DISCLAIMER: INVESTING IN UNIT TRSUT IS WITH UR OWN RISK. AND PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE PERFORMANCE.
Pls read and understand the given below links before make decision to invest.
PSSCF -
http://www.publicmutual.com.my/LinkC...c%3d&tabid=103
PENTBF -
http://www.publicmutual.com.my/LinkC...g%3d&tabid=219
Very important to read the prospectus -
http://www.publicmutual.com.my/LinkC...s%3d&tabid=105
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We are pleased to inform you that Public Mutual will be launching the Public Strategic SmallCap Fund (PSSCF) and Public Enterprises Bond Fund (PENTBF) on 20 March 2012 (Tuesday).
The following are some of the pertinent details of the funds:
PSSCF PENTBF
Main Features To achieve capital appreciation over the medium- to long-term period through investments primarily in companies with small market capitalisation which have promising growth prospects and are listed on Bursa Securities. To provide annual income through investments in fixed income securities and money market instruments.
Asset Allocation % of NAV
Equity = 70% to 98%
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.
Up to 30% of its NAV may be invested in selected foreign markets which include South Korea, China, Hong Kong, Taiwan, Singapore, Philippines, Thailand, Indonesia, Australia, Luxembourg and other permitted markets. 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 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 its NAV will be invested in other corporate bonds and money market instruments.
Up to 30% of its NAV can be invested in foreign markets which include Singapore, Japan, Hong Kong, Australia, United Kingdom, Indonesia, United States of America, South Korea and other permitted markets.
Issue Price RM0.2500 per unit RM1.0000 per unit
Target Market Investor with aggressive risk-reward temperament and can withstand extended periods of market highs and lows in pursuit of capital growth. Investor with conservative risk-reward temperament and seek stability of annual income with some safety of principal.
Service Charge During offer period:
Below RM5,000 : 5.50%
RM5,000 to RM9,999: 5.25%
RM10,000 and above: 5.00%
After offer period : Up to 5.50% During and After offer period:
Up to 0.25% of NAV per unit
Special Service Charge for DDI During offer period : 5.25% Not Available
Switching during offer period Switching transactions involving PSSCF are not allowed EXCEPT from low load units. Switching transaction involving PENTBF is allowed
Offer Period 20 March 2012 to 9 April 2012
EPF Investment EPF Investment Scheme is NOT APPLICABLE for PSSCF and PENTBF.
FAQS FOR THE LAUNCH OF PUBLIC STRATEGIC SMALLCAP FUND
(PSSCF)
KEY MESSAGE
The Public Strategic SmallCap Fund (PSSCF) is an equity fund that seeks to achieve
capital appreciation over the medium- to long-term period through investments
primarily in companies with small market capitalisation. The initial issue price of
PSSCF is at RM0.25 per unit during the 21-day offer period from 20 March 2012 to 9
April 2012.
Note:
1. Medium to long-term refers to a period of 3 years or more.
2. The fund will invest in small sized companies at the point of purchase.
3. 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.
FAQS
Q1: What are the main features of Public Strategic SmallCap Fund (PSSCF)?
. An equity fund that seeks to achieve capital appreciation over the medium- to
long-term period through investments primarily in companies with small market
capitalisation which have promising growth prospects and are listed on Bursa
Securities.
. 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.
. To achieve increased diversification, the fund may invest up to 30% of its net
asset value (NAV) in selected foreign markets.
. The foreign markets which the fund may invest in include South Korea, China,
Hong Kong, Taiwan, Singapore, Philippines, Thailand, Indonesia, Australia,
Luxembourg and other permitted markets.
. Equity exposure: Generally range from 70% to 98% of its NAV.
Q2: What makes PSSCF attractive to prospective investors?
. The fund allows investors the opportunity to participate in the medium- to long-
term growth potential of a diversified portfolio of promising companies with
small market capitalisation, which 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.
Q3: What are the growth prospects of the Malaysian market?
. The Malaysian equity market, as proxied by the FBM KLCI, registered an
annual gain of 0.8% in 2011 and was the third best performing market in Asia.
On a year-to-date basis to 14 February 2012, the FBM KLCI closed at a 5-
month high of 1,566.05 points for a gain of 2.3%1 in tandem with firmer
offshore markets.
. Looking forward, the Malaysian economy is expected to expand at a more
moderate pace of 4.7%1 in 2012 compared to 5.1% for 2011. GDP growth is
envisaged to be supported by resilient domestic demand amid robust investment
spending and firm private consumption. The local equity market is supported by
fair valuations and resilient liquidity conditions.
. At the FBM KLCI’s closing level of 1,566.05 points on 14 February 2012, the
local stock market is trading at a prospective P/E of 14.6x1 on 2012 earnings,
which is below the market’s 10-year average P/E ratio of 15.9x1.
. The local market is also supported by a gross dividend yield of about 3.5%1 and
exceeds the current 12- month fixed deposit rate of 3.15%1.
1 Bloomberg Consensus, February 2012
Q4: What is the benefit of investing in companies with small market
capitalisation?
. By focusing investments in small capitalisation stocks, PSSCF offers investors
the opportunity to invest in potential growth companies.
. These companies generally offer higher growth opportunities compared to
larger stocks due to their smaller earnings base.
Q5: What are some of the sectors that PSSCF may be looking to invest in?
. The fund may invest in high value-added manufacturing and infrastructural
development, modern telecommunications, utilities, consumer products,
services and information technology sectors.
Q6: Who are most suited to invest in PSSCF?
. PSSCF is suitable for existing and prospective investors who share the
following profiles and goals:
. Aggressive risk-reward temperament.
. Medium- to long-term investment horizon.
. Can withstand extended periods of market highs and lows in pursuit of
capital growth.
. Wish to participate in the long-term growth potential of companies with
small market capitalisation.
Q7: What is the fund’s benchmark index? What is the historical return of the
PSSCF’s benchmark index?
. The benchmark for PSSCF is the FTSE Bursa Malaysia Small Cap Index.
. This benchmark index has achieved total returns of 96.23% and 45.92%
respectively for the 3 and 5-year periods up to 14 February 2012.
Q8: What level of risks will we be looking at when investing in PSSCF?
. High equity exposure coupled with 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.
Q9: When is PSSCF going to be launched?
. 20 March 2012
Q10: What is the initial issue price? And when is the offer period?
. The initial issue price is RM0.2500 per unit during the 21-day offer period from
20 March 2012 to 9 April 2012.
Q11: What is the approved fund size of PSSCF?
. The approved fund size for PSSCF is 1.5 billion units.
Q12: Please tell us the service charge and the annual management fee involved
when investing in PSSCF. Is there any repurchase charge?
. The service charge is up to 5.5% of NAV per unit. The annual management fee
is 1.50% per annum of the NAV.
. There is no repurchase charge.
Q13: Is switching made between PSSCF and other funds under the Public Series
of Funds and Public Series of Shariah-Based Funds subject to the switching
fee structure during and after the offer period?
. During the offer period (20 March 2012 to 9 April 2012), only switching of
low-load units of bond and money market funds under the Public Series of
Funds and Public Series of Shariah-Based Funds into PSSCF are allowed,
subject to terms and conditions.
. After offer period, switching made between PSSCF and other funds under the
Public Series of Funds and Public Series of Shariah-Based Funds are allowed,
subject to terms and conditions.
o Switching transactions out of the fund within 90 days from the date of
purchase of units/switching into the fund, are subject to a switching fee of
0.75% of NAV per unit or RM50 whichever is higher.
o Switching transactions out of the fund after 90 days from the date of
purchase of units/switching into the fund, are subject to a switching fee of
RM25 per transaction.
Q14: What is the minimum initial investment and minimum additional
investment of the fund? . The minimum initial investment is RM1,000 and minimum additional
investment is RM100.
Q15: Will there be any special promotion to support the launch of PSSCF?
. There will be special service charges offered for investments into PSSCF
during the offer period:
Investment amount per
transaction / Promotion
Special Service Charge
RM5,000 to RM9,999 per transaction- 5.25% of Initial Issue Price per unit
RM10,000 and above per transaction - 5.00% of Initial Issue Price per unit
Direct Debit Instruction (DDI) submitted during Offer Period - 5.25% of net asset value (NAV)
FAQS FOR THE LAUNCH OF PUBLIC ENTERPRISES BOND FUND
(PENTBF)
KEY MESSAGE
The Public Enterprises Bond Fund (PENTBF) is a bond fund that seeks to provide
annual income# through investments in fixed income securities and money market
instruments. The initial issue price of PENTBF is at RM1.00 per unit during the 21-
day offer period from 20 March 2012 to 9 April 2012.
FAQS
Q1: What are the main features of Public Enterprises Bond Fund (PENTBF)?
. A bond fund that seeks to provide annual income# through investments in fixed
income securities and money market instruments.
. Distribution policy: Annual income*
. The fund will invest at least 75% of its net asset value (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 if the returns are assessed to be promising.
. 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.
# Distribution (if any) will be reinvested unless unitholders opt for distribution to be paid out.
* Subject to the availability of income and/or realised gains and the provisions of the SC Guidelines.
Q2: What makes PENTBF attractive to prospective investors?
. PENTBF allows investors 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 per lot.
. 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 entities. Larger entities
are better positioned to weather economic cycles due to their size and market
position in their respective industries.
. The fund will invest in a diversified portfolio of bonds which comprises mainly
corporate bonds, to produce returns that are generally higher than fixed
deposits.
. The fund is also able to provide the investors with greater liquidity than fixed
deposits.
. The fund may invest up to 30% of its NAV in foreign bonds to achieve
increased diversification.
Q3: What are the growth prospects of the Malaysian bond market?
. The Malaysian bond market is expected to remain robust with increased bond
issuances in the near-term supported by Malaysia’s resilient economic growth
and the ongoing and planned infrastructure projects under the Economic
Transformation Programme.
. The growth of the domestic bond market will provide opportunities for the fund
to invest in bonds with attractive risk-reward trade-off.
Q4: What are some of the sectors and entities that PENTBF may be looking to
invest in?
. Some of the sectors that PENTBF may be looking to invest in are as follows:-
Sectors
Description
Sovereign
Sovereign bonds and bonds issued by government-
controlled companies.
Finance
Bonds issued by licensed banks and financial
institutions.
Utilities
Bonds issued by power plant concessionaires and
telecommunication services providers.
Transport
Bonds issued by toll-road concessionaires and port
operators.
Q5: Who are most suited to invest in PENTBF?
. PENTBF is suitable for existing and prospective investors who share the
following profiles and goals:
. Conservative risk-reward temperament.
. Medium-term investor
. Seek stability of annual income with some safety of principal
Note: Medium term referes to a period of 3 to 5 years.
Q6: What is the fund’s benchmark index? What is the historical return of the
PENTBF’s benchmark index?
. The benchmark for PENTBF is based on the 12-month fixed deposits rates
(FDR) quoted by Public Bank Berhad.
. The historical returns of the benchmark are 3.04% in 2011, 2.75% in 2010, and
2.61% in 2009.
Note: PENTBF has the potential to deliver higher returns than its benchmark in view that it carries higher risk
compared to fixed deposits.
Q7: What level of risks will we be looking at when investing in PENTBF?
. PENTBF is a bond fund which is suitable for investors with conservative risk
profile.
. The fund manager will adopt various investment strategies, such as varying the
asset allocation between bonds of various tenures and money market
instruments to adjust the risk and return characteristics of the fund.
Q8: When is PENTBF going to be launched?
. 20 March 2012
Q9: What is the initial issue price? And when is the offer period?
. The initial issue price is RM1.0000 per unit during the 21-day offer period from
20 March 2012 to 9 April 2012.
Q10: What is the approved fund size of PENTBF?
. The approved fund size for PENTBF is 500 million units.
Q11: Please tell us the service charge and the annual management fee involved
when investing in PENTBF. Is there any repurchase charge?
. The service charge is up to 0.25% of the NAV per unit. The annual
management fee is 0.75% per annum of the NAV.
. There is no repurchase charge.
Q12: Is switching made between PENTBF and other funds under the Public
Series of Funds and Public Series of Shariah-Based Funds subject to the
switching fee structure during and after the offer period?
. Switching made between PENTBF and other funds under the Public Series of
Funds and Public Series of Shariah-Based Funds are allowed, subject to terms
and conditions.
. For switching transactions out of the fund within 90 days from the date of
purchase of units/switching into the fund:
o Service charge of up to 5.5% of NAV per unit will be imposed if units are
switched into equity/balanced/mixed asset funds;
o Switching fee of 0.25% of NAV per unit or a minimum of RM50 will be
imposed if units are switched into bond/fixed income/money market
funds.
. For switching transactions out of the fund after 90 days from the date of
purchase of units/switching into the fund:
o Service charge of up to 5.5% of NAV per unit will be imposed if units are
switched into equity/balanced/mixed asset funds;
o Switching fee of RM25 will be imposed if units are switched into
bond/fixed income funds.
Q13: What is the minimum initial investment and minimum additional
investment of the fund?
. The minimum initial investment is RM1,000 and minimum additional
investment is RM100.
