns.

96




The fund allows the investor the opportunity to participate in the long-term growth potential of a diversified portfolio of blue chip stocks, index stocks and growth stocks in the Australian, New Zealand and domestic markets.



Country risks, currency risks and liquidity risks associated with the fund’s investments in the Australia market will be monitored on an ongoing basis. To mitigate risks arising from factors which include foreign currency exposure and foreign interest rate movements, the fund may employ hedging strategies to manage the risks posed to the fund. The fund’s other overseas investments will also be monitored to focus in markets with promising prospects and acceptable risk levels as the fund seeks potential returns that are commensurate with the associated risks.



Selected Performance Benchmark for PAUEF

The benchmark of the fund is the S&P/ASX 200 Index. The daily closing index for the S&P/ASX 200 is obtainable from Bloomberg L.P. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my.

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PUBLIC FAR-EAST ALPHA-30 FUND (PFA30F)

Fund Profile








Designated Fund Managers Chiang Kang Pey and Tan Kok Keong


expected.

Fund Objective

To achieve capital appreciation over the medium to long term period by investing in the domestic and regional markets.


Investor Profile


Investment Policy

PFA30F will invest in up to a maximum of 30 stocks in the domestic and regional markets. The fund generally maintains equity exposures within a range of 75% to 98% against its NAV. The balance of the fund’s NAV may be invested in fixed income securities and money market instruments.

Investment Strategy

PFA30F is actively managed to achieve its goal of achieving capital growth by investing in up to a maximum of 30 stocks in the domestic and regional markets. In identifying companies for investment, the Fund Manager relies on fundamental research where the financial health, industry prospects, management quality and past track records of the companies are considered. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities.

Up to 98% of the fund’s NAV can be invested in selected Far-East markets which include South Korea, China, Taiwan, Japan, Hong Kong, Philippines, Indonesia, Singapore, Thailand, India, Australia and other permitted markets. The fund may invest in equity linked participation notes for selected Far-East stocks listed on the Luxembourg Stock Exchange. Equity linked participation notes are instruments designed to track designated securities. The movement of these notes are similar to the underlying shares listed in their respective markets. These notes are issued by international foreign broking houses for investment by investors who are not able to invest directly in the underlying foreign shares. These notes are purchased and sold by investors in a similar manner to the trading of shares. Investments in equity linked participation notes involve counterparty risk whereby the issuer of the notes may not be able to fulfil its obligation. It also presents market risk as these notes may not track the movement of their underlying shares closely. Necessary approvals from the relevant foreign regulatory authorities will be obtained before investing into the above-mentioned permitted markets.

98

The fund’s investments may also include listed warrants and options (if any) to enhance its returns. The fund may also consider investments in unlisted equities particularly in companies that are expected to seek listing on the Bursa Securities or selected regional markets within a timeframe of two years. The fund may invest in collective investment schemes both in the domestic or selected regional markets. The fund may invest in fixed income securities (such as sovereign bonds and corporate debt) and money market instruments to generate returns.



The fund allows the investor the opportunity to participate in the long-term growth potential of a portfolio comprising of up to 30 stocks listed on Bursa Securities and selected regional markets. It also maintains investments in bonds to help generate returns for the fund.






Selected Performance Benchmark for PFA30F


• 80%MSCIACFar-EastEx-JapanIndex,• 10%TokyoStockPriceIndex(TOPIX),and• 10%3-MonthKualaLumpurInterbankOfferedRates(KLIBOR)

As PFA30F generally maintains an equity exposure ranging between 75% to 98% of its NAV, the benchmark chosen for PFA30F is a composite benchmark index comprising a hypothetical investment in the MSCI AC Far-East Ex-Japan Index, TOPIX and 3-Month KLIBOR in a ratio of 80:10:10. Therefore, the returns for the benchmark index for any given period of time would comprise of 80% from the returns of the MSCI AC Far-East Ex-Japan Index, 10% from TOPIX and 10% from 3-Month KLIBOR interest earned for the same period of time. The component stocks of the MSCI AC Far-East Ex-Japan Index comprise major stocks from key regional markets including China, Hong Kong, Indonesia, South Korea, Malaysia, Philippines, Singapore, Taiwan and Thailand, while the component stocks of TOPIX comprise major stocks from Japan. The 3-Month KLIBOR is reflective of the returns earned from the money market instruments held by the fund. This composite benchmark index represents an appropriate performance benchmark for PFA30F as the fund is an equity fund which generally has an equity weight of 90% of its NAV over the medium to long-term.

Information on the 3-Month KLIBOR is provided by Bank Negara Malaysia, which is published in the business sections of the daily newspapers. The daily closing index for the MSCI AC Far-East Ex-Japan Index and Tokyo Stock Price Index is available on Bloomberg L.P. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my.


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PUBLIC OPTIMAL GROWTH FUND (POGF)

Fund Profile


Type of Fund Income and capital growth


Stock Selection Profile of Fund Stocks which offer attractive dividend yields and growth stocks.




Designated Fund Managers Lum Ming Jang and Liew Mun Hon


expected.

Fund Objective

To provide income* and capital growth by investing in stocks which offer attractive dividend yields and growth stocks in the domestic market.




Investor Profile

• aggressiverisk-rewardtemperament• mediumtolong-terminvestor• preferenceforreceivingincomeandcanwithstandextendedperiodsofmarkethighsandlowsinpursuitof

capital growth

Investment Policy

50% of the fund’s equity investment will be invested in stocks which offer attractive dividend yields in the domestic market. The remaining 50% of the fund’s equity investment will be invested in growth stocks. The fund can also invest in fixed income securities and money market instruments.

Investment Strategy

POGF is actively managed to achieve its goal of achieving income and capital growth by investing in stocks which offer attractive dividend yields and growth stocks in the domestic market. 50% of the fund’s equity investment will be invested in a diversified portfolio of stocks which offer attractive dividend yields in the domestic market. Dividend stocks are stocks that offer or have the potential to offer attractive dividend yields. The remaining 50% of the fund’s equity investment will be invested in a diversified portfolio of growth stocks that are listed on the Bursa Securities. Growth stocks are stocks which are projected to achieve strong earnings growth over the medium to long term.

In identifying such companies, the Fund Manager relies on fundamental research where the financial health, industry prospects, management quality and past track records of the companies are considered. Although the fund is actively managed, the frequency of its trading strategy will depend on market opportunities.

100


The fund’s investments may also include listed warrants to enhance its returns. The fund may participate in Initial Public Offerings (IPOs) of companies seeking a listing on Bursa Securities. The fund may invest in collective investment schemes with similar investment objectives in the domestic market. The fund may also invest in fixed income securities (such as sovereign bonds and corporate debt) and money market instruments to help generate returns.


The fund allows the investor the opportunity to participate in the long-term growth potential of a diversified portfolio of dividend stocks and growth stocks in the domestic market.





Selected Performance Benchmark for POGF





101


PUBLIC INDONESIA SELECT FUND (PINDOSF)

Fund Profile










expected.

Fund Objective

To achieve capital growth over the medium to long-term period by investing in a portfolio of investments primarily in the Indonesia market.


Investor Profile


Investment Policy

PINDOSF will invest primarily in the Indonesia market. Up to 30% of the fund’s NAV can be invested in the domestic and global markets. The fund will invest in a diversified portfolio of blue chip stocks, index stocks and growth stocks to meet its investment objective. The fund generally maintains equity exposures within a range of 75% to 98% against its NAV. The fund may also invest in domestic and foreign fixed income securities and money market instruments.

Investment Strategy

PINDOSF is actively managed to achieve its goal of achieving capital growth by investing in a diversified portfolio of blue chip stocks, index stocks and growth stocks listed on the Indonesia market. To achieve increased diversification, the fund may invest up to 30% of its NAV in the domestic and global markets. The fund’s investment in the domestic and global markets is incidental to its primary focus of investing in the Indonesia market. In identifying companies for investment, the Fund Manager relies on fundamental research where the financial health, industry prospects, management quality and past track records of the companies are considered. Although the fund is actively managed, the frequency of its trading strategy will depend on market opportunities.

The fund’s investments may include listed warrants and options to enhance its returns. The fund may also consider investments in unlisted equities particularly in companies that are expected to seek listing on the Indonesia, domestic and global markets within a timeframe of two years. The fund may also invest in collective investment schemes with similar investment objectives in the Indonesia, domestic and global markets. The fund may also invest in domestic and foreign fixed income securities (such as sovereign bonds and corporate debt) and money market instruments to help generate returns.

102



The fund allows the investor the opportunity to participate in the long-term growth potential of a diversified portfolio of blue chip stocks, index stocks and growth stocks in the Indonesia, domestic and global markets.



Country risks, currency risks and liquidity risks associated with the fund’s investments in the Indonesia market will be monitored on an ongoing basis. To mitigate risks arising from factors which include foreign currency exposure and foreign interest rate movements, the fund may employ hedging strategies to manage the risks posed to the fund. The fund’s other overseas investments will also be monitored to focus in markets with promising prospects and acceptable risk levels as the fund seeks potential returns that are commensurate with the associated risks.



Selected Performance Benchmark for PINDOSF

The benchmark of the fund is the Jakarta LQ-45 Index (LQ 45). The daily closing index for the LQ 45 is obtainable from Bloomberg L.P. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my.


103


PUBLIC SINGAPORE EQUITY FUND (PSGEF)

Fund Profile










expected.

Fund Objective

To achieve capital growth over the medium to long-term period by investing in a portfolio of investments primarily in the Singapore market.


Investor Profile


Investment Policy

PSGEF will invest primarily in the Singapore market. Up to 30% of the fund’s NAV can be invested in the domestic and global markets. PSGEF will invest in a diversified portfolio of blue chip stocks, index stocks and growth stocks to meet its investment objective. The fund generally maintains equity exposures within a range of 75% to 98% against its NAV. The fund may also invest in domestic and foreign fixed income securities and money market instruments.

Investment Strategy

PSGEF is actively managed to achieve its goal of achieving capital growth by investing in a diversified portfolio of blue chip stocks, index stocks and growth stocks listed on the Singapore stock market. To achieve increased diversification, the fund may invest up to 30% of its NAV in the domestic and global markets. The fund’s investment in the domestic and global markets is incidental to its primary focus of investing in the Singapore market. In identifying companies for investment, the Fund Manager relies on fundamental research where the financial health, industry prospects, management quality and past track records of the companies are considered. Although the fund is actively managed, the frequency of its trading strategy will depend on market opportunities.

The fund’s investments may include listed warrants and options to enhance its returns. The fund may also consider investments in unlisted equities particularly in companies that are expected to seek listing on the Singapore, domestic and global markets within a timeframe of two years. The fund may also invest in collective investment schemes with similar investment objectives in the Singapore, domestic and global markets. The fund may also invest in domestic and foreign fixed income securities (such as sovereign bonds and corporate debt) and money market instruments to help generate returns.

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The fund allows the investor the opportunity to participate in the long-term growth potential of a diversified portfolio of blue chip stocks, index stocks and growth stocks in the Singapore, domestic and global markets.



Country risks, currency risks and liquidity risks associated with the fund’s investments in the Singapore market will be monitored on an ongoing basis. To mitigate risks arising from factors which include foreign currency exposure and foreign interest rate movements, the fund may employ hedging strategies to manage the risks posed to the fund. The fund’s other overseas investments will also be monitored to focus in markets with promising prospects and acceptable risk levels as the fund seeks potential returns that are commensurate with the associated risks.



Selected Performance Benchmark for PSGEF

The benchmark of the fund is the Straits Times Index. The daily closing index for the Straits Times Index is obtainable from Bloomberg L.P. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my.


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PUBLIC STRATEGIC SMALLCAP FUND (PSSCF)

Fund Profile




Stock Selection Profile of Fund Companies with small market capitalisation, at the point of purchase, with special focus on growth stocks.






expected.

Fund Objective

To achieve capital appreciation over the medium to long term period through investments primarily in companies with small market capitalisation.

Notes:The fund will invest in small sized companies at the point of purchase.

The fund may remain invested in such counters should the stocks become medium sized companies, if the growth prospects and valuation of the stocks continue to be attractive.


Investor Profile


Investment Policy

PSSCF will invest primarily in small market capitalisation companies which have promising growth prospects in the medium to long term period. The fund will invest in stocks with market capitalisation of up to RM1.25 billion at the point of purchase. The fund may also invest in companies which at the point of purchase form the bottom 15% of the cumulative market capitalisation of the market which the stock is listed on. The stock universe for each market in which the stock is listed on is sorted by market capitalisation and is ranked in descending order. Beginning with stocks with the smallest market capitalisation, the market capitalisation of stocks is aggregated until the cumulative market capitalisation of these stocks reaches 15%.

The fund generally maintains equity exposures within a range of 70% to 98% against its NAV. The balance of the fund’s NAV may be invested in fixed income securities and liquid assets which include money market instruments.

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Investment Strategy

PSSCF is actively managed and focuses primarily on investing in companies with small market capitalisation, with the aim of achieving high capital growth over the medium to long-term through investments in such companies that possess the capacity to grow strongly. The fund seeks to achieve this goal by maintaining a reasonable level of exposure to equities over time in a diversified portfolio of small market capitalisation companies with reasonable earnings growth prospects that are listed on the Bursa Securities. The fund may remain invested in such counters should the stocks become medium sized companies, if the growth prospects and valuation of the stocks continue to be attractive. Generally, companies with reasonable earnings growth prospect over the medium to long-term are selected. In identifying such companies, the fund relies on fundamental research where the financial health, industry prospects, management quality and past track record of the companies are considered. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities.

The fund will focus its investments in the domestic market. To achieve increased diversification, the fund may invest up to 30% of its NAV in selected foreign markets which include South Korea, China, Hong Kong, Taiwan, Singapore, Philippines, Thailand, Indonesia, Australia, Luxembourg and other permitted markets. The fund’s investment in foreign markets is incidental to its primary focus of investing in the domestic market. The fund may also invest in equity linked participation notes for selected regional stocks listed on the Luxembourg Stock Exchange. Equity linked participation notes are instruments designed to track designated securities. The movement of these notes are similar to the underlying shares listed in their respective markets. These notes are issued by international foreign broking houses for investment by investors who are not able to invest directly in the underlying foreign shares. These notes are purchased and sold by investors in a similar manner to the trading of shares. Investments in equity linked participation notes involve counterparty risk whereby the issuer of the notes may not be able to fulfil its obligation. It also presents market risk as these notes may not track the movement of their underlying shares closely. Necessary approvals from the relevant foreign regulatory authorities will be obtained before investing into the above-mentioned permitted markets.

The fund’s investments may include listed warrants and options (if any) to enhance its returns. The fund may also consider investments in unlisted equities particularly in companies that are expected to seek listing on the Bursa Securities or selected foreign markets within a timeframe of two years. The fund may invest in collective investment schemes both in the domestic or selected foreign markets. The fund may also invest in fixed income securities (such as sovereign bonds and corporate debt) and money market instruments to help generate returns.

The high equity exposures maintained at all times, in particular, may result in the fund experiencing significant volatilities in times of adverse market movements. To mitigate such risk, the fund may also invest in futures contracts and listed options (when available) to hedge against market volatility.


The fund allows the investor the opportunity to participate in the medium to long-term growth potential of a diversified portfolio of promising companies with small market capitalisation which as an investment group is generally under researched by the investment community. The focus of the fund is on identifying companies that have strong growth potential and trade at attractive valuations.


The lack of liquidity in small-capitalised stocks in the fund’s equity portfolio may result in the fund experiencing significant volatility in times of adverse market conditions. The asset allocation, liquidity management and diversification strategies employed are central to the efforts to manage the risks posed to the fund. There may be situations such as when a severe downturn in the equity markets is expected and liquidity risks are high, that the fund’s equity exposure is reduced to below the levels indicated as a temporary defensive strategy. The fund may also invest in futures contracts and listed options (when available) to hedge against market volatility. Investments in bonds may be adversely affected if interest rates were to move up sharply. As such, the fund’s exposure to bonds are managed accordingly to minimise these risks.

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Selected Performance Benchmark for PSSCF

As PSSCF will focus its investments in the domestic market, the benchmark for PSSCF is the FTSE Bursa Malaysia Small Cap Index which comprises of eligible companies within the top 98% of the Bursa Malaysia Main Market excluding constituents of the FTSE Bursa Malaysia Top 100 Index.

To obtain the latest information on the FTSE Bursa Malaysia Small Cap Index, investors can refer to the Bursa Malaysia website (www.bursamalaysia.com under Market Information Section) for a list of the component stocks of the FTSE Bursa Malaysia Small Cap Index and transactional information such as last traded price, previous closing price, volume traded, high and low for the day and other information. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my.


The FTSE BURSA MALAYSIA SMALL CAP INDEX is calculated by FTSE. All intellectual property rights in the index values and constituent list vests in FTSE and BURSA MALAYSIA. Neither FTSE nor BURSA MALAYSIA sponsor, endorse or promote this product and are not in any way connected to it and do not accept any liability. Public Mutual Berhad has obtained full licence from FTSE to use such intellectual property rights in the creation of this product.”

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PUBLIC TACTICAL ALLOCATION FUND (PTAF)(Formerly known as Public Global Balanced Fund)

Fund Profile

Category of Fund Mixed asset fund



Investment Asset Selection Profile of Fund Blue chip stocks, index stocks, growth stocks, fixed income securities, money market instruments and deposits




Designated Fund Managers Chiang Kang Pey and Chen Yuet Fong

The fund may adopt temporary defensive strategies by lowering its equity exposure below the above stated range and increasing its investments in fixed income securities and liquid assets which include money market

instruments and deposits if the investment climate is deemed to be unfavourable and weakness in the equity markets is expected. If the outlook for fixed income securities and money market instruments is also

unfavourable, the fund will move its investments into deposits.

Fund Objective

To achieve capital growth over the medium to long-term period by investing in equities, collective investment schemes and fixed income securities in domestic and foreign markets.


Investor Profile

• aggressiverisk-rewardtemperament• mediumtolong-terminvestor• toachievecapitalgrowththroughtacticalassetallocationstrategy

Investment Policy

PTAF will adopt a tactical asset allocation strategy and has the flexibility to rebalance its asset allocation between the different asset classes of equities, fixed income securities and money market instruments accordingly, depending on the market outlook. Its equity content may range between 30% to 98% of the NAV of the fund. The balance of the fund’s NAV will be invested in fixed income securities and liquid assets which include money market instruments and deposits.

Investment Strategy

PTAF is actively managed and seeks to achieve its goal of providing capital growth over the medium to long term period by adopting a tactical asset allocation strategy of investing 30% to 98% of the fund’s NAV in equities. The balance of the fund’s NAV will be invested in fixed income securities and liquid assets which include money market instruments and deposits to help generate returns. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities.

The fund employs both the top-down and bottom-up approach to evaluate its investments in equities, fixed income securities and money market instruments. From the top-down perspective, the fund manages its exposures to each of the asset classes of equities, fixed income securities and money market instruments actively bearing in mind the risk-reward profile of the respective asset class. Depending on the market outlook, the fund has the flexibility to rebalance its asset allocation between the different asset classes accordingly. The fund may invest up to 98% of its NAV in a portfolio of equities when the market outlook is positive.

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However, the fund may adopt temporary defensive strategies by lowering its equity exposure below the above stated range and increasing its investments in fixed income securities and liquid assets which include money market instruments and deposits if the investment climate is deemed to be unfavourable and weakness in the equity markets is expected. If the outlook for fixed income securities and money market instruments is also unfavourable, the fund will move its investments into deposits.

For its equity investments, the fund will invest in a diversified portfolio of blue chip stocks, index stocks and growth stocks listed in domestic and selected foreign stock markets. In identifying such companies, the fund adopts the bottom-up approach which relies on fundamental research where the financial health, industry prospects, management quality and past track records of the companies are considered. The fund may also invest in collective investment schemes which invests in stocks listed in domestic and foreign markets.

The fund’s investments may include listed warrants and options to enhance its returns. The fund may also consider investments in unlisted equities particularly in companies that are expected to seek listing on the Bursa Securities or selected foreign markets within a timeframe of two years.


The non-equity portion of the fund is invested in fixed income securities (such as sovereign bonds and corporate debt) and money market instruments. Where investment climate is deemed to be unfavourable and weakness in equity markets is expected, the fund will increase its holdings in fixed income securities and money market instruments. The fund will invest in bonds of various tenures which will enable it to rebalance its asset allocation and capitalise on market opportunities between the different asset classes in a timely manner. The asset allocation between long-tenured bonds, short-tenured bonds and money market instruments may be varied taking into account economic growth, interest rate trends and market liquidity conditions. Redeemable loan stocks with convertible features to enhance the fund’s returns may also be invested by the fund. To manage the credit risks of its fixed income securities investments, the fund will rely on credit analysis and focus on securities issued by companies with sound financial position i.e. gearing ratio and interest cover ratio of the issuer are within acceptable levels of the particular industry the fund is investing in. The money market instruments invested by the fund are issued by financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis.

Up to 98% of the fund’s NAV can be invested in selected foreign markets which include South Korea, Hong Kong, Japan, China, Taiwan, Singapore, India, Thailand, Indonesia, Philippines, Australia, New Zealand and other permitted markets such as United States of America, Germany, France and United Kingdom. Necessary approvals from the relevant foreign regulatory authorities will be obtained before investing into the above-mentioned permitted markets.


The fund allows the investor the opportunity to participate in tactical asset allocation strategy where investments are allocated between the different asset classes of equities, fixed income securities and money market instruments based on a flexible investment mandate. The fund may capitalise on potential investment opportunities if the market outlook is positive while reducing its equity exposure when weakness in the equity markets is expected.



The asset allocation, liquidity management, diversification and hedging strategies employed are therefore central to the efforts to manage the risks posed to the fund. Hence, there may be situations such as when a severe downturn in the equity markets is expected and liquidity risks are high, that the equity exposure is reduced to below the levels indicated and the exposure to fixed income securities and liquid assets which include money market instruments are increased as a temporary defensive strategy. If the outlook for fixed income securities and money market instruments is also unfavourable, the fund will move its investments into deposits. However, should the Fund Manager judge market conditions incorrectly or apply an unsuitable investment strategy, the performance of the fund may be adversely affected.


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With regards to the bond portfolio of the fund, it should be noted that the performance of the portfolio might be adversely affected should interest rates rise sharply. The value of bonds may also fluctuate based on the credit quality of the issuer. As such, exposure to bonds in the portfolio are managed to minimise such risks to levels that are commensurate with the potential returns.


Selected Performance Benchmark for PTAF



As PTAF adopts a tactical asset allocation strategy with equity exposure range between 30% to 98% of the fund’s NAV, the benchmark chosen for PTAF is a composite benchmark index comprising a hypothetical investment in the MSCI AC Far-East Ex-Japan Index and 3-Month KLIBOR in a ratio of 70:30. Therefore, the returns for the benchmark index for any given period of time would comprise of 70% from the returns of the MSCI AC Far-East Ex-Japan Index and 30% from 3-Month KLIBOR interest earned for the same period of time. The MSCI Far-East Ex-Japan Index is selected as the fund’s equity benchmark as it is more representative of the foreign markets that the fund invests in which include China, Hong Kong, Indonesia, South Korea, Malaysia, Philippines, Singapore, Taiwan and Thailand. This composite benchmark index represents an appropriate performance benchmark for PTAF as it is reflective of the fund’s asset allocation which will typically be 70% of NAV in equities over the medium to long-term.


Information on the 3-Month KLIBOR is provided by Bank Negara Malaysia, which is published in the business sections of the daily newspapers. The daily closing index for the MSCI AC Far-East Ex-Japan Index is available on Bloomberg L.P. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my.


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PUBLIC BALANCED FUND (PBF)

Fund Profile

Category of Fund Balanced fund



Fixed Income Securities Range of Fund 40% to 60%



Investor’s Risk Profile Conservative to moderate




expected.

Fund Objective

To provide a steady income* and capital growth over the medium to long-term period.



Investor Profile

• conservativetomoderaterisk-rewardtemperament• preferenceforreceivingregularincomeandcapitalgrowth• mediumtolong-terminvestor

Investment Policy

To create a prudent mix of primarily Malaysian equities and fixed income securities in the ratio of 60:40 which is in line with the fund’s objective. Its equity content in terms of NAV will range between 40% to 60% of the NAV of the fund. The balance of the fund’s NAV will be invested in fixed income securities and liquid assets which include money market instruments.

Investment Strategy

PBF is actively managed and seeks to meet its objectives of producing a steady and recurring income while pursuing long-term capital growth by adhering to a balanced asset allocation approach of investing 40% to 60% of the NAV in equities. The balance of the fund’s NAV would be invested in bonds and other fixed income securities to generate the required recurring income. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities.

The equity investment of the fund primarily focuses on a diversified portfolio of index-linked companies, blue chip stocks and companies with growth prospects that are listed on the Bursa Securities. Generally, companies with reasonable earnings growth prospects over the medium to long-term are sought. In identifying such companies, the fund relies on fundamental research where the financial health, industry prospects, management quality and past track records of the companies are considered.

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The non-equity portion of the fund is invested in fixed income securities (such as sovereign bonds and corporate debt) and money market instruments. To generate the required recurring income, the fund will generally maintain investments in fixed income securities of 40% to 60% of its NAV. The fund will invest in a portfolio of bonds of various tenures depending on economic growth, interest rate trends and market liquidity conditions. To manage credit risks of its bond investments, the fund will rely on the credit analysis and focus on bonds issued by the companies with sound financial position i.e. gearing ratio and interest cover ratio of the issuer are within acceptable levels of the particular industry the fund is investing in. Where yields are attractive and interest rate trends are favourable, the investments in bonds are increased. Notwithstanding the need for a stable and recurring income stream, the investment in bonds and fixed income assets is often raised at the expense of equity allocations when weaknesses in the equity markets are anticipated. Conversely, when the equity markets are expected to perform well, the funds are reallocated from fixed income assets to equities.


The fund’s investments may also include listed warrants to enhance its returns. The fund may consider investments in Initial Public Offerings (IPOs) of companies seeking a listing on the Bursa Securities or other permitted foreign markets. The fund may also invest in collective investment schemes both in the domestic and foreign markets.


The fund allows the investor the opportunity to invest in a balanced approach where investments are made in equities and fixed income securities in near equal proportion to spread out the risks. The potentially large but highly volatile returns from equity investments are moderated by the fairly stable performance from the fixed income securities. The returns of the fund should be significantly less volatile than the equity market as a result.


Normally, the equity content will range from 40% to 60% of the fund. In times of actual or anticipated stock market weaknesses, the equity portfolio may be reduced accordingly. The asset allocation between the various investment assets referred to above and the decision to invest, sell or trade are based on the decision of the Fund Managers who adopt an active fund management approach.





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Selected Performance Benchmark for PBF

To better reflect the scope and parameters of the fund especially with regards to the equity constraints of 60%, the Public Balanced Equity Index (PBEIX) was created. PBEIX is a hybrid index whose value is subject to the daily changes in the FTSE Bursa Malaysia KLCI (FBM KLCI) and the 3-Month Kuala Lumpur Interbank Offered Rates (KLIBOR) on a 60:40 basis. The index is assumed to be rebalanced to 60% equity exposure at the end of each trading day.

Public Balanced Equity Index (PBEIX) is a proprietary composite benchmark index comprising of a hypothetical investment in the FBM KLCI and 3-Month KLIBOR in a 60:40 ratio. Therefore, the returns for PBEIX for any given period of time would be made up of 60% from the returns of the FBM KLCI and 40% from 3-Month KLIBOR interest earned for the same period of time. The FBM KLCI is a free-float adjusted market capitalisation weighted index which comprises the Bursa Malaysia Main Market’s 30 largest companies by full market capitalisation. As it is also very widely followed and easily understood representation of the Bursa Securities, it is deemed that the most appropriate equity benchmark for this fund is the FBM KLCI. The 3-Month KLIBOR is reflective of the returns earned from the money market instruments held by the fund. For the purpose of this index, the returns for 3-Month KLIBOR is calculated by accruing interest earned on a daily basis from the daily closing quoted 3-Month KLIBOR rates. This index represents an appropriate performance benchmark for gauging the performance of PBF in view of the fund’s 60% equities portfolio composition. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my.




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PUBLIC FAR-EAST BALANCED FUND (PFEBF)

Fund Profile

Category of Fund Balanced fund










expected.

Fund Objective

To provide income* and capital growth over the medium to long-term period.

Notes:Any material changes to the investment objective of the fund would require unitholders’ approval.

* Distribution (if any) will be reinvested unless unitholders opt for distribution to be paid out. Please refer to pages 36 and 37 for more information on distribution policy.

Investor Profile

• conservativetomoderaterisk-rewardtemperament• preferenceforreceivingincomeandcapitalgrowth• mediumtolong-terminvestor

Investment Policy

To create a prudent mix of equities and fixed income securities in the ratio of 60:40 which is in line with the fund’s objective. Its equity content will range in the region of between 40% to 60% of the NAV of the fund. The balance of the fund’s NAV will be invested in fixed income securities and liquid assets which include money market instruments.

Investment Strategy

PFEBF is actively managed and seeks to meet its objective of producing income while pursuing long-term capital growth by adhering to a balanced asset allocation approach of investing 40% to 60% of the NAV in equities. The balance of the fund’s NAV would be invested in bonds and other fixed income securities to generate the required recurring income. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities.

The equity investment of the fund primarily focuses on a diversified portfolio of index-linked companies, blue chip stocks and companies with growth prospects that are listed on Bursa Securities and selected regional stock markets. Generally, companies with reasonable earnings growth prospects over the medium to long-term are selected. In identifying such companies, the fund relies on fundamental research where the financial health, industry prospects, management quality and past track records of the companies are considered.

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The non-equity portion of the fund is invested in fixed income securities (such as sovereign bonds and corporate debt) and money market instruments. To generate the required recurring income, the fund will generally maintain investments in fixed income securities of 40% to 60% of its NAV. The fund will invest in a portfolio of bonds of various tenures depending on economic growth, interest rate trends and market liquidity conditions. To manage credit risks of its bond investments, the fund will rely on the credit analysis and focus on bonds issued by the companies with sound financial position i.e. gearing ratio and interest cover ratio of the issuer are within acceptable levels of the particular industry the fund is investing in. Where yields are attractive and interest rate trends are favourable, the investments in bonds are increased. Notwithstanding the need for a stable and recurring income stream, the investment in bonds and fixed income assets are often raised at the expense of equity allocations when weaknesses in the equity markets are anticipated. Conversely, when the equity markets are expected to perform well, the funds are reallocated from fixed income assets to equities.

Up to 60% of the fund’s NAV can be invested in selected regional markets which include South Korea, China, Hong Kong, Taiwan, Japan, Singapore, Philippines, Thailand, Indonesia and other permitted markets. Necessary approvals from the relevant foreign regulatory authorities will be obtained before investing into the above-mentioned permitted markets.

The fund’s investments may also include listed warrants and options to enhance its returns. The fund may also consider investments in unlisted equities particularly in companies that are expected to seek listing on the Bursa Securities or other permitted foreign markets within a timeframe of two years. The fund may also invest in collective investment schemes both in the domestic and foreign markets.



The fund allows the investor the opportunity to participate in the long-term growth potential of a diversified portfolio of index stocks, blue chip stocks and growth stocks listed on selected regional stock markets.



The fund’s overseas investments will be monitored to focus in markets with promising prospects and acceptable risk levels as the fund seeks potential returns that are commensurate with country risks, currency risks and liquidity risks. To mitigate risk arising from factors which include foreign currency exposure and foreign interest rate movements, the fund may employ hedging strategies to manage the risks posed to the fund.



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Selected Performance Benchmark for PFEBF



The benchmark chosen for PFEBF is a composite benchmark index comprising a hypothetical investment in the MSCI AC Far-East Ex-Japan Index and 3-Month KLIBOR in a ratio of 60:40. Therefore, the returns for the benchmark index for any given period of time would comprise of 60% from the returns of the MSCI AC Far-East Ex-Japan Index and 40% from 3-Month KLIBOR interest earned for the same period of time. The component stocks of the MSCI AC Far-East Ex-Japan Index comprise major stocks from key regional markets including China, Hong Kong, Indonesia, South Korea, Malaysia, Philippines, Singapore, Taiwan and Thailand. This composite benchmark index represents an appropriate performance benchmark for PFEBF as the fund may only invests up to 60% of its NAV in a portfolio of stocks in domestic and regional markets, while the balance of the fund’s NAV is invested in fixed income securities and liquid assets.


Information on the 3-Month KLIBOR is provided by Bank Negara Malaysia, which is published in the business sections of the daily newspapers. The daily closing index for the MSCI AC Far East Ex-Japan Index is available on Bloomberg L.P. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my.


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PUBLIC BOND FUND (P BOND)

Fund Profile

Category of Fund Bond fund

Type of Fund Income


Security Selection Profile of Fund Fixed income securities


Investor’s Risk Profile Conservative


Designated Fund Managers Lum Ming Jang and Zaharudin bin Ghazali

The fund may adopt temporary defensive strategies by lowering its bond exposure below the above stated range and increasing its investments in liquid assets which include money market instruments if the

investment climate is deemed to be unfavourable and weakness in the bond markets is expected.

Fund Objective

To provide a steady stream of income* returns through investment in the money market and private debt securities.



Investor Profile

• conservativerisk-rewardtemperament• seekstabilityofannualincomewithsomesafetyofprincipal**• mediumterminvestor

** Investors should note that P BOND is not a capital protected fund.

Investment Policy

P BOND is actively managed and invests in fixed income securities and money market instruments to meet its objective of providing annual income to unitholders. Its fixed income securities investments comprise government and government-sponsored bonds and private debt securities (listed and unlisted). Investments in redeemable loan stocks with convertible features to enhance the fund’s returns are included. The fund generally maintains bond exposures within the range of 75% to 98% against its NAV. The balance of the fund’s NAV will be invested in money market instruments.

Investment Strategy

P BOND seeks to meet its objective of producing a steady and recurring annual income stream by investing in a portfolio of fixed income securities such as sovereign bonds and corporate debt with the balance invested in money market instruments. Investments in redeemable loan stocks with convertible features to enhance the fund’s returns are also considered. These loan stocks may not be converted but will be disposed prior to or held to maturity. The loan stocks which are held to maturity will not be converted to equity. Instead, the loan stocks will be redeemed for cash at its maturity date. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities. To achieve increased diversification, the fund may invest in foreign fixed income securities. The foreign markets which the fund may invest in include Singapore, Japan, Hong Kong, Australia, United Kingdom and other permitted markets. Necessary approvals from the relevant foreign regulatory authorities will be obtained before investing into the above-mentioned permitted markets.

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The fund allows the investor access to the bond market, which is usually inaccessible to the average investor as it is a market for institutions where the standard transaction block amounts to RM5 million. The fund invests in a diversified portfolio of bonds, which comprises fixed income securities that have different profiles in maturities, credit ratings and sectors, to produce returns that are generally higher than fixed deposits. The fund is also able to provide the investor with greater liquidity than fixed deposits as the units in the fund can be redeemed on any Business Day as compared to an early redemption of fixed deposits prior to maturity date where the depositor may be penalised by the loss of accumulated interest income.


The fund will seek to maximise its potential return by investing in bonds that command higher yields than money market instruments. In doing so, the fund will likely be exposed to the risks of adverse interest rate movements and credit rating downgrades. On the other hand, should interest rates turn favourable i.e. fall, or if credit rating of the bond improves, then the fund stands to benefit from the resultant price appreciation. Nevertheless, the credit risks assumed are limited to the extent that any bond invested in must have a minimum credit rating of BBB at the point of purchase. Notwithstanding this, the fund’s exposure to the potential risks and returns have to be managed actively to achieve the risk-reward tradeoff that is reasonable to the fund. The fund may also invest in futures and options contracts to hedge against interest rate risks.



Selected Performance Benchmark for P BOND

The benchmark for P BOND is based on fixed deposits rates as opposed to a more conventional corporate bond index. The rationale for this is that the fund is essentially managed in a fairly conservative manner with the primary aim of outperforming fixed deposit returns. Moreover, the general profile of the unitholders of the fund is such that their returns from the fund are more often than not compared against the returns from fixed deposits. For the purpose of this fund therefore, it is felt appropriate to benchmark the fund against an accumulation index based on the 12-month fixed deposits rates (FDR) quoted by Malayan Banking Berhad. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my.

Investors should note that the risk profile of P BOND is higher than that of a fixed deposit and therefore, it has the potential to deliver higher returns than its benchmark.

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PUBLIC INSTITUTIONAL BOND FUND (PIN BOND)

Fund Profile


Type of Fund Income






Designated Fund Managers Zaharudin bin Ghazali and Ng Boon Hoa



Fund Objective

To provide annual income* through investment in private debt securities.



Investor Profile


** Investors should note that PIN BOND is not a capital protected fund.

Investment Policy

PIN BOND is actively managed and invests in fixed income securities and money market instruments to meet its objective of providing annual income to unitholders. Its fixed income securities investments comprise government and government-sponsored bonds and private debt securities (listed and unlisted). Investments in redeemable loan stocks with convertible features to enhance the fund’s returns are also considered. 50% of the fund’s holding in fixed income securities must be in bonds with credit rating no lower than AA, as rated by RAM or its equivalent, on a standalone basis or with a bank guarantee. The remainder of the fund’s holding in fixed income securities will be invested in bonds with a minimum credit rating of A at the point of purchase. The fund generally maintains bond exposures within the range of 75% to 98% against its NAV. The balance of the fund’s NAV will be invested in money market instruments.

Investment Strategy

PIN BOND seeks to meet its objective of producing a steady and recurring annual income by investing in a portfolio of fixed income securities such as sovereign bonds and corporate debt with the balance invested in money market instruments. Investments in redeemable loan stocks with convertible features to enhance the fund’s opportunity for capital gains are also considered. These loan stocks may not be converted but will be disposed prior to or held to maturity. The loan stocks which are held to maturity will not be converted to equity. Instead, the loan stocks will be redeemed for cash at its maturity date. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities. To achieve increased diversification, the fund may invest in foreign fixed income securities.

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The fund allows institutional investors the opportunity to invest in the bond market for returns that are potentially higher than fixed deposits. The fund essentially offers the investor the benefits of risk management, proper diversification and liquidity management.


The fund will seek to maximise its potential returns by investing in bonds that command higher yields than money market instruments. In doing so, the fund will likely be exposed to the risks of adverse interest rate movements and credit rating downgrades. On the other hand, should interest rates turn favourable i.e. fall, or credit rating of the bond improves, then the fund stands to benefit from the resultant price appreciation. Nevertheless, the credit risks assumed are limited to the extent that 50% of the fund’s holding in fixed income securities must be invested in bonds of credit rating no lower than AA and the balance in bonds with a minimum credit rating of A at the point of purchase. Notwithstanding this, the exposure to the potential risks and returns need to be managed actively to achieve the risk-reward tradeoff that is reasonable to the fund. The fund may also invest in futures and options contracts to hedge against interest rate risks.



Selected Performance Benchmark for PIN BOND

The benchmark chosen for PIN BOND will be the Corporate Bond Index – 1 Year And Above (CORP1V) developed and maintained by CIMB Berhad. The bond index tracks the aggregate performance of all domestic corporate debt with maturities of 1 year and above. The rationale of the selection of this index is that it essentially represents the broad bond market that the fund will be primarily invested in. Thus, to provide above average returns relative to the market, the fund will be managed with the goal of outperforming this benchmark. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my.


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PUBLIC ENHANCED BOND FUND (PEBF)

Fund Profile




Equity Range of Fund Up to 20%

Security Selection Profile of Fund Fixed income securities and equities




Designated Fund Managers Zaharudin bin Ghazali and Loo See Seong



Fund Objective

Seeks to provide a combination of annual income* and modest capital growth primarily through a portfolio allocation across quality bonds and equities.



Investor Profile

• conservativetomoderateriskrewardtemperament• seekstabilityofannualincomeandmodestcapitalgrowthpotential• mediumtolongterminvestor

Investment Policy

PEBF is actively managed and invests primarily in fixed income securities and money market instruments to meet its objective of providing annual income to its unitholders. The fixed income securities investments of the fund comprise largely of private debt securities (listed and unlisted) and to a lesser extent government and government-sponsored bonds. Investments in redeemable loan stocks with convertible features are also considered. The fund is allowed to participate in the equity markets with the aim of producing enhanced returns to supplement that of the bond portfolio. To that end, in view of the increased volatility or risks associated with investments in equities, the fund’s investments in equities are capped at 20% of the NAV of the fund.

Investment Strategy

PEBF aims to meet its objectives of producing a steady and recurring stream of income by committing a significant portion of between 70% to 85% of its NAV in fixed income securities. To produce the desired level of returns, the bond portfolio focuses primarily on private debt securities (listed and unlisted) and to a lesser extent government and government-sponsored bonds. Investments in redeemable loan stocks with convertible features are also considered. These loan stocks held by the fund may be redeemed at maturity or converted to equities. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities. To achieve increased diversification, the fund may invest in foreign fixed income securities. The foreign markets which the fund may invest in include Singapore, Taiwan, South Korea, Japan, Hong Kong, China, Thailand, Indonesia, Philippines and other permitted markets. Necessary approvals from the relevant foreign regulatory authorities will be obtained before investing into the above-mentioned permitted markets.

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The fund employs both the top-down and bottom-up approach to maximise its potential returns while at the same time strives to manage risks within reasonable limits. From the top-down perspective, the fund manages its exposures to each of the three main asset classes of equities, bonds and cash actively bearing in mind the risk-reward profile of the respective asset class.

Since the fund is primarily a bond fund i.e. the fund generates most of its returns from its investments in bonds, the focus of the fund’s asset allocation strategies therefore lies chiefly with the bond portfolio. The fund’s bond exposures are managed according to the risk-reward characteristics of the bond asset class, which is defined by the inverse relationship between bond prices and interest rates. Essentially, where interest rate trends are favourable (i.e. a trend of declining interest rates), the exposure to bonds is generally increased in view of its positive impact on bond prices. Conversely, the fund’s exposure to bonds is reduced when interest rates are anticipated to trend upwards.

Within the bond portfolio, bond issues of longer duration are more sensitive to interest rate movements than bonds of shorter duration. The interest rate sensitivity of the bond portfolio and by extension, the fund’s portfolio as a whole, can be effectively managed through changing the duration or term structure of the portfolio. In short, the fund has the added option of changing its duration profile as well as overall bond exposures to meet the challenges of changing interest rates trends.

To mitigate credit and liquidity risks, the fund ensures that its bond portfolio is sufficiently diversified in its investment concentration. Diversified bond portfolio comprises fixed income securities that have different profiles in maturities, credit ratings and sectors. The fund also places particular emphasis on the bottom-up approach of focusing on credit analysis to minimise such risks as well as to seek attractive investment opportunities in bond issues that potentially give better yields compared to prevailing market rates.

As for its equity investments, the fund adopts a more market timing and bottom-up approach to investing as the fund’s equity exposure is capped at a maximum of 20%. Given that the risk tolerance of the fund is lower than that of equity or even balanced funds, the equity investments adopted by the fund would generally include stocks with defensive profiles. For example, should the downside to the equity market appear limited, the fund may look towards investing in defensive low beta blue-chip stocks that are supported by high dividend yields. Therefore, even if the equity market was to remain weak, these defensive stocks are likely to hold up relatively better than the market at large and in addition, their dividends may help mitigate declining stock prices. However, should the equity market perform well as anticipated, the same stocks should benefit meaningfully from the general rise in the market. The fund’s equity exposure can be invested in selected foreign markets.

The fund may look favourably towards investing in redeemable bonds that are also convertible into equities as they offer downside protection, reasonable yields and upside participation in the equity position of the issuer. Separately, attractively priced initial public offerings are also viable investment options for the fund particularly in a robust and conducive equity market environment.

The fund’s investments may also include listed warrants and options to enhance its returns. The fund may also consider investments in unlisted equities particularly in companies that are expected to seek listing on the Bursa Securities or selected regional markets within a timeframe of two years. The fund may invest in collective investment schemes both in the domestic or selected global markets.

The balance of the fund’s assets will be invested in cash equivalents and money market instruments.


The fund provides the usual benefits of steady income stream and low price or volatility risks of a conventional bond fund. In addition to that, the fund provides the investor with the additional benefit of participating in the upside potential of the equity market due to its equity exposure. Nevertheless, the equity upside is limited in size and scope given that the fund’s equity exposure is capped to a maximum of 20% of NAV.

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As mentioned above, the fund adopts asset allocation, diversification and market timing strategies to manage the risks posed to the fund in its pursuit of investment returns. In particular, the fund may likely resort to having no equity exposures at all in the face of an anticipated decline in the equity market. However, under more promising equity market conditions, the fund may adopt a conservative equity investment approach to generate additional returns to supplement that of its bond investments.

The fund may also employ hedging strategies to help mitigate anticipated losses to its bond and equity portfolios. The fund’s overseas investments will be monitored to focus in markets with promising prospects and acceptable risk levels as the fund seeks potential returns that are commensurate with country risks, currency risks and liquidity risks. To mitigate risks arising from factors which include foreign currency exposure and foreign interest rate movements, the fund may employ hedging strategies to manage the risks posed to the fund.

While investments in listed warrants and options can potentially enhance the fund’s returns, these investments can also increase the volatility of the fund’s returns. As such, the fund’s investments in these instruments will be assessed on an ongoing basis and managed accordingly.


Selected Performance Benchmark for PEBF

The benchmark for PEBF is based on fixed deposits rates as opposed to a more conventional corporate bond index. The rationale for this is that the fund is essentially managed in a fairly conservative manner with the primary aim of outperforming fixed deposit returns. Moreover, the general profile of the unitholders of the fund is such that their returns from the fund are more often than not compared against the returns from fixed deposits. For the purpose of this fund therefore, it is felt appropriate to benchmark the fund against an accumulation index based on the 12-month fixed deposits rates (FDR) quoted by Malayan Banking Berhad. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my.

Investors should note that the risk profile of PEBF is higher than that of a fixed deposit and therefore, it has the potential to deliver higher returns than its benchmark.


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PUBLIC SELECT BOND FUND (PSBF)

Fund Profile


Type of Fund Income






Designated Fund Managers Lum Ming Jang and Zaharudin bin Ghazali



Fund Objective

To provide annual income* through investments in fixed income securities which have a remaining maturity of 7 years and below and money market instruments.



Investor Profile


** Investors should note that PSBF is not a capital protected fund.

Investment Policy

PSBF is actively managed and invests in fixed income securities which have a remaining maturity of 7 years and below.

Investment Strategy

PSBF seeks to meet its objective of providing annual income by investing in a portfolio of fixed income securities which have remaining maturities of 7 years and below; comprising sovereign and corporate bonds. The balance of the fund’s assets will be invested in money market instruments. Investments in redeemable loan stocks with convertible features to enhance the fund’s returns are also considered. These loan stocks may not be converted but will be disposed prior to or held to maturity. The loan stocks which are held to maturity will not be converted to equity. Instead, the loan stocks will be redeemed for cash at its maturity date. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities. The fund generally maintains bond exposure within the range of 75% to 98% against its NAV. The balance of the fund’s NAV will be invested in money market instruments.

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The fund allows the investor access to the bond market, which is usually inaccessible to the average investor as it is a market for institutions where the standard transaction block amounts to RM5 million. The fund invests in a diversified portfolio of bonds, which comprises fixed income securities that have different profiles in maturities, credit ratings and sectors, to produce returns that are generally higher than fixed deposits. The fund is also able to provide the investor with greater liquidity than fixed deposits as the units in the fund can be redeemed on any Business Day as compared to an early redemption of fixed deposits prior to maturity date where the depositor may be penalised by the loss of accumulated interest income.


The fund will seek to invest in bonds that command higher yields than money market instruments. In doing so, the fund will likely be exposed to the risks of adverse interest rate movements and credit rating downgrades. On the other hand, should interest rates turn favourable i.e. fall, or if credit rating of the bond improves, then the fund stands to benefit from the resultant price appreciation. The fund’s exposure to the potential risks and returns have to be managed actively to achieve the risk-reward tradeoff that is reasonable to the fund.


Selected Performance Benchmark for PSBF

The benchmark for PSBF is based on fixed deposits rates as opposed to a more conventional corporate bond index. The rationale for this is that the fund is essentially managed in a fairly conservative manner with the primary aim of outperforming fixed deposit returns. Moreover, the general profile of the unitholders of the fund is such that their returns from the fund are more often than not compared against the returns from fixed deposits. For the purpose of this fund therefore, it is felt appropriate to benchmark the fund against an accumulation index based on the 12-month fixed deposits rates (FDR) quoted by Malayan Banking Berhad. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my.

Investors should note that the risk profile of PSBF is higher than that of a fixed deposit and therefore, it has the potential to deliver higher returns than its benchmark.

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DETAILED INFORMATION ON THE FUNDS

PUBLIC STRATEGIC BOND FUND (PSTBF)

Fund Profile


Type of Fund Income

Fixed Income Securities Range of Fund At least 75%

Security Selection Profile of Fund Fixed income securities and money market instruments




Designated Fund Managers Zaharudin bin Ghazali and Ng Boon Hoa



Fund Objective

To provide annual income* to investors through investments in fixed income securities and money market instruments.



Investor Profile


** Investors should note that PSTBF is not a capital protected fund.

Investment Policy

PSTBF seeks to provide annual income to investors through investments in fixed income securities and money market instruments. The fund will invest at least 75% of its NAV in bonds. 50% of the fund’s bond investment will be invested in fixed income securities which have remaining maturities of 5 years and below. The remaining 50% of the fund’s bond investment will be invested in fixed income securities which have remaining maturities of more than 5 years. The balance of the fund’s NAV will be invested in deposits and money market instruments. To achieve increased diversification, the fund may invest up to 25% of its NAV in foreign bonds.

Investment Strategy

The fund will invest at least 75% of its NAV in bonds. 50% of the fund’s bond investment will be invested in fixed income securities which have remaining maturities of 5 years and below. The remaining 50% of the fund’s bond investment will be invested in fixed income securities which have remaining maturities of more than 5 years. The balance of the fund’s NAV will be invested in deposits and money market instruments.

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The fund is actively managed and its portfolio of bond investments would be exposed to risks of adverse interest rate movements and credit rating changes. On the other hand, should interest rates decline or credit rating of the bond improves, then the fund stands to benefit from the resultant price appreciation. Notwithstanding this, the fund’s exposure to the potential risks and returns need to be managed actively in order to achieve the risk-reward trade-off that is reasonable to the fund. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities. To achieve increased diversification, the fund may invest up to 25% of its NAV in foreign bonds. The foreign markets which the fund may invest in include Australia, Indonesia, South Korea, Singapore, Hong Kong, United States of America and other permitted markets. Necessary approvals from the relevant foreign regulatory authorities will be obtained before investing into the above-mentioned permitted markets.


The fund allows the investor access to the bond market, which is usually inaccessible to the average investor as it is a market for institutions where the standard transaction block amounts to RM5 million. The fund invests in a diversified portfolio of bonds, which comprises fixed income securities that have different profiles in maturities, credit ratings and sectors, to produce returns that are generally higher than money market deposits.


Notwithstanding the investment strategy of the fund, all investments will always carry an element of risk. Essentially, the risk management process in PSTBF focuses on managing the impact of changes in the general interest rate trend and credit risk profile of the individual bond issuer.

The Fund Manager will take reasonable steps to ensure that the above potential risks are managed by adopting various investment strategies, such as varying the asset allocation between long-tenured bonds, short-tenured bonds and money market instruments to adjust the risk and return characteristics of the fund. However, should the Fund Manager judge market conditions incorrectly or apply an unsuitable investment strategy, the performance of the fund may be adversely affected.


Participation in futures contracts and listed options for hedging purposes can increase the volatility of the fund’s returns. As such, the fund’s participation in these instruments for hedging purposes will be assessed on an ongoing basis and managed accordingly.


Selected Performance Benchmark for PSTBF

The benchmark for PSTBF is based on fixed deposits rates as opposed to a more conventional corporate bond index. The rationale being the fund is essentially managed in a fairly conservative manner with the primary aim of outperforming fixed deposit returns. However, the risk profile of the fund is not similar to that of a fixed deposit (FD). For the purpose of this fund, it is felt appropriate to benchmark the fund against an accumulation index based on the 12-month FD rates quoted by Public Bank Berhad. The accumulation index is derived from the daily compounding of the average FD rate, which in turn is the FD rate expressed on a per annum basis divided by 365 days. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my.

Investors should note that the risk profile of PSTBF is higher than that of a fixed deposit and therefore, it has the potential to deliver higher returns than its benchmark.

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PUBLIC ENTERPRISES BOND FUND (PENTBF)

Fund Profile


Type of Fund Income

Fixed Income Securities Range of Fund At least 75%

Security Selection Profile of Fund Fixed income securities and money market instruments




Designated Fund Managers Ng Boon Hoa and Azahari bin Ariffin



Fund Objective

To provide annual income* through investments in fixed income securities and money market instruments.



Investor Profile

• conservativerisk-rewardtemperament• mediumterminvestor• seekstabilityofannualincomewithsomesafetyofprincipal**

** Investors should note that PENTBF is not a capital protected fund.

Investment Policy

PENTBF is actively managed and invests in a diversified portfolio of fixed income securities and money market instruments to meet its objective of providing annual income. Its fixed income securities investments comprise sovereign bonds and corporate bonds (listed and unlisted). The bonds invested must have a minimum credit rating of BBB for long-term instruments and P1 for short-term instruments as rated by a local or foreign rating agency, at the point of purchase. In the event the credit rating of a particular debt issue is downgraded below the stipulated minimum investment grade, the Manager will take into consideration factors which include trading liquidity and availability of market bids at prevailing market valuations before deciding on the manner and time frame of divestment. The fund will invest at least 75% of its NAV in sovereign bonds and corporate bonds issued by entities with total assets exceeding RM3 billion at the point of purchase. The balance of the fund’s NAV will be invested in other corporate bonds and money market instruments. Redeemable loan stocks with convertible features to enhance the fund’s returns are also included in the fund’s portfolio.

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Investment Strategy

PENTBF seeks to meet its objective of providing annual income by investing at least 75% of its NAV in sovereign bonds and corporate bonds issued by entities with total assets exceeding RM3 billion at the point of purchase. The fund’s focus on these bonds will enable the fund to invest in bonds issued by larger and more stable corporations/entities. The balance of the fund’s NAV will be invested in other corporate bonds and money market instruments. Investments in redeemable loan stocks with convertible features to enhance the fund’s returns are also considered. These loan stocks may not be converted but will be disposed prior to or held to maturity. The loan stocks which are held to maturity will not be converted to equity. Instead, the loan stocks will be redeemed for cash at its maturity date. To achieve increased diversification, the fund may invest up to 30% of its NAV in foreign fixed income securities. The foreign markets which the fund may invest in include Singapore, Japan, Hong Kong, Australia, United Kingdom, Indonesia, United States of America, South Korea and other permitted markets. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities. Necessary approvals from the relevant foreign regulatory authorities will be obtained before investing into the above-mentioned permitted markets.


The fund allows the investor access to the bond market, which is usually inaccessible to the average investor as it is a market for institutions where the standard transaction block amounts to RM5 million. The fund invests in a diversified portfolio of bonds, which comprises fixed income securities that have different profiles in maturities, credit ratings and sectors, to produce returns that are generally higher than fixed deposits. The fund’s focus on sovereign bonds and corporate bonds issued by entities with total assets exceeding RM3 billion at the point of purchase will enable the fund to invest in bonds issued by larger and more stable corporations/entities. The fund is also able to provide the investor with greater liquidity than fixed deposits as the units in the fund can be redeemed on any Business Day as compared to an early redemption of fixed deposits prior to maturity date where the depositor may be penalised by the loss of accumulated interest income.


Notwithstanding the investment strategy of the fund, all investments will always carry an element of risk. Essentially, the risk management process in PENTBF focuses on managing the impact of changes in the general interest rate trend and credit risk profile of the individual bond issuer.

The Fund Manager will take reasonable steps to ensure that the above potential risks are managed by adopting various investment strategies which include portfolio diversification and varying the asset allocation between long-tenured bonds, short-tenured bonds and money market instruments to adjust the risk and return characteristics of the fund. However, should the Fund Manager judge market conditions incorrectly or apply an unsuitable investment strategy, the performance of the fund may be adversely affected.


Participation in futures contracts and listed options for hedging purposes can potentially enhance the fund’s returns and also increase the volatility of the fund’s returns. As such, the fund’s participation in these instruments will be assessed on an ongoing basis and managed accordingly.


Selected Performance Benchmark for PENTBF

The benchmark for PENTBF is based on fixed deposits rates as opposed to a more conventional corporate bond index. The rationale for this is that the fund is essentially managed in a fairly conservative manner with the primary aim of outperforming fixed deposit returns. Moreover, the general profile of the unitholders of the fund is such that their returns from the fund are more often than not compared against the returns from fixed deposits. For the purpose of this fund therefore, it is felt appropriate to benchmark the fund against an accumulation index based on the 12-month fixed deposits rates (FDR) quoted by Public Bank Berhad. The accumulation index is derived from the daily compounding of the average FDR, which in turn is the FDR expressed on a per annum basis divided by 365 days. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my.

Investors should note that the risk profile of PENTBF is higher than that of a fixed deposit and therefore, it has the potential to deliver higher returns than its benchmark.

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PUBLIC MONEY MARKET FUND (PMMF)

Fund Profile

Category of Fund Money market fund

Type of Fund Income

Money Market Range of Fund Up to 100%

Security Selection Profile of Fund Debentures and money market instruments



Suggested Minimum Investment Period Short term

Designated Fund Managers Zaharudin bin Ghazali and Azahari bin Ariffin

Fund Objective

To provide liquidity and current income*, while maintaining capital stability.

Notes:* Current income refers to distributable income. Distribution (if any) will be reinvested unless unitholders opt for distribution to be paid out. Please refer to pages 36 and 37 for more information on distribution policy.


Investor Profile

• conservativerisk-rewardtemperament• shortterminvestor

Investment Policy

PMMF is a money market fund that is actively managed to provide liquidity to meet the short-term cash flow requirements of its unitholders while providing a reasonable level of current income. Consequently, the fund generally invests up to 100% of its NAV in money market instruments and deposits. The investments of PMMF are largely confined to short-term money market instruments, deposit placements and short dated fixed income securities that are highly liquid. These are typically deposits and securities that mature within 365 days or 1 year. Nevertheless, the fund is permitted to invest in instruments with maturity periods exceeding 365 days but not longer than 732 days, which is equivalent to approximately 2 years. These longer dated investments are subject to a cap of 10% of the NAV of the fund.

The money market instruments that the fund invests in include bankers’ acceptances and negotiable instruments of deposits (NIDs). Its fixed income securities investments comprise government and government-sponsored bonds and short-dated private debt securities which include commercial papers.

Investment Strategy

The investment focus of the fund is geared towards liquid short-term money market instruments and fixed income securities of high quality credit rating. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities.


PMMF provides a safe option for investors with low tolerance to risk who wish to park their monies on a short term basis before investing in or switching back to equity, mixed asset, balanced or bond funds.


At least 90% of the NAV of the fund must be invested in money market instruments and fixed income securities that mature within 365 days or 1 year. An allowance of up to 10% of the NAV of the fund is given to the fund to invest in instruments with maturity periods exceeding 365 days but not longer than 732 days.

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The money market instruments which the fund invests in are not rated instruments.These instruments are issued by licensed and rated financial institutions. In the event that the credit rating of the financial institutions is downgraded below the predetermined rating, the fund will take measures to reduce its exposure to the said institution accordingly.The credit risks assumed are limited to the extent that any bonds invested in must have a minimum credit rating of BBB for long-term instruments and P1 for short-term instruments, at the point of purchase. In the event that the credit rating of a particular debt issue is downgraded below the stipulated minimum investment grade, the Manager will take the necessary steps to divest the asset at risk. However, in order to protect the best interest of the fund, the Manager has the discretion to take into consideration all relevant factors that affect the fair value of the investment via an internal credit assessment process before deciding on the manner and time frame of the liquidation.


Essentially, the fund has been structured such that it is confined to instruments of short duration to maturity in order to minimise the impact of fluctuations in interest rates on the performance of the fund over the short term while the credit risks it may face are mitigated by strict limits on concentration of investments and due diligence in the credit assessments by ensuring high credit ratings as mentioned above. Commensurate to this requirement for high liquidity and low tolerance to credit risk, the overall risk profile of the fund is low.

Selected Performance Benchmark for PMMF

The benchmark for PMMF is based on the 1-month Kuala Lumpur Interbank Offered Rates (KLIBOR) provided by Bank Negara Malaysia, which is published in the business sections of the daily newspapers. The return for any given period for this benchmark is derived by compounding the daily interest earned for KLIBOR deposits from one day to the next for each day spanning the entire period.

The KLIBOR is deemed as an appropriate basis for measuring the performance of the fund as its rates are generally closer to those attainable by the fund as compared to the fixed deposits rates quoted by the banks which are often available only to deposits amounting to less than RM1 million. The 1-month period is suitable for benchmarking as the fund is likely to maintain a substantial portion of its investments in instruments that mature in the near term for liquidity requirements such that on a weighted average basis the fund as a whole may have a maturity profile of approximately 1 month. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my.

Investment in the fund is not the same as placement in a deposit with a financial institution. There are risks involved, and investors should rely on their own evaluation to assess the merits and risks when investing in the fund.

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3.3 INVESTMENT RISKS

Specific Risks of the Funds


Liquidity riskLiquidity risk is defined as the ease with which a security can be disposed at or near its fair value depending on the volume traded on the market. For P SmallCap and PSSCF, the lack of liquidity in small-capitalised stocks in the fund’s equity portfolio may result in the fund experiencing significant volatility in times of adverse market conditions. If the fund has a large portfolio of securities that are less liquid or difficult to dispose, the securities may have to be sold at a discount to fair value, hence affecting the value of the fund. In the event that the fund experiences large redemptions, the Fund Manager may be required to liquidate the fund’s holdings of securities at prevailing prices to meet the redemption requirement. This impact can, however, be mitigated through the process of security selection and portfolio diversification by the Fund Managers.

Country riskFunds with foreign investments may be affected by changes in the political and economic conditions of the country in which the investments are made. Such political and economic factors may influence the growth and development of business enterprises and impact the financial markets (i.e. equity and/or bond markets).

Regional/country funds which may invest a greater portion of their NAV in foreign markets and may be more affected by changes in the political and economic conditions of the region/country in which the investments are made are as follows:

• PFES,PRSEC,PFEDF,PFEPRF,PFETIF,PFECTF,PFA30F,PTAFandPFEBFmaybeaffectedbychanges inthepolitical and economic conditions of the Far-East and regional markets.

• PGSFmaybeaffectedbychangesinthepoliticalandeconomicconditionsoftheglobalmarkets.• PCSFandPCTFmaybeaffectedbychangesinthepoliticalandeconomicconditionsofthegreaterChina

markets.• PSEASFmaybeaffectedbychangesinthepoliticalandeconomicconditionsoftheSouth-EastAsianmarkets.• PNREFmaybeaffectedbychangesinthepoliticalandeconomicconditionsofitsselectedforeignmarkets.• PAUEFmaybeaffectedbychangesinthepoliticalandeconomicconditionsofAustraliaandNewZealand.• PINDOSFmaybeaffectedbychangesinthepoliticalandeconomicconditionsofIndonesia.• PSGEFmaybeaffectedbychangesinthepoliticalandeconomicconditionsofSingapore.

Industry/Sector RiskIndustry/sector risk arises when the fund is predominantly invested in specific industries or sectors. Due to the reduced degree of diversification by industries/sectors, the fund may be more vulnerable to factors associated with the particular industries/sectors it is invested in. Particular investment considerations for each of the following funds are set out as below:

• PFEPRF:Anymaterialchangesassociatedwiththeproperty investmentanddevelopmentsectorandrealestate investment trusts (REITs) may have an adverse impact on the NAV of the fund.

• PFECTF:AnymaterialchangesassociatedwiththeconsumersectormayhaveanadverseimpactontheNAVof the fund.

• PFETIF:Anymaterialchangesassociatedwiththetelecommunicationsandinfrastructuresectormayhavean adverse impact on the NAV of the fund.

• PNREF:Anymaterialchangesassociatedwiththenaturalresourcessectormayhaveanadverseimpactonthe NAV of the fund.

• PIF,PRSECandPSSF:Anymaterialchangesassociatedwiththesectorsthatthefundsinvestinmayhaveanadverse impact on the NAV of the funds.

Other risks of investing in equity, mixed asset and balanced funds include market risk, specific security risk, derivatives risk and currency risk which has been described on pages 39 to 40 of this Master Prospectus.


Risks of investing in bond and money market funds include interest rate risk, credit risk, liquidity risk and country risk which have been described on page 40 of this Master Prospectus.

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3.4 PERMITTED INVESTMENTS

The Manager has absolute discretion, subject to the Deeds, the investment policy for each of the funds and the requirements of the SC and other regulatory body, as to how the assets of the funds are invested.


(a) All equity, mixed asset and balanced funds may invest in the following:

i. Equity securities of companies listed in the respective Eligible Markets;

ii. Initial Public Offerings (IPOs) of companies seeking a listing in the respective Eligible Markets;

iii. Listed fixed income securities traded in the respective Eligible Markets;

iv. Unlisted fixed income securities traded in the respective Eligible Markets;

v. Sovereign bonds traded in the respective Eligible Markets;

vi. Malaysian Government Securities, Treasury Bills, Bank Negara Monetary Notes, Government Investment Issues and other Government approved/guaranteed issues;

vii. Deposits and money market instruments with licensed domestic and foreign financial institutions;

viii. Listed and unlisted loan stocks;

ix. Units of other collective investment schemes and/or exchange traded funds; and

x. Any other form of investments as may be agreed upon by the Manager and the trustee from time to time.

(b) P SmallCap, PFES, PRSEC, PGSF, PFEDF, PCSF, PFEPRF, PSEASF, PFECTF, PCTF, PFETIF, PNREF, PAUEF, PFA30F, PINDOSF, PSGEF, PSSCF, PTAF and PFEBF may also invest in the following:

i. Warrants of companies listed in the respective Eligible Markets;

ii. Unlisted equity securities whether or not approved for listing and quotation in the respective Eligible Markets, which are offered directly by the company to the funds;

iii. Futures contracts and options traded on the futures and options market of an exchange company approved, or exempt futures and options market declared, by the Minister under the CMSA 2007.

(c) PFEPRF, PSEASF, PFECTF, PCTF, PFETIF, PSA30F, PFA30F and PSSCF may also invest in participation notes of equity securities of companies listed in Eligible Markets.

(d) PSF, PGF, PIX, PIF, PAGF, PRSF, PEF, PFSF, PDSF, PSSF, PSA30F, POGF and PBF may invest in warrants issued by the underlying mother shares offered by companies listed in Bursa Securities during corporate exercises.

The funds may participate in lending of securities within the meaning of the Securities Commission Guidelines on Securities Borrowing and Lending when permitted by the SC and other relevant authorities.

Bond Funds

(a) All bond funds may invest in the following:

i. Listed fixed income securities traded in the respective Eligible Markets;

ii. Unlisted fixed income securities traded in the respective Eligible Markets;

iii. Sovereign bonds traded in the respective Eligible Markets;

iv. Malaysian Government Securities, Treasury Bills, Bank Negara Monetary Notes, Government Investment Issues and other Government approved/guaranteed securities;

v. Deposits and money market instruments with licensed domestic and foreign financial institutions;

vi. Units of other collective investment schemes and/or exchange traded funds; and

vii. Any other form of investments as may be agreed upon by the Manager and the trustee from time to time.

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(b) P BOND, PIN BOND, PSTBF, PEBF and PENTBF may also invest in the following:

i. Futures contracts and options traded in the futures and options market of an exchange company approved, or exempt futures and options market declared, by the Minister under the CMSA 2007.

(c) PEBF may also invest in the following:

i. Equity securities and warrants of companies listed in the respective Eligible Markets; and

ii. Unlisted equity securities whether or not approved for listing and quotation in the respective Eligible Markets, which are offered directly by the company to the fund.

The fund may participate in lending of securities within the meaning of the Securities Commission Guidelines on Securities Borrowing and Lending when permitted by the SC and other relevant authorities.

Money Market Fund

(a) PMMF may invest in the following:

i. Listed Ringgit denominated fixed income securities traded in the Eligible Markets;

ii. Unlisted Ringgit denominated fixed income securities traded in the Eligible Markets;

iii. Malaysian Government Securities, Treasury Bills, Bank Negara Monetary Notes, Government Investment Issues and other Government approved/guaranteed securities;

iv. Deposits and money market instruments with licensed domestic and foreign financial institutions;

v. Units of other money market funds and/or exchange traded funds; and

vi. Any other form of investments which are fixed income in nature, as may be agreed upon by the Manager and the trustee from time to time.

3.5 INVESTMENT RESTRICTIONS

The funds are subject to the following investment restrictions in the course of execution of their investment policies and strategies:


Investment Spread Limits

(a) The value of each of the fund’s investments in ordinary shares issued by any single issuer must not exceed 10% of the respective fund’s NAV.

(b) The value of each of the fund’s investments in transferable securities and money market instruments issued by any single issuer must not exceed 15% of the respective fund’s NAV.

(c) The value of each of the fund’s placement in deposits with any single institution must not exceed 20% of the respective fund’s NAV.

(d) For investments in derivatives, the exposure to the underlying assets must not exceed the investment spread limits stipulated in this section; and the value of each of the fund’s over-the-counter (OTC) derivative transaction with any single counter-party must not exceed 10% of the respective fund’s NAV.

(e) The value of each of the fund’s investments in structured products issued by a single counter-party must not exceed 15% of the respective fund’s NAV.

(f) The aggregate value of each of the fund’s investments in transferable securities, money market instruments, deposits, OTC derivatives and structured products issued by or placed with any single issuer/institution must not exceed 25% of the respective fund’s NAV.

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(g) The value of each of the fund’s investments in units/shares of any collective investment scheme must not exceed 20% of the respective fund’s NAV.

(h) The value of each of the fund’s investments in transferable securities and money market instruments issued by any group of companies must not exceed 20% of the respective fund’s NAV.

Note: For PIX, the single issuer limit and single group limit specified in clause (a) and (h) may be exceeded provided that the fund’s investment in any component securities does not exceed its respective weightings in the FBM 100.

Investment Concentration Limits

(a) Each of the fund’s investments in transferable securities (other than debentures) must not exceed 10% of the securities issued by any single issuer.

(b) Each of the fund’s investments in debentures must not exceed 20% of the debentures issued by any single issuer.

(c) Each of the fund’s investments in money market instruments must not exceed 10% of the instruments issued by any single issuer.

Note: The limit in (c) does not apply to money market instruments that do not have pre-determined issue size.

(d) Each of the fund’s investments in collective investment schemes must not exceed 25% of the units/shares in any one collective investment scheme.

Note: Transferable securities refer to equities, debentures and warrants.

General

(a) The value of each fund’s investments in unlisted securities must not exceed 10% of the respective fund’s NAV. This exposure limit does not apply to:-

i. equities not listed or quoted on a stock exchange but have been approved by the relevant authority for such listing and quotation, and are offered directly to the fund by the issuer;

ii. debentures traded on an organised over-the-counter (OTC) market; and

iii. structured products.

(b) For PBF, listed fixed income securities, unlisted loan stocks and corporate debt invested by the fund must either be bank guaranteed, or rated ‘BBB’ by RAM and/or other recognised rating agencies;

(c) PSF, PGF, PIF, PAGF, P SmallCap, PEF, PFSF, PDSF, PSA30F, PSSCF and PBF may invest up to 30% of the respective fund’s NAV in foreign markets.

Holdings in foreign investments of PFES, PFEDF, PSEASF, PRSEC, PGSF, PFEPRF, PCSF, PFECTF, PCTF, PFETIF, PAUEF, PNREF, PFA30F, PINDOSF, PSGEF and PTAF shall not exceed 98% of the respective fund’s NAV.

Holdings in foreign investments of PFEBF shall not exceed 60% of the respective fund’s NAV.

(d) Each of the fund’s exposure from derivatives position must not exceed the NAV of the respective funds at all times.

The above limits and restrictions shall be complied with at all times based on the most up-to-date value of the respective funds, and the value of their investments and instruments. However, a 5 per cent allowance in excess of any limits or restrictions may be permitted where the limit or restriction is breached through the appreciation or depreciation in value of each fund’s investment or instruments, or as a result of repurchase of units or payment made from the fund. The Manager should, within a reasonable period of not more than 3 months from the date of the breach, take all necessary steps and actions to rectify the breach.

Such limits and restrictions, however, do not apply to securities that are issued or guaranteed by the Government or Bank Negara Malaysia.

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Bond Funds

P BOND, PIN BOND, PSBF, PSTBF and PENTBF


(a) The value of each of the fund’s investments in debentures issued by any single issuer must not exceed 20% of the respective fund’s NAV. This single issuer limit may be increased to 30% if the debentures are rated by any domestic or global rating agency to be of the best quality and offer highest safety for timely payment of interest and principal.

(b) The value of each of the fund’s placement in deposits with any single institution must not exceed 20% of the respective fund’s NAV.

(c) For investments in derivatives, the exposure to the underlying assets must not exceed the investment spread limits stipulated in this section; and the value of each of the fund’s over-the-counter (OTC) derivative transaction with any single counter-party must not exceed 10% of the respective fund’s NAV.

(d) The value of each of the fund’s investments in structured products issued by a single counter-party must not exceed 15% of the respective fund’s NAV.

(e) The aggregate value of each of the fund’s investments in debentures, money market instruments, deposits, OTC derivatives and structured products issued by or placed with any single issuer/institution must not exceed 25% of the respective fund’s NAV. However this limit may be increased to 30% of the respective fund’s NAV if the single issuer limit is increased to 30% pursuant to item (a).

(f) The value of each of the fund’s investments in units/shares of any collective investment scheme must not exceed 20% of the respective fund’s NAV.

(g) The value of each of the fund’s investments in debentures issued by any group of companies must not exceed 30% of the respective fund’s NAV.


(a) Each of the fund’s investments in debentures must not exceed 20% of the debentures issued by any single issuer.

(b) Each of the fund’s investments in money market instruments must not exceed 10% of the instruments issued by any single issuer.

Note: The limit in (b) does not apply to money market instruments that do not have pre-determined issue size.

(c) Each of the fund’s investments in collective investment schemes must not exceed 25% of the units/shares in any one collective investment scheme.

General

(a) The value of the each of the fund’s investments in unlisted securities must not exceed 10% of the respective funds’ NAV. This exposure limit does not apply to:-

i. debentures traded on an organised over-the-counter (OTC) market; and

ii. structured products.

(b) For PIN BOND, 50% of the fund’s holding in fixed income securities must comprise of bonds with credit rating no lower than AA, as rated by RAM or its equivalence, either on a standalone basis or with a bank guarantee. The remainder of the fund’s holding in fixed income securities must be invested in bonds with minimum credit rating of A at the point of purchase.

(c) Holdings in foreign investments of P BOND, PIN BOND and PENTBF shall not exceed 30% of the respective fund’s NAV.

Holdings in foreign investments of PSTBF shall not exceed 25% of the fund’s NAV.

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(d) Each of the fund’s exposure from derivatives position must not exceed the NAV of the respective funds at all times.

The above limits and restrictions stated shall be complied with at all times based on the most up-to-date value of the respective funds, and the value of their investments and instruments. However, a 5 per cent allowance in excess of any limits or restrictions may be permitted where the limit or restriction is breached through the appreciation or depreciation in value of the each fund’s investment or instruments, or as a result of repurchase of units or payment made from the fund. The Manager should, within a reasonable period of not more than 3 months from the date of the breach, take all necessary steps and actions to rectify the breach.


PEBF


(a) The value of the fund’s investments in debentures issued by any single issuer must not exceed 20% of the fund’s NAV. This single issuer limit may be increased to 30% if the debentures are rated by any domestic or global rating agency to be of the best quality and offer highest safety for timely payment of interest and principal.

(b) The value of the fund’s investments in ordinary shares issued by any single issuer must not exceed 10% of the fund’s NAV.

(c) The value of the fund’s placement in deposits with any single institution must not exceed 20% of the fund’s NAV.

(d) For investments in derivatives, the exposure to the underlying assets must not exceed the investment spread limits stipulated in this section; and the value of the fund’s over-the-counter (OTC) derivative transaction with any single counter-party must not exceed 10% of the fund’s NAV.

(e) The value of the fund’s investments in structured products issued by a single counter-party must not exceed 15% of the fund’s NAV.

(f) The aggregate value of the fund’s investments in transferable securities, money market instruments, deposits, OTC derivatives and structured products issued by or placed with any single issuer/institution must not exceed 25% of the fund’s NAV. However this limit may be increased to 30% of the fund’s NAV if the single issuer limit is increased to 30% pursuant to item (a).

(g) The value of the fund’s investments in units/shares of any collective investment scheme must not exceed 20% of the fund’s NAV.

(h) The value of the fund’s investments in debentures issued by any group of companies must not exceed 30% of the fund’s NAV.

(i) The value of the fund’s investments in transferable securities (other than debentures) and money market instruments issued by any group of companies must not exceed 20% of the fund’s NAV.


(a) The fund’s investments in debentures must not exceed 20% of the debentures issued by any single issuer.

(b) The fund’s investments in transferable securities (other than debentures) must not exceed 10% of the securities issued by any single issuer.

(c) The fund’s investments in money market instruments must not exceed 10% of the instruments issued by any single issuer.

Note: The limit in (c) does not apply to money market instruments that do not have pre-determined issue size.

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(d) The fund’s investments in collective investment schemes must not exceed 25% of the units/shares in any one collective investment scheme.

General

(a) The value of the fund’s investments in unlisted securities must not exceed 10% of the fund’s NAV. This exposure limit does not apply to:-

i. equities not listed or quoted on a stock exchange but have been approved by the relevant authority for such listing and quotation, and are offered directly to the fund by the issuer;

ii. debentures traded on an organised over-the-counter (OTC) market; and

iii. structured products.

(b) The fund’s holdings in foreign investments shall not exceed 30% of the fund’s NAV.

(c) The fund’s exposure from derivatives position must not exceed the NAV of the fund at all times.



Money Market Fund


(a) The value of the fund’s investments in debentures and money market instruments issued by any single issuer must not exceed 20% of the fund’s NAV. This single issuer limit may be increased to 30% if the debentures are rated by any domestic or global rating agency to be of the best quality and offer highest safety for timely payment of interest and principal.

(b) The value of the fund’s placement in deposits with any single financial institution must not exceed 20% of the fund’s NAV.

(c) The value of the fund’s investments in debentures and money market instruments issued by any group of companies must not exceed 30% of the fund’s NAV.

(d) The value of the fund’s investments in units/shares of any collective investment scheme must not exceed 20% of the fund’s NAV.


(a) The fund’s investments in debentures must not exceed 20% of the securities issued by any single issuer.

(b) The fund’s investments in money market instruments must not exceed 20% of the instruments issued by any single issuer.

(c) The fund’s investments in collective investment schemes must not exceed 25% of the units/shares in any collective investment scheme.

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General

(a) The value of the fund’s investments in permitted investments must not be less than 90% of the fund’s NAV.

(b) The value of the fund’s investments in permitted investments which have a remaining maturity period of not more than 365 days must not be less than 90% of the fund’s NAV.

(c) The value of the fund’s investments in permitted investments which have a remaining maturity period of more than 365 days but fewer than 732 days must not exceed 10% of the fund’s NAV.

(d) The fund may only invest in bonds with minimum credit rating of BBB for long-term instruments and P1 for short-term instruments at the point of purchase, as rated by RAM or equivalent rating by other recognised rating agencies.

Note: Permitted investments refer to debentures, money market instruments and placements of deposits with financial institutions.



3.6 VALUATION OF PERMITTED INVESTMENTS

Listed equities, warrants and options – valuation is based on market price of the respective exchanges.

Unlisted equities – valuation is based on methods deemed to be fair and reasonable that are acceptable to the Manager, verified by the Auditor and approved by the trustee.

Listed and Unlisted fixed income securities – for listed fixed income securities, the last traded prices quoted on a recognised exchange will be used or a valuation which is deemed more reflective of the fair value as agreed upon by the Manager and the trustees. In the case of unlisted domestic fixed income securities, valuations are carried out on a daily basis using fair value prices quoted by a Bond Pricing Agency (BPA) registered with the SC. If the Manager is of the view that the price quoted by the BPA for a specific fixed income security differs from the ‘market price’ by more than 20 basis points, the Manager may use the ‘market price’ provided that the Manager adheres to the requirements stipulated by the SC. Market price for fixed income securities are derived from market quotations obtained from the panel of at least three active financial institutions that are governed by the Banking and Financial Institutions Act (BAFIA). Foreign unlisted fixed income securities/sukuk are valued daily based on fair value by reference to the average indicative yield quoted by at least three independent and established institutions.

Commercial Papers and Money Market Instruments – Commercial papers are valued at original purchase yields. Money market instruments which include negotiable instrument of deposits are valued based on the remaining tenures of maturities.

Cash/Deposits – the value of such investments which are deposits placed with banks and other financial institutions and bank bills, shall be determined each day by reference to their nominal values and the accrued interest thereon for the relevant period.

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Units in other collective investment schemes – the last published repurchase price per unit or if not available, based on methods deemed to be fair and reasonable as agreed upon by the Manager and trustee.

Futures – all futures contracts are marked-to-market at the end of each trading day. Any gains or losses are immediately reflected upon marking to market.

Suspended securities – will be valued at their suspended price unless there is conclusive evidence to indicate that the value of such shares have gone below the suspended price, whereupon their value will be ascertained in a manner as agreed upon by the Manager and trustee.

If no market price is available or valuation based on market price does not represent the fair value of investments, the securities will be based on methods deemed to be fair and reasonable as agreed upon by the Manager and trustee.

All foreign securities and assets are translated into Ringgit based on the bid exchange rate quoted by Bloomberg at United Kingdom time 4.00 p.m. the same day.

Note:

For funds with no foreign investments, the valuation of NAV of funds is conducted on each Business Day at the close of Bursa Securities. For funds with foreign investments, the valuation of funds will be conducted after the close of business of Bursa Securities for the relevant day as certain foreign markets in which the funds may invest in have yet to close due to the different time zones of these countries. Thus, the valuation point may be after the close of Bursa Securities but not later than 9:00 a.m. (or any other such time as may be permitted by the relevant authorities from time to time) on the following day in which the Manager is open for business. As a result of having a valuation point later than 5:00 p.m., the daily prices of the funds will not be published on the next Business Day but instead will be published the next following Business Day (i.e. the prices will be 2 days old).

Illustration:

For the market close of 4 September 2012, the valuation date will be next day in which the Manager is open for trading, that is, 5 September 2012. Thus the newspaper publication date for the prices as at 4 September 2012 will be 6 September 2012.

Investors may obtain the latest prices of units of the funds by contacting the Manager directly.

The Manager may declare certain Business Days to be a non-Business Day, although Bursa Securities is open for business, if one or more of the foreign markets in which the funds are invested therein are closed for business. This is to ensure that investors will be given a fair valuation of the funds at all times, be it when buying or redeeming units of the funds.

3.7 POLICY ON GEARING

Save and except where permitted or approved by the SC, the funds are prohibited from gearing or borrowing cash or other assets (including the borrowing of securities) to finance the purchase of investments.

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3.8 A GLANCE AT THE TERMS USED IN THIS CHAPTER

What does distribution policy mean?

(i) Incidental distribution implies that the main focus of the fund will be on securing capital growth.

(ii) Annual income implies that the fund concerned will distribute income annually to unitholders, on a best effort basis, subject to the availability of income and/or realised gains and the provisions of the SC Guidelines.

What is investor’s risk profile?

(i) Conservative indicates an investor’s risk disposition favouring safety of principal and stability of income but recognise that it is possible to incur losses by investing in the fund.

(ii) Conservative-to-moderate indicates an investor’s risk disposition favouring a prudent mix of current income and capital growth, with a balanced risk profile which assume the prospect of gains and losses involved.

(iii) Moderate indicates an investor’s risk disposition favouring higher return and higher risk with the prospect of gains and losses involved.

(iv) Aggressive indicates an investor’s risk disposition favouring high capital growth and its corresponding high risk.

What is “suggested minimum investment period”?

Suggested minimum investment period is a guide only. Investors should review their investment in the fund on a regular basis to ensure it continues to meet their investment needs or goals.

Glossary of “INVESTMENT-ASSETS RELATED TERMS”

• Blue chips stocks are proven staple stocks with solid earnings/dividends and reasonable growth prospects.

• Growth stocks are companies with good prospects for earnings growth in the future.

• High growth stocks are companies with brighter earnings growth prospects than growth stocks.

• Index stocks are index component stocks of a selected benchmark market index.

• Recovering sectors are economic/business sectors that are seen to be recovering from a market downturn or economic recession.

• Situational stocks are companies with impending major corporate developments, and the demand for these stocks depends very much on current market focus or themes.

• Money market deposits refer to placements with licensed financial institutions governed by Bank Negara Malaysia.

• Stocks that trade at attractive valuations refer to the possibility of the stocks to be rerated positively in terms of valuations such as price earnings ratio given the potential earnings growth of the stocks.

• Promising refers to the potential to achieve positive returns.

• Stocks that have strong growth potential refer to stocks with good earnings growth potential.

Glossary of “DURATION PERIODS”

• Short term refers to a period of less than 3 years.

• Medium term refers to a period of 3 to 5 years.

• Medium to long term refers to a period of 3 years or more.

• Long term refers to a period of more than 5 years.

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PERFORMANCE OF THE FUNDS4

This section covers the following funds that have been in operation for one (1) financial year or more:

Public Savings Fund (PSF) Page 143Public Growth Fund (PGF) Page 144Public Index Fund (PIX) Page 145Public Industry Fund (PIF) Page 146Public Aggressive Growth Fund (PAGF) Page 147Public Regular Savings Fund (PRSF) Page 148Public SmallCap Fund (P SmallCap) Page 149Public Equity Fund (PEF) Page 150Public Focus Select Fund (PFSF) Page 151Public Dividend Select Fund (PDSF) Page 152Public Far-East Select Fund (PFES) Page 153Public Regional Sector Fund (PRSEC) Page 154Public Global Select Fund (PGSF) Page 155Public Far-East Dividend Fund (PFEDF) Page 156Public China Select Fund (PCSF) Page 157Public Far-East Property & Resorts Fund (PFEPRF) Page 158Public South-East Asia Select Fund (PSEASF) Page 159Public Sector Select Fund (PSSF) Page 160Public Far-East Consumer Themes Fund (PFECTF) Page 161Public China Titans Fund (PCTF) Page 162Public Far-East Telco & Infrastructure Fund (PFETIF) Page 163Public Select Alpha-30 Fund (PSA30F) Page 164Public Natural Resources Equity Fund (PNREF) Page 165Public Australia Equity Fund (PAUEF) Page 166Public Far-East Alpha-30 Fund (PFA30F) Page 167Public Optimal Growth Fund (POGF) Page 168Public Indonesia Select Fund (PINDOSF) Page 169Public Tactical Allocation Fund (PTAF) Page 170Public Balanced Fund (PBF) Page 171Public Far-East Balanced Fund (PFEBF) Page 172Public Bond Fund (P BOND) Page 173Public Institutional Bond Fund (PIN BOND) Page 174Public Enhanced Bond Fund (PEBF) Page 175Public Select Bond Fund (PSBF) Page 176Public Strategic Bond Fund (PSTBF) Page 177Public Money Market Fund (PMMF) Page 178

Notes:

The total returns and average annual returns of the funds presented on pages 143 to 178 are calculated on NAV-to-NAV basis, and are sourced from Lipper.

Average annual returns of the funds are derived by dividing the total returns of the funds with the number of years under review.

Commencement date is the last day of the initial offer period.

Please visit our website for the latest updates on fund performance.

Performances of PSGEF, PSSCF and PENTBF are not tabulated above as the funds will be having their first financial period ending on 30 September 2012 respectively.


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PERFORMANCE OF THE FUNDS (CONT’D)

PERFORMANCE OF PUBLIC SAVINGS FUND (PSF)

Average Annual Returns for the following periods ended 31 December 2011

1-Year 3-Year 5-Year 10-Year Since Commencement*

PSF (%) -5.28 19.57 11.10 18.75 28.04

Benchmark Index (%)** 0.78 24.89 7.92 11.99 6.70

Annual Total Return for the Financial Years Ended 31 December

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

PSF (%) 2.72 22.65 13.91 3.67 24.24 36.77 -28.32 43.90 16.40 -5.28

Benchmark Index (%)** -7.15 22.84 14.29 -0.84 21.83 31.82 -39.33 45.17 19.34 0.78

* The figure shown is for the period since the fund’s commencement (27 April 1981).

** Prior to 6 July 2009, the fund’s benchmark was Kuala Lumpur Composite Index (KLCI).

Effective from 6 July 2009, Bursa Malaysia replaced the KLCI with the FTSE Bursa Malaysia KLCI (FBM KLCI). As such, the FBM KLCI has been adopted as the new benchmark for the fund. The FBM KLCI comprises 30 largest companies by market capitalisation listed on the Bursa Malaysia Main Market.

1-Year Fund Performance Review

The PSF registered a total return of -5.28% for the financial year ended 31 December 2011 in comparison to the benchmark’s return of +0.78% over the same period.

Asset Allocation

2009 2010 2011

Equities 93.3% 99.1% 81.7%

Money Market Instruments & Others 6.7% 0.9% 18.3%

The fund’s equity weighting was increased from 93.3% (83.4% after distribution reinvestment) for the financial year ended 2009 to 99.1% (87.3% after distribution reinvestment) for the financial year ended 2010 to capitalise on the investment opportunities in the domestic and regional markets. For the financial year ended 2011, the fund’s equity weighting was decreased to 81.7% (72.0% after distribution reinvestment) to weather the consolidation phase in the domestic and regional markets.

Portfolio Turnover Ratio (PTR)

2009 2010 2011

PTR (time) 1.06 1.11 1.08

The fund’s PTR increased from 1.06 times for the financial year ended 2009 to 1.11 times in the financial year ended 2010 due to higher level of rebalancing activities. The fund’s PTR decreased slightly to 1.08 times for the financial year ended 2011 due to lower level of rebalancing activities undertaken by the fund.

Distribution

2009 2010 2011

Gross Distribution Per Unit (sen) 8.00 9.00 7.50

Net Distribution Per Unit (sen) 7.57 8.84 7.39

Distribution is in the form of cash.

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PERFORMANCE OF PUBLIC GROWTH FUND (PGF)

Average Annual Returns for the following periods ended 31 July 2011


PGF (%) 23.08 16.06 21.50 21.82 36.60

Benchmark Index (%)** 13.81 11.07 13.11 13.49 16.40

Annual Total Return for the Financial Years Ended 31 July

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

PGF (%) 12.16 2.16 14.33 11.74 4.78 51.85 -7.75 5.29 14.26 23.08

Benchmark Index (%)** 9.43 -0.14 15.74 12.40 -0.16 46.79 -15.33 1.02 15.83 13.81

* The figure shown is for the period since the fund’s commencement (9 January 1985).




The PGF registered a total return of +23.08% for the financial year ended 31 July 2011, as compared to its benchmark which registered a total return of +13.81% over the same period.

Asset Allocation

2009 2010 2011

Equities & Derivatives 98.5% 97.9% 92.8%

Fixed Income Securities 2.7% 1.8% 1.3%

Money Market Instruments & Others -1.2% 0.3% 5.9%

The fund’s equity weighting was reduced from 98.5% (91.3% after distribution reinvestment) in the financial year ended 2009 to 97.9% (89.0% after distribution reinvestment) in the financial year ended 2010 and reduced further to 92.8% (83.6% after distribution reinvestment) in the financial year ended 2011 to weather the consolidation phase in the domestic and selected regional markets.


2009 2010 2011

PTR (time) 0.74 0.64 0.67

The fund’s PTR declined from 0.74 times in the financial year ended 2009 to 0.64 times in the financial year ended 2010 due to lower level of rebalancing activities. The fund’s PTR increased to 0.67 times in the financial year ended 2011 due to higher level of rebalancing activities undertaken by the fund.

Distribution

2009 2010 2011




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PERFORMANCE OF PUBLIC INDEX FUND (PIX)

Average Annual Returns for the following periods ended 31 January 2012


PIX (%) 1.50 27.07 7.77 16.21 29.16

Benchmark Index (%)** 1.77 26.39 6.65 12.05 8.43

Annual Total Return for the Financial Years Ended 31 January

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

PIX (%) -1.73 20.78 11.02 7.49 33.29 19.82 -36.07 45.02 23.15 1.50

Benchmark Index (%)** -7.52 23.19 11.88 -0.25 30.12 17.14 -36.52 42.62 23.49 1.77

* The figure shown is for the period since the fund’s commencement (31 March 1992).


Effective from 6 July 2009, Bursa Malaysia replaced the KLCI with the FTSE Bursa Malaysia KLCI (FBM KLCI). As such, the benchmark of the fund has been replaced by the FTSE Bursa Malaysia Top 100 Index (FBM 100) which is the closest substitute for the KLCI among the various new indices made available by Bursa Malaysia and would least affect the investment strategy, risk profile and investor’s profile of the fund. The FBM 100 comprises 100 large and mid cap companies by market capitalisation listed on the Bursa Malaysia Main Market.


The PIX registered a total return of +1.50% for the financial year ended 31 January 2012 as compared to the benchmark’s return of +1.77% over the same period.

Asset Allocation

2010 2011 2012

Equities 105.7% 100.0% 104.1%


Money Market Instruments & Others -6.3% 0.0% -4.1%

The fund’s equity weighting was reduced from 105.7% (98.5% after distribution reinvestment) in financial year ended 2010 to 100.0% (92.6% after distribution reinvestment) in the financial year ended 2011 to weather the consolidation phase in the domestic market. For the financial year ended 2012, the fund’s equity weighting was increased to 104.1% (95.6% after distribution reinvestment) to capitalize on investment opportunities in the domestic market. The increase in equity weighting for the financial year ended 2012 was also partly due to the distribution declared.


2010 2011 2012

PTR (time) 0.64 0.64 0.39

The fund registered a PTR of 0.64 times for both the financial years ended 2010 and 2011 due to ongoing rebalancing activities performed by the fund. For the financial year ended 2012, the fund’s PTR was reduced to 0.39 times due to lower level of rebalancing activities undertaken by the fund.

Distribution

2010 2011 2012




146


PERFORMANCE OF PUBLIC INDUSTRY FUND (PIF)

Average Annual Returns for the following periods ended 31 October 2011


PIF (%) 4.21 20.70 11.00 20.51 10.75

Benchmark Index (%)** -0.91 24.25 10.19 14.85 1.93

Annual Total Return for the Financial Years Ended 31 October

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

PIF (%) 15.51 25.50 3.74 10.91 18.05 59.69 -40.11 35.63 14.68 4.21

Benchmark Index (%)** 9.92 23.89 5.39 5.76 8.51 43.04 -38.91 43.96 21.11 -0.91

* The figure shown is for the period since the fund’s commencement (17 December 1993).




The PIF achieved a total return of +4.21% for financial year ended 31 October 2011, outperforming its benchmark’s return of -0.91% over the same period.

Asset Allocation

2009 2010 2011

Equities 95.6% 95.0% 93.7%


The fund’s equity weighting was reduced marginally from 95.6% (88.4% after distribution reinvestment) in financial year ended 2009 to 95.0% (87.2% after distribution reinvestment) in the financial year ended 2010. For the financial year ended 2011, the fund’s equity weight was reduced further to 93.7% (85.5% after distribution reinvestment) to weather the market’s consolidation phase.


2009 2010 2011

PTR (time) 1.38 1.63 1.20

The fund’s PTR increased from 1.38 times in financial year ended 2009 to 1.63 times in financial year ended 2010 due to higher level of rebalancing activities. However, the fund’s PTR declined to 1.20 times in the financial year ended 2011 due to lower level of rebalancing activities undertaken by the fund.

Distribution

2009 2010 2011




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PERFORMANCE OF PUBLIC AGGRESSIVE GROWTH FUND (PAGF)

Average Annual Returns for the following periods ended 31 March 2012


PAGF (%) -6.52 26.18 7.82 16.93 10.88

Benchmark Index (%)** 3.31 27.65 5.60 11.10 3.45

Annual Total Return for the Financial Years Ended 31 March

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

PAGF (%) -13.43 45.68 -3.96 12.28 42.39 9.30 -28.69 54.32 23.78 -6.52

Benchmark Index (%)** -15.92 41.86 -3.38 6.34 34.56 0.05 -30.06 51.35 17.00 3.31

* The figure shown is for the period since the fund’s commencement (24 May 1994).




The PAGF registered a total return of -6.52% as compared to the benchmark’s return of +3.31% for the financial year ended 31 March 2012.

Asset Allocation

2010 2011 2012

Equities 100.2% 97.7% 99.8%



The fund’s equity weighting decreased from 100.2% (89.6% after distribution reinvestment) in financial year ended 2010 to 97.7% (86.9% after distribution reinvestment) in the financial year ended 2011 to weather the consolidation phase in the domestic and regional markets. For the financial year ended 2012, the fund’s equity weigthing was increased slightly to 99.8% (93.2% after distribution reinvestment) to capitalize on investment opportunities in the domestic market.


2010 2011 2012

PTR (time) 0.74 0.88 0.78

The fund’s PTR increased from 0.74 times in the financial year ended 2010 to 0.88 times in the financial year ended 2011 due to higher level of rebalancing activities. For the financial year ended 2012, the fund’s PTR decreased to 0.78 times due to lower rebalancing activities undertaken by the fund.

Distribution

2010 2011 2012




148


PERFORMANCE OF PUBLIC REGULAR SAVINGS FUND (PRSF)

Average Annual Returns for the following periods ended 31 March 2012


PRSF (%) 8.33 34.07 12.03 20.57 22.78

Benchmark Index (%)** 3.92 29.44 6.35 11.72 3.72

Annual Total Return for the Financial Years Ended 31 March

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

PRSF (%) -8.12 41.94 -1.79 11.75 33.39 3.24 -23.24 57.65 18.41 8.33

Benchmark Index (%)** -15.92 41.86 -3.38 6.34 34.56 0.05 -30.06 52.44 18.88 3.92



Effective from 6 July 2009, Bursa Malaysia replaced the KLCI with the FTSE Bursa Malaysia KLCI (FBM KLCI). As such, the benchmark of the fund has been replaced by the FTSE Bursa Malaysia Top 100 Index (FBM 100) which is the closest substitute for the KLCI among the various new indices made available by Bursa Malaysia. The FBM 100 comprises 100 large and mid cap companies by market capitalisation listed on the Bursa Malaysia Main Market.


The PRSF registered a total return of +8.33% as compared to the benchmark’s return of +3.92% over the financial year ended 31 March 2012.

Asset Allocation

2010 2011 2012

Equities 97.1% 101.2% 98.4%


Money Market Instruments & Others 0.6% -3.0% -2.4%

The fund’s equity weighting was increased from 97.1% (90.3% after distribution reinvestment) in financial year ended 2010 to 101.2% (93.9% after distribution reinvestment) in financial year ended 2011 to capitalise on investment opportunities in the domestic market. The increase in equity weighting for the financial year ended 2011 was also partly due to the distribution declared. For the financial year ended 2012, the fund’s equity weighting was reduced to 98.4% (92.2% after distribution reinvestment) to weather the consolidation phase in the domestic market.


2010 2011 2012

PTR (time) 0.44 0.32 0.32

The fund’s PTR dropped from 0.44 times for financial year ended 2010 to 0.32 times for the financial year ended 2011 due to lower level of rebalancing activities undertaken by the fund. For the financial year ended 2012, the fund’s PTR remained at 0.32 times.

Distribution

2010 2011 2012




149


PERFORMANCE OF PUBLIC SMALLCAP FUND (P SmallCap)

Average Annual Returns for the following periods ended 31 August 2011


P SmallCap (%) -0.46 15.84 24.93 29.71 26.63

Benchmark Index (%)** 1.71 9.02 8.81 10.08 6.61

Annual Total Return for the Financial Years Ended 31 August

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

P SmallCap (%) 19.09 13.46 13.15 3.80 11.42 55.60 -2.13 9.66 35.15 -0.46

Benchmark Index (%)** 3.52 4.49 11.39 10.34 4.88 32.96 -14.75 10.01 13.55 1.71

* The figure shown is for the period since the fund’s commencement (3 July 2000).

** Prior to 30 April 2008, the fund’s benchmark was Kuala Lumpur Composite Index (KLCI).

Effective from 30 April 2008, the fund’s benchmark has been replaced with FTSE Bursa Malaysia Small Cap Index which comprises eligible companies within the top 98% of the Bursa Malaysia Main Market excluding constituents of the FTSE Bursa Malaysia Top 100 Index. This index is more representative of the fund’s investment objective of investing in companies with small market capitalisation.


The P SmallCap registered a total return of -0.46% for the financial year ended 31 August 2011 as compared to its benchmark’s return of +1.71% over the same period.

Asset Allocation

2009 2010 2011



Money Market Instruments & Others 19.3% -0.7% 15.2%

The fund’s equity weighting was increased from 80.7% (72.4% after distribution reinvestment) in the financial year ended 2009 to 99.2% (89.5% after distribution reinvestment) in the financial year ended 2010 to capitalise on investment opportunities in the domestic and regional markets. For the financial year ended 2011, the fund’s equity weight was reduced to 83.7% (71.3% after distribution reinvestment) to weather the consolidation phase in the domestic and selected regional markets.


2009 2010 2011

PTR (time) 0.46 0.57 0.52

The fund’s PTR had increased from 0.46 times in the financial year ended 2009 to 0.57 times in the financial year ended 2010 due to the higher level of rebalancing activities. For the financial year ended 2011, the fund’s PTR had declined to 0.52 times following lower level of rebalancing activities undertaken by the fund.

Distribution

2009 2010 2011




150


PERFORMANCE OF PUBLIC EQUITY FUND (PEF)



PEF (%) -2.69 29.36 13.28 22.53 21.04

Benchmark Index (%)** -0.91 24.25 10.19 14.85 11.51


2002* 2003 2004 2005 2006 2007 2008 2009 2010 2011

PEF (%) 10.69 26.83 5.42 10.51 15.26 51.35 -41.53 58.52 21.92 -2.69

Benchmark Index (%)** -4.09 23.89 5.39 5.76 8.57 43.04 -38.91 43.96 21.11 -0.91

* The figure shown is for the period since the fund’s commencement (4 September 2001).




For the financial year ended 31 October 2011, PEF registered a total return of -2.69% against the benchmark’s return of -0.91% over the same period.

Asset Allocation

2009 2010 2011

Equities 97.5% 102.8% 95.0%



The fund increased its equity weightings from 97.5% (90.8% after distribution reinvestment) in financial year ended 2009 to 102.8% (89.8% after distribution reinvestment) in the financial year ended 2010 to capitalise on the investment opportunities in the domestic and regional markets. For the financial year ended 2011, the fund’s equity weighting was decreased to 95.0% (85.6% after distribution reinvestment) as the fund locked in profits in the domestic and selected regional markets.


2009 2010 2011

PTR (time) 0.68 0.70 0.72

The fund’s PTR increased from 0.68 times for the financial year ended 2009 to 0.70 times in the financial year ended 2010 and increased further to 0.72 times in the financial year ended 2011 due to higher level of rebalancing activities undertaken by the fund.

Distribution

2009 2010 2011




151


PERFORMANCE OF PUBLIC FOCUS SELECT FUND (PFSF)

Average Annual Returns for the following periods ended 31 December 2011

1-Year 3-Year 5-Year Since Commencement*

PFSF (%) 5.17 29.79 12.92 17.72

Benchmark Index (%)** 6.22 37.60 12.19 13.50

Annual Total Return for the Financial Years Ended 31 December

2005* 2006 2007 2008 2009 2010 2011

PFSF (%) 4.56 30.59 29.62 -32.89 42.66 26.16 5.17

Benchmark Index (%)** -0.55 21.83 31.82 -42.57 51.95 31.79 6.22


** Prior to 30 April 2008, the fund’s benchmark was Kuala Lumpur Composite Index (KLCI).

Effective from 30 April 2008, the fund’s benchmark has been replaced with FTSE Bursa Malaysia Mid 70 Index which comprises the remaining 70 companies in the FTSE Bursa Malaysia EMAS Index ranked by full market capitalisation, excluding the 30 members in the FTSE Bursa Malaysia KLCI. The index is more representative of the fund’s investment objective of investing in medium sized companies.


The PFSF achieved a total return of +5.17% for the financial year ended 31 December 2011 as compared to the benchmark’s return of +6.22% over the same period.

Asset Allocation

2009 2010 2011

Equities 85.6% 88.0% 103.0%

Money Market Instruments & Others 14.4% 12.0% -3.0%

The fund’s equity weighting was increased from 85.6% (83.1% after distribution reinvestment) in financial year ended 2009 to 88.0% (81.9% after distribution reinvestment) in the financial year ended 2010 and further increased to 103.0% (95.4% after distribution reinvestment) in the financial year ended 2011 to capitalise on investment opportunities in the domestic and regional markets. The increase in equity weighting was also partly due to the distribution declared for the financial year ended 2011.


2009 2010 2011

PTR (time) 0.53 0.53 0.89

The fund recorded a PTR of 0.53 times for both financial years ended 2009 and 2010 due to ongoing rebalancing activities performed by the fund. For the financial year ended 2011, the fund’s PTR increased to 0.89 times due to higher level of rebalancing activities undertaken by the fund.

Distribution

2009 2010 2011




152


PERFORMANCE OF PUBLIC DIVIDEND SELECT FUND (PDSF)

Average Annual Returns for the following periods ended 31 May 2011


PDSF (%) 26.24 12.24 19.99 19.54

Benchmark Index (%)** 21.68 7.80 13.94 12.69

Annual Total Return for the Financial Years Ended 31 May

2006* 2007 2008 2009 2010 2011

PDSF (%) 9.03 42.33 2.75 -10.16 20.59 26.24

Benchmark Index (%)** 4.08 45.17 -5.26 -18.18 23.97 21.68


** Prior to 30 April 2010, the fund’s benchmark was Kuala Lumpur Composite Index (KLCI) and subsequently changed to FTSE Bursa Malaysia Top 100 Index (FBM 100) upon the replacement of KLCI by Bursa Malaysia on 6 July 2009.

Effective from 30 April 2010, the fund’s benchmark has been replaced with a composite index of 90% FBM 100 and 10% 3-Month Kuala Lumpur Interbank Offered Rates (KLIBOR) as this composite benchmark index is a better representative of the fund’s investments.


The PDSF registered a total return of +26.24% for the financial year ended 31 May 2011, as compared to its benchmark which registered a total return of +21.68% over the same period.

Asset Allocation

2009 2010 2011




The fund reduced its equity weightings from 95.8% (89.3% after distribution reinvestment) in financial year ended 2009 to 90.0% (80.9% after distribution reinvestment) in the financial year ended 2010 as the fund locked in profits. For the financial year ended 2011, the fund’s equity weighting was increased to 93.4% (84.7% after distribution reinvestment) to capitalise on the investment opportunities in the domestic and regional markets.


2009 2010 2011

PTR (time) 0.35 0.45 0.58

The fund’s PTR increased from 0.35 times in the financial year ended 2009 to 0.45 times in the financial year ended 2010 and further increased to 0.58 times in the financial year ended 2011 due to higher level of rebalancing activities undertaken by the fund.

Distribution

2009 2010 2011




153


PERFORMANCE OF PUBLIC FAR-EAST SELECT FUND (PFES)



PFES (%) 22.83 4.66 16.96 17.03

Benchmark Index (%)** 20.54 1.88 8.11 8.84


2006* 2007 2008 2009 2010 2011

PFES (%) 4.47 38.74 16.87 -14.49 8.54 22.83

Benchmark Index (%)** 5.52 29.91 2.43 -21.92 12.24 20.54


** Prior to 30 April 2010, the fund’s benchmark was a composite index of 70% MSCI AC Far East Ex-Japan Index and 30% FTSE Bursa Malaysia KLCI (FBM KLCI) (replacement of Kuala Lumpur Composite Index by Bursa Malaysia with effect from 6 July 2009).

Effective from 30 April 2010, the fund’s benchmark has been replaced with MSCI AC Far East Ex-Japan Index as this index is a better representative of the fund’s investments.


The PFES registered a total return of +22.83% for the financial year ended 31 May 2011, as compared to its benchmark’s return of +20.54% over the same period.

Asset Allocation

2009 2010 2011




The fund’s equity weighting was reduced from 95.5% for the financial year ended 2009 to 92.6% (87.4% after distribution reinvestment) for the financial year ended 2010 to weather the consolidation phase in the domestic and regional markets. For the financial year ended 2011, the fund’s equity weighting was increased to 95.3% (90.2% after distribution reinvestment) to capitalise on investment opportunities in selected regional markets.


2009 2010 2011

PTR (time) 1.66 1.23 1.45

The fund’s PTR declined from 1.66 times in the financial year ended 2009 to 1.23 times for the financial year ended 2010 due to lower level of rebalancing activities. For the financial year ended 2011, the fund’s PTR increased to 1.45 times due to higher level of rebalancing activities undertaken by the fund.

Distribution

2009 2010 2011

Gross Distribution Per Unit (sen) - 1.75 1.75

Net Distribution Per Unit (sen) - 1.58 1.70


154


PERFORMANCE OF PUBLIC REGIONAL SECTOR FUND (PRSEC)



PRSEC (%) 21.30 5.59 15.00 12.85

Benchmark Index (%)** 18.72 0.18 5.76 4.44


2007* 2008 2009 2010 2011

PRSEC (%) 27.65 11.39 -10.60 7.70 21.30

Benchmark Index (%)** 15.94 5.41 -21.66 8.08 18.72


** The fund’s benchmark is a composite index of 90% MSCI AC Far East Ex-Japan Index and 10% 3-Month Kuala Lumpur Interbank Offered Rates (KLIBOR).


The PRSEC registered a total return of +21.30% for the financial year ended 31 May 2011, as compared to its benchmark’s return of +18.72% over the same period.

Asset Allocation

2009 2010 2011




The fund reduced its equity weighting from 97.1% in financial year ended 2009 to 96.3% (89.8% after distribution reinvestment) in the financial year ended 2010 and was reduced further to 94.7% (88.9% after distribution reinvestment) in the financial year ended 2011 to weather the consolidation phase in the domestic and regional markets.


2009 2010 2011

PTR (time) 1.53 1.21 1.37


Distribution

2009 2010 2011




155


PERFORMANCE OF PUBLIC GLOBAL SELECT FUND (PGSF)


1-Year 3-Year Since Commencement*

PGSF (%) 12.30 -1.23 -1.74

Benchmark Index (%)** 14.57 -4.60 -3.03


` 2007* 2008 2009 2010 2011

PGSF (%) 7.41 -11.11 -19.28 6.25 12.30

Benchmark Index (%)** 6.76 -7.07 -28.13 4.69 14.57

* The figure shown is for the period since the fund’s commencement (18 October 2006).

** The fund’s benchmark is a composite index of 90% MSCI All Country World Index and 10% 1-Month Kuala Lumpur Interbank Offered Rates (KLIBOR).


The PGSF registered a total return of +12.30% for the financial year ended 31 May 2011 in comparison to its benchmark’s return of +14.57% over the same period.

Asset Allocation

2009 2010 2011



The fund’s equity weightings was reduced from 86.8% in financial year ended 2009 to 75.5% (72.7% after distribution reinvestment) in financial year ended 2010 amid the rise in volatility in global financial markets. For the financial year ended 2011, the fund’s equity weighting subsequently increased to 89.7% (86.5% after distribution reinvestment) to capitalise on the investment opportunities in the global equity markets.


2009 2010 2011

PTR (time) 0.62 0.74 1.24

The fund’s PTR increased from 0.62 times for financial year ended 2009 to 0.74 times for the financial year ended 2010 and increased further to 1.24 times for the financial year ended 2011 due to higher level of rebalancing activities undertaken by the fund.

Distribution

2009 2010 2011




156


PERFORMANCE OF PUBLIC FAR-EAST DIVIDEND FUND (PFEDF)

Average Annual Returns for the following periods ended 30 November 2011


PFEDF (%) -16.04 9.73 0.23

Benchmark Index (%)** -11.50 17.76 0.50

Annual Total Return for the Financial Years Ended 30 November

2007* 2008 2009 2010 2011

PFEDF (%) 30.17 -39.86 44.04 6.86 -16.04

Benchmark Index (%)** 30.77 -48.91 58.16 9.19 -11.50


** Prior to 30 April 2010, the fund’s benchmark was a composite index of 70% MSCI AC Far East Ex-Japan Index and 30% FTSE Bursa Malaysia KLCI (FBM KLCI) (replacement of Kuala Lumpur Composite Index by Bursa Malaysia with effect from 6 July 2009).

Effective from 30 April 2010, the fund’s benchmark has been replaced with 90% MSCI AC Far East Ex-Japan Index and 10% 3-Month Kuala Lumpur Interbank Offered Rates (KLIBOR) as this composite benchmark index is a better representative of the fund’s investments.


The PFEDF registered a total return of -16.04% for the financial year ended 30 November 2011 as compared to the benchmark’s return of -11.50% over the same period.

Asset Allocation

2009 2010 2011



The fund’s equity weighting was decreased from 98.6% (97.8% after distribution reinvestment) in the financial year ended 2009 to 89.4% (87.8% after distribution reinvestment) in the financial year ended 2010 and decreased further to 89.2% (87.2% after distribution reinvestment) in the financial year ended 2011 to weather the consolidation phase in domestic and regional equity markets.


2009 2010 2011

PTR (time) 1.31 1.95 1.72

The fund’s PTR increased from 1.31 times in financial year ended 2009 to 1.95 times in financial year ended 2010 due to higher level of rebalancing activities. For the financial year ended 2011, the fund’s PTR decreased to 1.72 times due to lower level of rebalancing activities undertaken by the fund.

Distribution

2009 2010 2011




157


PERFORMANCE OF PUBLIC CHINA SELECT FUND (PCSF)



PCSF (%) 11.68 0.49 -4.12

Benchmark Index (%)** 4.59 0.63 -1.21


2008* 2009 2010 2011

PCSF (%) -18.07 0.21 -9.34 11.68

Benchmark Index (%)** -6.72 3.26 -5.65 4.59

* The figure shown is for the period since the fund’s commencement (25 June 2007).

** Prior to 1 January 2009, the fund’s benchmark was a composite index of 40% Hang Seng China Enterprises Index, 30% Hang Seng Index and 30% Taiwan Index.

Effective from 1 January 2009, the fund’s benchmark has been replaced with the MSCI Golden Dragon Index as this index is a better representative of the performance of the greater China markets.


The PCSF registered a total return of +11.68% for the financial year ended 31 July 2011, as compared to the benchmark’s return of +4.59% over the same period.

Asset Allocation

2009 2010 2011



The fund’s equity weighting was increased from 93.4% in financial year ended 2009 to 94.2% in the financial year ended 2010 and was further increased to 96.3% in the financial year ended 2011 to capitalise on investment opportunities in the greater China markets.


2009 2010 2011

PTR (time) 0.64 1.17 1.60

The fund’s PTR increased from 0.64 times for the financial year ended 2009 to 1.17 times for the financial year ended 2010 and increased further to 1.60 times for the financial year ended 2011 due to higher level of rebalancing activities undertaken by the fund.

Distribution

2009 2010 2011

Gross Distribution Per Unit (sen) - - -

Net Distribution Per Unit (sen) - - -

158


PERFORMANCE OF PUBLIC FAR-EAST PROPERTY & RESORTS FUND (PFEPRF)



PFEPRF (%) 14.01 15.26 0.85

Benchmark Index (%)** 12.41 0.31 -7.86


2008* 2009 2010 2011

PFEPRF (%) -29.04 25.76 1.61 14.01

Benchmark Index (%)** -32.06 -7.43 -3.00 12.41


** Prior to 1 January 2009, the fund’s benchmark, the Dow Jones Asia Pacific Real Estate Sector IndexSM, was customised to the following weights, i.e. 20% Japan, 20% Australia, 20% Malaysia and the balance of 40% for the rest of the countries within the index universe currently including Hong Kong, Indonesia, New Zealand, Philippines, Singapore, Taiwan, Thailand and South Korea.

Effective from 1 January 2009, the benchmark of the fund has been replaced with a customised index based on constituents within the real estate sector of the Standard & Poor’s BMI Asia Pacific Index which is customised to the following weights, i.e. 20% Japan, 20% Australia, 20% Malaysia and the balance of 40% for the rest of the countries within the index universe currently including China ‘H’ Shares, Hong Kong, Indonesia, New Zealand, Philippines, Singapore, Taiwan, Korea and Thailand. The real estate sector is defined by the then-current Global Industry Classification Standard (GICS). The new benchmark index is more representative of the performance of the stock markets which it represents.


The PFEPRF registered a total return of +14.01% for the financial year ended 31 July 2011 versus the benchmark’s return of +12.41% over the same period.

Asset Allocation

2009 2010 2011




The fund’s equity weighting was increased from 95.8% for the financial year ended 2009 to 97.3% (95.0% after distribution reinvestment) for the financial year ended 2010 to capitalise on investment opportunities in the regional markets. For the financial year ended 2011, the fund’s equity weighting was reduced to 83.2% (81.6% after distribution reinvestment) to weather the consolidation phase in the regional markets.


2009 2010 2011

PTR (time) 0.95 0.63 0.68

The fund’s PTR declined from 0.95 times in the financial year ended 2009 to 0.63 times in the financial year ended 2010 due to lower level of rebalancing activities. The fund’s PTR increased slightly to 0.68 times in the financial year ended 2011 due to higher level of rebalancing activities undertaken by the fund.

Distribution

2009 2010 2011




159


PERFORMANCE OF PUBLIC SOUTH-EAST ASIA SELECT FUND (PSEASF)



PSEASF (%) -2.35 29.99 2.47

Benchmark Index (%)** -1.90 31.14 1.29


2008* 2009 2010 2011

PSEASF (%) -42.12 54.73 25.73 -2.35

Benchmark Index (%)** -45.61 60.09 22.52 -1.90

* The figure shown is for the period since the fund’s commencement (22 October 2007).

** Prior to 30 April 2010, the fund’s benchmark was a composite index of 35% Straits Times Index (STI), 30% FTSE Bursa Malaysia KLCI (FBM KLCI) (replacement of Kuala Lumpur Composite Index by Bursa Malaysia with effect from 6 July 2009), 15% Jakarta Composite Index (JCI), 15% Stock Exchange of Thailand Index (SET) and 5% Philippine Stock Exchange Index (PSEi).

Effective from 30 April 2010, the fund’s benchmark has been replaced with FTSE/ASEAN 40 Index as this index is a better representative of the fund’s investments.


The PSEASF registered a total return of -2.35% for the financial year ended 31 October 2011 against the benchmark’s return of -1.90% over the same period.

Asset Allocation

2009 2010 2011




The fund’s equity weighting decreased from 97.0% for the financial year ended 2009 to 91.4% (88.8% after distribution reinvestment) for the financial year ended 2010 to weather the consolidation phase in the domestic and regional markets. For the financial year ended 2011, the fund’s equity weighting was marginally increased to 92.2% (83.7% after distribution reinvestment) to capitalize on the investment opportunities in the domestic and selected South East Asia markets.


2009 2010 2011

PTR (time) 0.67 0.88 0.85

The fund’s PTR increased from 0.67 times for the financial year ended 2009 to 0.88 times for the financial year ended 2010 due to higher level of rebalancing activities. For the financial year ended 2011, the fund’s PTR declined marginally to 0.85 times due to lower level of rebalancing activities undertaken by the fund.

Distribution

2009 2010 2011




160


PERFORMANCE OF PUBLIC SECTOR SELECT FUND (PSSF)


1-Year 3-Year Since commencement*

PSSF (%) 1.25 34.06 7.18

Benchmark Index (%)** 0.54 25.62 1.94


2008* 2009 2010 2011

PSSF (%) -36.64 52.90 30.59 1.25

Benchmark Index (%)** -39.15 43.96 22.18 0.54



Effective from 6 July 2009, Bursa Malaysia replaced the KLCI with the FTSE Bursa Malaysia KLCI (FBM KLCI). As such, the benchmark of the fund has been replaced by the FTSE Bursa Malaysia Top 100 Index (FBM 100) which is the closest substitute for the KLCI among the various new indices made available by Bursa Malaysia. The FBM 100 comprises 100 large and mid cap companies by market capitalisation listed on the Bursa Malaysia Main Market.


The PSSF generated a total return of +1.25% for the financial year ended 31 October 2011 as compared to its benchmark’s total return of +0.54% over the same period.

Asset Allocation

2009 2010 2011

Equities 86.8% 94.7% 88.1%



The fund increased its equity weighting from 86.8% in the financial year ended 2009 to 94.7% (87.4% after distribution reinvestment) for the financial year ended 2010 to capitalise on the investment opportunities in the domestic market. For the financial year ended 2011, the fund’s equity weighting was reduced to 88.1% (82.4% after distribution reinvestment) to weather the consolidation phase in the domestic market.


2009 2010 2011

PTR (time) 0.76 0.78 0.55

The fund’s PTR rose marginally from 0.76 times in the financial year ended 2009 to 0.78 times in the financial year ended 2010 due to higher level of rebalancing activities. For the financial year ended 2011, the fund’s PTR dropped to 0.55 times due to lower level of rebalancing activities undertaken by the fund.

Distribution

2009 2010 2011




161


PERFORMANCE OF PUBLIC FAR-EAST CONSUMER THEMES FUND (PFECTF)

Average Annual Returns for the following periods ended 30 June 2011


PFECTF (%) 19.69 17.29 12.75

Benchmark Index (%)** 28.29 16.45 10.87

Annual Total Return for the Financial Years Ended 30 June

2008* 2009 2010 2011

PFECTF (%) -5.44 9.09 16.32 19.69

Benchmark Index (%)** - 8.13 -10.23 29.67 28.29

* The figure shown is for the period since the fund’s commencement (28 January 2008).

** Prior to 1 January 2009, the fund’s benchmark was a customised index based on selected sectors within the Dow Jones Asia Pacific IndexSM comprising Malaysia, Singapore, Thailand, Indonesia, Philippines, Hong Kong, Taiwan and South Korea. The stock universe also includes China ‘H’ Shares from the Dow Jones China Offshore IndexSM.

Effective from 1 January 2009, the fund’s benchmark has been replaced with a customised index based on the constituents within the selected sectors of the Standard & Poor’s BMI Asia Ex-Japan Index comprising Malaysia, Singapore, Thailand, Indonesia, Philippines, Hong Kong, China ‘H’ Shares, Taiwan and South Korea. The selected sectors are the Consumer Discretionary and Consumer Staples sectors as defined by the then-current Global Industry Classification Standard (GICS). The new benchmark index is more representative of the performance of the stock markets it represents.


The PFECTF registered a total return of +19.69% for the financial year ended 30 June 2011 in comparison to the benchmark’s return of +28.29% over the same period.

Asset Allocation

2009 2010 2011



The fund’s equity weighting was increased from 90.5% for the financial year 2009 to 97.0% (85.8% after distribution reinvestment) for the financial year ended 2010 and was further increased to 104.4% (91.3% after distribution reinvestment) for the financial year ended 2011 to capitalise on investment opportunities in domestic and regional markets. The increase in equity exposure was also partly due to the distribution declared for the financial year ended 2011.


2009 2010 2011

PTR (time) 0.77 1.07 1.29

The fund’s PTR increased from 0.77 times in financial year ended 2009 to 1.07 times in financial year ended 2010 and increased further to 1.29 times in the financial year ended 2011 due to higher level of rebalancing activities undertaken by the fund.

Distribution

2009 2010 2011




162


PERFORMANCE OF PUBLIC CHINA TITANS FUND (PCTF)



PCTF (%) 9.67 1.36 1.00

Benchmark Index (%)** 13.89 -1.60 -0.43


2009* 2010 2011

PCTF (%) -4.32 -1.76 9.67

Benchmark Index (%)** -15.17 1.70 13.89


** The fund’s benchmark is a composite index of 40% Hang Seng China Enterprises Index (HSCEI), 30% Hang Seng Index (HSI) and 30% TSEC Taiwan 50 Index.


The PCTF registered a total return of +9.67% for the financial year ended 31 May 2011 in comparison to the benchmark’s return of +13.89% over the same period.

Asset Allocation

2009 2010 2011



The fund increased its equity weighting from 88.3% in financial period ended 2009 to 100.4% (94.0% after distribution reinvestment) in financial year ended 2010 to capitalise on investment opportunities in the greater China markets. The increase in equity exposure was also partly due to the distribution declared for the financial year ended 2010. The fund subsequently reduced its equity weighting to 91.1% in the financial year ended 2011 to weather the consolidation phase in the greater China markets.


2009 2010 2011

PTR (time) 1.03 0.98 1.23

The fund’s PTR dropped from 1.03 times in financial period ended 2009 to 0.98 times in financial year ended 2010 due to lower level of rebalancing activities. The fund’s PTR rose to 1.23 times in the financial year ended 2011 due to higher level of rebalancing activities undertaken by the fund.

Distribution

2009 2010 2011

Gross Distribution Per Unit (sen) - 1.50 -

Net Distribution Per Unit (sen) - 1.50 -


163


PERFORMANCE OF PUBLIC FAR-EAST TELCO & INFRASTRUCTURE FUND (PFETIF)

Average Annual Returns for the following periods ended 30 April 2011

1-Year Since Commencement*

PFETIF (%) 25.59 25.46

Benchmark Index (%)** 9.64 -1.84

Annual Total Return for the Financial Years Ended 30 April

2009* 2010 2011

PFETIF (%) 15.24 17.53 25.59

Benchmark Index (%)** -17.70 5.21 9.64


** Prior to 1 January 2009, the fund’s benchmark was based on selected sectors of the Dow Jones IndexesSM customised to the following weights, i.e. 40% Telecommunications, 30% Construction & Materials and 30% Utilities sectors comprising Malaysia, Singapore, Thailand, Indonesia, Philippines, Hong Kong, Taiwan and South Korea, as well as China ‘H’ Shares from the Dow Jones China Offshore IndexSM.

Effective from 1 January 2009, the benchmark of the fund has been replaced with an index based on selected sectors of the Standard and Poor’s BMI Asia Ex-Japan Index customised to the following weights, i.e. 40% Telecommunication Service, 30% Construction & Materials and 30% Utilities sectors comprising Malaysia, Singapore, Thailand, Indonesia, Philippines, Hong Kong, China ‘H’ Shares, Taiwan and South Korea. The above sectors are defined by the then-current Global Industry Classification Standard (GICS). The new benchmark is more representative of the performance of the stock markets which it represents.


The PFETIF registered a return of +25.59% for the financial year ended 30 April 2011 as compared to the benchmark’s return of +9.64% over the same period.

Asset Allocation

2009 2010 2011



The fund’s equity weighting was increased from 86.4% in financial period ended 2009 to 102.2% (94.7% after distribution reinvestment) in financial year ended 2010 to capitalise on investment opportunities in the domestic and regional markets. For the financial year ended 2011, the fund’s equity weighting was reduced to 90.4% (85.3% after distribution reinvestment) to weather the consolidation phase in the domestic and regional markets.


2009 2010 2011

PTR (time) 1.26 0.95 0.86

The fund’s PTR declined from 1.26 times in financial period ended 2009 to 0.95 times in financial year ended 2010 and declined further to 0.86 times in the financial year ended 2011 due to lower level of rebalancing activities undertaken by the fund.

Distribution

2009 2010 2011




164


PERFORMANCE OF PUBLIC SELECT ALPHA-30 FUND (PSA30F)



PSA30F(%) -4.26 15.34

Benchmark Index (%)** -0.88 19.35


2009* 2010 2011

PSA30F (%) 25.76 16.11 -4.26

Benchmark Index (%)** 28.46 17.96 -0.88





The PSA30F registered a total return of -4.26% for the financial year ended 30 November 2011 in comparison to the benchmark’s return of -0.88% over the same period.

Asset Allocation

2009 2010 2011



The equity exposure of the fund was increased from 91.4% (89.3% after distribution reinvestment) for the financial period ended 2009 to 95.9% (89.2% after distribution reinvestment) for the financial year ended 2010 to capitalise on the investment opportunities in the domestic and regional markets. For the financial year ended 2011, the fund’s equity weighting was reduced slightly to 93.5% (86.3% after distribution reinvestment) to weather the consolidation phase in the domestic and regional markets.


2009 2010 2011

PTR (time) 0.75 1.00 1.22

The fund’s PTR increased from 0.75 times in financial period ended 2009 to 1.00 times in financial year ended 2010 and increased further to 1.22 times in the financial year ended 2011 due to higher level of rebalancing activities undertaken by the fund.

Distribution

2009 2010 2011




165


PERFORMANCE OF PUBLIC NATURAL RESOURCES EQUITY FUND (PNREF)



PNREF (%) -19.49 -4.11

Benchmark Index (%)** -11.77 4.09


2010* 2011

PNREF (%) 12.12 -19.49



** The benchmark of the fund is a customised index based on selected sectors within the S&P/Citigroup BMI Asia ex Japan Index comprising Malaysia, Singapore, Thailand, Indonesia, Philippines, Hong Kong, China ‘H’ Shares, Taiwan, South Korea, Australia and New Zealand. The selected sectors are customised to the following weights i.e. 40% Energy Sector, 30% Metals and Mining Industry and 30% Agricultural Product Sub-Industry as defined by the then-current Global Industry Classification Standard (GICS).


The PNREF registered a total return of -19.49% for the financial year ended 30 November 2011 in comparison to the benchmark’s return of -11.77% over the same period.

Asset Allocation

2010 2011

Equities & Derivatives 93.9% 69.5%

Fixed Income Securities 0.0% 0.7%

Money Market Instruments & Others 6.1% 29.8%

The equity exposure of the fund decreased from 93.9% (88.9% after distribution reinvestment) for the financial period ended 2010 to 69.5% for the financial year ended 2011 to weather the consolidation phase in the natural resources sectors.


2010 2011

PTR (time) 2.64 1.21

The fund’s PTR decreased from 2.64 times for the financial period ended 2010 to 1.21 times for the financial year ended 2011 due to lower level of rebalancing activities undertaken by the fund.

Distribution

2010 2011

Gross Distribution Per Unit (sen) 1.50 -

Net Distribution Per Unit (sen) 1.50 -


166


PERFORMANCE OF PUBLIC AUSTRALIA EQUITY FUND (PAUEF)



PAUEF (%) 16.18 7.66

S&P/ASX 200 Index (%) 11.48 1.12


2010* 2011

PAUEF (%) -1.84 16.18

S&P/ASX 200 Index (%) -8.46 11.48



The PAUEF registered a total return of +16.18% for the financial year ended 31 July 2011, in comparison to the benchmark’s return of +11.48% over the same period.

Asset Allocation

2010 2011


Fixed Income Securities 7.6% 6.4%


The equity exposure of the fund was reduced from 92.1% for the financial period ended 2010 to 88.2% (81.2% after distribution reinvestment) for the financial year ended 2011 to weather the consolidation phase in the Australian markets.


2010 2011

PTR (time) 1.49 1.07

The fund’s PTR declined from 1.49 times for the financial period ended 2010 to 1.07 times for the financial year ended 2011 due to lower level of rebalancing activities undertaken by the fund.

Distribution

2010 2011

Gross Distribution Per Unit (sen) - 2.25

Net Distribution Per Unit (sen) - 2.25


167


PERFORMANCE OF PUBLIC FAR-EAST ALPHA-30 FUND (PFA30F)



PFA30F (%) -20.48 -8.84

Benchmark Index (%)** -10.93 -4.11


2010* 2011

PFA30F (%) 8.00 -20.48



** The benchmark of the fund is a composite index of 80% MSCI AC Far East Ex-Japan Index, 10% Tokyo Stock Price Index and 10% 3-Month Kuala Lumpur Interbank Offered Rates (KLIBOR).


The PFA30F registered a total return of -20.48% for the financial year ended 30 November 2011 as compared to the benchmark’s return of -10.93% over the same period.

Asset Allocation

2010 2011



The fund’s equity weighting was decreased from 87.0% for the financial period ended 2010 to 70.9% (70.1% after distribution reinvestment) for the financial year ended 2011 to weather the consolidation phase in the domestic and regional equity markets.


2010 2011

PTR (time) 1.58 1.83

The fund’s PTR increased from 1.58 times for the financial period ended 2010 to 1.83 times for the financial year ended 2011 due to higher level of rebalancing activities undertaken by the fund.

Distribution

2010 2011

Gross Distribution Per Unit (sen) - 0.25

Net Distribution Per Unit (sen) - 0.24


168


PERFORMANCE OF PUBLIC OPTIMAL GROWTH FUND (POGF)



POGF (%) 15.25 16.78

FBM 100 (%)** 16.82 18.41

Annual Total Return for the Financial Period Ended 31 July

2011*

POGF (%) 18.20

FBM 100 (%)** 19.98

* The figure shown is for the period since the fund’s commencement (28 June 2010).

** The benchmark of the fund is the FTSE Bursa Malaysia Top 100 Index (FBM 100) which comprises 100 large and mid cap companies by market capitalisation listed on the Bursa Malaysia Main Market.


The POGF registered a total return of +15.25% over the one year period ended 31 July 2011 in comparison to its benchmark’s return of +16.82% over the same period.

Asset Allocation

2011

Equities & Derivatives 91.2%

Money Market Instruments & Others 8.8%

Following its launch, the equity exposure of the fund was progressively increased to 91.2% (86.3% after distribution reinvestment) for the financial period ended 2011 to capitalise on investment opportunities in the domestic market. There is no comparison figure as the commencement date of the fund was 28 June 2010.


2011

PTR (time) 1.28

The fund registered a PTR of 1.28 times for the financial period ended 2011. There is no comparison figure as the commencement date of the fund was 28 June 2010.

Distribution

2011

Gross Distribution Per Unit (sen) 1.75

Net Distribution Per Unit (sen) 1.59


169


PERFORMANCE OF PUBLIC INDONESIA SELECT FUND (PINDOSF)

Total Return for the following period ended 31 August 2011

Since Commencement*

PINDOSF (%) 10.96

Benchmark Index (%)** 14.15

Annual Total Return for the Financial Period Ended 31 August

2011*

PINDOSF (%) 10.96

Benchmark Index (%)** 14.15


** Prior to 30 April 2011, the benchmark of the fund was Jakarta Composite Index (JCI).

Effective from 30 April 2011, the fund’s benchmark has been replaced with the Jakarta LQ-45 Index which comprises 45 largest companies by market capitalisation listed on the Indonesia Stock Exchange as this index is a better representative of the performance of the Indonesia market.

Fund Performance Review

The PINDOSF registered a total return of +10.96% for the financial period ended 31 August 2011 in comparison to its benchmark’s return of +14.15% over the same period.

Asset Allocation

2011

Equities & Derivatives 78.4%

Fixed Income Securities 12.2%


Following its launch, the fund’s equity exposure was progressively increased to 78.4% (74.1% after distribution reinvestment) for the financial period ended 2011 to capitalise on investment opportunities in the Indonesian market. There is no comparison figure as the commencement date of the fund was 21 September 2010.


2011

PTR (time) 0.99

For the financial period ended 2011, the fund registered a PTR of 0.99 times. There is no comparison figure as the commencement date of the fund was 21 September 2010.

Distribution

2011




170


PERFORMANCE OF PUBLIC TACTICAL ALLOCATION FUND (PTAF)(Formerly known as Public Global Balanced Fund)



PTAF (%) 2.53 -0.32 -1.55

Benchmark Index (%)** 6.01 -1.01 -1.25


2008* 2009 2010 2011

PTAF (%) -5.62 -15.76 14.68 2.53

Benchmark Index (%)** -2.31 -19.73 13.97 6.01

* The figure shown is for the period since the fund’s commencement (12 February 2007).

** Prior to 12 December 2011, the fund’s benchmark was a composite index of 60% MSCI All Country World Index and 40% 3-Month Kuala Lumpur Interbank Offered Rates (KLIBOR).

Effective from 12 December 2011, the fund’s benchmark has been replaced with 70% MSCI AC Far-East Ex-Japan Index and 30% 3-Month Kuala Lumpur Interbank Offered Rates (KLIBOR) as it is more reflective of the new investment strategy of the fund.


The PTAF registered a return of +2.53% for the financial year ended 30 April 2011 as compared to the benchmark’s return of +6.01% over the same period.

Asset Allocation

2009 2010 2011




The fund reduced its equity weighting from 58.8% in financial year ended 2009 to 57.6% (56.4% after distribution reinvestment) in the financial year ended 2010 as the fund locked in profits. For the financial year ended 2011, the fund’s equity weighting was increased to 59.9% (58.7% after distribution reinvestment) to capitalise on investment opportunities in the global equity markets.


2009 2010 2011

PTR (time) 0.31 0.40 0.60

The fund’s PTR increased from 0.31 times in financial year ended 2009 to 0.40 times in the financial year ended 2010 and increased further to 0.60 times in the financial year ended 2011 due to higher level of rebalancing activities undertaken by the fund.

Distribution

2009 2010 2011




171


PERFORMANCE OF PUBLIC BALANCED FUND (PBF)



PBF (%) 15.79 7.47 15.35 20.64 12.69

PBEIX (%)** 13.68 5.74 9.41 11.06 5.22


2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

PBF (%) 28.54 -2.99 16.25 7.18 11.60 38.85 4.00 -8.46 15.50 15.79

PBEIX (%)** 18.66 -4.44 13.55 4.93 5.98 27.18 -1.35 -9.87 14.42 13.68


** The Public Balanced Equity Index (PBEIX) is an index computed based on accumulated daily returns from the FTSE Bursa Malaysia KLCI (replacement of Kuala Lumpur Composite Index by Bursa Malaysia with effect from 6 July 2009) and 3-month Kuala Lumpur Interbank Offered Rates in the ratio of 60:40. Thus, it is the appropriate benchmark for balanced funds, which have equity weightings capped at a maximum 60% of the fund’s NAV.


The PBF registered a total return of +15.79% as compared to the benchmark Public Balanced Equity Index (PBEIX) which registered a return of +13.68% for the financial year ended 31 May 2011.

Asset Allocation

2009 2010 2011




The fund increased its equity weighting from 63.6% (59.5% after distribution reinvestment) in financial year ended 2009 to 64.6% (59.1% after distribution reinvestment) in the financial year ended 2010 as the fund capitalised on investment opportunities in the domestic and selected regional markets. For the financial year ended 2011, the fund’s equity weighting was reduced to 61.1% (56.0% after distribution reinvestment) to weather the consolidation phase in the domestic and selected regional markets. The fund’s equity weighting for the respective financial years ended 2009, 2010 and 2011 exceeded 60% partly due to the distribution declared for the respective financial years.


2009 2010 2011

PTR (time) 0.46 0.41 0.60


Distribution

2009 2010 2011




172


PERFORMANCE OF PUBLIC FAR-EAST BALANCED FUND (PFEBF)



PFEBF (%) 6.49 2.01 2.59

Benchmark Index (%)** 8.35 1.51 3.45


2008* 2009 2010 2011

PFEBF (%) 4.60 -15.33 17.60 6.49

Benchmark Index (%)** 9.58 -18.43 18.28 8.35


** The fund’s benchmark is a composite index of 60% MSCI AC Far-East Ex-Japan Index and 40% 3-Month Kuala Lumpur Interbank Offered Rates.


The PFEBF registered a total return of +6.49% for the financial year ended 30 April 2011 in comparison to the benchmark’s return of +8.35% over the same period.

Asset Allocation

2009 2010 2011




The fund increased its equity weighting from 59.8% in financial year ended 2009 to 64.4% (60.3% after distribution reinvestment) in the financial year ended 2010 as the fund capitalised on investment opportunities in the domestic and regional markets. For the financial year ended 2011, the fund reduced its equity weighting to 60.8% (59.5% after distribution reinvestment) to weather the consolidation phase in the domestic and regional markets.


2009 2010 2011

PTR (time) 0.54 0.73 0.86

The fund’s PTR increased from 0.54 times in financial year ended 2009 to 0.73 times in the financial year ended 2010 and was further increased to 0.86 times in the financial year ended 2011 due to higher level of rebalancing activities undertaken by the fund.

Distribution

2009 2010 2011




173


PERFORMANCE OF PUBLIC BOND FUND (P BOND)



P BOND (%) 8.78 8.84 7.15 9.90 14.12

12-Month FixedDeposits Rates (%)** 2.91 2.96 3.43 4.13 5.96


2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

P BOND (%) 15.55 9.85 2.58 9.43 2.90 8.75 -1.33 8.01 7.64 8.78

12-Month FixedDeposits Rates (%)** 4.04 3.94 3.70 3.69 3.77 3.75 3.71 3.09 2.49 2.91


** The benchmark 12-month fixed deposits rates (12-MFD) is computed based on daily returns from 12-MFD quoted by Malayan Banking Berhad.


P BOND registered a return of +8.78% for the financial year ended 31 July 2011, as compared to its benchmark 12-month fixed deposits rates (12-MFD) return of +2.91% over the same period.

Asset Allocation

2009 2010 2011



The fund’s bond weighting decreased from 98.2% (93.1% after distribution reinvestment) in the financial year ended 2009 to 93.6% (88.9% after distribution reinvestment) in the financial year ended 2010 as the fund locked in profits on selected bond investments. The fund’s bond weighting was increased to 96.7% (91.8% after distribution reinvestment) in the financial year ended 2011 to capitalise on investment opportunities in the bond market.


2009 2010 2011

PTR (time) 0.71 0.90 0.49

The fund’s PTR increased from 0.71 times in the financial year ended 2009 to 0.90 times for the financial year ended 2010 due to higher level of rebalancing activities. Subsequently, the fund’s PTR decreased to 0.49 times in the financial year ended 2011 due to lower level of rebalancing activities undertaken by the fund.

Distribution

2009 2010 2011




174


PERFORMANCE OF PUBLIC INSTITUTIONAL BOND FUND (PIN BOND)



PIN BOND (%) 3.93 4.44 4.27 4.22

CORP 1V (%)** 8.34 8.30 8.25 7.40


2004* 2005 2006 2007 2008 2009 2010 2011

PIN BOND (%) 2.83 4.13 2.71 4.09 2.93 4.37 4.46 3.93

CORP 1V (%)** -5.87 10.71 6.45 10.13 2.76 7.39 7.32 8.34


** The benchmark CORP 1V Index is essentially a bond index developed by CIMB Berhad to track the changes in values of a basket comprising of all corporate bonds with maturities of 1 year and above.


PIN BOND registered a return of +3.93% for the financial year ended 30 April 2011 in comparison to the benchmark CORP 1V Index’s return of +8.34% over the same period.

Asset Allocation

2009 2010 2011



The fund’s bond weighting was decreased from 97.0% in the financial year ended 2009 to 92.9% in the financial year ended 2010 and declined further to 92.3% in the financial year ended 2011 as selected bonds in the fund’s bond portfolio matured.


2009 2010 2011

PTR (time) 0.21 0.14 0.10

The fund’s PTR decreased from 0.21 times in the financial year ended 2009 to 0.14 times in the financial year ended 2010 and declined further to 0.10 times in the financial year ended 2011 due to lower level of rebalancing activities undertaken by the fund.

Distribution

2009 2010 2011




175


PERFORMANCE OF PUBLIC ENHANCED BOND FUND (PEBF)



PEBF (%) 4.54 7.93 5.18 7.08

12-Month FixedDeposits Rates (%)** 3.07 2.88 3.35 3.67


2006* 2007 2008 2009 2010 2011 2012

PEBF (%) 7.02 10.99 7.75 -5.62 8.83 8.81 4.54

12-Month FixedDeposits Rates (%)** 3.64 3.84 3.70 3.67 2.53 2.80 3.07




The PEBF registered a total return of +4.54% for the financial year ended 31 January 2012 as compared to the benchmark 12-month fixed deposits rates (12-MFD) return of +3.07% over the same period.

Asset Allocation

2010 2011 2012




The fund’s equity weighting was reduced from 15.1% (14.8% after distribution reinvestment) in financial year ended 2010 to 14.5% (14.1% after distribution reinvestment) for the financial year ended 2011 to weather the consolidation phase in the domestic and regional equity markets. The fund’s equity weighting was increased to 15.1% (14.6% after distribution reinvestment) in the financial year ended 2012 to capitalise on investment opportunities in the domestic and regional equity markets.

The fund’s fixed income securities weighting was reduced from 79.8% (78.3% after distribution reinvestment) in the financial year ended 2010 to 77.3% (75.2% after distribution reinvestment) in financial year ended 2011 as the fund locked in profits in selected bond investments. The fund’s fixed income securities weighting was increased to 80.5% (77.7% after distribution reinvestment) in the financial year ended 2012 to capitalise on investment opportunities in the bond market.


2010 2011 2012

PTR (time) 0.63 0.56 0.44

The fund’s PTR was reduced from 0.63 times in the financial year ended 2010 to 0.56 times in the financial year ended 2011 and reduced further to 0.44 times in the financial year ended 2012 due to lower level of rebalancing activities undertaken by the fund.

Distribution

2010 2011 2012




176


PERFORMANCE OF PUBLIC SELECT BOND FUND (PSBF)



PSBF (%) 3.57 4.64 5.07 4.93

12-Month FixedDeposits Rates (%)** 2.86 2.99 3.46 3.53


2006* 2007 2008 2009 2010 2011

PSBF (%) 1.28 6.95 2.89 3.78 6.00 3.57

12-Month FixedDeposits Rates (%)** 1.72 3.79 3.70 3.29 2.51 2.86




PSBF registered a total return of +3.57% for the financial year ended 31 May 2011 versus the benchmark 12-month fixed deposits rates (12-MFD) return of +2.86% over the same period.

Asset Allocation

2009 2010 2011



The fund’s bond exposure was reduced from 98.4% (96.0% after distribution reinvestment) in the financial year ended 2009 to 68.6% (65.7% after distribution reinvestment) in the financial year ended 2010 due to inflows of new funds into the fund towards the end of the financial year. The fund’s bond exposure was increased to 100.9% (96.5% after distribution reinvestment) in the financial year ended 2011 to capitalise on investment opportunities in the bond market.


2009 2010 2011

PTR (time) 0.72 0.61 0.60

The fund’s PTR declined from 0.72 times in the financial year ended 2009 to 0.61 times in the financial year ended 2010 and declined further to 0.60 times for the financial year ended 2011 due to lower level of rebalancing activities undertaken by the fund.

Distribution

2009 2010 2011




177


PERFORMANCE OF PUBLIC STRATEGIC BOND FUND (PSTBF)

Total Return for the following period ended 31 December 2011

Since Commencement*

PSTBF (%) 6.41

12-Month Fixed Deposits Rates (%)** 3.04

Annual Total Return for the Financial Period Ended 31 December

2011*

PSTBF (%) 6.41

12-Month Fixed Deposits Rates (%)** 3.04


** The benchmark 12-Month Fixed Deposit Rates (12-MFD) is computed based on the daily compounding of the average 12-MFD quoted by Public Bank Berhad.

Fund Performance Review

The PSTBF registered a total return of +6.41% for the financial period ended 31 December 2011 as compared to the benchmark 12-month fixed deposits rates (12-MFD) return of +3.04% over the same period.

Asset Allocation

2011

Fixed Income Securities 86.2%


Following its launch, the fund’s bond weighting was progressively increased to 86.2% (83.8% after distribution reinvestment) for the financial period ended 2011 to capitalise on investment opportunities in the bond market. There is no comparison figure as the commencement date of the fund was 30 December 2010.


2011

PTR (time) 1.41

The fund recorded a PTR of 1.41 times for the financial period ended 31 December 2011. There is no comparison figure as the commencement date of the fund was 30 December 2010.

Distribution

2011




178

PERFORMANCE OF PUBLIC MONEY MARKET FUND (PMMF)



PMMF (%) 2.84 2.48 2.86 3.21

Benchmark Index (%)** 3.04 2.70 3.21 3.44


2005* 2006 2007 2008 2009 2010 2011 2012

PMMF (%) 3.77 3.00 3.21 3.13 3.14 2.05 2.37 2.84

Benchmark Index (%)** 3.32 2.89 3.75 3.62 3.58 2.17 2.71 3.04


** Prior to 30 April 2010, the fund’s benchmark was 3-Month Kuala Lumpur Interbank Offered Rates (KLIBOR).

Effective from 30 April 2010, the fund’s benchmark has been replaced with 1-Month KLIBOR as this benchmark is a better representative of the fund’s investments.


PMMF registered a total return of +2.84% for the financial year ended 31 January 2012 as compared to the benchmark’s return of +3.04% over the same period.

Asset Allocation

2010 2011 2012



The fund’s money market instruments weighting was increased from 79.6% (80.1% after distribution reinvestment) in the financial year ended 2010 to 84.7% (85.1% after distribution reinvestment) for the financial year ended 2011 and further increased to 100% in the financial year ended 2012 as the fund’s holdings of fixed income investments matured.


2010 2011 2012

PTR (time) 1.39 1.21 0.77

The fund’s PTR reduced from 1.39 times in the financial year ended 2010 to 1.21 times in the financial year ended 2011 and further reduced to 0.77 times in the financial year ended 2012 due to lower level of rebalancing activities undertaken by the fund.

Distribution

2010 2011 2012





179

HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS5

5.1 EXTRACTS OF FINANCIAL STATEMENTS OF THE FUNDS

This section covers the extracts of the following funds’ audited Statement of Income and Expenditure and Statement of Assets and Liabilities for the past three (3) financial years preceding the date of this Master Prospectus:

Public Savings Fund (PSF) Page 180Public Growth Fund (PGF) Page 180Public Index Fund (PIX) Page 181Public Industry Fund (PIF) Page 181Public Aggressive Growth Fund (PAGF) Page 182Public Regular Savings Fund (PRSF) Page 182Public SmallCap Fund (P SmallCap) Page 183Public Equity Fund (PEF) Page 183Public Focus Select Fund (PFSF) Page 184Public Dividend Select Fund (PDSF) Page 184Public Far-East Select Fund (PFES) Page 185Public Regional Sector Fund (PRSEC) Page 185Public Global Select Fund (PGSF) Page 186Public Far-East Dividend Fund (PFEDF) Page 186Public China Select Fund (PCSF) Page 187Public Far-East Property & Resorts Fund (PFEPRF) Page 187Public South-East Asia Select Fund (PSEASF) Page 188Public Sector Select Fund (PSSF) Page 188Public Far-East Consumer Themes Fund (PFECTF) Page 189Public China Titans Fund (PCTF) Page 189Public Far-East Telco & Infrastructure Fund (PFETIF) Page 190Public Select Alpha-30 Fund (PSA30F) Page 190Public Natural Resources Equity Fund (PNREF) Page 191Public Australia Equity Fund (PAUEF) Page 191Public Far-East Alpha-30 Fund (PFA30F) Page 192Public Optimal Growth Fund (POGF) Page 192Public Indonesia Select Fund (PINDOSF) page 193Public Tactical Allocation Fund (PTAF) Page 193Public Balanced Fund (PBF) Page 194Public Far-East Balanced Fund (PFEBF) Page 194Public Bond Fund (P BOND) Page 195Public Institutional Bond Fund (PIN BOND) Page 195Public Enhanced Bond Fund (PEBF) Page 196Public Select Bond Fund (PSBF) Page 196Public Strategic Bond Fund (PSTBF) Page 197Public Money Market Fund (PMMF) Page 197

Note:

There are no extracts of Statement of Income and Expenditure and Statement of Assets and Liabilities for PSGEF, PSSCF and PENTBF as these funds will be having their first financial year/period ending on 30 September 2012 respectively.


The audited financial statements of the funds are disclosed in the respective fund’s annual report.

The fund’s annual report is available upon request.

180

HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS (CONT’D)

PUBLIC SAVINGS FUND (PSF)

Extract of Statement of Income and Expenditure for the financial years ended 31 December

2011 2010 2009 RM’000 RM’000 RM’000

Investment income 21,034 39,843 31,677Total expenses (19,710) (10,108) (7,019)

Net Investment Income 1,324 29,735 24,658

Net Income Before Taxation 1,324 29,735 24,658

Net (Loss)/Income After Taxation (557) 27,443 22,586

Extract of Statement of Assets and Liabilities as at 31 December

2011 2010 2009 RM’000 RM’000 RM’000

Total investments 1,258,221 933,739 520,452Total other assets 84,241 44,400 70,797

Total Assets 1,342,462 978,139 591,249

Total Liabilities (175,091) (129,914) (67,580)

Net Asset Value/Unitholders’ Capital 1,167,371 848,225 523,669

PUBLIC GROWTH FUND (PGF)

Extract of Statement of Income and Expenditure for the financial years ended 31 July

2011 2010 2009 RM’000 RM’000 RM’000

Investment income/(loss) 75,832 62,269 (8,732)Total expenses (15,207) (11,382) (8,624)

Net Investment Income/(Loss) 60,625 50,887 (17,356)

Net Income/(Loss) Before Taxation 60,625 50,887 (17,356)

Net Income/(Loss) After Taxation 57,427 48,143 (20,790)

Extract of Statement of Assets and Liabilities as at 31 July

2011 2010 2009 RM’000 RM’000 RM’000

Total investments 1,050,984 732,276 660,451Total other assets 52,793 52,302 29,765

Total Assets 1,103,777 784,578 690,216


Net Asset Value/Unitholders’ Capital 983,894 713,450 633,845

Note: Unitholder’s Capital refers to the NAV attributable to unitholders.

181


PUBLIC INDEX FUND (PIX)

Extract of Statement of Income and Expenditure for the financial years ended 31 January

2012 2011 2010 RM’000 RM’000 RM’000




Net Income After Taxation 81,171 81,275 49,768

Extract of Statement of Assets and Liabilities as at 31 January

2012 2011 2010 RM’000 RM’000 RM’000

Total investments 956,158 1,052,409 864,289Total other assets 5,946 24,332 28,426

Total Assets 962,104 1,076,741 892,715



PUBLIC INDUSTRY FUND (PIF)

Extract of Statement of Income and Expenditure for the financial years ended 31 October

2011 2010 2009 RM’000 RM’000 RM’000





Extract of Statement of Assets and Liabilities as at 31 October

2011 2010 2009 RM’000 RM’000 RM’000

Total investments 174,587 174,641 155,736Total other assets 10,968 19,291 16,499

Total Assets 185,555 193,932 172,235



182


PUBLIC AGGRESSIVE GROWTH FUND (PAGF)

Extract of Statement of Income and Expenditure for the financial years ended 31 March

2012 2011 2010 RM’000 RM’000 RM’000

Investment (loss)/income (11,659) 33,572 5,869Total expenses (10,689) (6,343) (4,451)

Net Investment (Loss)/Income (22,348) 27,229 1,418

Net (Loss)/Income Before Taxation (22,348) 27,229 1,418

Net (Loss)/Income After Taxation (23,272) 25,796 179

Extract of Statement of Assets and Liabilities as at 31 March

2012 2011 2010 RM’000 RM’000 RM’000


Total Assets 596,323 514,247 336,466



PUBLIC REGULAR SAVINGS FUND (PRSF)

Extract of Statement of Income and Expenditure for the financial years ended 31 March

2012 2011 2010 RM’000 RM’000 RM’000





Extract of Statement of Assets and Liabilities as at 31 March

2012 2011 2010 RM’000 RM’000 RM’000

Total investments 2,765,854 2,290,376 1,715,050Total other assets 24,802 73,346 39,759

Total Assets 2,790,656 2,363,722 1,754,809


Net Asset Value/Unitholders’ Capital 2,610,121 2,176,979 1,607,458

183


PUBLIC SMALLCAP FUND (P SmallCap)

Extract of Statement of Income and Expenditure for the financial years ended 31 August

2011 2010 2009 RM’000 RM’000 RM’000

Investment (loss)/income (11,295) 37,115 14,862Total expenses (8,468) (5,466) (3,339)

Net Investment (Loss)/Income (19,763) 31,649 11,523

Net (Loss)/Income Before Taxation (19,763) 31,649 11,523

Net (Loss)/Income After Taxation (21,094) 30,520 10,522

Extract of Statement of Assets and Liabilities as at 31 August

2011 2010 2009 RM’000 RM’000 RM’000


Total Assets 563,281 400,491 264,602



PUBLIC EQUITY FUND (PEF)


2011 2010 2009 RM’000 RM’000 RM’000






2011 2010 2009 RM’000 RM’000 RM’000


Total Assets 764,477 659,106 541,075



184


PUBLIC FOCUS SELECT FUND (PFSF)

Extract of Statement of Income and Expenditure for the financial years ended 31 December

2011 2010 2009 RM’000 RM’000 RM’000






2011 2010 2009 RM’000 RM’000 RM’000


Total Assets 325,051 237,264 158,992



PUBLIC DIVIDEND SELECT FUND (PDSF)

Extract of Statement of Income and Expenditure for the financial years ended 31 May

2011 2010 2009 RM’000 RM’000 RM’000





Extract of Statement of Assets and Liabilities as at 31 May

2011 2010 2009 RM’000 RM’000 RM’000


Total Assets 742,875 391,621 338,060



185


PUBLIC FAR-EAST SELECT FUND (PFES)


2011 2010 2009 RM’000 RM’000 RM’000






2011 2010 2009 RM’000 RM’000 RM’000


Total Assets 553,948 469,145 481,567



PUBLIC REGIONAL SECTOR FUND (PRSEC)


2011 2010 2009 RM’000 RM’000 RM’000






2011 2010 2009 RM’000 RM’000 RM’000


Total Assets 383,059 344,299 342,434



186


PUBLIC GLOBAL SELECT FUND (PGSF)


2011 2010 2009 RM’000 RM’000 RM’000






2011 2010 2009 RM’000 RM’000 RM’000

Total investments 106,567 81,158 98,931Total other asset 9,219 21,805 13,518

Total Assets 115,786 102,963 112,449



PUBLIC FAR-EAST DIVIDEND FUND (PFEDF)

Extract of Statement of Income and Expenditure for the financial years ended 30 November

2011 2010 2009 RM’000 RM’000 RM’000

Investment (loss)/income (58,940) 47,483 (518)Total expenses (11,548) (13,233) (12,580)

Net Investment (Loss)/Income (70,488) 34,250 (13,098)

Net (Loss)/Income Before Taxation (70,488) 34,250 (13,098)

Net (Loss)/Income After Taxation (71,719) 32,796 (15,844)

Extract of Statement of Assets and Liabilities as at 30 November

2011 2010 2009 RM’000 RM’000 RM’000


Total Assets 442,493 747,616 887,969



187


PUBLIC CHINA SELECT FUND (PCSF)


2011 2010 2009 RM’000 RM’000 RM’000


Net Investment Loss (14,249) (4,270) (338,698)

Net Loss Before Taxation (14,249) (4,270) (338,698)

Net Loss After Taxation (17,878) (8,856) (342,435)


2011 2010 2009 RM’000 RM’000 RM’000

Total investments 1,220,309 1,493,370 1,924,198Total other assets 47,964 99,083 78,266

Total Assets 1,268,273 1,592,453 2,002,464



PUBLIC FAR-EAST PROPERTY & RESORTS FUND (PFEPRF)


2011 2010 2009 RM’000 RM’000 RM’000






2011 2010 2009 RM’000 RM’000 RM’000


Total Assets 440,892 493,266 606,226



188


PUBLIC SOUTH-EAST ASIA SELECT FUND (PSEASF)


2011 2010 2009 RM’000 RM’000 RM’000






2011 2010 2009 RM’000 RM’000 RM’000


Total Assets 512,519 825,625 803,320



PUBLIC SECTOR SELECT FUND (PSSF)


2011 2010 2009 RM’000 RM’000 RM’000






2011 2010 2009 RM’000 RM’000 RM’000


Total Assets 523,430 561,723 276,075



189


PUBLIC FAR-EAST CONSUMER THEMES FUND (PFECTF)

Extract of Statement of Income and Expenditure for the financial years ended 30 June

2011 2010 2009 RM’000 RM’000 RM’000





Extract of Statement of Assets and Liabilities as at 30 June

2011 2010 2009 RM’000 RM’000 RM’000


Total Assets 194,940 161,758 160,191



PUBLIC CHINA TITANS FUND (PCTF)

Extract of Statement of Income and Expenditure for the financial years/period ended 31 May

From 1.4.08 2011 2010 to 31.5.09 RM’000 RM’000 RM’000

Investment (loss)/income (2,585) 6,571 1,699Total expenses (1,761) (1,664) (899)

Net Investment (Loss)/Income (4,346) 4,907 800

Net (Loss)/Income Before Taxation (4,346) 4,907 800

Net (Loss)/Income After Taxation (4,517) 4,693 686


2011 2010 2009 RM’000 RM’000 RM’000


Total Assets 95,474 96,784 70,051

Total Liabilities (823) (12,450) (51)


190


PUBLIC FAR-EAST TELCO & INFRASTRUCTURE FUND (PFETIF)

Extract of Statement of Income and Expenditure for the financial years/period ended 30 April

From 8.7.08 2011 2010 to 30.4.09 RM’000 RM’000 RM’000

Investment income 6,233 6,546 1,522Total expenses (1,527) (1,659) (446)




Extract of Statement of Assets and Liabilities as at 30 April

2011 2010 2009 RM’000 RM’000 RM’000


Total Assets 114,672 88,493 58,170

Total Liabilities (7,827) (6,971) (46)


PUBLIC SELECT ALPHA-30 FUND (PSA30F)

Extract of Statement of Income and Expenditure for the financial years/period ended 30 November

From 7.4.09 2011 2010 to 30.11.09 RM’000 RM’000 RM’000

Investment income 6,869 7,961 2,424Total expenses (1,435) (1,165) (568)





2011 2010 2009 RM’000 RM’000 RM’000


Total Assets 63,574 83,601 71,478



191


PUBLIC NATURAL RESOURCES EQUITY FUND (PNREF)

Extract of Statement of Income and Expenditure for the financial year/period ended 30 November

From 30.6.09 2011 to 31.11.10 RM’000 RM’000

Investment (loss)/income (45,036) 26,925Total expenses (5,307) (5,323)

Net Investment (Loss)/Income (50,343) 21,602

Net (Loss)/Income Before Taxation (50,343) 21,602

Net (Loss)/Income After Taxation (50,503) 21,426


2011 2010 RM’000 RM’000

Total investments 213,193 231,303Total other assets 44,753 52,328

Total Assets 257,946 283,631

Total Liabilities (125) (46,838)

Net Asset Value/Unitholders’ Capital 257,821 236,793

PUBLIC AUSTRALIA EQUITY FUND (PAUEF)

Extract of Statement of Income and Expenditure for the financial year/period ended 31 July

From 8.9.09 2011 to 31.7.10 RM’000 RM’000

Investment income 40,934 64Total expenses (6,547) (4,189)

Net Investment Income/(Loss) 34,387 (4,125)

Net Income/(Loss) Before Taxation 34,387 (4,125)

Net Income/(Loss) After Taxation 34,235 (4,181)


2011 2010 RM’000 RM’000


Total Assets 341,702 353,284

Total Liabilities (39,761) (9,319)


192


PUBLIC FAR-EAST ALPHA-30 FUND (PFA30F)

Extract of Statement of Income and Expenditure for the financial year/period ended 30 November

From 6.4.10 2011 to 30.11.10 RM’000 RM’000

Investment (loss)/income (24,414) 7,517Total expenses (3,659) (1,930)

Net Investment (Loss)/Income (28,073) 5,587

Net (Loss)/Income Before Taxation (28,073) 5,587

Net (Loss)/Income After Taxation (28,267) 5,402


2011 2010 RM’000 RM’000


Total Assets 142,681 220,901

Total Liabilities (1,851) (20,697)


PUBLIC OPTIMAL GROWTH FUND (POGF)

Extract of Statement of Income and Expenditure for the financial period ended 31 July

From 8.6.10 to 31.7.11 RM’000

Investment income 3,168Total expenses (679)

Net Investment Income 2,489

Net Income Before Taxation 2,489

Net Income After Taxation 2,262


2011 RM’000

Total investments 40,897Total other assets 765

Total Assets 41,662

Total Liabilities (2,275)

Net Asset Value/Unitholders’ Capital 39,387

193


PUBLIC INDONESIA SELECT FUND (PINDOSF)

Extract of Statement of Income and Expenditure for the financial period ended 31 August

From 1.9.10 to 31.8.11 RM’000

Investment income 7,655Total expenses (1,625)




Extract of Statement of Assets and Liabilities as at 31 August

2011 RM’000

Total investments 84,123Total other assets 4,591

Total Assets 88,714



PUBLIC TACTICAL ALLOCATION FUND (PTAF)

Extract of Statement of Income and Expenditure for the financial years ended 30 April

2011 2010 2009 RM’000 RM’000 RM’000


Net Investment Income/(Loss) 1,386 254 (3,903)

Net Income/(Loss) Before Taxation 1,386 254 (3,903)

Net Income/(Loss) After Taxation 1,291 124 (4,002)


2011 2010 2009 RM’000 RM’000 RM’000


Total Assets 69,442 85,365 83,385

Total Liabilities (2,507) (2,330) (306)


194


PUBLIC BALANCED FUND (PBF)


2011 2010 2009 RM’000 RM’000 RM’000






2011 2010 2009 RM’000 RM’000 RM’000


Total Assets 445,928 380,031 336,028



PUBLIC FAR-EAST BALANCED FUND (PFEBF)


2011 2010 2009 RM’000 RM’000 RM’000






2011 2010 2009 RM’000 RM’000 RM’000


Total Assets 323,784 412,246 404,594



195


PUBLIC BOND FUND (P BOND)


2011 2010 2009 RM’000 RM’000 RM’000






2011 2010 2009 RM’000 RM’000 RM’000

Total investments 1,389,761 1,196,217 973,301Total other assets 12,200 14,443 5,171

Total Assets 1,401,961 1,210,660 978,472


Net Asset Value/Unitholders’ Capital 1,325,603 1,149,422 927,945

PUBLIC INSTITUTIONAL BOND FUND (PIN BOND)


2011 2010 2009 RM’000 RM’000 RM’000






2011 2010 2009 RM’000 RM’000 RM’000

Total investments 1,639,497 1,579,798 1,387,092Total other assets 2,613 56 51

Total Assets 1,642,110 1,579,854 1,387,143

Total Liabilities (685) (656) (560)


196


PUBLIC ENHANCED BOND FUND (PEBF)


2012 2011 2010 RM’000 RM’000 RM’000






2012 2011 2010 RM’000 RM’000 RM’000


Total Assets 297,286 308,758 362,158



PUBLIC SELECT BOND FUND (PSBF)


2011 2010 2009 RM’000 RM’000 RM’000






2011 2010 2009 RM’000 RM’000 RM’000

Total investments 1,100,397 1,012,645 665,772Total other assets 55 55,327 6,125

Total Assets 1,100,452 1,067,972 671,897


Net Asset Value/Unitholders’ Capital 1,036,368 1,022,400 637,768

197


PUBLIC STRATEGIC BOND FUND (PSTBF)

Extract of Statement of Income and Expenditure for the financial period ended 31 December

From 30.12.10 to 31.12.11 RM’000

Investment income 7,220Total expenses (1,086)





2011 RM’000

Total investments 327,736Total other assets 2,280

Total Assets 330,016



PUBLIC MONEY MARKET FUND (PMMF)


2012 2011 2010 RM’000 RM’000 RM’000






2012 2011 2010 RM’000 RM’000 RM’000


Total Assets 375,353 390,543 609,774



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5.2 EXPENSES INCURRED BY THE FUNDS

The table below shows the total annual expenses incurred by the funds in their respective preceding financial year.

Fund NameManagement Fee Trustee Fee Other Expenses Total Annual

Expenses

RM’000 % # RM’000 % # RM’000 % # RM’000 % #

PSF 17,093 1.50 450 0.04 284 0.02 17,827 1.56

PGF 13,489 1.50 450 0.05 248 0.03 14,187 1.58

PIX 14,426 1.47 450 0.05 180 0.02 15,056 1.54

PIF 2,792 1.49 131 0.07 100 0.05 3,023 1.61

PAGF 8,277 1.47 395 0.07 191 0.03 8,863 1.57

PRSF 36,810 1.50 600 0.02 399 0.02 37,809 1.54

P SmallCap 7,518 1.50 300 0.06 153 0.03 7,971 1.59

PEF 10,838 1.50 434 0.06 201 0.03 11,473 1.59

PFSF 4,353 1.49 204 0.07 107 0.04 4,664 1.60

PDSF 7,718 1.50 309 0.06 143 0.03 8,170 1.59

PFES 7,774 1.60 292 0.06 199 0.04 8,265 1.70

PRSEC 5,526 1.60 242 0.07 178 0.05 5,946 1.72

PGSF 1,607 1.58 81 0.08 104 0.10 1,792 1.76

PFEDF 9,386 1.60 469 0.08 185 0.03 10,040 1.71

PCSF 23,227 1.60 1,161 0.08 263 0.02 24,651 1.70

PFEPRF 7,812 1.70 368 0.08 149 0.03 8,329 1.81

PSEASF 10,254 1.60 513 0.08 206 0.03 10,973 1.71

PSSF 8,483 1.48 442 0.08 15 - ^ 8,940 1.56

PFECTF 3,103 1.70 146 0.08 99 0.05 3,348 1.83

PCTF 1,616 1.60 81 0.08 64 0.06 1,761 1.74

PFETIF 1,401 1.70 66 0.08 60 0.07 1,527 1.85

PSA30F 1,176 1.50 63 0.08 47 0.06 1,286 1.64

PNREF 4,678 1.68 222 0.08 87 0.03 4,987 1.79

PAUEF 5,514 1.65 267 0.08 99 0.03 5,880 1.76

PFA30F 2,962 1.59 149 0.08 94 0.05 3,205 1.72

POGF 561 1.50 30 0.08 27 0.07 618 1.65

PINDOSF 1,319 1.69 62 0.08 112 0.14 1,493 1.91

PTAF 1,230 1.62 61 0.08 70 0.09 1,361 1.79

PBF 5,987 1.50 279 0.07 132 0.03 6,398 1.60

PFEBF 5,804 1.60 290 0.08 99 0.03 6,193 1.71

P BOND 10,778 0.75 400 0.03 143 0.01 11,321 0.79

PIN BOND 8,061 0.50 300 0.02 17 - ^ 8,378 0.52

PEBF 2,998 1.00 135 0.045 57 0.02 3,190 1.06

PSBF 7,896 0.75 300 0.03 95 0.01 8,291 0.79

PSTBF 956 0.67 114 0.08 16 0.01 1,086 0.76

PMMF 1,413 0.37 77 0.02 42 0.01 1,532 0.40

# Reflected as a percentage of average NAV. ^ Less than 0.01%

Note : Other expenses exclude brokerage fee.

199


The following funds will have their first financial year/period as follows:

Fund Name Financial Year/Period-ending

PSGEF

PSSCF 30 September 2012

PENTBF

The management expense ratio (MER) of the funds for the past three (3) financial years is as follows:

Fund Name MER (%) Fund Name MER (%)

PSF PFSF31 December 2011 1.56 31 December 2011 1.6031 December 2010 1.59 31 December 2010 1.6131 December 2009 1.59 31 December 2009 1.62

PGF PDSF31 July 2011 1.58 31 May 2011 1.5931 July 2010 1.59 31 May 2010 1.5931 July 2009 1.59 31 May 2009 1.59

PIX PFES31 January 2012 1.54 31 May 2011 1.7031 January 2011 1.57 31 May 2010 1.6531 January 2010 1.58 31 May 2009 1.67

PIF PRSEC31 October 2011 1.61 31 May 2011 1.7231 October 2010 1.64 31 May 2010 1.6731 October 2009 1.65 31 May 2009 1.68

PAGF PGSF31 March 2012 1.57 31 May 2011 1.7631 March 2011 1.61 31 May 2010 1.7231 March 2010 1.61 31 May 2009 1.61

PRSF PFEDF31 March 2012 1.54 30 November 2011 1.7131 March 2011 1.55 30 November 2010 1.6831 March 2010 1.56 30 November 2009 1.65

P SmallCap PCSF31 August 2011 1.59 31 July 2011 1.7031 August 2010 1.59 31 July 2010 1.6631 August 2009 1.60 31 July 2009 1.64

PEF PFEPRF31 October 2011 1.59 31 July 2011 1.8131 October 2010 1.59 31 July 2010 1.8131 October 2009 1.60 31 July 2009 1.83

200


Fund Name MER (%) Fund Name MER (%)

PSEASF PBF31 October 2011 1.71 31 May 2011 1.6031 October 2010 1.69 31 May 2010 1.6131 October 2009 1.67 31 May 2009 1.61

PSSF PFEBF31 October 2011 1.56 30 April 2011 1.7131 October 2010 1.59 30 April 2010 1.6631 October 2009 1.61 30 April 2009 1.65

PFECTF PTAF30 June 2011 1.83 30 April 2011 1.7930 June 2010 1.84 30 April 2010 1.7830 June 2009 1.86 30 April 2009 1.75

PCTF P BOND31 May 2011 1.74 31 July 2011 0.7931 May 2010 1.71 31 July 2010 0.8031 May 2009 1.79 31 July 2009 0.80

PFETIF PIN BOND30 April 2011 1.85 30 April 2011 0.5230 April 2010 1.85 30 April 2010 0.5230 April 2009 2.06 30 April 2009 0.53

PSA30F PEBF30 November 2011 1.64 31 January 2012 1.0630 November 2010 1.64 31 January 2011 1.0730 November 2009 1.67 31 January 2010 1.07

PNREF * PSBF30 November 2011 1.79 31 May 2011 0.7930 November 2010 1.83 31 May 2010 0.80 31 May 2009 0.80PAUEF *31 July 2011 1.76 PSTBF *31 July 2010 1.78 31 December 2011 0.76

PFA30F * PMMF30 November 2011 1.72 31 January 2012 0.4030 November 2010 1.73 31 January 2011 0.40 31 January 2010 0.40POGF * 31 July 2011 1.65

PINDOSF *31 August 2011 1.91

* These funds were launched for less than 3 financial years.

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6.1 INVESTING WITH PUBLIC MUTUAL

Public Mutual distributes units of the funds through a network of dedicated unit trust consultants who are registered with the FIMM. Investors have the right to view the authorisation card issued by FIMM to the attending unit trust consultant, permitting him to deal in unit trust products.

Public Mutual branch offices are located throughout the state capitals and major towns of Malaysia to service unitholders who may need to do an enquiry or a transaction with us. Please refer to the Directory of Public Mutual Branch and Agency Offices on pages 247 to 250 of the Master Prospectus for details of their addresses and telephone numbers.

6.2 HOW TO BUY, SELL OR SWITCH UNITS OF THE FUNDS

Read and Understand the Prospectus of the Funds

It is important that you should understand fully about unit trust investments, and what investing with the funds would mean to you in terms of the potential benefits and risks. First ask the unit trust consultant attending to you for information on the funds, and be sure to request for a copy of the prospectus. It is important that you read the prospectus carefully, and seek further clarification on any matter that may concern you.

In reading the prospectus, do make sure that you understand fully:

• thenatureofcollectiveinvestmentschemes;• thefundcategory,objectiveanditsdistributionpolicy;• thetypesoffundtransactionsavailable;• yourrightsasaunitholder;• thenatureandamountoffeesandexpensesofthefundwhichyouwouldhavetobear;• thereportsthatyouwillreceiveasaunitholderwhichkeepsyoufullyinformedabouttheperformancesof

the fund.

To Open an Account

For prospective PIN BOND investors, please contact our corporate sales desk at 03-6279 6829 for further assistance.

For prospective investors of the funds, you would need only to complete the Fund Application Form that comes with the prospectus obtainable free upon request. Your application form, together with the investment amount made out in a cheque in favour of Public Mutual Berhad followed by the new NRIC number of the first holder (e.g. Public Mutual Berhad (New NRIC No.)), can then be submitted to any of the Public Bank branches. You are advised to write down your name, new NRIC/Passport Number and telephone number at the back of the cheque. Please retain the bank-in slip issued by the bank for your record and future reference.

If you are a first time investor of Public Mutual, you are also required to complete the New Investor Form.

For investors who are investing under the EPF Members Investment Scheme (of which application to invest will be subject to the approval by EPF), you are required to complete the Application Form for EPF Members Investment Scheme and KWSP 9N (AHL) Form and submit them together with a copy of your NRIC to the unit trust consultant attending to you.

For non-individual or corporate applicants, the application must be submitted together with the requisite statutory documents. Please refer to the New Investor Form for details of the documents required by the different customer types i.e. a Malaysian company, partnership, sole proprietor or others. Please contact the corporate sales desk at 03-6279 6829 should you need further assistance.

Minimum Initial Investment - Please refer to page 33 of Chapter 1: Key Features of The Funds.

GETTING STARTED WITH PUBLIC MUTUAL6

202

Investors are advised not to make payment in cash to any of our unit trust consultants or staff when purchasing units of the funds. Investors who wish to pay in cash are advised to do so personally at any Public Bank branch.

GETTING STARTED WITH PUBLIC MUTUAL (CONT’D)

Adding Regularly to Your Account

You may invest regularly into your investment account. This can be easily done through issuing Direct Debit Authorisation with Public Bank. Ask your unit trust consultant about investing regularly and get a head start on the benefits of dollar-cost-averaging that comes with the regular purchase of units.

Alternatively, you may add to your investment account as and when you feel so inclined by depositing your cash/cheque made in favour of Public Mutual Berhad followed by your fund account number, into the collection accounts maintained at Public Bank.

Minimum Additional Investment - Please refer to page 33 of Chapter 1: Key Features of The Funds.

Under the Deed, the Manager is given the exclusive right to effect the issue of units for the account of the fund and has absolute discretion to accept or reject in whole or in part any application for units.

Mode of Payment

When purchasing units of the funds, you are advised to issue a cheque made payable to “Public Mutual Berhad” followed by “New NRIC No. of first holder” (for initial investment) or “Public Mutual Berhad” followed by “Account No. of targeted fund” (for additional investment).

Exercise of Cooling-off Right

For investors who are investing with Public Mutual for the first time, the request to exercise your cooling-off right must be submitted either to the Public Mutual Head Office or to any of its branch offices within 6 Business Days from the date of receipt by Public Mutual, of the application form and payment. You will be paid a full refund of your investment principal within 10 days from the date of exercise of this cooling-off right.

For EPF unitholders, the cooling-off period will commence from the date of receipt of application form by Public Mutual.

Corporates or institutions, staff of the Manager and persons/unit trust consultants registered to deal in unit trust funds are not entitled to the cooling-off right.

Exercise of Repurchase, Switching and Transfer of Units

Repurchase

Should you later need to partially or fully redeem your units, you would only need to complete and submit the Repurchase Form to your nearest Public Mutual branch office or Public Mutual Head Office. You will be paid the repurchase proceeds within 10 days from our receipt of your repurchase request. For EPF unitholders, the net repurchase proceeds will be remitted to EPF for crediting into the members’provident accounts.

Switching

You may move your investments between various funds in response to changing financial goals or market conditions subject to the fees and conditions for switching laid out on pages 34 to 35 of Chapter 1: Key Features of The Funds. You need only to complete and return the Switching Form to your nearest Public Mutual branch office or Public Mutual Head Office.

203


Transfer

For transfer of units, you need to complete and submit the Transfer Form. An administration fee of RM25 is charged on each transfer transaction.

You can also execute your repurchase and switching requests using our e-commerce service, Public Mutual Online. Please refer to page 205 for more information on Public Mutual Online.

Minimum Transaction Amount for Repurchase, Switching and Transfer

The minimum transaction per repurchase, switching or transfer is 1,000 units for all funds except PIN BOND. For PIN BOND, the minimum transaction per repurchase or switching is 1,000,000 units. Account transfer facility is not available to PIN BOND.

Minimum Account Balance

Whatever you may do by way of repurchase, transfer or switching of funds, you must always ensure that you leave a minimum balance of 1,000 units (1,000,000 units in the case of PIN BOND) in your account at all times in order to stay invested with the fund.

In the case of partial repurchase, the Manager may elect to repurchase the entire account if the effect thereof would result in the unitholder holding less than 1,000 units (1,000,000 units in the case of PIN BOND) in his/her account with the fund.

Pledging of Units as Collateral

Units held by you may be pledged as collateral for securing financing with Public Bank under the Unit Trust Flexi-Loan Express (UNIFLEX) Plan. The UNIFLEX Plan has many advantages. For more details on the UNIFLEX Plan, you may call Public Bank Hotline: 1800-22-9999. Investors should be aware of the loan financing risk as stated on page 40 of this Master Prospectus and are advised to read and understand the Loan Financing Risk Disclosure Statement that forms part of the Fund Application Form.

Borrowing to Purchase Units

Unit trusts are considered long term savings vehicles which should generally provide better returns compared to bank deposits through its investments in equities or other market-related securities. Investing in unit trusts involves market risks and it would be considered unwise for the unitholder to undertake borrowing to purchase his units as it may serve to accentuate any capital loss incurred by him in the event of prolonged weak (bear) market conditions. Consequently, investing in a unit trust fund with borrowed money is more risky than investing with your own savings.

Investors are advised to read and understand fully the Loan Financing Risk Disclosure Statement that forms part of the Fund Application Form before signing off on the form.

It is Our Company’s Policy to Discourage the Use of Loan Financing in the Purchase of Units.

6.3 STATEMENTS AND REPORTS

Statements to Confirm and Record Transactions

Computer-generated Statements will be issued to provide you a record of each and every transaction made in your account so that you may confirm the status and accuracy of your transactions, as well as an updated record of your investment account(s) with us.

Annual/Interim Statement of Investment

In addition, you will receive annual and interim Statements of Investment, sent together with the funds’ interim/annual reports, which will provide you with the latest status of your investment account.

For Mutual Gold Elite and Mutual Gold Members, additional Monthly Statement and Quarterly Statement of Accounts respectively will be generated as part of the Manager’s Priority Client Service.

204


Annual and Interim Reports

The investment strategies, performances, portfolio holdings and accounts of the funds are detailed twice a year in annual and interim reports which are sent to all unitholders within 2 months from the close of each financial year or interim period.

Statement of Distribution of Returns

If distribution of returns is declared by the funds, you will receive Statements of Distribution of Returns, detailing the nature and amount of returns distributed by the funds.

You may refer to pages 36 to 37, paragraph 1.5 Distribution Policy of Chapter 1: Key Features of The Funds for more information on the mode of distributions and policies and procedures on unclaimed monies/distributions.

6.4 KEEPING TRACK OF THE DAILY PRICES OF UNITS

Units are valued at their NAV per unit on every Business Day in which the Bursa Securities is open for dealing. Public Mutual buys from and sells units to unitholders during Business Days. Liquidity of your investment is thus assured.

Unitholders may check for the current NAV/price of the funds by referring to the Unit Trusts Column published daily in major newspapers or by visiting our website at www.publicmutual.com.my. (Please refer to page 206 for Determination of Prices).

Feel free to contact Public Mutual Hotline: 03-6207 5000 for general enquiries or specific assistance regarding your investments with us.

You can also access Public Mutual Online, our e-commerce website for online transactions, account enquiries and e-statements and e-reports.

205

PUBLIC MUTUAL WEBSITE

For the latest update on the Company’s development, please visit Public Mutual website at www.publicmutual.com.my. Our website carries a variety of information on services we provide including information about our funds, updates on fund prices and performances, information on unit trust investment planning, market reports on a daily, weekly, monthly and quarterly basis, and investment or financial planning related articles, all available at the tip of your hands.

Surf our website in the comforts of your home to search for our funds that best suit your investment needs.

PUBLIC MUTUAL ONLINE

Investing has never been easier with Public Mutual Online, a secure and convenient facility which allows investors to conduct transactions via the internet. In addition, investors also enjoy quick access to their account details and e-statements and funds’ e-reports through Public Mutual Online.

Call Public Mutual Hotline: 03-6207 5000 or visit www.publicmutual.com.my for more information

PRIORITY SERVICE

Mutual Gold and Mutual Gold Elite Priority Services are designed to provide value-added, time saving services and benefits to high net worth individual unitholders.

The exclusive privileges Mutual Gold and Mutual Gold Elite Members will enjoy include free Will writing, free trust nominations, free Mutual Gold Co-Brand Credit Card*, repurchase cheques within two Business Days, numerous switching entitlements per annum*, free Group Personal Accident with Permanent Disability insurance coverage of up to RM750,000, complimentary magazine, Quarterly Statement of Accounts, invitations to Mutual Gold Seminars and Financial Planning Talks and many more.

Mutual Gold Elite Members also enjoy other special benefits and privileges in addition to the above.

* subject to terms and conditions

Call Public Mutual Hotline: 03-6207 5000 for more information on terms and requirements

PUBLIC MUTUAL TRUST NOMINATION SERVICE

Public Mutual Trust Nomination allows you to name your loved ones as beneficiaries of your unit trust investments by declaring a Trust for their benefit. With trust nomination, your investment is distributed to your loved ones without them having to go through the lengthy process of Probate or Letter of Administration.

Call Public Mutual Hotline : 03-6207 5000 for more information

INSURANCE COVERAGE AT ATTRACTIVE PREMIUMS

Public Mutual has arranged with established insurers to provide insurance coverage at attractive premiums exclusively for you. These insurance policies/plans provide coverage for term life, personal accident, total permanent disability, critical illnesses, hospitalisation and surgical, etc.

Call Public Mutual Hotline : 03-6207 5000 for more information

DEDICATED SERVICES TO UNITHOLDERS OF PUBLIC MUTUAL

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7.1 DETERMINATION OF PRICES

Valuation Point

Valuation point refers to such a time(s) on a Business Day as may be decided by the Manager wherein the Net Asset Value (“NAV”) of the fund is calculated.

For funds with no foreign investments, the valuation of NAV of funds is conducted on each Business Day at the close of the Bursa Securities. For funds with foreign investments, the valuation of funds will be conducted after the close of business of Bursa Securities for the relevant day, as certain of the foreign markets in which the funds may invest in have yet to close due to the different time zones of these countries. As such, the valuation point will thus be after the close of Bursa Securities but not later than 9:00 a.m. (or any other such time as may be permitted by the relevant authorities from time to time) on the following day in which the Manager is open for business.

NAV per Unit

The NAV per unit is obtained by dividing the NAV of the fund by the number of units in issue.

Illustration 1: Computation of NAV per unit

The following is a hypothetical example of the valuation carried out for PEF for the Business Day of 19 July 2012:

TRANSACTION INFORMATION7

Forward Pricing for both Buy and Sell Transactions

Both the buy and sell transactions are traded at prices next determined. A transaction issued today by an investor to purchase units of the fund will be carried out at a price next determined i.e. to be calculated at the next valuation point after the application to purchase units is received and accepted by the Manager. Similarly, a transaction to redeem units by an investor will be done at the price next determined i.e. at the next valuation point after the repurchase request is received by the Manager.

Investments banked in over the counter through Public Bank branches on any Business Day will be processed based on the price determined for the same Business Day. Investments transacted via electronic channels before or at 4:00 p.m. on any Business Day will be processed based on the price determined for the same Business Day; whilst investments transacted after 4:00 p.m. via these channels will be processed based on the price determined for the next Business Day. Any investment made on a non-Business Day will be treated as investments made on the following Business Day.

In the event of any incorrect pricing of units of the funds, the Manager shall take immediate remedial action where that incorrect pricing –

(i) is equal or more than zero point five per centum (0.5%) of the NAV per unit; and(ii) results in a sum total of Ringgit Malaysia Ten (RM10.00) or more to be reimbursed to the affected unitholder

for each sale or repurchase transaction.

Subject to any regulatory requirements, the Manager shall have the right to amend, vary or revise the abovesaid limits or threshold from time to time.

Total NAV (RM) 1,625,250,000

UIC (units) 3,250,500,000

NAV per unit (RM) 0.50000000(Total NAV/UIC)

207

TRANSACTION INFORMATION (CONT’D)

7.2 COMPUTATION OF PRICES

Buying and selling of units are quoted and transacted at a single price, which is at the NAV per unit of the funds. Service charge and repurchase charge (if any) that are to be levied on the purchase and sale of units by investors will not be incorporated in the quoted prices of the funds. These charges will be computed and charged separately.

Making an Investment

Buying of units by investors is transacted at the NAV per unit of the funds. Upon the purchase of units of the funds by investors, a service charge of up to 5.5% of NAV per unit is levied for equity, mixed asset and balanced funds, whilst a service charge of up to 0.25% of NAV per unit is levied for bond and money market funds. For investors investing under the EPF Members’ Investment Scheme, a service charge of up to 3% of NAV per unit is levied for equity, mixed asset and balanced funds (as regulated by EPF).

Illustration 2: Purchase of Units by Investors

Let us assume that on 19 July 2012, Investor A decides to invest RM10,000 in PEF. Following through on illustration 1, the NAV per unit of PEF is at RM0.50000000. The service charge levied on the purchase of units in the fund is 5.5%.

Based on the above, Investor A would have 20,000 units credited into his investment account as shown below:

Units credited to investor’s account

Amount invested = RM10,000

20,000 units NAV per unit RM0.50000000

Service charge per unit = NAV per unit x Service Charge (%)

= RM0.50000000 x 5.5%

= RM0.02750000

Total service charge incurred by Investor A = Service Charge per unit x Units credited to investor

= RM0.02750000 x 20,000 units

= RM550

Following the above, the total amount payable by Investor A:

= Amount invested in PEF + Service charge incurred

= RM10,000 + RM550

= RM10,550

Investors are advised not to make payment in cash to any of our unit trust consultants or staff when purchasing units of the funds.

Redeeming an Investment

Redemption of units by investors is transacted at the NAV per unit of the funds. The Manager does not impose a repurchase charge on the redemption of units of the funds by investors.

208

TRANSACTION INFORMATION (CONT’D)

Illustration 3: Redemption of Units by Investors

Let us assume that Investor B decides to redeem 20,000 units of PEF. He submits his Repurchase Form to a branch office of Public Mutual. There is no repurchase charge levied on the sale of units of the fund by the investor.

Based on the above, the amount redeemed from PEF = Units redeemed x NAV per unit

= 20,000 units x RM0.50000000

= RM10,000

Repurchase charge per unit = NAV per unit x Repurchase Charge (%)

= RM0.50000000 x 0%

= Nil

Total repurchase charge incurred by Investor B = Repurchase Charge per unit x Units redeemed

= RM0 x 20,000 units

= Nil

Following the above, the repurchase proceeds received by Investor B within 10 days from the Manager’s receipt of his repurchase request:

= Amount redeemed from PEF – Repurchase Charge Incurred

= RM10,000 – RM0

= RM10,000

7.3 COMPUTATION OF COOLING-OFF PROCEEDS

A cooling-off period of 6 Business Days is accorded to an investor who is investing with Public Mutual for the first time. During the cooling-off period, the investor, upon changing his mind about the unit trust investment that he has made, may proceed to exercise his cooling-off right by submitting a cooling-off request to any of the Public Mutual branch offices or Public Mutual Head Office.

Under the cooling-off request, the refund for every unit held by the unitholder will be the sum of:

(a) the price of a unit on the day the units were purchased; and(b) the sales charge imposed on the day the units were purchased.

Essentially, the investor will receive a full refund of the initial amount paid by him on his purchase of units within 10 days of receipt of cooling-off notice by the Manager.

209

8.1 CHARGES IMPOSED ON SALE AND PURCHASE OF UNITS

Buying and selling of units are quoted and transacted at a single price, which is at the NAV per unit of the funds. Service charge and repurchase charge (if any) that are to be levied on the purchase and sale of units by investors will not be incorporated in the quoted prices of the funds. These charges will be computed and charged separately. For the purpose of calculating service charge and repurchase charge, the computation is based on the NAV per unit of the fund that has not been rounded up.

Service Charge

Service charge levied upon the purchase of units of the funds by investors is as follows:

FEES, CHARGES AND EXPENSES8

Investors investing under the EPF Members’ Investment Scheme will be levied a service charge of up to 3% of NAV per unit, as regulated by EPF.


Illustration 1: Computation of Service Charge

Let us assume that Investor A decides to invest in PEF when the NAV per unit of the fund is at RM0.50000000. The service charge levied on the purchase of units in the fund is 5.5%.

Service charge per unit = NAV per unit x Service Charge (%)

= RM0.50000000 x 5.5%

= RM0.02750000

The service charge method of computation illustrated above is applicable to all the funds listed under this Master Prospectus.

Repurchase Charge

The Manager does not impose a repurchase charge on the sale of units of the funds by investors.

Illustration 2: Computation of Repurchase Charge

Let us assume that Investor A decides to redeem units of PEF when the NAV per unit of the fund is at RM0.50000000. There is no repurchase charge levied on the sale of units of the fund by investors.

Repurchase charge per unit = NAV per unit x Repurchase Charge (%)

= RM0.50000000 x 0%

= Nil

The repurchase charge method of computation illustrated above is applicable to all the funds listed under this Master Prospectus.

Charges on Switching and Transfer of Units

There are charges involved for switching and transfer transactions. Please refer to pages 34 to 35 of Chapter 1: Key Features of The Funds for more information.


Purchase of units through unit trust consultants:Up to 5.5% of NAV per unit.

Purchase of units through the Manager:Up to 5.5% of NAV per unit.


Purchase of units through unit trust consultants:Up to 0.25% of NAV per unit.

Purchase of units through the Manager:Up to 0.25% of NAV per unit.

210

FEES, CHARGES AND EXPENSES (CONT’D)


Bond Funds MoneyMarket Fund

Annual Management Fee

Annual Trustee Fee

Fee

PSF, PGF, PIX, PIF, PAGF, PRSF, P SmallCap, PEF, PFSF, PDSF, PSSF, PSA30F, POGF, PSSCF and PBF:1.5% per annum of the NAV.

PFES, PRSEC, PFEDF, PCSF, PSEASF, PCTF, PFA30F, PSGEF and PFEBF1.60% per annum of the NAV.

PAUEF and PTAF:1.65% per annum of the NAV.

PFEPRF, PFECTF, PFETIF, PNREF and PINDOSF:1.70% per annum of the NAV.

PGSF:1.80% per annum of NAV.


PMMF:0.375% per annum of the NAV.

%/RM

P BOND, PSBF, PSTBF and PENTBF:0.75% per annum of the NAV.

PIN BOND:0.5% per annum of the NAV.

PEBF:1.0% per annum of the NAV.


8.2 FEES AND EXPENSES OF THE FUNDS

Operating a fund involves a variety of expenses for portfolio management, the manager’s fee, fees for trustee, custodian, auditors, tax agents, administrative charges such as printing of interim and annual reports, distribution cheques, postage and other services incurred in the administration of the fund. These costs are paid out of the fund’s assets.

Manager’s Fee and Trustee’s Fee

The management fee is calculated and accrued daily, and payable monthly to the Manager. The trustee fee is calculated and accrued daily, and payable monthly to the Trustees.


211

FEES, CHARGES AND EXPENSES (CONT’D)

8.3 POLICY ON STOCKBROKING REBATES AND SOFT COMMISSIONS

The management company does not receive any form of rebates from any broker/dealer. The management company may receive goods or services which include research materials, data and quotation services and investment related publications by way of soft commissions provided they are of demonstrable benefit to the funds and unit holders.

There are fees and charges involved and investors are advised to consider them before investing in the funds.

212

THE MANAGER9

9.1 CORPORATE PROFILE OF PUBLIC MUTUAL

The funds listed under this Master Prospectus are managed by Public Mutual, a wholly owned subsidiary of Public Bank Berhad. Public Mutual is a licensed fund manager and is the largest private unit trust manager in terms of NAV. Incorporated on 21 July 1975 under its former name Kuala Lumpur Mutual Fund Berhad, Public Mutual began its operations on 2 July 1980 and was among the early pioneers of the industry. Public Mutual has been managing unit trust funds in Malaysia for over two decades. The graph below shows the rapid growth in net asset value managed by Public Mutual since the early 1990s when the unit trust industry came under the purview of the Securities Commission of Malaysia. Public Mutual currently manages ninety three (93) unit trust funds with a total NAV of over 47.4 Billion (as at 2 April 2012) from over 2,713,000 account holders. In terms of NAV and market position within the Malaysian private unit trust industry, Public Mutual maintains the largest market share of assets under management¹.

9.2 ORGANISATION OF PUBLIC MUTUAL

Staff Strength

Public Mutual maintains a staff strength of approximately 760 personnel as of 2 April 2012 to manage and administer its unit trust schemes.

Sales Network

Sale of the Public Series of Funds and Public Series of Shariah-Based Funds are conducted through Public Mutual’s dedicated direct sales agency force comprising individual unit trust consultants registered with the FIMM. The PB Series of Funds is distributed by Public Mutual’s appointed IUTA(s).

Public Mutual has a broad network of branches located in state capitals and major towns to service its unitholders and markets. This comes in addition to a national web of support networks comprising the branches of Public Bank that act as collection centres for the banking-in of investments by unitholders.

Customer Service, Mutual Gold and Public Mutual Online

Customer Service of Public Mutual attends to unitholders’ enquiries on the status of their investment transactions, statements, distributions and other matters pertaining to their investments with the funds. Unitholders can also conduct transactions and access to their account details through Public Mutual Online.

Priority clients may access the exclusive Mutual Gold Service for value-added, time saving services.

Call our Hotline: 03-6207 5000 for direct access to Customer Service and Mutual Gold.1 Source: The Edge, Lipper Fund Table, 28 February 2012

Growth of Net Asset Value(From Dec 1992 to Dec 2011 and 2 Apr 2012)

NAV (RM Bil)

RM B

illio

n

02468

101214161820222426

3028

40

444648

42

343638

32

19920.16

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2004 2005 20062003 2007 20080.82 1.47 2.13 2.37 1.78 2.25 3.83 4.11 5.03 5.80 9.88 12.08 16.19 28.398.23 35.5823.32 40.60 44.70

201147.49

2-Apr-122009 2010

213

THE MANAGER (CONT’D)

9.3 UNIT TRUST FUNDS UNDER PUBLIC MUTUAL

Public Mutual manages 93 unit trust funds spread over various fund categories as shown below:

Category Approved Net Asset Units in of Fund Size of Fund Value Circulation (Billion Units) as at as at 2.4.12 2.4.12 (RM Billion) (Billion Units)

Public Series of FundsPublic Savings Fund Equity 3.375 1.469 2.542Public Growth Fund Equity 4.50 1.054 2.146Public Index Fund Equity 2.25 1.005 1.439Public Industry Fund Equity 1.00 0.180 0.337Public Aggressive Growth Fund Equity 1.50 0.589 0.948Public Regular Savings Fund Equity 6.75 2.803 4.444Public SmallCap Fund Equity 1.30 0.794 1.090Public Equity Fund Equity 5.00 0.824 2.993Public Focus Select Fund Equity 1.85 0.360 1.353Public Dividend Select Fund Equity 4.50 0.907 3.025Public Far-East Select Fund Equity 3.50 0.369 1.735Public Regional Sector Fund Equity 3.00 0.245 1.324Public Global Select Fund Equity 3.00 0.091 0.477Public Far-East Dividend Fund Equity 7.50 0.426 2.003Public China Select Fund Equity 15.00 0.908 5.781Public Far-East Property & Resorts Fund Equity 3.375 0.370 1.428Public South-East Asia Select Fund Equity 7.50 0.502 1.927Public Sector Select Fund Equity 3.00 0.542 1.846Public Far-East Consumer Themes Fund Equity 1.50 0.176 0.673Public China Titans Fund Equity 1.50 0.069 0.335Public Far-East Telco & Infrastructure Fund Equity 1.50 0.077 0.272Public Select Alpha-30 Fund Equity 1.50 0.065 0.203Public Natural Resources Equity Fund Equity 1.50 0.261 1.199Public Australia Equity Fund Equity 2.25 0.304 1.208Public Far-East Alpha-30 Fund Equity 1.50 0.143 0.664Public Optimal Growth Fund Equity 1.50 0.034 0.116Public Indonesia Select Fund Equity 1.50 0.100 0.364Public Singapore Equity Fund Equity 1.50 0.184 0.740Public Strategic SmallCap Fund Equity 1.50 0.020 0.078Public Tactical Allocation Fund Mixed Asset 1.50 0.062 0.301Public Balanced Fund Balanced 1.50 0.393 0.577Public Far-East Balanced Fund Balanced 3.80 0.244 1.168Public Bond Fund Bond 2.50 1.352 1.329Public Institutional Bond Fund Bond 3.00 1.696 1.676Public Enhanced Bond Fund Bond 1.00 0.305 0.295Public Select Bond Fund Bond 2.25 1.381 1.321Public Strategic Bond Fund Bond 0.75 0.390 0.373Public Enterprises Bond Fund Bond 0.50 0.006 0.006Public Money Market Fund Money Market 1.50 0.334 0.337

Public Series of Shariah-Based Funds Public Ittikal Fund Equity 5.00 3.288 3.774Public Islamic Equity Fund Equity 6.00 1.698 4.847Public Islamic Opportunities Fund Equity 1.50 0.323 0.990Public Islamic Dividend Fund Equity 9.00 2.538 6.802Public Asia Ittikal Fund Equity 5.00 0.321 1.236Public Islamic Asia Dividend Fund Equity 6.50 0.494 1.999

214



Public Series of Shariah-Based Funds (cont’d)Public Islamic Sector Select Fund Equity 4.375 0.982 3.321Public China Ittikal Fund Equity 7.50 0.516 2.966Public Islamic Select Treasures Fund Equity 5.00 1.055 3.407Public Islamic Optimal Growth Fund Equity 5.00 1.188 4.194Public Islamic Select Enterprises Fund Equity 3.375 1.104 2.880Public Islamic Asia Leaders Equity Fund Equity 1.50 0.062 0.255Public Islamic Alpha-40 Growth Fund Equity 1.50 0.110 0.403Public Islamic Treasures Growth Fund Equity 1.50 0.049 0.176Public Ittikal Sequel Fund Equity 1.50 0.046 0.174Public Islamic Savings Fund Equity 1.50 0.021 0.083Public Islamic Mixed Asset Fund Mixed Asset 3.00 0.423 1.490Public Islamic Asia Tactical Allocation Fund Mixed Asset 1.50 0.079 0.346Public Islamic Bond Fund Bond 1.80 0.724 0.676Public Islamic Enhanced Bond Fund Bond 0.50 0.069 0.062Public Islamic Select Bond Fund Bond 0.50 0.142 0.135Public Islamic Infrastructure Bond Fund Bond 0.50 0.168 0.160Public Islamic Strategic Bond Fund Bond 0.50 0.259 0.247Public Sukuk Fund Bond 0.50 0.104 0.101Public Islamic Income Fund Fixed Income 1.125 0.608 0.572Public Islamic Money Market Fund Money Market 1.00 0.501 0.485

PB Series of Funds PB Growth Fund Equity 1.35 0.823 1.026PB Asia Equity Fund Equity 2.00 0.119 0.606PB Islamic Equity Fund (Shariah-based) Equity 2.00 0.177 0.715PB Islamic Asia Equity Fund (Shariah-based) Equity 2.00 0.124 0.570PB ASEAN Dividend Fund Equity 2.25 0.245 0.866PB Euro Pacific Equity Fund Equity 2.25 0.102 0.603PB Islamic Asia Strategic Sector Fund Equity 1.50 0.050 0.282

(Shariah-based) PB China Pacific Equity Fund Equity 5.00 0.259 1.738PB China ASEAN Equity Fund Equity 1.50 0.191 0.864PB China Australia Equity Fund Equity 1.50 0.139 0.787PB Singapore Advantage-30 Equity Fund Equity 1.50 0.122 0.481PB Asia Pacific Enterprises Fund Equity 1.50 0.057 0.260PB Asia Emerging Growth Fund Equity 1.50 0.020 0.072PB Growth Sequel Fund Equity 1.50 0.091 0.355PB Balanced Fund Balanced 0.75 0.538 0.682 PB Asia Real Estate Income Fund Balanced 1.50 0.031 0.119PB Australia Dynamic Balanced Fund Balanced 1.50 0.122 0.430PB Indonesia Balanced Fund Balanced 1.50 0.127 0.475PB Fixed Income Fund Bond 1.50 0.988 0.901PB Infrastructure Bond Fund Bond 0.50 0.285 0.264PB Bond Fund Bond 0.50 0.220 0.215PB Islamic Bond Fund (Shariah-based) Bond 0.45 0.408 0.338PB Sukuk Fund (Shariah-based) Bond 0.75 0.541 0.529PB Cash Management Fund Money Market 2.00 0.110 0.108PB Islamic Cash Management Fund Money Market 1.00 0.047 0.046

(Shariah-based)

215



Wholesale FundsPBB MTN Fund 1 Bond 0.20 0.047 0.045PB Cash Plus Fund Money Market 3.00 2.226 2.222PB Islamic Cash Plus Fund (Shariah-based) Money Market 3.00 1.375 1.367

TOTAL 235.625 47.490 108.820

9.4 FUNCTIONS, DUTIES AND RESPONSIBILITIES OF THE MANAGER

The Manager of a unit trust scheme pools together the collective investments of unitholders and professionally invests the monies within prescribed limits, restrictions and guidelines to meet the objective of the unit trust scheme. The Manager is under a fiduciary duty to act in good faith and to avoid advancing a conflicting interest and to exercise due care and diligence when managing the monies of a unitholder and when making any investments for the unit trust scheme. The fund management function of funds under the management of Public Mutual is carried out internally by Public Mutual.

The general functions, duties and responsibilities of the Manager include, but is not limited to, the following:-

• toensurethataunittrustschemeismanagedwithintheambitoftheDeed,theCMSA2007,thesecuritieslaws and the relevant guidelines at all times;

• any application to the Securities Commission e.g. to increase the size of the unit trust scheme, the renewal of the Master Prospectus etc.;

• thesuccessinthelaunchandsalesofanyunittrustscheme,andtoprovidecustomersupportanddistributionagency networks to best serve the unitholders of the scheme;

• tokeeptheunitholdersinformedofthemanagementandperformanceoftheunittrustschemethroughthe interim and annual reports;

• toensurethattheinterestoftheunitholdersisbestservedandprotectedatalltimes.

9.5 COMPLIANCE UNIT

The Internal Audit and Compliance Department in Public Mutual maintains strict oversight of the compliance practices within each unit trust scheme and also that of the Manager in order to ensure compliance with the stringent requirements of the CMSA 2007 and Guidelines on Unit Trust Funds. The department, thus, is responsible for ensuring that Public Mutual and its unit trust schemes observe, comply, and practise high standards of regulatory and operational compliance in keeping with the fiduciary duties and responsibilities.

The profile of the designated person responsible for compliance matters is as set out below:

Assistant General Manager - Internal Audit and ComplianceEn. Abdul Samad B. Jaafar, is a Certified Internal Auditor and chartered member of the Institute of Internal Auditors Malaysia. He holds a BA (Hons) degree in Accounting and Management Control from Sheffield Hallam University, UK and a Master in Business Administration from International Islamic University Malaysia. He joined Public Mutual in 1998. He has more than fifteen years working experience in audit, compliance, finance and treasury operations. He first joined Public Mutual as the Internal Audit Manager and assumed his present post in 2010.

216


9.6 FINANCIAL PERFORMANCE OF PUBLIC MUTUAL

The following is a summary of the past performance of Public Mutual based on the audited financial statements for the past three (3) financial years ended 31 December:

2009 2010 2011 RM’000 RM’000 RM’000

Paid-up capital 6,000 6,000 6,000Shareholders’ funds 73,943 99,388 117,218Turnover 580,908 736,621 869,570Profit before tax 218,881 273,838 321,850Profit after tax 187,413 235,445 277,830

As at 2 April 2012, the Manager is not engaged in any material litigation and arbitration, either as plaintiff or defendant, and is not aware of any proceedings, pending or threatened or of any facts likely to give rise to any proceedings which might materially and adversely affect its business or financial position.

9.7 THE BOARD OF DIRECTORS

Responsibility of the Board

The Board of Directors meets monthly, and is involved in determining the corporate policies and direction of the Company. The detailed day-to-day running of the Company is left largely with the management of Public Mutual.

There are eight members on the Board, of which four are Independent Directors. The profiles of the Directors are set out below.

Board Members

Tan Sri Dato’ Sri Dr. Teh Hong Piow – Non Independent Director (Chairman)Tan Sri Datuk Seri Utama Thong Yaw Hong – Independent Director (Co-Chairman)Tan Sri Dato’ Sri Tay Ah Lek – Non Independent DirectorDato’ Sri Lee Kong Lam – Non Independent DirectorDato’ (Dr) Haji Mohamed Ishak Bin Haji Mohamed Ariff – Independent DirectorDato’ Haji Abdul Aziz Bin Dato’ Dr. Omar – Independent DirectorMr. Quah Poh Keat – Independent DirectorMs Yeoh Kim Hong – Chief Executive Officer / Executive Director

Director (Chairman) – Non IndependentTan Sri Dato’ Sri Dr. Teh Hong Piow, is a Director of Public Mutual since September 2006. He began his banking career in 1950 and has 62 years experience in the banking and finance industry. He founded Public Bank in 1965 at the age of 35. He was appointed as a Director of Public Bank on 30 December 1965 and had been the Chief Executive Officer of Public Bank since its commencement of business operations in August 1966. He was re-designated as Chairman of Public Bank and Chairman of Public Bank Group with effect from 1 July 2002.

Tan Sri Dato’ Sri Dr. Teh Hong Piow had won both domestic and international acclaim for his outstanding achievements as a banker and the Chief Executive Officer of a leading financial services group. Awards and accolades that he had received include:

• Asia’sCommercialBankeroftheYear1991• TheASEANBusinessmanoftheYear1994• Malaysia’sBusinessAchieveroftheYear1997• Malaysia’sCEOoftheYear1998• BestCEOinMalaysia2004• TheMostPRSavvyCEO2004

217


• TheAsianBankerLeadershipAchievementAward2005forMalaysia• AwardforOutstandingContributiontotheDevelopmentofFinancialServicesinAsia2006• LifetimeAchievementAward2006• AwardforLifetimeAchievementinCorporateExcellence,DedicationandIndustry2006• Asia’sBankerofHighDistinctionAward2006• TheBrandLaureateBrandPersonalityAward2007• ASEANMostAstuteBankerAward2007• LifetimeEntrepreneurshipAchievementAward2007• ThePilaRecognitionAward2007• AsianBankerParExcellenceAward2008• BestCEOinMalaysia2009• Asia’sBankingGrandmaster2010• AsianCorporateDirectorRecognitionAward2010• ValueCreator:Malaysia’sOutstandingCEO2010• TheBrandLaureate-TunDr.MahathirMohamadManoftheYearAward2010–2011• BestCEO(InvestorRelations)2011forMalaysia• AsianCorporateDirectorRecognitionAward2011• TheBrandLaureatePremierBrandIconLeadershipAward2011• BestCEO(InvestorRelations)2012forMalaysia

Tan Sri Dato’ Sri Dr. Teh Hong Piow was awarded the Medal ‘For the Course of Vietnamese Banking’ by the State Bank of Vietnam in 2002 for his contributions to the Vietnamese banking industry over the past years. Tan Sri Dato’ Sri Dr. Teh Hong Piow was conferred the Recognition Award 2007 by the National Bank of Cambodia in appreciation of his excellent achievement and significant contribution to the banking industry in Cambodia.

In recognition of his contributions to society and the economy, he was conferred the Doctor of Laws (Honorary) from University of Malaya in 1989.

He had served in various capacities in public service bodies in Malaysia; he was a member of the Malaysian Business Council from 1991 to 1993; a member of the National Trust Fund from 1988 to 2001; a founder member of the Advisory Business Council since 2003; and is a member of the IPRM Accreditation Privy Council. He is a Fellow of several institutes which include the Institute of Bankers Malaysia; the Chartered Institute of Bankers, United Kingdom; the Institute of Administrative Management, United Kingdom; the Institute of Chartered Secretaries and Administrators, Australia and the Malaysian Institute of Management.

Independent Director (Co-Chairman)Tan Sri Datuk Seri Utama Thong Yaw Hong is a Director of Public Mutual since September 2006. He was appointed as a Director of Public Bank on 23 June 1986 and was made its Chairman in October 1986. He was re-designated as Co-Chairman of Public Bank with effect from 1 July 2002.

He graduated with a Bachelor of Arts (Hons) degree in Economics from University of Malaya and a Master’s degree in Public Administration from Harvard University. He attended the Advanced Management Program at Harvard Business School. In June 1998, he was appointed a Pro-Chancellor of University Putra Malaysia from which he had retired in end June 2006. In September 2006, he was conferred the Doctor of Economics (Honorary) from University Putra Malaysia.

He has had a distinguished career with the Government of Malaysia, primarily in the fields of socio-economic development planning and finance. He had served in the Economic Planning Unit in the Prime Minister’s Department since 1957 and became its Director-General from 1971 to 1978 and served as Secretary-General, Ministry of Finance from 1979 until his retirement in 1986.

Tan Sri Datuk Seri Utama Thong Yaw Hong also serves as member on the Boards of Trustees of Program Pertukaran Fellowship Perdana Menteri Malaysia, Tun Razak Foundation and the Malaysian Institute of Economic Research, among others. He is a member of the National Economic Council and is also a Senior Member of the Working Group of the Executive Committee for the National Economic Council. Tan Sri Datuk Seri Utama Thong Yaw Hong is a Distinguished Fellow of the Institute of Strategic and International Studies (ISIS) Malaysia and is also a Fellow of the Institute of Bankers Malaysia.

218


Director – Non IndependentTan Sri Dato’ Sri Tay Ah Lek is a Director of Public Mutual since August 1995. He has 51 years experience in the banking and finance industry. He was appointed as an Executive Director of Public Bank on 18 June 1997 and was re-designated as Managing Director with effect from 1 July 2002. He joined the Public Bank Group as a pioneer staff in 1966. He was the Executive Vice-President of Public Bank from 1995 to 1997 and prior to this appointment, he was the Executive Vice-President of the former Public Finance Bhd.

Tan Sri Dato’ Sri Tay Ah Lek holds a Master’s degree in Business Administration from Henley, United Kingdom and attended the Advanced Management Program at Harvard Business School. He is a Fellow of CPA Australia, the Financial Services Institute of Australasia, the Institute of Bankers Malaysia and the Malaysian Institute of Management.

He is presently the Chairman of the Association of Hire Purchase Companies Malaysia and is a Member of the National Payments Advisory Board.

Director – Non IndependentDato’ Sri Lee Kong Lam is a Director of Public Mutual since July 1999. He has 44 years experience in the banking and finance industry. He was appointed as an Executive Director of Public Bank on 28 November 2001. He joined Public Bank in November 1996 as General Manager and was subsequently appointed Senior General Manager in 1997 and Executive Vice-President in 1998.

Prior to joining Public Bank, he was with Bank Negara Malaysia (BNM) and was involved primarily in the supervision and examination of banking institutions. He retired in August 1996 as the Head of BNM’s Examination Department and as a member of BNM’s Management Committee.

He is a Fellow of CPA Australia and the Chartered Institute of Bankers, United Kingdom; and a Chartered Accountant of the Malaysian Institute of Accountants.

Independent DirectorDato’ (Dr) Haji Mohamed Ishak Bin Haji Mohamed Ariff is a Director of Public Mutual since December 1993. He is a qualified Professional Chartered Town Planner and a Professional Landscape Architect from the University of Newcastle-upon-Tyne, England. He was honoured by the University of Newcastle-upon-Tyne, England with the Honorary Degree of Doctor in Civil Law in May 1993. He is a Fellow of the Royal Town Planning Institute London; Fellow of Malaysian Institute of Planners; and Fellow of Institute of Landscape Architects Malaysia.

He had served in various State and Federal Governments before retiring in 1993. He was a member of the Advisory Board of the City of Kuala Lumpur (Dewan Bandaraya Kuala Lumpur) until December 2004. Over the years and through his involvement as a Director of several public listed companies, he has accumulated vast experiences in various sectors namely, property and housing development, hotel management, food manufacturing and expressway management.

Dato’ Mohamed Ishak is the Chairman of Yee Lee Corporation Berhad. He is also a Trustee of Yayasan Seni Selangor (Galeri Shah Alam) and Director of MIMA Holdings Enterprise Sdn Bhd.

Independent DirectorDato’ Haji Abdul Aziz Bin Dato’ Dr. Omar is a Director of Public Mutual since December 1993. He qualified as a Chartered Accountant from the Institute of Chartered Accountants in England & Wales, and is also a Chartered Accountant of the Malaysian Institute of Accountants.

During his previous banking experiences, he became a Fellow of the Institute of Bankers Malaysia. His 43-year experiences todate also include the areas of audit and accounting, taxation, property, plantation, hotelling, trading and manufacturing, both locally and abroad.

Dato’ Haji Abdul Aziz sits as an Independent Non-Executive Director on the Boards of Directors of Public Bank, Public Investment Bank Bhd, Public Islamic Bank Bhd (Co-Chairman), PB Trustee Services Berhad, LPI Capital Bhd, Lonpac Insurance Bhd and ING PUBLIC Takaful Ehsan Berhad. In addition, he is the Co-Chairman of the Audit Committee, Risk Management Committee and Credit Risk Management Committee and a member of the Nomination Committee and Remuneration Committee of Public Bank. He is the Chairman of Audit Committee of Public Islamic Bank Bhd and Co-Chairman of Audit Committee of Public Investment Bank Bhd.

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Independent DirectorMr. Quah Poh Keat, is a Director of Public Mutual since 1 September 2009. He is a Fellow of the Malaysian Institute of Taxation and the Association of Chartered Certified Accountants; and a Member of the Malaysian Institute of Accountants, the Malaysian Institute of Certified Public Accountants and the Chartered Institute of Management Accountants.

He was a partner of KPMG since October 1982 and appointed Senior Partner (also known as Managing Partner in other practices) in October 2000 until 30 September 2007. He retired from the firm on 31 December 2007. He is experienced in auditing, tax and insolvency practices and had worked in Malaysia and United Kingdom; his experiences include restructuring, demergers and privatisation.

Mr Quah also sits as an Independent Non-Executive Director on the Boards of Directors of Public Bank, Public Investment Bank Bhd, Public Islamic Bank Bhd, Public Financial Holdings Ltd, Public Bank (Hong Kong) Ltd, Cambodian Public Bank Plc, Campu Lonpac Insurance Plc, LPI Capital Bhd, Lonpac Insurance Bhd, IOI Corporation Bhd and Telekom Malaysia Bhd.

Chief Executive Officer / Executive Director – Non IndependentMs. Yeoh Kim Hong, CA(M), CPA, CFP, is a Member of the Malaysian Institute of Certified Public Accountants and the Malaysian Institute of Accountants. She is an Executive Director of Public Mutual since September 2004.

Ms Yeoh has more than 16 years of experience in the unit trust industry. She joined Public Mutual in 1996 and was promoted to General Manager - Finance & Operations in 1999. In 2004, she was promoted to the position of Senior General Manager and was involved in the strategic planning of marketing and sales of unit trusts, customer administration and services, information technology, finance, product research and development and other areas of operations of the company. Ms. Yeoh assumed her position as Chief Executive Officer of Public Mutual in July 2007.

Prior to joining Public Mutual, Ms. Yeoh was with an international public accounting firm for more than 12 years during which she gained exposures in auditing and management consultancy and advisory, both locally and in the United States. She is currently a council member of the FIMM.

9.8 PROFILE OF KEY MANAGEMENT STAFF

Chief Executive Officer / Executive DirectorMs. Yeoh Kim Hong – Please refer to her profile as set out in Section 9.7 (page 219) of this Chapter.

Senior General Manager – InvestmentMr. Lum Ming Jang, holds an honours degree in Accountancy from the National University of Singapore and is a Chartered Financial Analyst. He joined Public Mutual in 2001 as Senior Manager – Investment Research and assumed the position of Senior Manager – Fund Management and co-designated Fund Manager of various funds in 2003. He was promoted to General Manager – Investment in 2004 and subsequently Senior General Manager - Investment in 2007.

Mr. Lum has more than 20 years of experience in investment research and stock broking. Prior to joining Public Mutual, Mr. Lum held management positions at various established local and foreign stock broking houses, overseeing their investment research functions and institutional sales. Mr. Lum’s investment research experience include assessing corporate earnings growth prospects, evaluating management track record, computation of stock valuations and financial analysis of listed companies on the Bursa Securities. He is also familiar with analysis of financial and economic trends which affect stockmarket movements. On the fund management side, Mr. Lum has served as a co-Fund Manager of selected unit trust funds managed by Public Mutual since 2003 before assuming the position of General Manager – Investment in 2004 and subsequently Senior General Manager - Investment in 2007.

General Manager – Information TechnologyMr. Richard Tan Koon Eam, holds a diploma in Computer Science and has over 20 years experience in the information technology sector. Mr. Tan possesses a wide knowledge base which includes software design & development, project management, consultancy and web-based application development. He joined Public Mutual in 2000. Prior to joining Public Mutual, he was a Chief Technical Officer of a MSC status company specialising in E-commerce solutions. He is responsible for Public Mutual’s information technology strategies and operations.

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General Manager – Agency OperationsMr. Lee Kean Gie, CFP, ChFC, graduated with an honours degree in Economics and Chinese Studies from the University of Malaya. He joined Public Mutual as Sales Manager in 1994. Prior to joining Public Mutual, he was with a leading insurance company involved in the marketing of insurance products and agency development. He was promoted to Deputy Senior Manager in 1996 and subsequently Senior Manager - Sales and Training in 1999. He was appointed as General Manager – Sales & Training in 2004 and re-designated as General Manager – Agency Operations in 2006. He currently oversees areas relating to nationwide agency development and monitoring performance of branches network.

General Manager – Marketing & Financial PlanningMr. Alex Sito Kok Chau, ChFC, CFP, M.MKTG, has accumulated 20 years of experience in the unit trust industry. He is a Chartered Financial Consultant from The American College, USA, a Certified Financial Planner licensee of the Financial Planning Standards Board Ltd., USA, and holds a Master’s Degree in Marketing from the University of Newcastle, Australia. Alex has 8 years of experience distributing unit trust and insurance products in the USA, where he helped developed a successful distribution channel for a large commercial bank. Alex joined Public Mutual in 1996. He is responsible for Public Mutual’s marketing & events, advertising & promotions, market research, website-marketing, and financial planning products and services. Alex is a member of the Board of Governors for FPAM (Financial Planning Association Malaysia) and a member of the AMA (American Marketing Association).

General Manager – Customer Administration & ServiceMs. Hang Siew Eng, is a member of the Institute of Administrative Management. She joined Public Mutual in 1980 and was appointed as General Manager, Customer Administration and Service in 2007. Ms. Hang is responsible for the overall fundholder administration and the management of customer transactions and records. In addition, she is in charge of Customer Service and Mutual Gold for Public Mutual. She has more than 20 years experience in the various aspects of unit trust management.

General Manager – InvestmentMr. Tan Yan Heong, holds a B.Sc. (Hons) Degree in Actuarial Science from University of Kent, Canterbury, England. He joined Public Mutual in early 1994 as an Investment Analyst and has since accumulated more than 15 years of working experience in investment research and management. In early 2000, he was promoted to Manager, Investment and assumed the position of co-Fund Manager of various equity and bond funds. Mr. Tan was promoted to Senior Manager, Investment and designated Fund Manager of selected funds in 2004. He assumed the position of Deputy General Manager, Investment in 2005 and subsequently General Manager - Investment in 2007.

Mr. Tan has gained experience in managing equity portfolios being involved in all aspects of the work ranging from performing stock analyses and investment valuations to making strategic asset allocation decisions. In managing the bond portfolios, he is experienced in performing credit analysis and cash flow discounting as well as overseeing the day-to-day money management tasks.

General Manager – Finance & OperationsMs. Tang Pueh Fong, CA(M), CPA, is a member of the Malaysian Institute of Certified Public Accountants and a Chartered Accountant of the Malaysian Institute of Accountants. Ms. Tang joined Public Mutual as Deputy General Manager – Finance & Operations on 1 July 2007 and assumed her position as General Manager – Finance & Operations in January 2010. Ms. Tang is responsible for the day to day operations of finance, funds accounts, securities, product development, business process re-engineering, administration and properties management and secretariat of the company.

Prior to joining Public Mutual, Ms. Tang was a director with an international public accounting firm for more than 15 years during which she gained extensive knowledge and experience in auditing and business process advisory services with specialisation in fund management operations.

Deputy General Manager – Agency Development & TrainingMs. Evelyn Chu Swee Yin, CFP, graduated with an honours degree in Food Science & Nutrition from University Kebangsaan Malaysia. She is a Certified Financial Planner licensee, Member of MAPS (Malaysian Association of Professional Speakers), MAFa (Malaysian Association of Facilitators) and Neuro-Linguistic Programming (NLP) practitioner. Evelyn has more than 19 years of agency training and development exposure in both the insurance and unit trust industries. Prior to joining Public Mutual, she was with a multi-national insurance company and was involved in training, agency development and financial planning. She subsequently headed the training and financial planning operations of an agency based unit trust management company. Ms. Evelyn is responsible for Public Mutual’s agency development and training operations.

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9.9 PROFILE OF KEY INVESTMENT PERSONNEL

Senior General Manager – InvestmentMr. Lum Ming Jang – Designated Fund Manager of Public Growth Fund, Public Regular Savings Fund, Public Bond Fund, Public Ittikal Fund, Public Islamic Bond Fund, Public Equity Fund, Public Islamic Equity Fund, Public Select Bond Fund, Public Islamic Dividend Fund,Public Regional Sector Fund, Public Asia Ittikal Fund, Public Global Select Fund, Public Islamic Asia Dividend Fund, Public China Select Fund, Public Far-East Consumer Themes Fund, Public China Titans Fund, Public China Ittikal Fund, Public Select Alpha-30 Fund, Public Islamic Asia Leaders Equity Fund, Public Optimal Growth Fund, PB Asia Equity Fund and PB China Pacific Equity Fund. Mr. Lum obtained his Capital Markets Services Representative’s license on 31 December 2004. Mr. Lum’s profile is set out in Section 9.8 (page 219) of this Chapter.

General Manager – InvestmentMr. Tan Yan Heong – Designated Fund Manager of Public Aggressive Growth Fund, Public Balanced Fund, Public SmallCap Fund, Public Far-East Select Fund, Public Far-East Property & Resorts Fund, Public South-East Asia Select Fund, Public Sector Select Fund, Public Islamic Sector Select Fund, Public Far-East Telco & Infrastructure Fund, Public Natural Resources Equity Fund, Public Australia Equity Fund, Public Indonesia Select Fund, Public Ittikal Sequel Fund, Public Strategic SmallCap Fund, PB ASEAN Dividend Fund, PB Asia Real Estate Income Fund, PB China ASEAN Equity Fund, PB Australia Dynamic Balanced Fund, PB China Australia Equity Fund, PB Indonesia Balanced Fund and PB Asia Emerging Growth Fund and co-Fund Manager of Public Ittikal Fund. Mr. Tan obtained his Capital Markets Services Representative’s license on 31 December 2004. Mr. Tan’s profile is set out in Section 9.8 (page 220) of this Chapter.

Assistant General Manager – Investment, Equities SectionMr. Chiang Kang Pey – Designated Fund Manager of Public Index Fund, Public Industry Fund, Public Islamic Mixed Asset Fund, Public Far-East Dividend Fund, Public Tactical Allocation Fund, Public Islamic Asia Tactical Allocation Fund, Public Islamic Optimal Growth Fund, Public Far-East Alpha-30 Fund, PB Balanced Fund, PB Growth Fund, PB Islamic Equity Fund, PB Euro Pacific Equity Fund, PB Asia Pacific Enterprises Fund and PB Growth Sequel Fund and co-Fund Manager of Public China Select Fund and PB China Pacific Equity Fund. Mr. Chiang obtained his Capital Markets Services Representative’s license on 8 February 2005.

Mr. Chiang holds a Master of Financial Management (Dean’s Honours List) degree from the Rotterdam School of Management, Erasmus University in the Netherlands and a Bachelor of Economics in Accounting from Monash University in Australia. He is a CFA charterholder and has over 13 years of experience in investment analysis and portfolio management. Mr. Chiang joined Public Mutual in 2004 as Manager – Investment Research and was subsequently re-designated as Manager – Investment, Equities Section where he was involved in managing selected equity funds. He was promoted to the position of Senior Portfolio Manager – Investment, Equities Section in 2005 and assumed the position of co-Fund Manager of various equity funds. From 2006 onwards, Mr. Chiang was appointed as the designated Fund Manager of selected equity funds. He was promoted to the position of Assistant General Manager in 2008. In this capacity, he actively constructs, monitors and rebalances the equity portfolios to achieve the stated objective of the respective funds.

Mr. Chiang commenced his investment career in 1995 as an equity analyst at a stockbroking firm and subsequently, joined the investment department of a life insurance company. Prior to joining Public Mutual, he was attached to an asset management company initially as Assistant Fund Manager responsible for analysing and valuing listed companies. He was later made Fund Manager, jointly managing Asia Pacific (ex-Japan) portfolios where he specialised in Malaysian and Thailand equities.

Assistant General Manager – Investment, Fixed Income SectionMr. Chan Kam Khoon – Mr. Chan obtained his Capital Markets Services Representative’s license on 8 February 2005.

Mr. Chan joined Public Bank in 1974 and has more than 30 years of banking experience. He was mainly involved in various aspects of Treasury activities involving foreign exchange trading, swaps and other derivative products. In 1985, he became Head of the Swap Desk and also managed the Asian Currency Unit desk of the bank. In 1990, he was transferred to Public Finance Bhd and assumed the position of Head of Money Market Department. His functions include the optimum utilisation of funds available and he also led a team into active bond trading activities, both in private debt securities and Malaysian government securities. Apart from this, he was also an active member of the Public Finance Management team where he assisted in formulating the various funding policies of the company. In 2002, Mr. Chan was transferred back to Public Bank to head the Funding and Fixed Income Sections of the Treasury Division. In 2004, Mr. Chan assumed the position of Senior Manager – Investment in Public Mutual, overseeing the Fixed Income Section of the Investment Department. He was promoted to Assistant General Manager in 2005.

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Senior Portfolio Manager – Investment, Fixed Income SectionEn. Zaharudin bin Ghazali – Designated Fund Manager of Public Institutional Bond Fund, Public Money Market Fund, Public Enhanced Bond Fund, Public Islamic Enhanced Bond Fund, Public Islamic Money Market Fund, Public Islamic Select Bond Fund, Public Islamic Income Fund, Public Islamic Infrastructure Bond Fund, Public Strategic Bond Fund, Public Islamic Strategic Bond Fund, PB Fixed Income Fund, PB Islamic Bond Fund, PB Cash Management Fund, PB Cash Plus Fund, PB Islamic Cash Management Fund, PB Islamic Cash Plus Fund, PBB MTN Fund 1 and PB Infrastructure Bond Fund and co-Fund Manager of Public Bond Fund, Public Islamic Bond Fund and Public Select Bond Fund. En. Zaharudin obtained his Capital Markets Services Representative’s license on 12 September 2005.

En. Zaharudin, CFP, holds a Bachelor in Library Science from Universiti Teknologi MARA. He joined Public Mutual in early 1991 as an Executive in the Investment Department. In late 1992, he was assigned to assist the Fund Managers in the cash management operations of the funds. En. Zaharudin was promoted to Assistant Manager – Investment in 1997 and later to Manager – Fixed Income Management in 2001. He was subsequently re-designated as Manager – Investment, Fixed Income Section in 2004 and later promoted to Senior Portfolio Manager – Investment, Fixed Income Section in 2006. Through his 15 years of involvement in fixed income management, he has contributed to the development and advancement of operations and system capabilities of the Investment Department.

Senior Portfolio Manager – Investment, Equities SectionMs. Tan Chee Chin – Designated Fund Manager of Public Savings Fund, Public Focus Select Fund, Public Dividend Select Fund, Public Far-East Balanced Fund, Public Singapore Equity Fund and PB Singapore Advantage-30 Equity Fund and co-Fund Manager of Public Far-East Dividend Fund, Public Far-East Property & Resorts Fund, Public Far-East Consumer Themes Fund, Public China Titans Fund, PB Balanced Fund and PB Asia Real Estate Income Fund. Ms. Tan obtained her Capital Markets Services Representative’s license on 8 February 2005.

Ms. Tan graduated with a Bachelor of Commerce (Hons) in Accounting and Finance from the University of Western Australia and is a CFA charterholder. She joined Public Mutual in 2003 as Assistant Manager, Investment Research. She was made Deputy Manager - Investment, Equities Section and designated co-Fund Manager of selected funds managed by Public Mutual in 2005. Ms. Tan assumed her position of Portfolio Manager - Investment, Equities Section in 2006 and Senior Portfolio Manager - Investment, Equities Section in 2008.

Ms Tan previously worked in a foreign financial institution with a global presence before embarking into a career in the financial markets. She was an investment analyst for an established local stock broking house for a period of time before moving on to the asset management industry. Ms. Tan has over 10 years experience in the Malaysian equity market.

Senior Portfolio Manager – Investment, Equities SectionEn. Mat Radzuan bin Abd Razak – Designated Fund Manager of Public Islamic Opportunities Fund, Public Islamic Select Treasures Fund, Public Islamic Select Enterprises Fund, Public Islamic Alpha-40 Growth Fund, PB Islamic Asia Strategic Sector Fund and PB Islamic Asia Equity Fund and co-Fund Manager of Public Islamic Equity Fund, Public Islamic Dividend Fund, Public Asia Ittikal Fund, Public Islamic Enhanced Bond Fund, Public Islamic Asia Dividend Fund and Public China Ittikal Fund. En. Mat Radzuan obtained his Capital Markets Services Representative’s license on 8 February 2005.

En. Mat Radzuan holds a Bachelor of Science Degree in Actuarial Science and Finance from Roosevelt University, USA. He is a CFA charterholder and a member of the CFA Institute and CFA Malaysia. He joined Public Mutual Berhad in 2004 as Assistant Manager – Investment, Equities Section and was subsequently made co-Fund Manager of selected funds managed by Public Mutual in 2005. En. Mat Radzuan assumed his position of Portfolio Manager - Investment, Equities Section in 2006 and Senior Portfolio Manager – Investment, Equities Section in 2008.

En. Mat Radzuan has more than 15 years of experience in the Malaysian equity market. Prior to joining Public Mutual, En. Mat Radzuan had worked with various companies including asset management, insurance, stock broking and futures broking companies.

Senior Portfolio Manager – Investment, Equities SectionMs. Chen Yuet Fong – Designated co-Fund Manager of Public Regular Savings Fund, Public Tactical Allocation Fund, Public Islamic Asia Tactical Allocation Fund, Public Natural Resources Equity Fund, Public Australia Equity Fund, PB China ASEAN Equity Fund, PB Australia Dynamic Balanced Fund and PB China Australia Equity Fund. Ms. Chen obtained her Capital Markets Services Representative’s license on 19 October 2005.

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Ms. Chen graduated with a Bachelor of Economics from the University of Malaya. She is a CFA charterholder. She joined Public Mutual in 2005 as Assistant Manager, Investment and assumed the position of Portfolio Manager – Investment, Equities Section in 2006. She was subsequently promoted to Senior Portfolio Manager – Investment, Equities Section in 2012. Prior to joining Public Mutual, Ms. Chen was attached to a local asset management company as a Fund Manager. Her fund management experience includes setting the investment strategy for the assets under management and management of equity and fixed income portfolios. Ms. Chen was also previously an investment analyst for a local stock broking house and her investment research experience includes assessing corporate earnings growth prospects, computation of stock valuations and financial analysis of listed companies.

Portfolio Manager – Investment, Fixed Income SectionCik Haniza binti Yang Razali – Designated co-Fund Manager of Public Islamic Select Bond Fund, PB Islamic Bond Fund, PB Cash Plus Fund, PB Islamic Cash Plus Fund, PBB MTN Fund 1 and PB Sukuk Fund. Cik Haniza obtained her Capital Markets Services Representative’s license on 8 February 2005.

Cik Haniza holds a Masters in Business Administration majoring in Finance from International Islamic University Malaysia (IIUM) and BA (Hons) in Accounting & Finance from London South Bank University. She joined Public Mutual in 2004 as Assistant Manager-Investment, Fixed Income Section and assumed her present capacity as co-Fund Manager in 2005. She was re-designated as Portfolio Manager – Investment, Fixed Income Section in 2006.

Prior to joining Public Mutual, Cik Haniza was attached to an investment advisory company and was involved in providing portfolio management and investment services. She was also previously attached to a local unit trust management company as a designated Fund Manager and was responsible for the portfolio management and asset allocation decisions for bond and Islamic equity funds. She also has experience in developing procedures and internal guidelines and monitoring of trading activities to ensure compliance with stipulated procedures and regulations.

Portfolio Manager – Investment, Equities SectionMs. Lum Peck Woon – Designated co-Fund Manager of Public Growth Fund, Public Aggressive Growth Fund, Public Equity Fund, Public Far-East Select Fund, Public South-East Asia Select Fund, Public Far-East Telco & Infrastructure Fund, Public Indonesia Select Fund, PB ASEAN Dividend Fund and PB Indonesia Balanced Fund. Ms. Lum obtained her Capital Markets Services Representative’s license on 15 January 2007.

Ms. Lum holds an honours degree in Accounting and Financial Management and Economics from the University of Sheffield, England. She is a CFA charterholder. She joined Public Mutual in 2005 as Senior Analyst, Investment. Ms. Lum was promoted to Assistant Manager – Investment, Equities Section in 2007. Ms. Lum assumed her position as Deputy Manager – Investment, Equities Section in 2008 and subsequently Manager – Investment, Equities Section in 2011. Prior to joining Public Mutual, Ms. Lum was attached to a local asset management company as an Assistant Manager in equity investment and was responsible for assisting in portfolio management and equity research. Ms. Lum was also previously an investment analyst for a local venture capital company and her investment research experience includes assessing corporate earnings growth prospects and financial analysis of listed and unlisted companies.

Portfolio Manager – Investment, Equities SectionEn. Shahnaz bin Saiful Mulok – Designated co-Fund Manager of Public Islamic Mixed Asset Fund, Public Islamic Optimal Growth Fund, PB Islamic Equity Fund and PB Asia Pacific Enterprises Fund. En. Shahnaz obtained his Capital Markets Services Representative’s license on 5 October 2006.

En. Shahnaz holds a Bachelor of Accountancy (Hons) from Universiti Teknologi MARA and is an affiliate of The Association of Chartered Certified Accountants (ACCA), United Kingdom. He joined Public Mutual in 2006 as Assistant Manager – Investment, Equities Section and was promoted to Deputy Manager – Investment, Equities Section in 2008.

Prior to joining Public Mutual, En. Shahnaz was attached to a local asset management company. He started off in the asset management company as an investment analyst. His investment research experience include assessing corporate earnings growth prospects, evaluating management track record, computation of stock valuations and financial analysis of listed companies on the Bursa Securities. His fund management experience include formulating investment strategy and management of equity and fixed income portfolios.

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Portfolio Manager – Investment, Equities SectionMr. Loo See Seong – Designated co-Fund Manager of Public Balanced Fund, Public SmallCap Fund, Public Sector Select Fund, Public Enhanced Bond Fund and Public Strategic SmallCap Fund. Mr. Loo obtained his Capital Markets Services Representative’s license on 20 January 2008.

Mr. Loo graduated with a Bachelor of Economics from the University of Putra. He joined Public Mutual in 2001 as an Executive in the Investment Department. He was assigned to supervise the generation of statistics reports on stock valuation, fund and benchmark returns and fund attribution analysis. In 2004, his responsibilities were widened to include analysis of domestic and regional telecommunications stocks. He was subsequently promoted to Assistant Manager – Investment in 2005 and his stock coverage was expanded. In 2008, his job scope was further expanded to include portfolio management and he was promoted to the position of Deputy Manager – Investment in 2011.

Portfolio Manager – Investment, Equities SectionMr. Lum Meng Seng – Designated co-Fund Manager of Public Savings Fund, Public Focus Select Fund, Public Far-East Balanced Fund, Public Singapore Equity Fund and PB Singapore Advantage-30 Equity Fund. Mr. Lum obtained his Capital Markets Services Representative’s license on 25 October 2008.

Mr. Lum holds a Bachelor of Economics (Hons) from the University of Malaya. He joined Public Mutual in 2007 as Assistant Manager – Investment, Equities Section and assumed his position as Deputy Manager – Investment, Equities Section in 2012. Mr. Lum has more than 10 years of experience in the Malaysia equity and fixed income markets. Prior to joining Public Mutual, Mr. Lum was attached to a local investment management company as an Assistant Manager in Investment, responsible for assisting in management of equity and fixed income portfolios. He started off his career as an investment analyst in an asset management company in 2000, responsible for equity research in the Malaysian capital market.

Portfolio Manager – Investment, Equities SectionMr. Liew Mun Hon – Designated co-Fund Manager of Public Index Fund, Public Dividend Select Fund, Public Global Select Fund and Public Optimal Growth Fund. Mr. Liew obtained his Capital Market Services Representative’s license on 7 November 2008.

Mr. Liew holds an honours degree in Business from the Nanyang Technological University of Singapore and is a Chartered Financial Analyst. He joined Public Mutual in 2008 as Deputy Manager – Investment, Equities Section. Mr. Liew assumed his position of Portfolio Manager – Investment, Equities Section in 2008. Prior to joining Public Mutual, Mr. Liew was attached to a foreign insurance company as a Fund Manager. His fund management experience includes setting the investment strategy, constructing and rebalancing various investment mandates to achieve its stated objectives. Mr. Liew was also previously an Investment Analyst/Fund Manager at a local unit trust and asset management company where he was actively involved in the areas of portfolio management and equity research. Mr. Liew has more than 10 years of experience in the Malaysian equity market.

Portfolio Manager – Investment, Equities SectionMr. Andrew Seah Saik Weng – Designated Fund Manager of Public Islamic Treasures Growth Fund and co-Fund Manager of Public Islamic Opportunities Fund, Public Islamic Select Treasures Fund, Public Select Alpha-30 Fund, Public Islamic Savings Fund and PB Islamic Asia Strategic Sector Fund. Mr. Seah obtained his Capital Market Services Representative’s license on 25 October 2008.

Mr. Seah graduated with a Bachelor of Social Science, majoring in Economics from Universiti Sains Malaysia. He joined Public Mutual in 2008 as Deputy Manager – Investment, Equities Section and assumed his present position of Portfolio Manager – Investment, Equities Section in 2008.

Mr. Seah has worked in various local stockbroking companies and a regional research house as an equity analyst before moving on to the fund management industry. Prior to joining Public Mutual, Mr. Seah was attached to a foreign owned insurance company as a Fund Manager, where he specialised in Malaysian and Singapore equities. Mr. Seah has more than 10 years of experience in the Malaysian equity market.

Portfolio Manager – Investment, Equities SectionEn. Mohd Isa bin Ibrahim – Designated Fund Manager of Public Islamic Savings Fund and co-Fund Manager of Public Islamic Sector Select Fund, Public Islamic Select Enterprises Fund, Public Islamic Asia Leaders Equity Fund, Public Islamic Alpha-40 Growth Fund, Public Islamic Treasures Growth Fund and PB Islamic Asia Equity Fund. En. Mohd Isa obtained his Capital Market Services Representative’s license on 19 September 2008.

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En. Mohd Isa holds a Masters in Business Administration majoring in Applied Finance & Investment from Universiti Kebangsaan Malaysia (UKM) and BBA (Hons) in Finance from Universiti Teknologi MARA. He joined Public Mutual in August 2008 as Deputy Manager – Investment, Equities Section. En. Mohd Isa assumed his position of Manager – Investment, Equities Section in 2011.

En. Mohd Isa has more than 10 years of experience in the Malaysian equity and fixed income markets. Prior to joining Public Mutual, he was attached to a local life insurance company as a designated Fund Manager and responsible for the portfolio management and asset allocation decisions for fixed income and equity funds. En. Mohd Isa was also previously attached to a local asset management company as a designated Fund Manager for Islamic equity funds as well as responsible in managing money market and fixed income portfolios. In his previous position, he was also involved in equity research which include assessing corporate earnings growth prospects, computation of stock valuations and financial analysis of listed companies on Bursa Securities.

Portfolio Manager – Investment, Fixed Income SectionEn. Azahari bin Ariffin – Designated co-Fund Manager of Public Money Market Fund, Public Islamic Money Market Fund, Public Islamic Strategic Bond Fund, Public Sukuk Fund, Public Enterprises Bond Fund, PB Cash Management Fund, PB Islamic Cash Management Fund and PB Bond Fund. En. Azahari obtained his Capital Market Services Representative’s license on 12 February 2009.

En. Azahari bin Ariffin holds a Bachelor of Finance (Hons) degree from Universiti Teknologi MARA. He joined Public Mutual in December 2007 as Assistant Manager – Investment, Fixed Income Section.

Prior to joining Public Mutual, En. Azahari was attached to a local asset management company where he assisted in the portfolio management and asset allocation decisions for the money market fund. His experience also involved proposing various investment strategies for the assets under management and liaising with corporate clients on matters related to the fixed income funds. He was also attached to a local investment bank where he was responsible for dealing in money market and fixed income instruments of both conventional and Shariah-based markets.

Portfolio Manager – Investment, Fixed Income SectionMr. Ng Boon Hoa – Designated Fund Manager of Public Sukuk Fund, Public Enterprises Bond Fund, PB Bond Fund and PB Sukuk Fund and co-Fund Manager of Public Institutional Bond Fund, Public Islamic Income Fund, Public Islamic Infrastructure Bond Fund, Public Strategic Bond Fund, PB Fixed Income Fund and PB Infrastructure Bond Fund. Mr. Ng obtained his Capital Market Services Representative’s license on 3 June 2009.

Mr. Ng is a CFA charterholder, a member of the Malaysian Institute of Certified Public Accountants and a Chartered Accountant of the Malaysian Institute of Accountants. He joined Public Mutual in 2007 as Deputy Manager – Investment, Fixed Income Section overseeing the credit analysis and fixed income research functions of the section. He assumed his present position of Portfolio Manager – Investment, Fixed Income Section in 2010.

Mr. Ng has more than 10 years of working experience in various capacities which include serving as the Financial Controller of a subsidiary in a public listed group and subsequently as the Financial Controller of an international public relations company. Mr. Ng commenced his career in a local public accounting firm in 1994 before joining an international public accounting firm in 1995. His previous work experience includes auditing, business process advisory, due diligence review, debt restructuring as well as managing the financial, taxation, human resources and administrative matters of various companies.

Portfolio Manager – Investment, Equities SectionMr. Tan Kok Keong – Designated co-Fund Manager of Public Industry Fund, Public Ittikal Sequel Fund, Public Far-East Alpha-30 Fund, PB Growth Fund, PB Euro Pacific Equity Fund and PB Growth Sequel Fund. Mr. Tan obtained his Capital Market Services Representative’s license on 23 December 2010.

Mr. Tan graduated with a Bachelor of Business from the Charles Sturt University, Australia. He joined Public Mutual in 2007 as a Senior Analyst in the Investment Department. Mr. Tan was promoted to Assistant Manager – Investment, Equities Section in 2011.

Prior to joining Public Mutual, Mr. Tan was attached to a local stock broking house and an asset management company as an investment analyst responsible for equity research in the Malaysian capital market.

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Portfolio Manager – Investment, Equities SectionMr. Julian Ng – Designated co-Fund Manager of Public Regional Sector Fund, PB Asia Equity Fund and PB Asia Emerging Growth Fund. Mr. Ng obtained his Capital Market Services Representative’s license on 9 March 2011.

Mr. Ng graduated with an Honours degree in Accounting and Finance from the Liverpool John Moores University, United Kingdom and a MBA in Finance from the University of Hull, United Kingdom. He joined Public Mutual in 2010 as Manager – Investment, Equities Section and assumed his present position of Portfolio Manager – Investment, Equities Section in 2011.

Mr. Ng has 17 years of experience in the local and foreign financial services industry. Prior to joining Public Mutual, he was attached to established local and foreign stockbroking firms and involved in institutional sales in local and foreign markets. He was also previously attached to a local asset management company covering ASEAN and regional markets.

Senior Manager – Investment, Economic Research & Communications SectionMr. Long Shih Rome – Mr. Long obtained his Capital Markets Services Representative’s license on 26 September 2007.

Mr. Long holds a Bachelor of Science Honours degree majoring in International Trade & Economic Development from the London School of Economics, London. He joined Public Mutual in 2003 as Manager in the Investment Department and assumed his present capacity as Senior Manager in 2007. Mr Long oversees the economics team which has developed statistical models and databases for economic research covering various regional economies. On the communications front, Mr. Long is responsible for updating the company’s agents and unitholders with investment talks and regular publications about the market and economic outlook for local and foreign markets.

Prior to joining Public Mutual, Mr. Long was the managing editor of an established investment magazine and had written articles covering stock market investments, unit trusts, financial planning and economics. Mr. Long was also previously a senior investment analyst with 10 years of experience covering various sectors of the Malaysia and Singapore equity markets.

9.10 AWARDS WON BY PUBLIC MUTUAL

On 20 February 2012, Public Mutual again emerged as the biggest winner in The Edge-Lipper Malaysia Fund Awards 2012 for the ninth consecutive year, winning a total of 8 awards. The awards won by funds under this Master Prospectus are as follows:

Fund Awards Years Category

Public Focus Select Fund 3 Equity Malaysia Small and Mid Caps Public SmallCap Fund 5 Equity Malaysia Small and Mid Caps Public SmallCap Fund 10 Equity Malaysia Small and Mid Caps

9.11 INVESTMENT MANAGEMENT FUNCTION OF THE MANAGER

Public Mutual’s investment team comprises a group of portfolio managers and investment research analysts who possess the necessary expertise and experience to undertake the fund management of its unit trust funds. The investment methodology that is applied is mainly based on fundamental analysis. The overall responsibility to oversee and review the portfolio strategies recommended by the Fund Managers rests with the Investment Committee.

Investment Committee

The Investment Committee oversees the investment process of the funds, particularly with regard to reviewing the asset allocation and investment strategies proposed by the Fund Manager and his team.

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Members of the Investment CommitteeTan Sri Datuk Seri Utama Thong Yaw Hong (Independent)Tan Sri Dato’ Sri Tay Ah LekDato’ Sri Lee Kong LamDato’ (Dr) Haji Mohamed Ishak Bin Haji Mohamed Ariff (Independent)Dato’ Haji Abdul Aziz Bin Dato’ Dr. Omar (Independent)Mr. Quah Poh Keat (Independent)Ms. Yeoh Kim Hong

For profiles of the members of the Investment Committee, please refer to pages 217 to 219.

The Committee meets twice a month and keeps in purview the achievement of the long-term investment objective of the funds. The detailed functions of the Investment Committee are as follows:

• Reviewtheperformanceandportfoliosofthefunds.• Reviewtheperformanceofthemarketsandtheirrespectiveoutlook.• Reviewandapprovetheportfoliostrategies recommended by the Investment Department.• Reviewtheforeignportfoliostrategiesofthefunds.• Reviewthereportsonweeklysaleandpurchase of investments.

Fund Management and the Investment Process

The investment management of the unit trust funds under the management of Public Mutual is undertaken by the Investment Department which is headed by Mr. Lum Ming Jang, Senior General Manager – Investment. He reports directly on the management of the funds to the Chief Executive Officer. Mr. Lum is assisted by Mr. Tan Yan Heong, General Manager – Investment, Mr. Chiang Kang Pey, Assistant General Manager – Investment, Equities Section and Mr. Chan Kam Khoon, Assistant General Manager – Investment, Fixed Income Section. The team also includes several Senior Portfolio Managers and Portfolio Managers who are involved in the portfolio management of the various unit trust funds managed by Public Mutual. Additional team members comprising Senior Manager, Manager, Deputy Managers, Assistant Managers, Senior Executives and Executives provide further support in the monitoring of macro-economic variables and developments and financial analysis of various listed companies.

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Key Job Functions of the Investment Department

Chief Executive Officer

• ResponsiblefortheoveralldirectionandassetallocationoftheunittrustfundsunderPublicMutual.• Reviewsandmonitors the performance of the funds.• Evaluatesandapproves strategic investment decisions and policies recommended by the Senior General

Manager - Investment.• Overseesthedailymanagementofthefunds.

Senior General Manager – Investment

• ResponsibleforthedailyportfoliomanagementoftheunittrustfundsunderPublicMutual.• Recommendsstrategicinvestment decisions and policies to the Chief Executive Officer for approval.• Responsibleinensuringthattheinvestmentsofthefundscomplywiththeirinvestmentguidelines.• OverseesandsupervisestheadministrationoftheInvestmentDepartment.• Presentseconomicandstockmarket views at investment seminars for the agency force and unitholders.

General Manager – Investment

• Assiststhe Senior General Manager – Investment in overseeing the key portfolio management functions of the Investment Department.• Responsible for providing feedback on the fundamental outlook of the equity and fixed income markets.• AssiststheSeniorGeneralManager–Investmentinoverseeingandsupervisingtheadministrationofthe

Investment Department.• OverseestheinformationmanagementsystemoftheInvestmentDepartment.

Chief Executive Officer

Senior General Manager - Investment

Fixed Income

General Manager - Investment

Equities

Assistant General Manager (1)Senior Portfolio Manager (1)Portfolio Managers (3)Manager (1)Deputy Manager (1)Assistant Managers (2) Senior Executives (4)Executives (7)Senior Assistants (2)

Assistant General Manager (1)Senior Portfolio Managers (3)Senior Manager (1)Portfolio Managers (9)Deputy Managers (3)Assistant Managers (6)Senior Executives (13)Executives (33)

Organisation Structure of the Investment Department

Investment Committee

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Assistant General Manager – Investment, Equities Section

• AssiststheSeniorGeneralManager–Investmentinoverseeingthekeyportfoliomanagementfunctionsofthe Investment Department.

• Responsibleforprovidingfeedbackonthefundamentaloutlookoftheequitymarkets.• Presentsmarketupdatesandoutlookatinvestmentseminarsfortheagencyforceandunitholders.

Assistant General Manager – Investment, Fixed Income Section

• Overseesthekeymanagementfunctionsofthefixedincomeportfoliosofthefunds.• Responsibleforprovidingfeedbackonthefundamentaloutlookofthedomesticfixedincomemarket.• Overseesthepreparationoffixedincomeinvestmentreportstounittrustholders.• Presents updates and outlook on the bond market at investment seminars for the agency force and

unitholders.

Senior Portfolio Managers and Portfolio Managers – Investment, Equities Section

• Involvesinthedailyandkeyportfoliomanagementfunctions.• Analysesandpreparesreportsontheperformanceofthefundsfordistributiontounitholdersandunittrust

consultants.• Providesresearchandmarketintelligencefeedbackonthemarketandstocks.

Senior Portfolio Manager and Portfolio Managers – Investment, Fixed Income Section

• Assistsinthedailymanagementofthefixedincomeportfoliosofthefunds.• Managesthedailyplacementandwithdrawaloffundswithapprovedfinancialinstitutions.• Providesfeedbackonthetradingactivitiesinthemoneymarketstofacilitatethemanagementofthebond

portfolios.

Senior Manager, Manager, Deputy Managers, Assistant Managers, Senior Executives and Executives – Investment

• Carriesout thefinancialanalysisof listedcompaniesandmonitors theperformanceof theeconomytofacilitate portfolio rebalancing and other investment decisions.

• Monitorscorporatedevelopmentsandperformsin-depthevaluationofcompaniesthroughsitevisitsandmeetings with the management.

• Assistsinthepreparationofinvestmentreportsfortheinvestmentteamandfordisseminationtounittrustholders and unit trust consultants.

9.12 RELATED PARTY TRANSACTIONS/CONFLICT OF INTEREST

All transactions carried out for or on behalf of the funds are executed on terms that are best available to the funds and which are no less favourable than arm’s length transactions between independent parties.

The related-party transactions of the funds may include:

• dealingsonsaleandpurchaseofinvestmentsecuritiesandinstrumentsbythefunds.• moneymarketdepositsandplacementsbythefunds.• holdingofunitsinthefundsbyrelatedparties.

All related-party transactions of the funds are transacted at arms length and are established on terms and conditions that are stipulated in the applicable regulations of respective stock exchanges and/or other applicable laws and market convention.

Where a conflict of interest arises due to the Investment Committee member or director holding substantial shareholding or directorships of public companies, and the fund(s) invests in that particular share or stock belonging to a public listed company, the said committee member or director shall abstain from any decision making relating to that particular share or stock of the fund(s).

Employees of the Manager who are directly involved in the investment management of the fund(s) or who have direct and timely access to the daily trades done by the Fund Managers, are required to declare their dealings in securities.

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9.13 POLICIES AND PROCEDURES ON MONEY LAUNDERING ACTIVITIES

The Manager has established a set of policies and procedures to counter the risk involving money laundering and financing of terrorism, in compliance with the provisions of Anti-Money Laundering and Anti Terrorism Financing Act, 2001 (AMLATFA). The policies and procedures encompassed the following key initiatives:

• Provisionof trainingandeducationonthesubjectmatter toallemployees,withemphasisonfront-linepersonnel and members of the agency force;

• Settingup specificmeasuresandcontrolswith regard to customer identificationandacceptancewhichinclude verification of the identity of customer via relevant identification documents;

• Ensuring prompt reporting of suspicious transactions to the Financial Intelligence Unit of Bank Negara Malaysia.

9.14 DOCUMENTS AVAILABLE FOR INSPECTION

For a period of not less than 12 months from the date of this Master Prospectus, the following documents or copies of them or other documents as may be required by the SC (where applicable) is available for inspection at the registered office of the Manager or such other place as the SC may determine:

(a) The master deed and supplemental deeds;(b) Each material contract or document referred to in this Master Prospectus (if any);(c) The latest annual and interim reports of the funds;(d) The audited financial statements of the funds and the Manager for the current financial year (where applicable)

and last 3 financial years or from the date of establishment/incorporation, if less than 3 years, preceding the date of this Master Prospectus;

(e) All reports, letters or other documents, valuation and statements by any expert referred to in this Master Prospectus (if any);

(f) Writ and relevant cause papers for all current material litigation and arbitration disclosed in this Master Prospectus (if any); and

(g) All consents given by experts disclosed in this Master Prospectus.

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10.1 THE TRUSTEES’ WILLINGNESS TO ASSUME POSITION

AmanahRaya Trustees Berhad (“ART”), Maybank Trustees Berhad (“MTB”) (formerly known as Mayban Trustees Berhad) and CIMB Commerce Trustee Berhad (“CCTB”) (formerly known as BHLB Trustee Berhad) have indicated their willingness to assume the position of Trustees to the funds and to undertake all the obligations that are attached to it under the Deed, all relevant written laws and rule of law.

10.2 DUTIES AND RESPONSIBILITIES OF THE TRUSTEES

The Trustees of the funds will perform among others, the following duties and responsibilities:

1. To act as the custodian of the funds and safeguard the interest of the unitholders;

2. To exercise all due diligence and vigilance in carrying out its functions and duties in accordance with the Deed, SC Guidelines, CMSA 2007 and securities laws;

3. To ensure that the Manager manages and administers the funds in accordance with the Deed, SC Guidelines, CMSA 2007 and securities laws;

4. To ensure proper records are kept of all transactions, dividends, interest and income received and distributed in respect of the funds;

5. To ensure that the Manager keeps the Trustee fully informed of the details of the Manager’s policies in investments and any changes thereof;

6. To ensure the accounts are audited at the end of each accrual period by the auditors and the Manager, on behalf of the Trustees forwards to the unitholders (at their last known registered address) a copy of the audited annual accounts within two months after the financial year end.

10.3 PROFILE OF AMANAHRAYA TRUSTEES BERHAD (“ART”)

ART was incorporated under the Companies Act 1965 on 23 March 2007 and registered as a trust company under the Trust Companies Act 1949. ART is a subsidiary of Amanah Raya Berhad (ARB) which is wholly owned by the Minister of Finance (Incorporated). ART took over the corporate trusteeship functions of ARB and acquired ARB’s experience of more than 45 years in trustee business. ART has been registered and approved by the SC to act as trustee to unit trust funds and has 162 unit trust funds under ART’s trusteeship. As at 2 April 2012, ART has 78 staff (58 Executives and 20 Non-Executives).

ART has an authorised capital of RM5,000,000. Its issued and paid-up share capital is RM2,000,000 and RM1,000,000 respectively.

The shareholders of ART are:

% of equity

Amanah Raya Berhad (344986-V) 20Amanah Raya Nominees (Tempatan) Sdn Bhd (434217-U) 20Amanah Raya Capital Sdn Bhd (549057-K) 20AmanahRaya Capital Group Sdn Bhd (760289-U) 20AmanahRaya Modal Sdn Bhd (760322-X) 10Amanah Raya Nominees (Asing) Sdn Bhd (684546-P) 10

THE TRUSTEES10

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THE TRUSTEES (CONT’D)

Financial Performance

The following is a summary of ART’s performance based on its audited financial statements for the financial years ended 31 December since incorporation on 23 March 2007:

As at 2 April 2012, the Trustee and its delegate are not engaged in any material litigation and arbitration, either as plaintiff or defendant, and the Trustee and its delegate are not aware of any proceedings, pending or threatened or of any facts likely to give rise to any proceedings which might materially and adversely affect their financial position or business.

Board of Directors

Datuk Idrus Bin Harun – ChairmanDatin Aminah Binti Pit Abd Raman – DirectorTuan Haji Ab. Gani Bin Haron – DirectorDato’ Haji Ahmad Kamal Bin Abdullah Al-Yafii – DirectorTuan Haji Mansor Bin Salleh – Director

Chief Executive OfficerPuan Hajjah Habsah Binti Bakar

Delegation of Custodian Function

ART has delegated its custodian function for the foreign investments of the funds to Citibank N.A, Singapore branch. Citibank N.A in Singapore began providing a security service in the mid-1970’s and a fully operational global custody product was launched in the early 1990’s. To date their securities services business claims a global client base of premier banks, fund managers, broker dealers and insurance companies.

The roles and duties of the trustee’s delegate, Citibank N.A, Singapore, are as follows:

• Toactassub-custodianfortheselectedcross-borderinvestmentofthefundsincludingtheopeningofcashandcustody accounts and to hold in safe keeping the assets of the funds such as equities, bonds and other assets.

• Toactaspayingagentfortheselectedcross-borderinvestmentwhichincludetradesettlementandfundtransfer services.

• Toprovidecorporateactioninformationorentitlementsarisingfromtheaboveunderlyingassetsandtoprovide regular reporting on the activities of the invested portfolios.

10.4 PROFILE OF MAYBANK TRUSTEES BERHAD (“MTB”)

MTB was incorporated under the name of Mayban Trustees Berhad on 12 April 1963 and registered as a Trust Company under the Trust Companies Act 1949 on 11 November 1963. It was one of the first local trust companies to provide trustee services with the objective of meeting the financial needs of both individual and corporate clients. The name of the company was changed to Maybank Trustees Berhad effective from 19 March 2012. MTB has been registered and approved by the SC to act as Trustee to unit trust funds.

With more than 20 years of experience as Trustee to unit trust funds, MTB has under its stewardship a total of 55 unit trust funds and 3 real estate investment trust/property trust funds. As at 2 April 2012, MTB has a total of 40 staff, comprising 30 Executives and 10 non-Executives.

2009 2010 2011 (Unaudited) RM’000 RM’000 RM’000

Paid-up share capital 1,000 1,000 1,000Shareholders’ funds 3,624 3,214 5,263Turnover 20,024 24,847 26,908Profit before tax 14,340 18,265 19,954Profit after tax 10,625 13,590 14,549

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The following is a summary of the past performance of MTB based on audited financial statements for the past 3 financial years ended 30 June:

2009 2010 2011 RM’000 RM’000 RM’000

Paid-up share capital 500 500 500Shareholders’ funds 8,623 3,901 6,239Turnover 8,975 9,115 9,784Profit before tax 7,645 3,053 3,168Profit after tax 5,730 2,278 2,338

Material Litigation and Arbitration

As at 2 April 2012, save for the suits mentioned herein below, the Trustee is not engaged in any material litigation as plaintiff or defendant and the Trustee is not aware of any proceedings, pending or threatened or of any facts likely to give rise to any proceedings which might materially and adversely affect its financial position or business.

The Bondholders of the Al-Bai Bithaman Ajil [ABBA] Bonds [bondholders] issued by Pesaka Astana (M) Sdn Bhd [PASB] have sued PASB for its failure to meet its bonds payment obligations under Kuala Lumpur High Court Civil Suit No. D5(D6)-22-1810-2005 [the ABBA Suit] and cited the Trustee as one of 12 co-defendants in the ABBA Suit. The claim in the ABBA Suit is for RM149,315,000.00 or any other sum that the Court deems fit. The other defendants in the ABBA Suit include among others the Facility Agent, PASB’s Chief Executive Officer, one of PASB’s directors and associate companies of the Chief Executive Officer and the said director. The Trustee has defended the ABBA Suit and its trial has concluded.

The Trustee had appealed against the decision made by the High Court on 30 June 2010 in respect of the ABBA Suit in awarding judgement against it and another Defendant. The appeals proceeded on 22, 23, 26, 27, 28, 29 and 30 September 2011 and 3 October 2011. The Court of Appeal had on 8 November 2011 awarded the Trustee and the Facility Agent a limited indemnity against PASB, PASB’s Chief Executive Officer, one of PASB’s directors and associate companies of the Chief Executive Officer and the said director but found the Trustee and the Facility Agent equally liable to the bondholders. The Trustee has filed a Notice Of Motion to the Federal Court for the Trustee to be granted leave to appeal to the Federal Court against certain parts of the decision of the Court of Appeal and it is fixed for hearing on 5 April 2012.

Connected to the ABBA Suit, Amanah Short Deposits Berhad [now MIDF Amanah Investment Bank Berhad (MIDF)], a Noteholder of the Combined Commercial Papers and/or Medium Term Notes/Letters of Credit/Financial Guarantee Facilities [CP/MTN] totalling RM13 million and issued by PASB, have also sued PASB for full payment under the CP/MTN arising from a cross-default by PASB under its ABBA Bonds, under Kuala Lumpur High Court Civil Suit No. D2-22-1085-2006 [the CP/MTN Suit]. The Trustee was cited as one of 5 co-defendants in the CP/MTN Suit. The claim in the CP/MTN Suit is for RM13 million or any other sum that the Court deems fit and damages. The other defendants in the CP/MTN Suit are the Facility Agent, PASB’s Chief Executive Officer and one of PASB’s directors. The Trustee is defending the CP/MTN Suit. The CP/MTN Suit is fixed for continued trial on 26 April 2012.

The Trustee has obtained leave of the court to proceed with the actions against PASB given that further to an unrelated suit a provisional liquidator had been appointed against PASB.

In any event, any successful claim that may be established against the Trustee will be covered by the Trustee’s insurer and/or Malayan Banking Berhad as the ultimate holding company of the Trustee. As such, the ABBA Suit and the CP/MTN Suit will not materially affect the business or financial position of the Trustee.

Connected to the CP/MTN Suit, MIDF has under Kuala Lumpur High Court Originating Summons No. 24A-30-2011 against the Trustee and another Defendant sought a declaration that the Trustee hold in trust for MIDF the sum of RM3,453,000.00, which said sum is in the possession of the Trustee, and that the said sum be paid to MIDF upon the order of the Court [the OS]. The OS was fixed for hearing on 22 June 2011 wherein the Court granted order in terms. The Trustee has complied with the order of the Court on 28 July 2011. The OS will not materially affect the business or financial position of the Trustee.

234


The sole Junior Noteholder of the Junior Notes [Junior Noteholder] issued by Aldwich Berhad [Aldwich] has sued the Trustee and the Security Agent of the Junior Notes for the sum of RM556,500,000.00 together with interest and costs under Kuala Lumpur High Court Suit No : D-22NCC-2339-2010 [the JN Suit]. The JN Suit arises in the Trustee’s ordinary course of business and in the performance of its duties and responsibilities to the Senior Bondholders in respect of the Senior Bonds also issued by Aldwich and in acting responsibly further to the instructions of the Senior Bondholders via special resolution in declaring an Event Of Default for the Senior Bonds [EOD For Bonds]. Subsequently, the EOD For Bonds had caused a cross default on the Junior Notes resulting in the Trustee acting responsibly in declaring an Event Of Default for the Junior Notes in order to avoid the interests of the Junior Noteholder being jeopardized. The Trustee does not admit any liability to and has defended the JN Suit. The JN Suit will not materially affect the business or financial position of the Trustee. The Trustee’s lawyers are of the view that the JN Suit is devoid of merit.

The JN Suit trial proceeded on 15, 19, 20 and 28 July 2011 and 15 August 2011. The High Court had on 30 September 2011 dismissed the JN Suit against both the Trustee and the Security Agent. The Junior Noteholder has filed an appeal to the Court of Appeal against the decision of the High Court [Appeal]. The Court of Appeal had on 7 March 2012 dismissed the Appeal.

The Trustee reiterates that it has in place a strong team of professionals with priority chiefly on protecting the interest of all stakeholders and upholding best standards of service and management practice.

Board of Directors

En Zainal Abidin Jamal – Non-Independent Non-Executive Director & ChairmanEn Mohd. Hanif bin Suadi – Non-Independent Executive DirectorDato’ Dr Tan Tat Wai – Independent Non-Executive DirectorMs Ong Sau Yin – Independent Non-Executive Director

Chief Executive OfficerEn. Badirul Ismail


MTB has appointed Malayan Banking Berhad, as the custodian of the local assets of the funds. The custodian function is run under Maybank Custody Services (“MCS”), a unit within Malayan Banking Berhad. MCS commenced operations in 1983 and has been appointed as custodian of unit trust funds since 1989. It provides clearing and custody services for Malaysian equity and fixed income securities to domestic and foreign institutional clients. In addition, it offers global custody services to domestic institutions/clients who have foreign investments.

The roles and duties of the trustee’s delegate Maybank Custody Services (“MCS”), a unit within Malayan Banking Berhad, are as follows:

• Safekeep,reconcileandmaintainassetsholdingsrecordsoffundsagainsttrustee’sinstructions;• Actassettlementagentforsharesandmoniestocounterpartiesagainsttrustee’sinstructions;• Actasagentsformoneymarketplacementwhereapplicableagainsttrustee’sinstructions;• Disseminatelistedcompanies’announcementstoandfollowthroughforcorporateactionsinstructionsfrom

trustee;• Compile,prepareandsubmitholdingsreporttotrusteeandbeneficialownerswhererelevant;and• Otherad-hocpaymentsforworkdoneforthefundsagainsttrustee’sinstructions,etc.

MTB has delegated its custodian function for the foreign investments of the funds to Citibank N.A, Singapore branch. Citibank N.A in Singapore began providing a security service in the mid-1970’s and a fully operational global custody product was launched in the early 1990’s. To date, their securities services business claims a global client base of premier banks, fund managers, broker dealers and insurance companies.

The roles and duties of the trustee’s delegate, Citibank N.A, Singapore, are as follows:

• Toactassub-custodianfortheselectedcross-borderinvestmentofthefundsincludingtheopeningofcashandcustody accounts and to hold in safe keeping the assets of the funds such as equities, bonds and other assets.



235


10.5 PROFILE OF CIMB COMMERCE TRUSTEE BERHAD (“CCTB”)

CCTB was incorporated under the name of BHLB Trustee Berhad on 25 August 1994. It was registered as a Trust Company under the Trust Companies Act 1949 on 3 July 1995 and commenced operations on 1 September 1995. The name of the company was changed to CIMB Commerce Trustee Berhad effective from 2 March 2012. CCTB has been registered and approved by the SC to act as Trustee to unit trust funds.

With 16 years of experience as a trustee to unit trust funds, CCTB has under its stewardship a total of 69 unit trust funds and 1 Real Estate Investment Trust and a staff strength of 22 employees, comprising of 21 Executives and 1 Non-Executive as at 2 April 2012.


The following is a summary of the past performance of CCTB based on financial statements for the past three (3) financial years ended 31 December:

2009 2010 2011 (Unaudited) RM’000 RM’000 RM’000

Paid-up share capital 1,750 1,750 1,750Shareholders’ funds 5,696 6,497 6,241Turnover 7,038 7,113 6,289Profit before tax 3,340 2,588 1,634Profit after tax 2,465 1,936 995

As at 2 April 2012, the Trustee and its delegates are not engaged in any material litigation and arbitration, either as plaintiff or defendant, and the Trustee and its delegate are not aware of any proceedings, pending or threatened or of any facts likely to give rise to any proceedings which might materially and adversely affect their financial position or business.

Board of Directors

En. Zahardin OmardinMs. Chan Swee Liang CarolinaMr. Loh Shai WengMs. Liew Pik Yoong (Alternate director to Ms. Chan Swee Liang Carolina)

Head of OperationsMs. Lee Kooi Yoke


CCTB has appointed CIMB Group Nominees (Tempatan) Sdn Bhd as the Trustee’s delegate to perform custodial function. CIMB Group Nominees (Tempatan) Sdn Bhd is a wholly owned subsidiary of CIMB Bank Berhad. Its custodial function includes safekeeping, settlement and corporate action related processing and cash security reporting.

CCTB has delegated its custodian function for the foreign investments of the funds to Citibank N.A, Singapore branch. Citibank N.A in Singapore began providing a security service in the mid-1970’s and a fully operational global custody product was launched in the early 1990’s. To date their securities services business claims a global client base of premier banks, fund managers, broker dealers and insurance companies.

All investments are automatically registered in the name of the funds. CIMB Group Nominees (Tempatan) Sdn Bhd acts only in accordance with instructions from the Trustee.

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The roles and duties of the Trustee’s delegates, CIMB Group Nominees (Tempatan) Sdn Bhd and Citibank N.A, Singapore, are as follows:

• Toactassub-custodianfortheselectedcross-borderinvestmentofthefund(s)includingtheopeningofcashand custody accounts and to hold in safe keeping the assets of the fund(s) such as equities, bonds and other assets.




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11.1 UNITHOLDERS’ RIGHTS AND LIABILITIES

A unitholder is a person registered in the register as a holder of units or fractions of units in a fund which automatically accord him rights and interests in the fund.

Unitholders shall be entitled to receive the distributions of the funds (if any), participate in any increase in the capital value of the units, and to other rights and privileges as are provided for in the Deed.

Unitholders are vested with the powers to call for a unitholders’ meeting, and to vote for the removal of the Trustee or the Manager through an Extraordinary Resolution.

Investors who are investing with Public Mutual for the first time are entitled to a cooling-off period of 6 Business Days from the date of receipt by Public Mutual, of the application form and payment. During this period of cooling-off, the unitholder, upon changing his mind about the unit trust investment that he had made, may exercise his cooling-off right by issuing a cooling-off request to Public Mutual and he will be paid a full refund of his investment principal within 10 days. For EPF unitholders, the cooling-off period will commence from the date of receipt of application form by Public Mutual. This cooling-off right, however, shall not extend to a corporation or institution, the staff of Public Mutual, and persons registered to deal in unit trust funds.

In addition, unitholders shall receive annual and interim reports of the funds which are sent out within two months from the close of each financial year/period.

No unitholder shall be entitled to require the transfer to him of any of the assets comprised in the funds or be entitled to interfere with or question the exercise by the Trustee or the Manager on his behalf of the rights of the Trustee as owner of such assets.

No unitholders shall by reason of the provisions of the Deed and the relationship created thereby between the unitholders, the Trustee and the Manager be liable for any amount in excess of the purchase price paid for the unit, and shall not be under any obligation to indemnify the Trustee and/or the Manager in the event that the liabilities incurred by the Trustee and the Manager in the name of or on behalf of the funds pursuant to and/or in the performance of the provisions of the Deed exceed the assets of the funds, and any right of indemnity of the Trustee and/or Manager will be limited to recourse to the funds.

11.2 JOINTHOLDERS

Units may be registered in the name of more than one unitholder subject to a maximum number of two jointholders. If the units are held by jointholders of whom one is a minor, the first registered unitholder must be an adult who is not less than 18 years of age.

In the event of the demise of a jointholder, the Manager shall only recognise the surviving jointholder as the rightful person having title or right of interest to the units in the account. However, if the surviving jointholder is a minor, the units in the account shall be vested in the estate of the deceased jointholder upon receipt by the Manager of the necessary documentation.

SALIENT TERMS OF THE DEED11

238

SALIENT TERMS OF THE DEED (CONT’D)

PSF

PGF

PIX

PIF

PAGF

PRSF

P SmallCap

PEF

PFSF

PDSF

1.5% per annum of the NAV.










5 sen per unit.

5 sen per unit.

5 sen per unit.

5 sen per unit.

5 sen per unit.

5 sen per unit.

5 sen per unit.

3% of the NAV per unit.








7% of the NAV per unit





Fund Trustee Fee ServiceCharge

Repurchase Charge

ManagementFee

11.3 MAXIMUM FEES AND CHARGES PERMITTED BY THE DEED

Not exceeding 0.2% per annum and not less than 0.08% per annum, calculated daily on the NAV.



Not exceeding 0.08% per annum, calculated daily on the NAV.





Not exceeding 0.07% per annum, calculated daily on the NAV, but subject to any minimum fee (inclusive of the custodian fee) per annum and/or maximum fee (inclusive of the custodian fee) per annum as shall agreed upon by the Manager and Trustee.


239

PFES

PRSEC

PGSF

PFEDF

PCSF

PFEPRF

PSEASF

PSSF


















Repurchase Charge

ManagementFee












Not exceeding 0.08% per annum, calculated daily on the NAV, but subject to a minimum fee (inclusive of the custodian fee) of RM18,000.00 per annum.






240

PFECTF

PCTF

PFETIF

PSA30F

PNREF

PAUEF

PFA30F

POGF

PINDOSF




















Repurchase Charge

ManagementFee




















241

PSGEF

PSSCF

PTAF

PBF

PFEBF

P BOND

PIN BOND

PEBF




5 sen per unit.


3 sen per unit.












Repurchase Charge

ManagementFee










Not exceeding 0.08% per annum, calculated daily on the NAV, but subject to a minimum fee of RM18,000 per annum (inclusive of the custodian fee).

Not exceeding 0.08% per annum, calculated daily on the NAV, but subject to a minimum fee of RM18,000 per annum (inclusive of the custodian fee).

Not exceeding 0.08% per annum, calculated daily on the NAV, but subject to a minimum fee (inclusive of the custodian fee) of RM18,000 per annum.


Not exceeding 0.08% per annum, calculated daily on the NAV, but subject to a minimum fee (inclusive of the custodian fee) of RM18,000 per annum.




242















Repurchase Charge

ManagementFee

PSBF

PSTBF

PENTBF

PMMF





A lower fee and/or charges than what is stated in the Deed may be charged. All current fees and charges are disclosed in the Master Prospectus.

Any increase of the fees and/or charges above that stated in the current Master Prospectus may be made provided that a supplemental prospectus is issued and the maximum stated in the Deed shall not be breached.

Any increase of the fees and/or charges above the maximum stated in the Deed shall require unitholders’ approval.

11.4 PERMITTED EXPENSES PAYABLE OUT OF THE FUNDS

Only expenses directly related and necessary in operating and administering a fund may be paid out of the fund. The major expenses that are recoverable directly from the funds include:

(i) commission/fees paid to brokers in effecting dealings in the investments of the funds, shown on the contract notes or confirmation notes or difference accounts;

(ii) (where the custodial function is delegated by the relevant Trustee for foreign markets investment), charges/fees paid to the sub-custodian;

(iii) tax and other duties charged on the funds by the Government and other authorities;(iv) the fee and other expenses properly incurred by the Auditor and all professional and accounting fees and

disbursements approved by the relevant Trustee;(v) fees for the valuation of any investment of the funds by independent valuers for the benefit of the funds;

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(vi) costs incurred for the modification of the Deed other than those for the benefit of the Manager or the Trustee;

(vii) costs incurred for any meeting of unitholders other than those convened by the Manager or Trustee for its own benefit;

(viii) the costs of printing and dispatching to unitholders the accounts of the funds, tax certificates, distribution warrants, notices of meeting of unitholders, newspaper advertisement and such other similar costs as may be approved by the relevant Trustee; and

(ix) any other expenses properly incurred by the relevant Trustee in the performance of its duties and responsibilities.

11.5 RETIREMENT, REMOVAL AND REPLACEMENT OF THE MANAGER

The Manager may retire upon giving twelve (12) months notice to the Trustee of its desire to do so, or such shorter period as the Manager and the Trustee shall agree upon, in favour of some other corporation.

The Manager may be removed and another corporation appointed as manager by Extraordinary Resolution of the unitholders at a unitholders’ meeting convened in accordance with the Deed either by the Trustee or the unitholders.

The Trustee shall take reasonable steps to remove and replace the Manager as soon as practicable after becoming aware of any such circumstances:

(a) An Extraordinary Resolution to that effect has been duly passed by the unitholders at a meeting called for that purpose;

(b) The Manager is in breach of its obligations under the Deed;(c) The Manager has failed or neglected to carry out its duties to the satisfaction of the Trustee and the Trustee

considers that it would be in the interests of unitholders for it to do so, after the Trustee has given notice and reasons and has considered any representations made by the Manager in respect of that opinion, and after consultation with the relevant authorities and with the approval of the unitholders; or

(d) The Manager has gone into liquidation (except a voluntary liquidation for the purpose of amalgamation or reconstruction or some similar purpose) or has had a receiver appointed or has ceased to carry on business,

and the Manager shall not accept any extra payment or benefit in relation to such removal or replacement or retirement.

In any of the cases aforesaid the Manager for the time being shall upon receipt of such notice by the Trustee cease to be the Manager and the Trustee shall by writing under its seal appoint some other corporation to be the Manager of the fund subject to such corporation entering into a Deed or Deeds with the Trustee and thereafter act as Manager during the remainder period of the fund.

11.6 RETIREMENT, REMOVAL AND REPLACEMENT OF THE TRUSTEE

The Trustee may retire upon giving twelve (12) months notice to the Manager of its desire to do so, or such shorter period as the Manager and the Trustee shall agree upon, and may appoint a new Trustee in his stead or as additional Trustee.

The Manager shall take reasonable steps to remove and replace a Trustee as soon as practicable after becoming aware of any such circumstances:

(a) The Trustee has ceased to exist;(b) The Trustee has not been validly appointed;(c) The Trustee is not eligible to be appointed or to act as Trustee under section 290 of the CMSA 2007;(d) The Trustee has failed or refused to act as Trustee in accordance with the provisions or covenants of the Deed

or the provision of the CMSA 2007;

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(e) A receiver is appointed over the whole or a substantial part of the assets or undertaking of the existing Trustee and has not ceased to act under the appointment, or a petition is presented for the winding up of the existing Trustee (other than for the purpose of and followed by a reconstruction, unless during or following such reconstruction the existing Trustee becomes or is declared to be insolvent); or

(f) The Trustee is under investigation for conduct that contravenes Trust Companies Act 1949, the Trustee Act 1949, the Companies Act 1965 or any securities law.

In addition to the above, the Trustee may be removed and another Trustee appointed by Extraordinary Resolution of the unitholders at a unitholders’ meeting convened in accordance with the Deed either by the Manager or the unitholders.

11.7 TERMINATION OF THE FUNDS

A fund may be terminated or wound-up upon the occurrence of any of the following events:-

(a) the Securities Commission’s approval is revoked under Section 212(7)(A) of the CMSA 2007;(b) an Extraordinary Resolution is passed at a unitholders’ meeting to terminate or wind-up that fund, following

the occurrence of events stipulated under Section 301(1) of the CMSA 2007 and the court has confirmed the resolution, as required under Section 301(2) of the CMSA 2007;

(c) an Extraordinary Resolution is passed at a unitholders’ meeting to terminate or wind-up the fund; or(d) the effective date of an approved transfer scheme, as defined under the SC Guidelines, has resulted in the

fund, which is the subject of the transfer scheme, being left with no asset/property.

11.8 UNITHOLDERS’ MEETING

A unitholders’ meeting may be called by the Manager, Trustee and/or unitholders. Any such meeting must be convened in accordance with the Deed and/or the SC Guidelines.

Every question arising at any meeting shall be decided in the first instance by a show of hands unless a poll is demanded or if it be a question which under the Deed requires an Extraordinary Resolution, in which case a poll shall be taken. On a show of hands every unitholder who is present in person or by proxy shall have one vote.

The quorum for a meeting of unitholders of a fund is five (5) unitholders of that fund, whether present in person or by proxy, provided always that for a meeting which requires an Extraordinary Resolution the quorum for that meeting shall be five (5) unitholders, whether present in person or by proxy, holding in aggregate at least twenty five percent (25%) of the units in issue for that fund at the time of the meeting. If the fund has five (5) or less unitholders, the quorum required shall be two (2) unitholders, whether present or by proxy and if the meeting requires an Extraordinary Resolution the quorum for that meeting shall be two (2) unitholders, whether present in person or by proxy, holding in aggregate at least twenty five percent (25%) of the units in issue for that fund at the time of the meeting.

11.9 THE DEED

Copies of the Deed may be obtained from the Manager at a cost of RM20 each or may be inspected free of charge during normal working hours at the offices of the Manager.

All unitholders of units will be entitled to the benefit of, be bound by and be deemed to have notice of the provisions of the Deed, copies of which are available as mentioned above.


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The Board of TrusteesAmanahRaya Trustees Berhad, Maybank Trustees Berhad and CIMB Commerce Trustee Berhadc/o Public Mutual BerhadBlock B, Sri Damansara Business ParkPersiaran IndustriBandar Sri Damansara52200 Kuala Lumpur

4 April 2012

Dear Sirs

Re: Taxation of the Funds and Unit Holders

This letter has been prepared for inclusion in this Master Prospectus in connection with the offer of units in the Public Savings Fund, Public Growth Fund, Public Index Fund, Public Industry Fund, Public Aggressive Growth Fund, Public Regular Savings Fund, Public SmallCap Fund, Public Equity Fund, Public Focus Select Fund, Public Dividend Select Fund, Public Far-East Select Fund, Public Regional Sector Fund, Public Global Select Fund, Public Far-East Dividend Fund, Public China Select Fund, Public Far-East Property & Resorts Fund, Public South-East Asia Select Fund, Public Sector Select Fund, Public Far-East Consumer Themes Fund, Public China Titans Fund, Public Far-East Telco & Infrastructure Fund, Public Select Alpha-30 Fund, Public Natural Resources Equity Fund, Public Australia Equity Fund, Public Far-East Alpha-30 Fund, Public Optimal Growth Fund, Public Indonesia Select Fund, Public Singapore Equity Fund, Public Strategic SmallCap Fund, Public Balanced Fund, Public Far-East Balanced Fund, Public Tactical Allocation Fund, Public Bond Fund, Public Institutional Bond Fund, Public Enhanced Bond Fund, Public Select Bond Fund, Public Strategic Bond Fund, Public Enterprises Bond Fund and Public Money Market Fund (“the funds”).

Taxation of the Funds

The funds are unit trusts for Malaysian tax purposes. The taxation of the funds is therefore governed principally by Sections 61 and 63B of the Income Tax Act, 1967 (“the Act”).

Subject to certain exemptions, the income of the funds in respect of investment income derived from or accruing in Malaysia is liable to income tax at the prevailing rate of 25%.

Gains from the realisation of investments by the funds will not be subject to Malaysian income tax.

Taxable Malaysian dividend income earned by the funds would have suffered a tax deduction at source at the rate of 25% for Year of Assessment (“YA”) 2011 and subsequent YAs. The tax deducted will be available for set off either wholly or partly against the tax liability of the funds. Any excess over the tax liability will be refundable to the funds.

Based on the Finance Act 2007, only Malaysian dividends paid in the form of cash from ordinary shares (held continuously for 90 days or more – the 90 days condition does not apply for dividends received from shares in public listed companies) would be entitled to tax credits. These tax credits are available for set off against the funds’ tax liabilities.

Interest income earned by the funds from the following are exempt from tax:-

• anysavingscertificatesissuedbytheGovernment;or• securitiesorbondsissuedorguaranteedbytheGovernment;or• debenturesorIslamicSecurities,otherthanconvertibleloanstock,approvedbytheSecuritiesCommission;or• BonSimpananMalaysiaissuedbytheCentralBankofMalaysia;or• bondsorsecuritiesissuedbyPengurusanDanahartaNasionalBerhad;or• abankorfinancial institution licensedunder theBankingandFinancial InstitutionsAct1989or Islamic

Banking Act 1983; or• Islamicsecurities(includingsukuks)originatingfromMalaysia,otherthanconvertibleloanstocks,issuedinany

currency other than Ringgit and approved by the Securities Commission or Labuan Financial Services Authority.

The funds may receive dividends, interest and other income from investments outside Malaysia. Income derived from sources outside Malaysia and received in Malaysia by a resident unit trust is exempt from Malaysian income tax. However, such income may be subject to tax in the country from which it is derived.

Any income received by the funds from a Sukuk Issue which has been issued by the Malaysia Global Sukuk Inc will be exempt from tax.

Any income received by the funds from a Sukuk Ijarah, other than convertible loan stock, issued in any currency by 1Malaysia Sukuk Global Berhad will be exempt from tax.

TAXATION OF THE FUNDS AND UNITHOLDERS

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TAXATION OF THE FUNDS AND UNITHOLDERS (CONT’D)

Discount or profit received by the funds from sale of bonds or securities issued by Pengurusan Danaharta Nasional Berhad or Danaharta Urus Sendirian will be exempt from tax.

Discounts earned by the funds from the following are also exempt from tax:-

• securitiesorbondsissuedorguaranteedbytheGovernment;or• debenturesorIslamicSecurities,otherthanconvertibleloanstock,approvedbytheSecuritiesCommission;or• BonSimpananMalaysiaissuedbytheCentralBankofMalaysia.

Subject to the single-tier system that was effective 1 January 2008 (savings and transitional provisions for the single-tier system apply during the period from 1 January 2008 to 31 December 2013), deductions in respect of the funds’ expenses such as manager’s remuneration, expenses on maintenance of a register of unit holders, share registration expenses, secretarial, audit and accounting fees, telephone charges, printing and stationery costs and postage (“permitted expenses”) are allowed based on the formula subject to a minimum of 10% and a maximum of 25% of the total permitted expenses.

Single tier dividends received by the funds are exempt from tax and expenses incurred by the funds in relation to such dividend income are disregarded.

Taxation of Unit Holders

Unit holders are taxed on an amount equivalent to their share of the total taxable income of the funds, to the extent that this is distributed to them. The income distribution from the funds may carry with it applicable tax credits proportionate to each unit holder’s share of the total taxable income in respect of the tax paid by the funds. Unit holders will be entitled to utilise the tax credit as a set off against the tax payable by them. Any excess over their tax liability will be refunded to the unit holders. No other withholding tax will be imposed on the income distribution of the funds.

Corporate unit holders, resident or non resident in Malaysia, would be taxed at the corporate tax rate of 25% for YA 2011 and subsequent YAs on distributions of income from the funds to the extent of an amount equivalent to their share of the total taxable income of the funds. Corporate unit holders in Malaysia with paid-up capital in the form of ordinary shares of RM2.5 million and below will be subject to a tax rate of 20% on chargeable income of up to RM500,000. For chargeable income in excess of RM500,000, the tax rate of 25% for YA 2011 and subsequent YAs is still applicable. However, the said tax rate of 20% on chargeable income of up to RM500,000 would not apply if more than 50% of the paid up capital in respect of ordinary shares of that corporate unit holder is directly or indirectly owned by a related company which has a paid up capital exceeding RM2.5 million in respect of ordinary shares, or vice versa, or more than 50% of the paid up capital in respect of ordinary shares of both companies are directly or indirectly owned by another company.

Individuals and other non-corporate unit holders who are resident in Malaysia will be subject to income tax at scale rates. The prevailing scale tax rates range from 1% to 26% for YA 2011 and subsequent YAs.

Individuals and other non-corporate unit holders who are not resident in Malaysia, for tax purposes, will be subject to Malaysian income tax (the prevailing rate is 26%). Non resident unit holders may also be subject to tax in their respective jurisdictions and depending on the provisions of the relevant tax legislation and any double tax treaties with Malaysia, the Malaysian tax suffered may be creditable in the foreign tax jurisdictions.

The distribution of single-tier dividends and tax exempt income by the funds will not be subject to tax in the hands of the unit holders in Malaysia. Distribution of foreign income will also be exempt in the hands of the unit holders.

Units split by the funds will be exempt from tax in Malaysia in the hands of the unit holders.

Any gains realised by the unit holders (other than financial institutions, insurance companies and those dealing in securities) from the transfers or redemptions of the units are treated as capital gains which are not subject to income tax in Malaysia.

The tax position is based on the Malaysian tax laws and provisions as they stand at present. All prospective investors should not treat the contents of this letter as advice relating to taxation matters and are advised to consult their own professional advisers concerning their respective investments.

Yours faithfully

Ong Guan HengExecutive Director

KPMG Tax Services Sdn Bhd

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NETWORK OF PUBLIC MUTUAL BRANCH OFFICES

Head OfficeBlock B, Sri Damansara Business Park,Persiaran Industri, Bandar Sri Damansara,52200 Kuala Lumpur.Tel: 03-62796800 Fax: 03-62779800Hotline: 03-62075000Web : http://www.publicmutual.com.my

Mutual Gold CentreNo. 1 & 3, 3rd Floor,Jalan Solaris 1,Solaris Mont Kiara,50480 Kuala Lumpur.Tel: 03-62075000Fax: 03-62036682

BranchesWest MalaysiaNorthern Region

Alor Star1888A & 1888B, Jalan Stadium,05100 Alor Star, Kedah.Tel: 04-7291500 Fax: 04-7310178Senior Branch Manager: Khaw Bee Ruh

Ipoh37 & 39, Persiaran Greentown 4,Greentown Business Centre, 30450 Ipoh, Perak.Tel: 05-2106500 Fax: 05-2559859Senior Branch Manager: Foong Kuan Mun

Sungai Petani9D & 9E, Jalan Kampung Baru,08000 Sungai Petani, Kedah.Tel: 04-7291500 Fax: 04- 4230663

Butterworth4223, Jalan Bagan Luar,12000 Butterworth, Penang.Tel: 04-7291500 Fax: 04-3317775Senior Branch Manager: Charmane Chew Hui Hsia

Penang16, Lintang Burma,10250 Pulau Tikus, Penang.Tel: 04-7291500 Fax: 04-2295171Senior Branch Manager: Vincent Seow Weng Sim

Bukit Mertajam2646 - 2648, 2nd FloorJalan Che Bee Noor, 14000 Bukit MertajamSeberang Prai Tengah, PenangTel: 04-7291500 Fax: 04-5376580Branch Manager: Cheryl Oon Lay Pheng

Financial Planning Centre15th Floor, Bangunan PBB,No. 6 Jalan Sultan Sulaiman,50000 Kuala LumpurTel: 03-20316300Fax: 03-22732188

Central Region

Bangsar11 & 15, Jalan Bangsar Utama 3,Bangsar Utama, 59000 Kuala Lumpur.Tel: 03-62075000 Fax: 03-22835739Senior Branch Manager: Chooi Chan Yen

Damansara Perdana1 & 3, Jalan PJU 8/5 I,Perdana Business Centre,Bandar Damansara Perdana,47820 Petaling Jaya, Selangor.Tel: 03-62075000 Fax: 03-77222475Branch Manager: Dennis Loong Tien Poh

Cheras44-2, 44-3, 44-4 & 42-4,Cheras Commercial Centre, Jalan 5/101C,Off Jalan Kaskas, 56100 Cheras, Kuala Lumpur.Tel: 03-62075000 Fax: 03-91321022Senior Branch Manager: Khoo Peng Seng

Klang28, 30 & 32, Lorong Batu Nilam 3B,Bandar Bukit Tinggi,41200 Klang, SelangorTel: 03-62075000 Fax: 03-33235632Branch Manager: Bryan Koh Yi Earl

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NETWORK OF PUBLIC MUTUAL BRANCH OFFICES (CONT’D)

East Coast Region

Kota BahruPT304 and PT305, Jalan Kebun Sultan,15300 Kota Bharu, Kelantan.Tel: 09-7476021 Fax: 09-7476026Branch Manager: Puan Abiesharni Abdul Kadir

Kuantan73, Jalan Haji Abdul Aziz,25000 Kuantan, Pahang.Tel: 09-5178115 Fax: 09-5161223

Kuala Terengganu1-C, Jalan Air Jernih,20300 Kuala Terengganu, Terengganu.Tel: 09-6317020 Fax: 09-6317030Branch Manager: Wee Suat Hwee

Temerloh10, 11 & 12, 2nd Floor,Jalan Ahmad Shah,Bandar Sri Semantan,28000 Temerloh, Pahang.Tel: 09-2968068 Fax: 09-2968060

Central Region (cont’d)

Shah Alam54 & 56, Jalan Pahat G15/G,Kompleks Otomobil,Persiaran Selangor,Seksyen 15,40200 Shah Alam, Selangor.Tel: 03-62075000 Fax: 03-55139288Senior Branch Manager: Ong Chen Hung

Southern Region

Batu Pahat119, Jalan Chengal,Taman Makmur83000 Batu PahatJohor.Tel: 07-4325688 Fax: 07-4326588Branch Manager: Rui Lee Chong Siew

Kluang3, Jalan Dato Teoh Siew Khor86000 Kluang, Johor.Tel: 07-7736193/4 Fax: 07-7736195Branch Manager: Tan Kheng Aun

Muar46, Jalan Sayang,84000 Muar, Johor.Tel: 06-9542323/5323 Fax: 06-9536830Branch Manager: Angie Ng Seow Mai

Johor Bahru30th Floor, Public Bank Tower,19, Jalan Wong Ah Fook,80000 Johor Bahru, Johor.Tel: 07-2281098 Fax: 07-2271098Senior Branch Manager: Teng Lee Yen

Melaka173, 173-A, 173-B, 172 & 172-A, Jalan Merdeka, Taman Melaka Raya, 75000 Melaka.Tel: 06-2837654 Fax: 06-2837354Senior Branch Manager: Carl Wong Yon Lian

SerembanNo. 1A & 1B, Jalan Tuanku Munawir,70000 Seremban, Negeri Sembilan.Tel: 06-7616663 Fax: 06-7644237Branch Manager: Michael Wong Cheong Tee

249

NETWORK OF PUBLIC MUTUAL BRANCH OFFICES (CONT’D)

Sarawak

Bintulu4, Lot 2646Jalan Tun Ahmad Zaidi,97000 Bintulu, Sarawak.Tel: 086-334718 Fax: 086-330221Branch Manager: Lilian Lo Fui Ping

MiriLot 1380 (Ground & 1st Floor) & Lot 1381 (1st Floor)Block 10, Center Point Commercial Centre,Phase II, Jalan Kubu,98000 Miri, Sarawak.Tel: 085-429066 Fax: 085-416195Branch Manager: Allan Ngo Say Khiang

KuchingLot 205 & 206, Section 49,Jalan Tunku Abdul Rahman,93100 Kuching, Sarawak.Tel: 082-239285 Fax: 082-239825Senior Branch Manager: Jones Chen Chung Sze

Sibu10, Lorong 2,Jalan Tuanku Osman,96000 Sibu, Sarawak.Tel: 084-317463 Fax: 084-330269

Public Mutual offices are open on Mondays to Fridays, except public holidays, from 9:00 a.m. to 5:00 p.m.

East Malaysia

Sabah

Kota KinabaluLot 1-0-10Ground & 1st FloorLorong Api-Api 1Api-Api Centre,88000 Kota Kinabalu, Sabah.Tel: 088-231080/2 Fax: 088-238389Branch Manager: Lim Shaw Siang

TawauTB 4437, Lot 28, Block D,Sabindo SquareJalan Dunlop,91000 Tawau, Sabah.Tel: 089-765325 Fax: 089-765326Branch Manager: Janice Chong Mui Lin

SandakanLot 16, Block B, Ground FloorBandar Maju Commercial CentreMile 1.5, North Road90000 Sandakan, Sabah.Postal Address :Public Mutual Berhad, Sandakan BranchP.O. Box No. 3488, 90739 Sandakan, Sabah.Tel: 089-222922 Fax: 089-222889Senior Branch Manager: Jonathan Yong Lok Sang

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NETWORK OF PUBLIC MUTUAL AGENCY OFFICES

Penang (Bayan Baru)Liang Wing Sim Agency Office104, 1st Floor, Jalan Mayang Pasir,Taman Sri Tunas, 11950 Bayan Baru, Penang.Tel: 04-6422170/1 Fax: 04-6411268

Selangor (Petaling Jaya)Raymond Chan Agency Office25A, Jalan SS22/19, Damansara Jaya,47400 Petaling Jaya, Selangor.Tel: 03-77289522 Fax: 03-77289336

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