2016 PM MASTER Prospectus Cover ENG (PR022592-1104169) FA-D.ai 1 4/14/2016 11:38:01 AM 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 enquiries, they confirm to the best of their knowledge and belief, that 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 authorised the funds and a copy of this Master Prospectus has been registered with the Securities Commission Malaysia. The authorisation of the funds, and the registration of this Master Prospectus, should not be taken to indicate that Securities Commission Malaysia recommends the said funds or assumes responsibility for the correctness of any statement made, opinion expressed or report contained 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 said 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. IF INVESTORS ARE UNABLE TO MAKE THEIR OWN EVALUATION, THEY ARE ADVISED TO CONSULT PROFESSIONAL ADVISERS. Additional Statement Investors should note that they may seek recourse under the Capital Markets and Services Act 2007 for breaches of securities laws and regulations including any statement in the Master Prospectus that is false, misleading, or from which there is a material omission; or for any misleading or deceptive act in relation to the Master Prospectus or the conduct of any other person in relation to the funds. No units will be issued or sold based on this Master Prospectus later than one year after the date of this Master Prospectus. PREFACE This Master Prospectus encompasses the following 47 unit trust funds: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. Public Savings Fund Public Growth Fund Public Index Fund Public Industry Growth 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 Worldwide Equity Fund (formerly known as 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 Strategic Growth Fund Public Select Treasures Equity Fund Public Advantage Growth Equity Fund Public Regular Savings Sequel Fund Public Emerging Opportunities Fund Public Tactical Allocation Fund Public Select Mixed Asset Growth Fund Public Select Mixed Asset Conservative Fund Public Balanced Fund Public Far-East Balanced Fund Public Growth Balanced Fund Public Bond Fund Public Institutional Bond Fund Public Enhanced Bond Fund Public Select Bond Fund Public Strategic Bond Fund Public Enterprises Bond Fund Public Money Market Fund You may refer to pages 11 to 39 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 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 Customer Service Centres are located at its nationwide branch offices to service unitholders who may need to do an enquiry or a transaction with us. Please refer to pages 276 to 279 for the Directory of Public Mutual Branch and Agency Offices. Yeoh Kim Hong Chief Executive Officer CONTENTS GLOSSARY OF TERMS/ABBREVIATIONS 3-7 MANAGER, TRUSTEES AND ADVISERS 8-10 1. 11-39 KEY FEATURES OF THE FUNDS 1.1 1.2 1.3 1.4 1.5 1.6 2. 11 35 36 37 39 39 ABOUT UNIT TRUST FUNDS 2.1 2.2 2.3 3. Summary of Key Data of The Funds Fees and Charges Information on Transaction of Units Distribution Policy Unclaimed Monies Lodging a Complaint 40-41 The Unit Trust Fund Benefits of Investing in Unit Trust Funds Risk Factors 40 40 40 DETAILED INFORMATION ON THE FUNDS 42-162 3.1 3.2 3.3 3.4 3.5 3.6 3.7 Categories of Funds Fund Profiles Investment Risks Permitted Investments Investment Restrictions Valuation of Permitted Investments Policy on Gearing 42 43 154 155 156 161 162 4. PERFORMANCE OF THE FUNDS 163-205 5. HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS 206-232 5.1 5.2 6. GETTING STARTED WITH PUBLIC MUTUAL 6.1 6.2 6.3 6.4 7. Investing with Public Mutual How to Purchase, Redeem or Switch Units of The Funds Statements and Reports Keeping Track of the Daily Prices of Units TRANSACTION INFORMATION 7.1 7.2 8. Extracts of Financial Statements of The Funds Expenses Incurred by The Funds 233-238 233 233 237 238 239-241 Determination of Prices Computation of Prices 239 240 FEES, CHARGES AND EXPENSES 8.1 8.2 8.3 206 229 242-243 Charges Imposed on Purchase and Redemption of Units Fees and Expenses of The Funds Policy on Stockbroking Rebates and Soft Commissions 1 242 243 243 CONTENTS (CONT’D) 9. THE MANAGER 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 244-257 Corporate Profile of Public Mutual Organisation of Public Mutual Functions, Duties and Responsibilities of The Manager Financial Performance of Public Mutual The Board of Directors Profile of Key Management Staff Profile of Key Investment Personnel The Investment Committee Related Party Transactions/Conflict of Interest Policies and Procedures on Money Laundering Activities Documents Available for Inspection 10. THE TRUSTEES 10.1 10.2 10.3 10.4 10.5 258-263 The Trustees’ Willingness to Assume Position Duties and Responsibilities of The Trustees Profile of AmanahRaya Trustees Berhad Profile of Maybank Trustees Berhad Profile of CIMB Commerce Trustee Berhad 11. SALIENT TERMS OF THE DEED 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 244 244 244 245 245 248 249 256 256 257 257 258 258 258 259 262 264-272 Unitholders’ Rights and Liabilities Jointholders Maximum Fees and Charges Permitted by The Deed Permitted Expenses Payable Out of The Funds Retirement, Removal and Replacement of The Manager Retirement, Removal and Replacement of The Trustee Termination of The Funds Unitholders’ Meeting The Deed 264 264 265 270 271 271 272 272 272 TAXATION OF THE FUNDS AND UNITHOLDERS 273-275 NETWORK OF PUBLIC MUTUAL BRANCH OFFICES 276-278 NETWORK OF PUBLIC MUTUAL AGENCY OFFICES 279 2 GLOSSARY OF TERMS/ABBREVIATIONS ART AmanahRaya Trustees Berhad (766894-T) blue chip stocks High quality stocks of companies which have a track record of stable earnings and dividends of at least 10 years. 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 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 fund(s) are invested therein are closed for business. This is to ensure that you will be given a fair valuation of the fund(s) at all times, be it when purchasing or redeeming units of the fund(s). CCTB CIMB Commerce Trustee Berhad (313031-A) CMSA 2007 Capital Markets and Services Act 2007 as originally enacted and amended from time to time. CMSRL Capital Markets Services Representative’s Licence 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. defensive stocks Stocks which have relatively stable earnings through various economic cycles. deposits Cash placements with licensed financial institutions which are fixed deposits, money market deposits with maturities not longer than one year offered by the treasury department of a bank and current account balances. dividend stocks Stocks which offer consistent dividend yields. 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 EPF-MIS Employees Provident Fund – Members Investment Scheme 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. FDR fixed deposit rate FIMM Federation of Investment Managers Malaysia 3 GLOSSARY OF TERMS/ABBREVIATIONS (CONT’D) forward pricing The purchase or redemption of units is based on the NAV per unit of the fund next determined or calculated after the application to purchase or redemption request from unitholder(s) is received by the Manager in proper form. Fund Manager(s) Designated Fund Manager(s) and co-Fund Manager(s) of the respective funds. GDP Refers to Gross Domestic Product which is the monetary value of all finished goods and services produced within a country in a specific period of time. growth stocks Stocks of companies with potential price appreciation where the earnings growth potential of the companies is projected to exceed the GDP growth of the country in which the stock is listed in. GST Goods and Services Tax high growth stocks Stocks of companies with brighter earnings growth prospects than growth stocks. incidental The term “incidental” in relation to distribution policy of the funds implies that the main focus of the funds will be on securing capital growth. index stocks Index component stocks of a selected benchmark market index. IPOs Initial Public Offerings (IPOs) KLIBOR Kuala Lumpur Interbank Offered Rate long term Long term refers to a period of more than 5 years. LPD Refers to Latest Practicable Date which is 29 January 2016. All information provided herein shall remain current and relevant as at such date. Master Prospectus Master Prospectus of Public Series of Funds dated 30 April 2016 and expires on 29 April 2017. medium term Medium term refers to a period of 3 to 5 years. medium to long term Medium to long term refers to a period of 3 years or more. 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 Where: Fees = All ongoing fees deducted/deductible directly from the unit trust fund in respect of the year or 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 expenses = 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 value of the unit trust fund = 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 or period covered by the management expense ratio, calculated on a daily basis. 4 GLOSSARY OF TERMS/ABBREVIATIONS (CONT’D) 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 Index Morgan Stanley Capital International All Country Far-East Ex-Japan Index MSCI All Country World Index Morgan Stanley Capital International All Country World Index MTB Maybank Trustees Berhad (5004-P) 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. OTC Over-the-counter PMO Refers to Public Mutual Online. PMO is an online facility which allows you to perform fund transactions (such as purchase, redemption and switching of units) and gives you quick and easy access to information on your investments. Investors can apply for PMO by submitting the PMO Service Application Form personally at any Public Mutual or Public Bank branch. Alternatively, you may also register for PMO through our Customer Service Centre kiosk or Public Bank’s Automated Teller Machines (ATMs) if you are a Public Bank ATM user or via www.pbebank.com.my if you are a subscriber of PBe. Portfolio Turnover Ratio (PTR) (Total acquisitions of the fund for the year + total disposals of the fund for the year) / 2 Average value of the fund for the year calculated on a daily basis The annual portfolio turnover ratio will indicate whether the fund purchases 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 or period. promising Promising refers to the potential to achieve positive returns. Public Bank Public Bank Berhad (6463-H) Public Mutual or the Manager Public Mutual Berhad (23419-A) Public Series of Funds This series of funds comprises the non-Shariah-based unit trust funds covered under this Master Prospectus. 5 GLOSSARY OF TERMS/ABBREVIATIONS (CONT’D) Public Series of ShariahBased Funds This series of funds comprises 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 Growth & Income Fund, Public Islamic Enterprises Equity Fund, Public Islamic Advantage Growth Equity Fund, Public Islamic Emerging Opportunities Fund, Public Islamic Mixed Asset Fund, Public Islamic Asia Tactical Allocation Fund, Public Ehsan Mixed Asset Growth Fund, Public Ehsan Mixed Asset Conservative Fund, Public Islamic Growth Balanced 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. recovering sectors Economic/business sectors that are seen to be recovering from a market downturn or economic recession. RM Ringgit Malaysia SC Securities Commission Malaysia SC Guidelines Guidelines on Unit Trust Funds issued by SC and as may be amended or replaced from time to time. short term Short term refers to a period of less than 3 years. situational stocks Stocks of companies with impending major corporate developments and the demand for these stocks depends very much on current market focus or themes. stocks that trade at attractive valuations Stocks that have the possibility to be rerated positively in terms of valuations such as price earnings ratio given the potential earnings growth of the stocks. stocks which offer attractive dividend yields Stocks with consistency in rewarding shareholders via dividend payouts. 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 47 funds covered under this Master Prospectus are collectively called “the funds” and individually called “the fund”: Public Savings Fund Public Growth Fund Public Index Fund Public Industry Growth 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 6 PSF PGF PIX PINDGF PAGF PRSF P SmallCap PEF PFSF PDSF PFES PRSEC PGSF PFEDF PCSF PFEPRF PSEASF GLOSSARY OF TERMS/ABBREVIATIONS (CONT’D) 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 Worldwide Equity Fund (formerly known as 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 Strategic Growth Fund Public Select Treasures Equity Fund Public Advantage Growth Equity Fund Public Regular Savings Sequel Fund Public Emerging Opportunities Fund Public Tactical Allocation Fund Public Select Mixed Asset Growth Fund Public Select Mixed Asset Conservative Fund Public Balanced Fund Public Far-East Balanced Fund Public Growth Balanced Fund Public Bond Fund Public Institutional Bond Fund Public Enhanced Bond Fund Public Select Bond Fund Public Strategic Bond Fund Public Enterprises Bond Fund Public Money Market Fund PSSF PFECTF PCTF PFETIF PSA30F PWEF PAUEF PFA30F POGF PINDOSF PSGEF PSSCF PSTGF PSTEF PAVGEF PRSSQF PEMOF PTAF PSMAGF PSMACF PBF PFEBF PGRBF P BOND PIN BOND PEBF PSBF PSTBF PENTBF PMMF 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 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 the 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, the valuation point may be extended to 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. 7 MANAGER, TRUSTEES AND ADVISERS MANAGER Public Mutual Berhad (23419-A) Registered and business address: Block B, Sri Damansara Business Park Persiaran Industri, Bandar Sri Damansara 52200 Kuala Lumpur Tel: 03-6279 6800 Fax: 03-6277 9800 Hotline: 03-6207 5000 e-mail: customer@publicmutual.com.my Web: http://www.publicmutual.com.my Board of Directors Tan Sri Dato’ Sri Dr. Teh Hong Piow (Non-Executive Director/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 Director) Dato’ Mohammed Najeeb Bin Abdullah (Non-Executive Independent Director) Ms. Yeoh Kim Hong (Chief Executive Officer/Executive Director) Members of the Investment Committee Tan Sri Dato’ Sri Tay Ah Lek Dato’ Sri Lee Kong Lam Dato’ (Dr) Haji Mohamed Ishak Bin Haji Mohamed Ariff (Independent) Dato’ Haji Abdul Aziz Bin Dato’ Dr. Omar (Independent) Mr. Quah Poh Keat Dato’ Mohammed Najeeb Bin Abdullah (Independent) Ms. Yeoh Kim Hong Members of the Audit, Risk and Compliance Committee Tan Sri Dato’ Sri Tay Ah Lek Dato’ Sri Lee Kong Lam Dato’ (Dr) Haji Mohamed Ishak Bin Haji Mohamed Ariff Dato’ Haji Abdul Aziz Bin Dato’ Dr. Omar Mr. Quah Poh Keat Dato’ Mohammed Najeeb Bin Abdullah Company Secretaries Ms. Tang Pueh Fong (MIA 8078) c/o Public Mutual Berhad 2nd Floor, Block B, Sri Damansara Business Park Persiaran Industri, Bandar Sri Damansara 52200 Kuala Lumpur Ms. Ting Lee Ling (MIA 16237) c/o Public Mutual Berhad 2nd Floor, Block B, Sri Damansara Business Park Persiaran Industri, Bandar Sri Damansara 52200 Kuala Lumpur TRUSTEES AmanahRaya Trustees Berhad (766894-T) Registered address: Tingkat 11, Wisma AmanahRaya No. 2, Jalan Ampang 50508 Kuala Lumpur Business address: Tingkat 2, Wisma AmanahRaya II No. 21, Jalan Melaka 50100 Kuala Lumpur Tel: 03-2036 5129 Fax: 03-2072 0322 Web: http://www.artrustees.com.my 8 MANAGER, TRUSTEES AND ADVISERS (CONT’D) Trustee’s Delegate Citibank, NA, Singapore Branch Registered and business address: 8 Marina View #21-00 Asia Square Tower 1 Singapore 018960 Tel: 65-6657 5440 Web: http://www.citibank.com Maybank Trustees Berhad (5004-P) Registered and business address: 8th Floor, Menara Maybank 100, Jalan Tun Perak 50050 Kuala Lumpur Tel: 03-2078 8363/03-2070 8833 email: mtb@maybank.com.my Trustee’s Delegates Malayan Banking Berhad (3813-K) Custody Services Registered address: 14th Floor, Menara Maybank 100, Jalan Tun Perak 50050 Kuala Lumpur Business address: 8th Floor, Menara Maybank 100, Jalan Tun Perak 50050 Kuala Lumpur Tel: 03-2074 8158 Citibank, NA, Singapore Branch Registered and business address: 8 Marina View #21-00 Asia Square Tower 1 Singapore 018960 Tel: 65-6657 5440 Web: http://www.citibank.com CIMB Commerce Trustee Berhad (313031-A) Registered address: Level 13, Menara CIMB Jalan Stesen Sentral 2 Kuala Lumpur Sentral 50470 Kuala Lumpur Tel: 03-2261 8888 Web: http://www.cimb.com Business address: Level 21, Menara CIMB Jalan Stesen Sentral 2 Kuala Lumpur Sentral 50470 Kuala Lumpur Tel: 03-2261 8888 Trustee’s Delegates CIMB Bank Berhad(13491-P) Registered address: Level 13, Menara CIMB Jalan Stesen Sentral 2 Kuala Lumpur Sentral 50470 Kuala Lumpur Tel: 03-2261 8888 Web: http://www.cimb.com Business address: Level 21, Menara CIMB Jalan Stesen Sentral 2 Kuala Lumpur Sentral 50470 Kuala Lumpur Tel: 03-2261 8888 Citibank, NA, Singapore Branch Registered and business address: 8 Marina View #21-00 Asia Square Tower 1 Singapore 018960 Tel: 65-6657 5440 Web: http://www.citibank.com 9 MANAGER, TRUSTEES AND ADVISERS (CONT’D) AUDITORS Ernst & Young Level 23A, Menara Milenium Jalan Damanlela Pusat Bandar Damansara 50490 Kuala Lumpur TAX AGENT KPMG Tax Services Sdn Bhd Level 10, KPMG Tower 8, First Avenue Bandar Utama 47800 Petaling Jaya Selangor Darul Ehsan LEGAL ADVISER Soon Gan Dion & Partners 1st Floor, No. 73 Jalan SS21/1A Damansara Utama 47400 Petaling Jaya Selangor Darul Ehsan PRINCIPAL BANKER Public Bank Berhad Menara Public Bank No. 146, Jalan Ampang 50450 Kuala Lumpur FEDERATION OF INVESTMENT MANAGERS MALAYSIA 19-06-1, 6th Floor, Wisma Tune No. 19, Lorong Dungun Damansara Heights 50490 Kuala Lumpur 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. 10 1 KEY FEATURES OF THE FUNDS 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. 1.1 SUMMARY OF KEY DATA OF THE FUNDS The Manager Public Mutual Berhad (23419-A) Fund name Launch date Category of fund Type of fund Trustee Public Savings Fund 29.3.1981 Equity Capital Growth ART Public Growth Fund 11.12.1984 Equity Capital Growth ART 2.3.1992 Equity Capital Growth ART 18.11.1993 Equity Capital Growth MTB 25.4.1994 Equity Capital Growth MTB Public Index Fund Public Industry Growth Fund Public Aggressive Growth Fund Public Regular Savings Fund 25.4.1994 Equity Capital Growth MTB Public SmallCap Fund 13.6.2000 Equity Capital Growth ART Public Equity Fund 15.8.2001 Equity Capital Growth ART 25.11.2004 Equity Capital Growth CCTB 3.5.2005 Equity Income ART Public Far-East Select Fund 22.11.2005 Equity Capital Growth ART Public Regional Sector Fund 21.3.2006 Equity Capital Growth CCTB 28.9.2006 Equity Capital Growth ART 28.11.2006 Equity Income ART Public Focus Select Fund Public Dividend Select Fund Public Global Select Fund Public Far-East Dividend Fund Public China Select Fund 5.6.2007 Equity Capital Growth ART Public Far-East Property & Resorts Fund 10.7.2007 Equity Capital Growth and Income ART Public South-East Asia Select Fund 2.10.2007 Equity Capital Growth ART Public Sector Select Fund Public Far-East Consumer Themes Fund 13.11.2007 Equity Capital Growth ART 8.1.2008 Equity Capital Growth ART Public China Titans Fund 1.4.2008 Equity Capital Growth ART Public Far-East Telco & Infrastructure Fund 8.7.2008 Equity Capital Growth ART Public Select Alpha-30 Fund 7.4.2009 Equity Capital Growth ART 30.6.2009 Equity Capital Growth ART Public Australia Equity Fund 8.9.2009 Equity Capital Growth ART Public Far-East Alpha-30 Fund 6.4.2010 Equity Capital Growth ART Public Optimal Growth Fund 8.6.2010 Equity Income and Capital Growth ART Public Indonesia Select Fund 1.9.2010 Equity Capital Growth ART Public Worldwide Equity Fund (formerly known as Public Natural Resources Equity Fund) Public Singapore Equity Fund 7.6.2011 Equity Capital Growth ART Public Strategic SmallCap Fund 20.3.2012 Equity Capital Growth ART Public Strategic Growth Fund 8.12.2014 Equity Capital Growth ART Public Select Treasures Equity Fund 22.7.2015 Equity Capital Growth ART 8.9.2015 Equity Capital Growth ART 15.1.2016 Equity Capital Growth ART Public Advantage Growth Equity Fund Public Regular Savings Sequel Fund 11 KEY FEATURES OF THE FUNDS (CONT’D) Fund name Launch date Public Emerging Opportunities Fund 30.3.2016 Equity Capital Growth ART Public Tactical Allocation Fund* 23.1.2007 Mixed Asset Capital Growth ART 16.10.2014 Mixed Asset Capital Growth ART Mixed Asset (Conservative) Income and Capital Growth ART 7.6.1995 Balanced Income and Capital Growth MTB Public Far-East Balanced Fund* 23.1.2007 Balanced Income and Capital Growth ART Public Growth Balanced Fund 7.10.2015 Balanced Capital Growth ART Public Select Mixed Asset Growth Fund Public Select Mixed Asset Conservative Fund 16.10.2014 Public Balanced Fund* Category of fund Type of fund Trustee Public Bond Fund 11.6.1996 Bond Income MTB Public Institutional Bond Fund 30.4.2003 Bond Income ART Public Enhanced Bond Fund 19.1.2005 Bond Income and Capital Growth ART Public Select Bond Fund 22.11.2005 Bond Income ART Public Strategic Bond Fund 30.12.2010 Bond Income ART 20.3.2012 Bond Income ART 16.12.2003 Money Market Income MTB Public Enterprises Bond Fund Public Money Market Fund Notes: * Free insurance coverage is provided for unitholders of these funds, subject to terms and conditions. Please refer to the brochure on free insurance for more information. For the list of funds that are approved under the EPF-MIS, please visit our website at www.publicmutual.com.my. The fund objective, strategy, principal risks and investor profile of each of the funds is tabulated below. Fund name Public Savings Fund Fund objective Investment strategy Principal risks Investor profile Benchmark To achieve longterm 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 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 and deposits. Market risk, specific security risk and liquidity risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. FTSE Bursa Malaysia KLCI. 12 KEY FEATURES OF THE FUNDS (CONT’D) Fund name Fund objective Investment strategy Principal risks Investor profile Benchmark Public Growth Fund To achieve longterm capital appreciation with income* considered incidental. The fund focuses on a diversified portfolio of blue chip stocks and companies with 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 and deposits. Market risk, specific security risk and liquidity risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. FTSE Bursa Malaysia KLCI. Public Index Fund To achieve longterm 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 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 and deposits. Market risk, specific security risk and liquidity risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. FTSE Bursa Malaysia Top 100 Index. 13 KEY FEATURES OF THE FUNDS (CONT’D) Fund name Fund objective Investment strategy Principal risks Investor profile Benchmark Public Industry Growth 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 and deposits. Market risk, specific security risk, liquidity risk and industry/ sector risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. FTSE Bursa Malaysia KLCI. 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 and deposits. Market risk, specific security risk and liquidity risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. FTSE Bursa Malaysia KLCI. 14 KEY FEATURES OF THE FUNDS (CONT’D) Fund name Fund objective Investment strategy Principal risks Investor profile Benchmark 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 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 and deposits. Market risk, specific security risk and liquidity risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. 90% FTSE Bursa Malaysia Top 100 Index and 10% 3-Month KLIBOR. Public SmallCap Fund To achieve high capital growth through investments in companies with small market capitalisation with special focus on growth stocks. The fund focuses on a diversified portfolio of companies with small market capitalisation with 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 and deposits. Market risk, specific security risk and liquidity risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. FTSE Bursa Malaysia Small Cap Index. Notes: The fund will invest in companies with small market capitalisation at the point of purchase. The fund may remain invested in counters which have moved above the market capitalisation range stated in the fund’s investment policy. 15 KEY FEATURES OF THE FUNDS (CONT’D) Fund name Fund objective Investment strategy Principal risks Investor profile Benchmark Public Equity To achieve capital growth through Fund 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 and deposits. Market risk, specific security risk and liquidity risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. FTSE Bursa Malaysia KLCI. Public Focus Select Fund The fund focuses on a diversified portfolio of primarily Malaysia equities and fixed income securities. The fund will invest in medium and small-sized companies listed on the domestic market and selected 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 and deposits. Market risk, specific security risk and liquidity risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. FTSE Bursa Malaysia Mid 70 Index. To achieve capital growth through investments in medium and small-sized companies in terms of market capitalisation from diversified economic sectors. Note: The fund may remain invested in counters which have moved above the market capitalisation range stated in the fund’s investment strategy. 16 KEY FEATURES OF THE FUNDS (CONT’D) Fund name Fund objective Investment strategy Principal risks Investor profile Benchmark 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 and deposits. Market risk, specific security risk and liquidity risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of annual income* and capital growth. 90% FTSE Bursa Malaysia Top 100 Index and 10% 3-Month KLIBOR. Public FarEast Select Fund To seek longterm 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 liquid assets which include money market instruments and deposits. Market risk, specific security risk, liquidity risk, currency risk and country risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. MSCI AC FarEast Ex-Japan Index. 17 KEY FEATURES OF THE FUNDS (CONT’D) Fund name Fund objective Investment strategy Principal risks Investor profile Benchmark Public Regional Sector Fund To seek longterm 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 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 and deposits. Market risk, specific security risk, liquidity risk, currency risk, country risk and industry/ sector risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. 90% MSCI AC Far-East Ex-Japan Index and 10% 3-Month KLIBOR. Public Global Select Fund To seek longterm 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 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 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 and deposits. Market risk, specific security risk, liquidity risk, currency risk and country risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. 90% MSCI All Country World Index and 10% 1-Month KLIBOR. 18 KEY FEATURES OF THE FUNDS (CONT’D) Fund name Fund objective Investment strategy Principal risks Investor profile Benchmark 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 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 and deposits. Market risk, specific security risk, liquidity risk, currency risk and country risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of annual income* and capital growth. 90% MSCI AC Far-East Ex-Japan High Dividend Yield Index and 10% 3-Month KLIBOR. 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 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 and deposits. Market risk, specific security risk, liquidity risk, currency risk and country risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. MSCI Golden Dragon Index. 19 KEY FEATURES OF THE FUNDS (CONT’D) Fund name Public Far-East Property & Resorts Fund Fund objective Investment strategy Principal risks Investor profile Benchmark 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 and deposits. Market risk, specific security risk, liquidity risk, currency risk, country risk and industry/ sector risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. A customised index by S&P Dow Jones Indices, LLC 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 thencurrent Global Industry Classification Standard (GICS). Note: * Companies which have at least 70% of their assets comprised of property or real estate assets. 20 KEY FEATURES OF THE FUNDS (CONT’D) Fund name Fund objective Investment strategy Principal risks Investor profile 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 (sovereign and corporate), money market instruments and deposits to help generate returns. The fund 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 and deposits. Market risk, specific security risk, liquidity risk, currency risk and country risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. FTSE/ASEAN 40 Index. Public Sector Select Fund To seek longterm 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 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 and deposits. Market risk, specific security risk, liquidity risk and industry/ sector risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. FTSE Bursa Malaysia Top 100 Index. 21 Benchmark KEY FEATURES OF THE FUNDS (CONT’D) Fund name Fund objective Investment strategy Principal risks 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 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 and deposits. Market risk, specific security risk, liquidity risk, currency risk, country risk and industry/ sector risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. A customised index by S&P Dow Jones Indices, LLC 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 thencurrent 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 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 and deposits. Market risk, specific security risk, liquidity risk, currency risk and country risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. 40% Hang Seng China Enterprises Index, 30% Hang Seng Index and 30% MSCI Taiwan Index. 22 KEY FEATURES OF THE FUNDS (CONT’D) Fund name Fund objective Investment strategy Principal risks Investor profile Benchmark Public FarEast Telco & Infrastructure Fund To achieve capital growth over the medium to long term period by investing in securities, mainly equities, in the telecommunication, 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 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 and deposits. Market risk, specific security risk, liquidity risk, currency risk, country risk and industry/ sector risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. A customised index by S&P Dow Jones Indices, LLC 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 thencurrent 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 foreign markets. The fund 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 liquid assets which include money market instruments and deposits to generate additional returns. Market risk, specific security risk and liquidity risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. FTSE Bursa Malaysia KLCI. 23 KEY FEATURES OF THE FUNDS (CONT’D) Fund name Fund objective Investment strategy Principal risks Investor profile Benchmark Public Worldwide Equity Fund To achieve capital growth over the medium to longterm period by investing in global markets. The fund seeks to achieve its long-term goal of capital growth by investing in blue chip stocks, index stocks and growth stocks listed on selected global markets. The fund may also invest 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 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 and deposits. Market risk, specific security risk, liquidity risk, currency risk and country risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. 50% Dow Jones Industrial Average, 30% STOXX Europe 50 Index, 10% TOPIX Core 30 Index and 10% 3-Month KLIBOR. Public Australia Equity Fund To achieve capital growth over the medium to longterm 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 maintains equity exposures within a range of 75% to 98% against its NAV. The fund may also invest in fixed income securities and liquid assets which include money market instruments and deposits to help generate additional returns. Market risk, specific security risk, liquidity risk, currency risk and country risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. S&P/ASX 200 Index. 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 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 liquid assets which include money market instruments and deposits to generate additional returns. Market risk, specific security risk, liquidity risk, currency risk and country risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. 80% customised index by MSCI based on the Top 30 constituents of MSCI AC Far-East ExJapan Index, 10% Tokyo Stock Price Index and 10% 3-Month KLIBOR. (formerly known as Public Natural Resources Equity Fund) 24 KEY FEATURES OF THE FUNDS (CONT’D) Fund name Fund objective Investment strategy Principal risks Investor profile 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 maintains equity exposure within a range of 75% to 98% against its NAV. The fund may also invest in fixed income securities and liquid assets which include money market instruments and deposits. Market risk, specific security risk and liquidity risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of annual income* and capital growth. FTSE Bursa Malaysia Top 100 Index. 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 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 liquid assets which include money market instruments and deposits. Market risk, specific security risk, liquidity risk, currency risk and country risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. Jakarta LQ-45 Index (LQ 45). 25 Benchmark KEY FEATURES OF THE FUNDS (CONT’D) Fund name Fund objective Investment strategy Principal risks Investor profile 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 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 liquid assets which include money market instruments and deposits. Market risk, specific security risk, liquidity risk, currency risk and country risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. MSCI Singapore Index. Public Strategic SmallCap Fund To achieve capital appreciation over the medium to long term period through investments primarily in companies with small market capitalisation. The fund focuses on a diversified portfolio of companies with small market capitalisation with 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 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 and deposits. Market risk, specific security risk and liquidity risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. FTSE Bursa Malaysia Small Cap Index. The fund seeks to meet its objective by investing in a diversified portfolio of domestic and foreign listed equities. Its equity content in terms of NAV will range between 75% and 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 and liquidity risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. 60% FTSE Bursa Malaysia KLCI, 15% Dow Jones Industrial Average, 15% customised index by MSCI based on the Top 30 constituents of MSCI AC FarEast Ex-Japan Index and 10% 3-Month KLIBOR. Notes: The fund will invest in small sized companies at the point of purchase. The fund may remain invested in counters which have moved above the market capitalisation range stated in the fund’s investment policy. Public Strategic Growth Fund To achieve capital growth over the medium to long-term period by investing in a diversified portfolio of stocks. 26 Benchmark KEY FEATURES OF THE FUNDS (CONT’D) Fund name Fund objective Investment strategy Principal risks Investor profile Benchmark Public Select Treasures Equity Fund To achieve capital growth over the medium to long-term period by investing in a portfolio of investments comprising small and medium-sized companies in terms of market capitalisation from diversified economic sectors. The fund will invest in small and medium-sized companies listed on Bursa Malaysia within the market capitalisation range of FTSE Bursa Malaysia Small Cap Index and FTSE Bursa Malaysia Mid 70 Index respectively at the point of purchase. Its equity content in terms of NAV will range between 75% and 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. To achieve increased diversification, the fund may invest in equities and fixed income securities of selected foreign markets. Market risk, specific security risk and liquidity risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. 70% FTSE Bursa Malaysia Mid 70 Index, 20% FTSE Bursa Malaysia Small Cap Index and 10% 3-Month KLIBOR. The fund seeks to meet its objective by investing in stocks of companies with potential earnings growth that is above the average earnings growth rate of the market. The fund may also invest in index stocks and blue chip stocks. To achieve increased diversification, the fund may invest in foreign markets. Its equity content in terms of NAV will range between 75% and 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 and liquidity risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. FTSE Bursa Malaysia KLCI. Note: The fund may remain invested in counters which have moved above the market capitalisation range stated in the fund’s investment strategy. Public Advantage Growth Equity Fund To achieve capital growth over the medium to long-term period by investing in a diversified portfolio of stocks. 27 KEY FEATURES OF THE FUNDS (CONT’D) Fund name Fund objective Investment strategy Principal risks Investor profile Benchmark Public Regular Savings Sequel Fund To achieve capital growth and provide income* over the medium to long-term period. The fund seeks to meet its objective by investing 70% to 98% of its NAV in a diversified portfolio of blue chip stocks, index stocks, growth stocks and stocks that offer or have the potential to offer attractive dividend yields that are listed on Bursa Securities. 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 and liquidity risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth and annual income*. 90% FTSE Bursa Malaysia Top 100 Index and 10% 3-Month KLIBOR. Public Emerging Opportunities Fund To achieve capital growth through investments in companies with mid and small market capitalisation. The fund is actively managed to achieve its goal of capital growth by investing in medium and small-sized companies listed on Bursa Securities within the market capitalisation range of FTSE Bursa Malaysia Small Cap Index and FTSE Bursa Malaysia Mid 70 Index respectively at the point of purchase. Its equity content in terms of NAV will range between 75% and 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. To achieve increased diversification, the fund may invest in equities and fixed income securities of selected foreign markets. Market risk, specific security risk and liquidity risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. 60% FTSE Bursa Malaysia Mid 70 Index, 30% FTSE Bursa Malaysia Small Cap Index and 10% 3-Month KLIBOR. Note: The fund may remain invested in counters which have moved above the market capitalisation range stated in the fund’s investment strategy. 28 KEY FEATURES OF THE FUNDS (CONT’D) Fund name Fund objective Investment strategy Principal risks Investor profile Benchmark Public Tactical Allocation 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. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth through a tactical asset allocation strategy. 70% MSCI AC Far-East Ex-Japan Index and 30% 3-Month KLIBOR. Public Select Mixed Asset Growth Fund To achieve capital growth over the medium to long-term period primarily through a portfolio allocation across equities and fixed income securities. The fund seeks to achieve its goal of achieving capital growth by adopting a mixed asset allocation strategy of investing 40% to 70% of its 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 achieve increased diversification, the fund may invest in equities and fixed income securities of selected foreign markets. Market risk, specific security risk, interest rate risk, credit risk and liquidity risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth through a mixed asset allocation strategy. 70% FTSE Bursa Malaysia KLCI and 30% 3-Month KLIBOR. Public Select Mixed Asset Conservative Fund To provide income* and achieve capital growth over the medium to long-term period primarily through a portfolio allocation across fixed income securities and equities. The fund will invest in fixed income securities, equities and money market instruments to meet its objective of providing income and capital growth to its unitholders. The fund will invest 60% to 75% of its NAV in fixed income securities. The fund may invest up to 35% of its NAV in equities. The balance of the fund’s NAV will be invested in money market instruments and deposits. To achieve increased diversification, the fund may invest in equities and fixed income securities of selected foreign markets. Specific security risk, interest rate risk, credit risk, market risk and liquidity risk. Medium to long-term investors who seek annual income* and capital growth through a conservative mixed asset allocation strategy. 65% 3-Month KLIBOR and 35% FTSE Bursa Malaysia KLCI. 29 KEY FEATURES OF THE FUNDS (CONT’D) Fund name Fund objective Investment strategy Principal risks Investor profile Benchmark Public Balanced Fund To provide a steady income* and capital growth over the medium to longterm period. The fund invests 40% to 60% of its NAV in a diversified portfolio of blue chip stocks and companies with 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 and liquid assets which include money market instruments and deposits. Market risk, specific security risk, interest rate risk, credit risk and liquidity risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth and to a lesser extent income*. Public Balanced Equity Index (PBEIX) is a composite index whose value is subject to the daily changes in the FTSE Bursa Malaysia KLCI and the 3-Month KLIBOR 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 growth prospects that are listed on selected regional markets. The balance of 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. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth and to a lesser extent income*. 60% MSCI AC Far-East Ex-Japan Index and 40% 3-Month KLIBOR. Public Growth Balanced Fund To achieve capital growth over the medium to long-term period through a balanced asset allocation approach. The fund seeks to meet its objective by adhering to a balanced asset allocation approach of investing 40% to 60% of the NAV of the fund in equities primarily listed on Bursa Securities. 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 achieve increased diversification, the fund may invest in foreign markets. Market risk, specific security risk, interest rate risk, credit risk and liquidity risk. Medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth and to a lesser extent income*. 60% FTSE Bursa Malaysia KLCI and 40% 3-Month KLIBOR. 30 KEY FEATURES OF THE FUNDS (CONT’D) Fund name Fund objective Investment strategy Principal risks 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 (sovereign and corporate), money market instruments and deposits. 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 maintains fixed income securities 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 and deposits. Interest rate risk, credit risk and liquidity risk. Mediumterm investors who seek annual income*. 12-Month FDR quoted by Malayan Banking Berhad. 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 (sovereign and corporate), money market instruments and deposits. 50% of the fund’s holdings of fixed income securities must be in fixed income securities of credit ratings no lower than AA with the balance of its fixed income securities holdings invested in fixed income securities with minimum credit ratings of A. The fund may also invest in redeemable loan stocks with convertible features to enhance overall returns. The fund maintains fixed income securities 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 and deposits. Interest rate risk, credit risk and liquidity risk. Mediumterm investors who seek annual income*. Corporate Bond Index – 1 Year And Above. 31 Investor profile Benchmark KEY FEATURES OF THE FUNDS (CONT’D) Fund name Fund objective Investment strategy Principal risks Investor profile 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 (sovereign and corporate), redeemable loan stocks with convertible features and money market instruments. To achieve increased diversification, the fund may invest in foreign markets. The fund maintains a fixed income securities exposure 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 and deposits. Specific security risk, interest rate risk, credit risk and liquidity risk. Medium to long-term investors who seek annual income* and to a lesser extent capital growth. 12-Month FDR quoted by Malayan Banking Berhad. 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 maintains a fixed income securities 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 and deposits. Interest rate risk, credit risk and liquidity risk. Mediumterm investors who seek annual income*. 12-Month FDR quoted by Malayan Banking Berhad. 32 Benchmark KEY FEATURES OF THE FUNDS (CONT’D) Fund name Fund objective Investment strategy Principal risks 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 fixed income securities. 50% of the fund’s fixed income securities investment will be invested in fixed income securities which have remaining maturities of 5 years and below. The remaining 50% of the fund’s fixed income securities 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 money market instruments and deposits. To achieve increased diversification, the fund may invest up to 25% of its NAV in foreign fixed income securities. Interest rate risk, credit risk and liquidity risk. Mediumterm investors who seek annual income*. 12-Month FDR quoted by Public Bank. 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 fixed income securities (sovereign and corporate) issued by entities with total assets exceeding RM3 billion at the point of purchase. The fixed income securities 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, money market instruments and deposits. To achieve increased diversification, the fund may invest up to 30% of its NAV in foreign fixed income securities. Interest rate risk, credit risk and liquidity risk. Mediumterm investors who seek annual income*. 12-Month FDR quoted by Public Bank. 33 Investor profile Benchmark KEY FEATURES OF THE FUNDS (CONT’D) Fund name Public Money Market Fund Fund objective Investment strategy Principal risks Investor profile Benchmark To provide liquidity and current income*, while maintaining capital stability. The fund invests in 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 securities with maturity periods exceeding 365 days but not longer than 732 days. The fund invests up to 100% of its NAV in money market instruments and deposits. Interest rate risk, credit risk and liquidity risk. Short-term investors who seek capital preservation. 90% Public Bank 1-Month FDR and 10% Public Bank Savings Rate – ACE Account. Note: This is neither a capital guaranteed nor a capital protected fund. Notes: * Distribution (if any) will be reinvested unless unitholders opt for distribution to be paid out. Please refer to pages 37 to 39 for more information on distribution policy. The risk profile of the funds is not the same as the risk profile of their benchmark. You may refer to Chapter 3: Detailed Information on The Funds for a better understanding of the characteristics and objective of each fund, to help you decide on the fund that is most compatible with your personal investment temperament and 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 Chapter 9: The Manager. For more information on the trustees, please refer to Chapter 10: The Trustees. 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, second supplemental master deed dated 28 October 1999, third supplemental master deed dated 22 May 2000, fourth supplemental master deed dated 29 May 2000, fifth supplemental master deed dated 23 October 2000, seventh supplemental master deed dated 24 July 2001, eighth supplemental master deed dated 30 April 2002, ninth supplemental master deed dated 22 April 2003, tenth supplemental master deed dated 1 December 2003, eleventh supplemental master deed dated 3 November 2004, twelfth supplemental master deed dated 27 December 2004, thirteenth supplemental master deed dated 13 April 2005, sixteenth supplemental master deed dated 25 October 2005, eighteenth supplemental master deed dated 22 February 2006, twentieth supplemental master deed dated 1 September 2006, twenty first supplemental master deed dated 6 November 2006, twenty second supplemental master deed dated 20 December 2006, twenty fourth supplemental master deed dated 13 April 2007, twenty fifth supplemental master deed dated 28 May 2007, twenty sixth supplemental master deed dated 27 June 2007, twenty seventh supplemental master deed dated 10 July 2007, twenty ninth supplemental master deed dated 20 July 2007, thirty first supplemental master deed dated 26 September 2007, thirty fourth supplemental master deed dated 17 December 2007, thirty fifth supplemental master deed dated 17 December 2007, thirty sixth supplemental master deed dated 17 March 2008, thirty seventh supplemental master deed dated 11 April 2008, thirty eighth supplemental master deed dated 27 May 2008, thirty ninth supplemental master deed dated 11 June 2008, forty first supplemental master deed dated 8 July 2008, forty third supplemental master deed dated 8 July 2008, forty fifth supplemental master deed dated 7 July 2009, forty seventh supplemental master deed dated 12 November 2009, forty eighth supplemental master deed dated 8 April 2010, fiftieth supplemental master deed dated 13 April 2010, fifty third supplemental master deed dated 21 October 2010, fifty fifth supplemental master deed dated 1 March 2011, fifty eighth supplemental master deed dated 21 July 2011, fifty ninth supplemental master deed dated 19 September 2011, sixty third supplemental master deed dated 24 February 2014, sixty fifth supplemental master deed dated 24 February 2014, sixty sixth supplemental master deed dated 7 March 2014, sixty seventh supplemental master deed dated 7 March 2014, seventieth supplemental master deed dated 17 September 2014, seventy first supplemental master deed dated 6 November 2014, seventy second supplemental master deed dated 28 November 2014, seventy third supplemental master deed dated 17 December 2014, seventy fourth supplemental master deed dated 16 February 2015, seventy sixth supplemental master deed dated 25 June 2015, seventy seventh supplemental master deed dated 30 September 2015, eightieth supplemental master deed dated 1 March 2016 and eighty first supplemental master deed dated 1 March 2016. 34 KEY FEATURES OF THE FUNDS (CONT’D) 1.2 FEES AND CHARGES Charges Imposed on Purchase or Redemption of Units This table below describes the charges that you may directly incur when you purchase or redeem units of the funds. % / RM Charges Sales charge per unit Equity, Mixed Asset and Balanced Funds Bond Funds Purchase of units through unit trust consultants and the Manager: Up to 5.5% of NAV per unit. Purchase of units through unit trust consultants and the Manager: Up to 1.0% of NAV per unit. Investments under the EPFMIS will be levied a sales charge of up to 3% of NAV per unit, as regulated by EPF. The Manager may at its discretion charge a lower sales charge based on the size of investment and/or other criterion as may be determined from time to time. The Manager may at its discretion charge a lower sales charge based on the size of investment and/or other criterion as may be determined from time to time. Money Market Fund Nil. Redemption charge per unit Nil. Switching charges Please refer to pages 235 and 236 for charges on switching transactions. Transfer charges An administration fee of RM25 will be charged for each transfer transaction. Bank charges, courier charges and any other indirect charges may be incurred as a result of purchase and/or redemption transactions. Fees Incurred on Investing in The Funds This table describes the fees that you may indirectly incur when you invest in the funds. % / RM Fees Equity, Mixed Asset and Balanced Funds Management PSMACF: 1.25% per annum of the NAV. fee PSF, PGF, PIX, PINDGF, PAGF, PRSF, P SmallCap, PEF, PFSF, PDSF, PSSF, PSA30F, POGF, PSSCF, PSTGF, PSTEF, PAVGEF, PRSSQF, PSMAGF, PBF and PGRBF: 1.50% per annum of the NAV. PFES, PRSEC, PFEDF, PCSF, PSEASF, PCTF, PFA30F, PSGEF and PFEBF: 1.60% per annum of the NAV. PAUEF, PEMOF and PTAF: 1.65% per annum of the NAV. PFEPRF, PFECTF, PFETIF, PWEF and PINDOSF: 1.70% per annum of the NAV. PGSF: 1.80% per annum of the NAV. Bond Funds Money Market Fund P BOND, PSBF, PSTBF and PMMF: PENTBF: 0.375% per annum of the 0.75% per annum of the NAV. NAV. PEBF: 1.0% per annum of the NAV. PIN BOND: 0.5% per annum of the NAV. 35 KEY FEATURES OF THE FUNDS (CONT’D) Fees (cont’d) % / RM Equity, Mixed Asset and Balanced Funds Bond Funds Money Market Fund 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. 0.035% per annum of NAV, subject to a minimum fee of RM18,000 and a maximum fee of RM300,000 per annum. 0.02% per annum of NAV, subject to a minimum fee of RM18,000 and a maximum fee of RM300,000 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. Note: All the above fees and charges are subject to GST which are payable by you. There are fees and charges involved and investors are advised to consider them before investing in the funds. 1.3 INFORMATION ON TRANSACTION OF UNITS Purchase and redemption of units Units may be purchased or redeemed daily on any Business Day*. There is no restriction on the frequency of purchase and redemption of units. There is a single price for the purchase and redemption of units of the funds which is at NAV per unit of the respective funds. Unit prices of the funds are published daily under the Unit Trusts Column in major newspapers** and on our website at www.publicmutual.com.my. (Please refer to pages 233 to 235 and 240 to 241 for more information on purchase and redemption of units). 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 fund(s) are invested therein are closed for business. This is to ensure that you will be given a fair valuation of the fund(s) at all times, be it when purchasing or redeeming units of the fund(s). A notice on non-Business Days will be posted on Public Mutual’s website. (Please refer to pages 161 to 162 for more information on valuation of investments in such circumstances). Minimum initial investment*** PIN BOND : RM10,000,000 All other funds : RM1,000 Minimum additional investment PIN BOND : RM5,000,000 All other funds : RM100 Notes: * In the event that purchase and redemption 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 or 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 you so desire. *** The Manager may vary the minimum initial investment amount from time to time. 36 KEY FEATURES OF THE FUNDS (CONT’D) Cooling-off right If you are investing with Public Mutual for the first time, you may exercise your cooling-off right within 6 Business Days from the date of receipt by Public Mutual, of the application form and payment. The refund for every unit held will be the sum of the price of a unit on the day the units were purchased and the sales charge imposed (and GST) on the day the units were purchased. For EPF unitholders, the cooling-off period will commence from the date of receipt of application form by Public Mutual. (Please refer to page 234 for more information on cooling-off right). Switching between funds Switching of units is considered a withdrawal or redemption of investment from a unit trust fund and an application to purchase units of another unit trust fund. You may switch your 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. Switching of units may be subject to switching fee or sales charge which is deductible from the redemption proceeds. (Please refer to pages 235 to 236 for more information on switching). Transfer of units You may fully or partially transfer your units in the fund(s) to another unitholder subject to terms and conditions. An administration fee will be charged for each transaction. This transfer facility is not available for PIN BOND. (Please refer to page 236 for more information on transfer of units). Minimum units for redemption, switching or transfer PIN BOND : 1,000,000 units (transfer facility is not available for PIN BOND) All other funds : 1,000 units Minimum account balance PIN BOND : 1,000,000 units All other funds : 1,000 units In the case of partial redemption, switching or transfer, the Manager may elect to redeem, switch or transfer the entire account if the partial redemption, switching or transfer results in less than the required minimum balance of units being held in your account with the fund. 1.4 DISTRIBUTION POLICY Fund name Distribution policy Equity Funds Public Savings Fund Annual Public Growth Fund Incidental Public Index Fund Incidental Public Industry Growth Fund Incidental Public Aggressive Growth Fund Incidental Public Regular Savings Fund Annual Public SmallCap Fund Incidental Public Equity Fund Incidental Public Focus Select Fund Incidental Public Dividend Select Fund Semi-annual Public Far-East Select Fund Incidental 37 KEY FEATURES OF THE FUNDS (CONT’D) Fund name Distribution policy Equity Funds (cont’d) Public Regional Sector Fund Incidental Public Global Select Fund Incidental Public Far-East Dividend Fund Annual Public China Select Fund Incidental Public Far-East Property & Resorts Fund Annual 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 Worldwide Equity Fund Incidental Public Australia Equity Fund Incidental Public Far-East Alpha-30 Fund Incidental Public Optimal Growth Fund Annual Public Indonesia Select Fund Incidental Public Singapore Equity Fund Incidental Public Strategic SmallCap Fund Incidental Public Strategic Growth Fund Incidental Public Select Treasures Equity Fund Incidental Public Advantage Growth Equity Fund Incidental Public Regular Savings Sequel Fund Annual Public Emerging Opportunities Fund Incidental Mixed Asset Funds Public Tactical Allocation Fund Incidental Public Select Mixed Asset Growth Fund Incidental Public Select Mixed Asset Conservative Fund Annual Balanced Funds Public Balanced Fund Incidental Public Far-East Balanced Fund Incidental Public Growth Balanced Fund Incidental Bond Funds Public Bond Fund Annual Public Institutional Bond Fund Annual Public Enhanced Bond Fund Annual Public Select Bond Fund Annual Public Strategic Bond Fund Annual Public Enterprises Bond Fund Annual Money Market Fund Public Money Market Fund Annual 38 KEY FEATURES OF THE FUNDS (CONT’D) Distribution, if any, is declared at the end of each financial year, or for any other specified period. Any distribution(s) so paid will be subject to the availability of realised income and/or realised gains. Please refer to Chapter 4: Performance of The Funds for past distributions of the respective funds. Distribution (if any) will be reinvested unless you opt for distribution to be paid out to you by indicating in the application form. If you opt for the pay out option, you are required to provide your bank account details for distribution to be credited into your bank account. Payment will only be effected if your bank account has been registered with the Manager. In the absence of a registered bank account, the distribution (if any) will be reinvested. Distribution reinvestments will be reinvested at NAV per unit, computed at the close of the first Business Day following the distribution declaration date. No sales charge will be imposed on distribution reinvestments. You must notify the Manager within 14 Business Days prior to each date fixed for the distribution of any change in your 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 it is deemed uneconomical to pay out) at NAV per unit, computed at the close of the first Business Day following the distribution declaration date. 1.5 UNCLAIMED MONIES Any monies payable to you 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 provisions of the Unclaimed Moneys Act 1965 and (Amendment) 2002. 1.6 LODGING A COMPLAINT You can contact our Customer Service Hotline at 03-6207 5000 for internal dispute resolution. If you are dissatisfied with the outcome of the internal dispute resolution process, you can refer your dispute to the Securities Industry Dispute Resolution Center (SIDREC): (a) (b) (c) (d) via phone via fax via email via letter : : : : 03-2282 2280 03-2282 3855 info@sidrec.com.my Securities Industry Dispute Resolution Center (SIDREC) Unit A-9-1, Level 9, Tower A Menara UOA Bangsar No. 5, Jalan Bangsar Utama 1 59000 Kuala Lumpur You can also direct your complaint to SC even if you have initiated a dispute resolution process with SIDREC. To make a complaint, please contact the SC’s Investor Affairs & Complaints Department: (a) (b) (c) (d) (e) via phone to the Aduan Hotline : 03-6204 8999 via fax : 03-6204 8991 via email : aduan@seccom.com.my via online complaint form available at www.sc.com.my via letter : Investor Affairs & Complaints Department Securities Commission Malaysia No. 3, Persiaran Bukit Kiara Bukit Kiara 50490 Kuala Lumpur You can direct your complaint to FIMM if you feel your complaint has not been satisfactorily resolved. Prospective unitholders should read and understand the contents of the Master Prospectus and, if necessary, consult your 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 40. Past performance of the funds is not an indication of their future performance. 39 2 ABOUT UNIT TRUST FUNDS 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 unit trust fund. Such a unit trust fund usually aims to provide returns in the form of distribution and/or capital growth with reasonable risks, to investors through investing in a broadly diversified portfolio of stocks, fixed income securities or other instruments. A unit trust fund 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 unit trust industry through the CMSA 2007 and the SC Guidelines. 2.2 BENEFITS OF INVESTING IN UNIT TRUST FUNDS Benefits of investing in unit trust funds include: 1. Diversification: Diversification involves the process of spreading risk over a broad portfolio of asset classes which include but are not limited to stocks and/or fixed income securities. Further diversification can also be achieved by investing in stocks and/or fixed income securities in different companies, sectors, countries or regions. Unit trust funds facilitate the diversification process by providing you with an avenue to pool monies for the purchase of a diversified portfolio of stocks and/or fixed income securities that will bring returns at lower risks compared with investing directly in stock and/or fixed income securities markets. 2. Professional management: Unit trust funds are managed by professional fund managers with the expertise and resources to manage the assets of the fund. You can thus benefit from this professional fund management of investments via the fund at a shared (affordable) cost. 3. Liquidity: You may redeem all or part of your units on any Business Day and have your proceeds mailed to you within 10 days. 4. Ease of transactions: Unit trust funds do not require cumbersome administrative or paperwork or record keeping on your part in managing your investments. 5. Capital gains: Unit trust funds which seek to achieve capital growth over the long-term provide the opportunity for you to achieve capital gains. 2.3 RISK FACTORS Any investment carries with it an element of risk. A unit trust fund is exposed to a variety of risks by nature of the investments it is engaged in. As such, there is the risk that you could experience capital losses through investments in unit trust funds. General risks of investing in unit trust funds include: 1. Market risk: The purchase of securities (equities and fixed income securities) represents a risk since the prices of securities fluctuate in response to various factors which include economic and global financial market trends as well as non-financial factors such as political developments and natural disasters. Such movements in the prices of the securities underlying the investment portfolio will cause the fund’s NAV, and consequently the prices of units, to fall as well as rise. 2. Specific security risk: Prices of a particular security may fluctuate in response to the circumstances affecting individual companies. As such, 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 risk of the fund manager having to liquidate the fund’s holdings of illiquid securities at a discount to its fair value to meet the redemption requirements. This may adversely impact the fund’s NAV and unit price. This impact can, however, be mitigated through the process of security selection and portfolio diversification by the fund managers. 4. Unlisted security risk: This risk relates to investments in securities which are not listed on a securities exchange, such as stocks of unlisted companies. Investment in unlisted securities may subject the fund to liquidity risks upon the disposal of these securities which may impact the value of the fund. 5. Fund manager risk: Although a fundamental investment approach is undertaken by fund managers, there is a risk that investment decisions undertaken pertaining to asset allocation and stock selection may not be in line with market movements. This could adversely impact the performance of the fund. 40 ABOUT UNIT TRUST FUNDS (CONT’D) 6. Loan financing risk: It is not advisable for you to finance the fund units through borrowings. The price/ value of units will fluctuate with the underlying fund portfolio and you may find yourself faced with the scenario of being forced to provide additional funds to top up on your 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. If additional funds required to top up your loan margins are not made available by you within the time prescribed, your units may be sold towards settling your loan. Investing in unit trust funds involves market risks and it would be considered unwise for you to undertake borrowing to purchase units as it may serve to accentuate any capital loss incurred by you. The Manager does not encourage the practice of loan financing in the purchase of unit trust funds. 7. 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 may adversely affect the investment of unitholders. However, the risk can be mitigated by internal controls put in place by the Manager. 8. Currency risk: If the fund invests 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 your investments. To mitigate such risk, the fund may undertake hedging strategies. However, the fund would not benefit from any potential upside if currencies move in the opposite direction of the hedging strategy. 9. 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. In addition, certain countries require the application of an investment licence or registration of an investor code before investments can be made in these countries. If investments in such countries are undertaken and if the licence to invest is not renewed by the relevant authority, the fund’s investments in these countries will be affected. To mitigate this, the Manager will closely monitor the investment regulatory requirements in these countries. The fund’s investments in warrants and utilisation of options, OTC options (if any), futures contracts and foreign exchange forward contracts may result in the following risk: 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 OTC derivatives involve counterparty risk arising from counterparties’ default or a decline in the counterparties’ credit rating. In such circumstances, efforts will be taken to liquidate the derivative position. 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. * The use of leverage involves the utilisation of instruments to obtain an increased exposure to an underlying investment asset. Investment in fixed income securities and liquid assets brings forth the following specific investment risks: 1. Interest rate risk: Interest rate risk refers to the impact of interest rate changes on the valuation of fixed income securities and liquid assets. Investment in fixed income securities: When interest rates rise, fixed income securities prices generally decline and this will lower the market value of the fund’s investment in fixed income securities. The reverse applies when interest rates fall. Investment in liquid assets: As the returns of the fund’s investments in liquid assets move in tandem with interest rates, a decline in interest rates will lower the returns of the fund’s investments in liquid assets correspondingly. 2. Credit risk: Credit risk relates to the creditworthiness of the issuer of the securities or liquid assets which is dependent on the issuer’s ability to make timely payments of interest and/or principal. In the event that the issuer of a security or liquid assets defaults in the payment of interest and/or principal, the value of the fund may be adversely affected. For fixed income securities investments, credit risk can be managed by holding a diversified portfolio of fixed income securities and monitoring the issuers’ fundamentals on an ongoing basis. Please refer to Chapter 3: Detailed Information on The Funds for information on the fund specific risks and risk management. 41 3 DETAILED INFORMATION ON THE FUNDS 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, fixed income securities 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 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) and policy on gearing (paragraph 3.7). 42 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 you in making an informed judgement of the distinctive features of each fund. You are requested to read the fund profiles carefully before making an investment decision. Equity Funds Fund Managers Pages Public Savings Fund Tan Chee Chin and Lum Meng Seng 45-46 Public Growth Fund Lum Ming Jang and Liew Mun Hon 47-48 Public Index Fund Chiang Kang Pey and Ng Joo Tsong 49-51 Public Industry Growth Fund Chiang Kang Pey and Ng Joo Tsong 52-53 Public Aggressive Growth Fund Lum Ming Jang and Andrew Seah Saik Weng 54-55 Public Regular Savings Fund Lum Ming Jang and Chen Yuet Fong 56-57 Public SmallCap Fund Lum Ming Jang and Loo See Seong 58-59 Public Equity Fund Lum Ming Jang and Lum Meng Seng 60-61 Public Focus Select Fund Andrew Seah Saik Weng and Lum Meng Seng 62-64 Public Dividend Select Fund Tan Chee Chin and Liew Mun Hon 65-66 Public Far-East Select Fund Tan Chee Chin and Chen Yuet Fong 67-68 Public Regional Sector Fund Lum Ming Jang and Liew Mun Hon 69-70 Public Global Select Fund Liew Mun Hon and Oh Siew Wei 71-72 Public Far-East Dividend Fund Chiang Kang Pey and Lim Wai Yin 73-75 Public China Select Fund Chiang Kang Pey and Chen Yuet Fong 76-77 Public Far-East Property & Resorts Fund Lum Peck Woon and Loo See Seong 78-79 Public South-East Asia Select Fund Lum Peck Woon and Chong Kok Wai 80-81 Public Sector Select Fund Lum Ming Jang and Loo See Seong 82-83 Public Far-East Consumer Themes Fund Lum Ming Jang and Tan Chee Chin 84-85 Public China Titans Fund Lum Ming Jang and Tan Chee Chin 86-87 Public Far-East Telco & Infrastructure Fund Lum Peck Woon and Chong Kok Wai 88-89 Public Select Alpha-30 Fund Lum Ming Jang and Andrew Seah Saik Weng 90-91 Public Worldwide Equity Fund (formerly known as Public Natural Resources Equity Fund) Liew Mun Hon and Oh Siew Wei 92-93 Public Australia Equity Fund Lum Ming Jang and Chen Yuet Fong 94-95 Public Far-East Alpha-30 Fund Chiang Kang Pey and Ng Joo Tsong 96-98 Public Optimal Growth Fund Lum Ming Jang and Liew Mun Hon 99-100 Public Indonesia Select Fund Lum Peck Woon and Chong Kok Wai 101-102 Public Singapore Equity Fund Tan Chee Chin and Lum Meng Seng 103-104 Public Strategic SmallCap Fund Lum Ming Jang and Loo See Seong 105-107 Public Strategic Growth Fund Liew Mun Hon and Tan Kok Keong 108-110 Public Select Treasures Equity Fund Andrew Seah Saik Weng and Loo See Seong 111-113 Public Advantage Growth Equity Fund Andrew Seah Saik Weng and Tan Kok Keong 114-115 Public Regular Savings Sequel Fund Chiang Kang Pey and Ng Joo Tsong 116-117 Public Emerging Opportunities Fund Andrew Seah Saik Weng and Loo See Seong 118-120 43 DETAILED INFORMATION ON THE FUNDS (CONT’D) Mixed Asset Funds Fund Managers Public Tactical Allocation Fund Chiang Kang Pey and Ng Joo Tsong 121-123 Pages Public Select Mixed Asset Growth Fund Tan Kok Keong and Shahnaz bin Saiful Mulok 124-126 Public Select Mixed Asset Conservative Fund Evelyn Cheong Sun Ngean and Lum Meng Seng 127-129 Public Balanced Fund Lum Ming Jang and Loo See Seong 130-132 Public Far-East Balanced Fund Tan Chee Chin and Lum Meng Seng 133-135 Public Growth Balanced Fund Andrew Seah Saik Weng and Loo See Seong 136-138 Public Bond Fund Lum Ming Jang and Zaharudin bin Ghazali 139-140 Public Institutional Bond Fund Zaharudin bin Ghazali and Vivian Looi 141-142 Public Enhanced Bond Fund Zaharudin bin Ghazali and Loo See Seong 143-145 Balanced Funds Bond Funds Public Select Bond Fund Lum Ming Jang and Zaharudin bin Ghazali 146-147 Public Strategic Bond Fund Zaharudin bin Ghazali and Vivian Looi 148-149 Public Enterprises Bond Fund Evelyn Cheong Sun Ngean and Vivian Looi 150-151 Zaharudin bin Ghazali and Haniza binti Yang Razali 152-153 Money Market Fund Public Money Market Fund 44 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC SAVINGS FUND (PSF) Fund Profile Category of Fund Equity 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 Annual Suggested Minimum Investment Period 3 years 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. 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 37 to 39 for more information on distribution policy. Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile This fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. 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 and deposits. Investment Strategy PSF is actively managed to achieve the long-term goal of capital growth by investing in a diversified portfolio of indexlinked companies, blue chip stocks and companies with growth prospects that are listed on the Bursa Securities. 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 assessed. 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 equities and fixed income securities of selected 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. Investments in certain foreign markets require the application of an investment licence or registration of an investor code. As such, the necessary approvals from the relevant foreign regulatory authorities, where required, will be obtained prior to investing in the above-mentioned permitted markets. The fund may consider investments in 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, and warrants. The fund may also invest in fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits to help generate income returns. 45 DETAILED INFORMATION ON THE FUNDS (CONT’D) Fund Specific Benefits The fund provides you with 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. 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 investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposure to fixed income securities in the portfolio are managed to ensure that risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. The fund’s overseas investments will be monitored to focus in markets with the potential to achieve positive returns that are commensurate with country risks, currency risks and liquidity risks. The fund may utilise foreign exchange forward contracts to hedge its holdings of foreign investments from foreign currency movements. This will enable the fund to mitigate risks arising from foreign currency exposure. As participation in foreign exchange forward contracts for hedging purposes and investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s participation in these instruments 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. The PSF is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“FTSE”) or by Bursa Malaysia Berhad (“BURSA MALAYSIA”) or by the London Stock Exchange Group companies (the “LSEG”) and neither FTSE nor BURSA MALAYSIA nor LSEG makes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE BURSA MALAYSIA KLCI (“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. However, neither FTSE nor BURSA MALAYSIA nor LSEG shall be liable (whether in negligence or otherwise) to any person for any error in the Index and neither FTSE nor BURSA MALAYSIA nor LSEG shall be under any obligation to advise any person of any error therein. “FTSE®”, “FT-SE®” and “Footsie®” are trade marks of LSEG and are used by FTSE under licence. “BURSA MALAYSIA” is a trade mark of BURSA MALAYSIA. 46 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC GROWTH FUND (PGF) Fund Profile Category of Fund Equity Type of Fund Capital growth Equity Range of Fund 70% to 98% Stock Selection Profile of Fund High concentration of growth stocks Distribution Policy Incidental Suggested Minimum Investment Period 3 years 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. Fund Objective To achieve long-term capital appreciation with income* considered incidental. Notes: * Distribution (if any) will be reinvested unless unitholders opt for distribution to be paid out. Please refer to pages 37 to 39 for more information on distribution policy. Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile This fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. 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 and deposits. Investment Strategy PGF is actively managed to achieve the long-term goal of capital growth by investing in a diversified portfolio of index-linked companies, blue chip stocks and companies with growth prospects that are listed on the Bursa Securities. 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 assessed. 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 equities and fixed income securities of selected 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. Investments in certain foreign markets require the application of an investment licence or registration of an investor code. As such, the necessary approvals from the relevant foreign regulatory authorities, where required, will be obtained prior to investing in the above-mentioned permitted markets. The fund may consider investments in 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, and warrants. The fund may also invest in fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits to help generate returns. 47 DETAILED INFORMATION ON THE FUNDS (CONT’D) Fund Specific Benefits The fund provides you with 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. 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. 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 investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposure to fixed income securities in the portfolio are managed to ensure that the risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. The fund’s overseas investments will be monitored to focus in markets with the potential to achieve positive returns that are commensurate with country risks, currency risks and liquidity risks. The fund may utilise foreign exchange forward contracts to hedge its holdings of foreign investments from foreign currency movements. This will enable the fund to mitigate risks arising from foreign currency exposure. As participation in foreign exchange forward contracts for hedging purposes and investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s participation in these instruments 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 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. 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. The PGF is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“FTSE”) or by Bursa Malaysia Berhad (“BURSA MALAYSIA”) or by the London Stock Exchange Group companies (the “LSEG”) and neither FTSE nor BURSA MALAYSIA nor LSEG makes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE BURSA MALAYSIA KLCI (“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. However, neither FTSE nor BURSA MALAYSIA nor LSEG shall be liable (whether in negligence or otherwise) to any person for any error in the Index and neither FTSE nor BURSA MALAYSIA nor LSEG shall be under any obligation to advise any person of any error therein. “FTSE®”, “FT-SE®” and “Footsie®” are trade marks of LSEG and are used by FTSE under licence. “BURSA MALAYSIA” is a trade mark of BURSA MALAYSIA. 48 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC INDEX FUND (PIX) Fund Profile Category of Fund Equity Type of Fund Capital growth Equity Range of Fund 80% to 98% Stock Selection Profile of Fund Minimum of 60% index stocks Distribution Policy Incidental Suggested Minimum Investment Period 3 years 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. 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 This fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. 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 and deposits. 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. 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 assessed. 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. The fund may participate in IPOs of companies seeking a listing on Bursa Securities. The fund may also invest in collective investment schemes in the domestic market, and warrants. The fund may also invest in fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits to help generate returns. 49 DETAILED INFORMATION ON THE FUNDS (CONT’D) 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. Fund Specific Benefits The fund provides you with 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 FTSE Bursa Malaysia Top 100 Index (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. 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. 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 investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposure to fixed income securities in the portfolio are managed to ensure that risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. As investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s investments in 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 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. Information on the FBM 100 is sourced from FTSE International Limited. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my. The PIX is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“FTSE”) or by Bursa Malaysia Berhad (“BURSA MALAYSIA”) or by the London Stock Exchange Group companies (the “LSEG”) and neither FTSE nor BURSA MALAYSIA nor LSEG makes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE BURSA MALAYSIA TOP 100 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. However, neither FTSE nor BURSA MALAYSIA nor LSEG shall be liable (whether in negligence or otherwise) to any person for any error in the Index and neither FTSE nor BURSA MALAYSIA nor LSEG shall be under any obligation to advise any person of any error therein. “FTSE®”, “FT-SE®” and “Footsie®” are trade marks of LSEG and are used by FTSE under licence. “BURSA MALAYSIA” is a trade mark of BURSA MALAYSIA. 50 DETAILED INFORMATION ON THE FUNDS (CONT’D) Top 10 Holdings in % of NAV as at 31 January 2016 FBM 100 % Weight in Index PIX % of NAV 1 Public Bank Berhad 8.9 Public Bank Berhad 8.4 2 Tenaga Nasional Berhad 7.5 Tenaga Nasional Berhad 7.7 3 Malayan Banking Berhad 7.2 LPI Capital Berhad 6.1 4 Sime Darby Berhad 4.1 Malayan Banking Berhad 5.5 5 Axiata Group Berhad 3.9 Axiata Group Berhad 4.3 6 CIMB Group Holdings Berhad 3.5 Sime Darby Berhad 4.0 7 Petronas Chemicals Group Berhad 3.2 CIMB Group Holdings Berhad 3.0 8 IHH Healthcare Berhad 2.9 Telekom Malaysia Berhad 2.9 9 DiGi.Com Berhad 2.8 IOI Corporation Berhad 2.9 10 Petronas Gas Berhad 2.8 Genting Berhad 2.8 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. 51 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC INDUSTRY GROWTH FUND (PINDGF) Fund Profile Category of Fund Equity Type of Fund Capital growth Equity Range of Fund 70% to 98% Stock Selection Profile of Fund High concentration of stocks in recovering or high growth sectors Distribution Policy Incidental Suggested Minimum Investment Period 3 years 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. Fund Objective To achieve a high level of capital appreciation over the medium to long term period through investments in growth industries. Note: Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile This fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. Investment Policy PINDGF 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 and deposits. Investment Strategy PINDGF is actively managed to achieve the medium to long-term goal of capital growth by investing in a diversified portfolio of index-linked companies, blue chip stocks and companies with growth prospects that are listed on the Bursa Securities. 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 assessed. 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 equities and fixed income securities of selected 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. Investments in certain foreign markets require the application of an investment licence or registration of an investor code. As such, the necessary approvals from the relevant foreign regulatory authorities, where required, will be obtained prior to investing in the above-mentioned permitted markets. The fund may consider investments in 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, and warrants issued during corporate exercises by companies listed on Bursa Securities in which the fund holds shares in. The fund may also invest in fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits to help generate returns. 52 DETAILED INFORMATION ON THE FUNDS (CONT’D) Fund Specific Benefits The fund provides you with 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. 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. 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 investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposure to fixed income securities in the portfolio are managed to ensure that the risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. The fund’s overseas investments will be monitored to focus in markets with the potential to achieve positive returns that are commensurate with country risks, currency risks and liquidity risks. The fund may utilise foreign exchange forward contracts to hedge its holdings of foreign investments from foreign currency movements. This will enable the fund to mitigate risks arising from foreign currency exposure. As participation in foreign exchange forward contracts for hedging purposes and investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s participation in these instruments 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 PINDGF As PINDGF will focus its investments in the domestic market, the benchmark for PINDGF 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. The PINDGF is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“FTSE”) or by Bursa Malaysia Berhad (“BURSA MALAYSIA”) or by the London Stock Exchange Group companies (the “LSEG”) and neither FTSE nor BURSA MALAYSIA nor LSEG makes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE BURSA MALAYSIA KLCI (“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. However, neither FTSE nor BURSA MALAYSIA nor LSEG shall be liable (whether in negligence or otherwise) to any person for any error in the Index and neither FTSE nor BURSA MALAYSIA nor LSEG shall be under any obligation to advise any person of any error therein. “FTSE®”, “FT-SE®” and “Footsie®” are trade marks of LSEG and are used by FTSE under licence. “BURSA MALAYSIA” is a trade mark of BURSA MALAYSIA. 53 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC AGGRESSIVE GROWTH FUND (PAGF) Fund Profile Category of Fund Equity Type of Fund Capital growth Equity Range of Fund 75% to 98% Stock Selection Profile of Fund High concentration of high growth stocks and situational stocks Distribution Policy Incidental Suggested Minimum Investment Period 3 years 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. Fund Objective To seek high capital growth over the medium to long term period through investments in situational and high growth stocks. Note: Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile This fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. 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 and deposits. Investment Strategy PAGF is actively managed to achieve the medium to long-term goal of capital growth by investing in a diversified portfolio of index-linked companies, blue chip stocks and companies with growth prospects that are listed on the Bursa Securities. 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 assessed. 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. To achieve increased diversification, the fund may invest in equities and fixed income securities of selected 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. Investments in certain foreign markets require the application of an investment licence or registration of an investor code. As such, the necessary approvals from the relevant foreign regulatory authorities, where required, will be obtained prior to investing in the above-mentioned permitted markets. The fund may consider investments in 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, and warrants. The fund may also invest in fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits to help generate returns. 54 DETAILED INFORMATION ON THE FUNDS (CONT’D) Fund Specific Benefits The fund provides you with 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 exposure 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. 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. 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 investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposure to fixed income securities in the portfolio are managed to ensure that the risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. The fund’s overseas investments will be monitored to focus in markets with the potential to achieve positive returns that are commensurate with country risks, currency risks and liquidity risks. The fund may utilise foreign exchange forward contracts to hedge its holdings of foreign investments from foreign currency movements. This will enable the fund to mitigate risks arising from foreign currency exposure. As participation in foreign exchange forward contracts for hedging purposes and investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s participation in these instruments 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 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. 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. The PAGF is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“FTSE”) or by Bursa Malaysia Berhad (“BURSA MALAYSIA”) or by the London Stock Exchange Group companies (the “LSEG”) and neither FTSE nor BURSA MALAYSIA nor LSEG makes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE BURSA MALAYSIA KLCI (“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. However, neither FTSE nor BURSA MALAYSIA nor LSEG shall be liable (whether in negligence or otherwise) to any person for any error in the Index and neither FTSE nor BURSA MALAYSIA nor LSEG shall be under any obligation to advise any person of any error therein. “FTSE®”, “FT-SE®” and “Footsie®” are trade marks of LSEG and are used by FTSE under licence. “BURSA MALAYSIA” is a trade mark of BURSA MALAYSIA. 55 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC REGULAR SAVINGS FUND (PRSF) Fund Profile Category of Fund Equity Type of Fund Capital growth Equity Range of Fund 70% to 98% Stock Selection Profile of Fund Blue chip stocks and growth stocks Distribution Policy Annual Suggested Minimum Investment Period 3 years 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. Fund Objective To achieve consistent capital growth over the medium to long term period and to achieve a steady growth in income*. Notes: * Distribution (if any) will be reinvested unless unitholders opt for distribution to be paid out. Please refer to pages 37 to 39 for more information on distribution policy. Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile This fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. 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 and deposits. Investment Strategy PRSF is actively managed to achieve the goal of medium to long-term capital growth by investing in a diversified portfolio of index-linked companies, blue chip stocks and companies with growth prospects that are listed on the Bursa Securities. 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 assessed. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities. The fund may participate in IPOs of companies seeking a listing on Bursa Securities. The fund may also invest in collective investment schemes in the domestic market, and warrants. The fund may also invest in fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits to help generate income returns. Fund Specific Benefits The fund provides you with 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. It also maintains investments in fixed income securities to help generate income to the fund. 56 DETAILED INFORMATION ON THE FUNDS (CONT’D) 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. 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 investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposure to fixed income securities in the portfolio are managed to ensure that risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. As investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s investments in 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 PRSF The benchmarks of the fund and their respective percentages are as follows: • • 90% FTSE Bursa Malaysia Top 100 Index (FBM 100), and 10% 3-Month KLIBOR As PRSF maintains an equity exposure ranging between 70% to 98% of its NAV, the benchmark chosen for PRSF 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 comprises top 100 large and mid cap stocks listed on Bursa Securities. This composite benchmark index represents an appropriate performance benchmark for PRSF 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. Information on the FBM 100 is sourced from FTSE International Limited. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my. The PRSF is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“FTSE”) or by Bursa Malaysia Berhad (“BURSA MALAYSIA”) or by the London Stock Exchange Group companies (the “LSEG”) and neither FTSE nor BURSA MALAYSIA nor LSEG makes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE BURSA MALAYSIA TOP 100 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. However, neither FTSE nor BURSA MALAYSIA nor LSEG shall be liable (whether in negligence or otherwise) to any person for any error in the Index and neither FTSE nor BURSA MALAYSIA nor LSEG shall be under any obligation to advise any person of any error therein. “FTSE®”, “FT-SE®” and “Footsie®” are trade marks of LSEG and are used by FTSE under licence. “BURSA MALAYSIA” is a trade mark of BURSA MALAYSIA. 57 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC SMALLCAP FUND (P SmallCap) Fund Profile Category of Fund Equity Type of Fund Capital growth Equity Range of Fund 70% to 98% Stock Selection Profile of Fund Companies with small market capitalisation, at the point of purchase, with special focus on growth stocks Distribution Policy Incidental Suggested Minimum Investment Period 3 years 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. 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 counters which have moved above the market capitalisation range stated in the fund’s investment policy. Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile This fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. 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 the component stocks of the FTSE Bursa Malaysia Small Cap Index and small cap stock market indexes of selected foreign markets 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 and deposits. 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 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. 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 assessed. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities. 58 DETAILED INFORMATION ON THE FUNDS (CONT’D) To achieve increased diversification, the fund may invest in equities and fixed income securities of selected 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. Investments in certain foreign markets require the application of an investment licence or registration of an investor code. As such, the necessary approvals from the relevant foreign regulatory authorities, where required, will be obtained prior to investing in the above-mentioned permitted markets. 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, and warrants. The fund may also invest in fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits to help generate returns. Fund Specific Benefits The fund provides you with 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 stocks of companies that have good earnings growth potential and trade at attractive valuations. 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. 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 investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposure to fixed income securities in the portfolio are managed to ensure that risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. The fund’s overseas investments will be monitored to focus in markets with the potential to achieve positive returns that are commensurate with country risks, currency risks and liquidity risks. To mitigate risks arising from significant volatilities in times of adverse market movements, foreign currency exposure and foreign interest rate movements, the fund may employ hedging strategies which include futures contracts, foreign exchange forward contracts and options to manage the risks posed to the fund. As participation in futures contracts, foreign exchange forward contracts and options for hedging purposes and investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s participation in these instruments 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 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. Information on the FTSE Bursa Malaysia Small Cap Index is sourced from FTSE International Limited. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my. The P SmallCap is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“FTSE”) or by Bursa Malaysia Berhad (“BURSA MALAYSIA”) or by the London Stock Exchange Group companies (the “LSEG”) and neither FTSE nor BURSA MALAYSIA nor LSEG makes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE BURSA MALAYSIA SMALL CAP 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. However, neither FTSE nor BURSA MALAYSIA nor LSEG shall be liable (whether in negligence or otherwise) to any person for any error in the Index and neither FTSE nor BURSA MALAYSIA nor LSEG shall be under any obligation to advise any person of any error therein. “FTSE®”, “FT-SE®” and “Footsie®” are trade marks of LSEG and are used by FTSE under licence. “BURSA MALAYSIA” is a trade mark of BURSA MALAYSIA. 59 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC EQUITY FUND (PEF) Fund Profile Category of Fund Equity Type of Fund Capital growth Equity Range of Fund At least 80% Stock Selection Profile of Fund Growth stocks Distribution Policy Incidental Suggested Minimum Investment Period 3 years 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. Fund Objective To achieve capital growth through the aggressive selection of growth stocks from diversified economic sectors. Note: Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile This fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. 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 and deposits. 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. 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 assessed. 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 equities and fixed income securities of selected 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. Investments in certain foreign markets require the application of an investment licence or registration of an investor code. As such, the necessary approvals from the relevant foreign regulatory authorities, where required, will be obtained prior to investing in the above-mentioned permitted markets. The fund may consider investments in 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, and warrants. The fund may also invest in fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits to help generate returns. 60 DETAILED INFORMATION ON THE FUNDS (CONT’D) Fund Specific Benefits The fund provides you with 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. Fund Specific Risk Management The liquidity management and diversification strategies employed are therefore central to the efforts to manage the risks posed to the fund. 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 minimum levels indicated. With regards to the investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposure to fixed income securities in the portfolio are managed to ensure that risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. The fund’s overseas investments will be monitored to focus in markets with the potential to achieve positive returns that are commensurate with country risks, currency risks and liquidity risks. The fund may utilise foreign exchange forward contracts to hedge its holdings of foreign investments from foreign currency movements. This will enable the fund to mitigate risks arising from foreign currency exposure. As participation in foreign exchange forward contracts for hedging purposes and investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s participation in these instruments 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 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. 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. The PEF is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“FTSE”) or by Bursa Malaysia Berhad (“BURSA MALAYSIA”) or by the London Stock Exchange Group companies (the “LSEG”) and neither FTSE nor BURSA MALAYSIA nor LSEG makes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE BURSA MALAYSIA KLCI (“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. However, neither FTSE nor BURSA MALAYSIA nor LSEG shall be liable (whether in negligence or otherwise) to any person for any error in the Index and neither FTSE nor BURSA MALAYSIA nor LSEG shall be under any obligation to advise any person of any error therein. “FTSE®”, “FT-SE®” and “Footsie®” are trade marks of LSEG and are used by FTSE under licence. “BURSA MALAYSIA” is a trade mark of BURSA MALAYSIA. 61 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC FOCUS SELECT FUND (PFSF) Fund Profile Category of Fund Equity Type of Fund Capital growth Equity Range of Fund 70% to 98% Stock Selection Profile of Fund Medium and small-sized companies Distribution Policy Incidental Suggested Minimum Investment Period 3 years 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. Fund Objective To achieve capital growth through investments in medium and small-sized companies in terms of market capitalisation from diversified economic sectors. Notes: The fund may remain invested in counters which have moved above the market capitalisation range stated in the fund’s investment strategy. Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile This fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. Investment Policy PFSF invests in a diversified portfolio of primarily Malaysian equities and fixed income securities to meet its investment objective. The fund will invest in medium and small-sized companies listed on the domestic market and selected foreign markets. 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 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 and deposits. Investment Strategy PFSF is actively managed to achieve its goal of capital growth by investing in medium and small-sized companies listed on Bursa Securities within the market capitalisation range of FTSE Bursa Malaysia Small Cap Index and FTSE Bursa Malaysia Mid 70 Index respectively at the point of purchase. 62 DETAILED INFORMATION ON THE FUNDS (CONT’D) The fund will also invest in component stocks of the mid and small cap stock market indices of selected foreign markets at the point of purchase. If mid and small cap stock market indices are not available for a foreign market, the fund will invest in stocks of companies which form the bottom 30% of the cumulative market capitalisation of the market in which the stock is listed on at the point of purchase. 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 30%. 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 assessed. 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 equities and fixed income securities of selected 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. Investments in certain foreign markets require the application of an investment licence or registration of an investor code. As such, the necessary approvals from the relevant foreign regulatory authorities, where required, will be obtained prior to investing in the above-mentioned permitted markets. The fund may consider investments in IPOs of companies seeking a listing on the Bursa Securities or other permitted foreign markets, and warrants. 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 (sovereign and corporate) and liquid assets which include money market instruments and deposits to generate additional returns. Fund Specific Benefits The fund provides you with the opportunity to participate in the long-term growth potential of a diversified portfolio of medium and small-sized companies. The focus of the fund is on identifying stocks of companies that have good earnings growth potential and trade at attractive valuations. Fund Specific Risk Management The fund faces liquidity risk especially with regard to investments in shares of medium and small-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 investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposure to fixed income securities in the portfolio are managed to ensure that risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. The fund’s overseas investments will be monitored to focus in markets with the potential to achieve positive returns that are commensurate with country risks, currency risks and liquidity risks. The fund may utilise foreign exchange forward contracts to hedge its holdings of foreign investments from foreign currency movements. This will enable the fund to mitigate risks arising from foreign currency exposure. As participation in foreign exchange forward contracts for hedging purposes and investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s participation in these instruments 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”. 63 DETAILED INFORMATION ON THE FUNDS (CONT’D) 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. Information on the FTSE Bursa Malaysia Mid 70 Index is sourced from FTSE International Limited. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my. The PFSF is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“FTSE”) or by Bursa Malaysia Berhad (“BURSA MALAYSIA”) or by the London Stock Exchange Group companies (the “LSEG”) and neither FTSE nor BURSA MALAYSIA nor LSEG makes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE BURSA MALAYSIA MID 70 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. However, neither FTSE nor BURSA MALAYSIA nor LSEG shall be liable (whether in negligence or otherwise) to any person for any error in the Index and neither FTSE nor BURSA MALAYSIA nor LSEG shall be under any obligation to advise any person of any error therein. “FTSE®”, “FT-SE®” and “Footsie®” are trade marks of LSEG and are used by FTSE under licence. “BURSA MALAYSIA” is a trade mark of BURSA MALAYSIA. 64 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC DIVIDEND SELECT FUND (PDSF) Fund Profile Category of Fund Equity Type of Fund Income Equity Range of Fund 75% to 98% Stock Selection Profile of Fund Stocks which offer or have the potential to offer attractive dividend yields Distribution Policy Semi-annual Suggested Minimum Investment Period 3 years 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. 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. Note: Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of annual income* and capital growth. * Distribution (if any) will be reinvested unless unitholders opt for distribution to be paid out. Please refer to pages 37 to 39 for more information on distribution policy. 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 and deposits. 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. 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 assessed. To achieve increased diversification, the fund may invest in equities and fixed income securities of selected 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. Investments in certain foreign markets require the application of an investment licence or registration of an investor code. As such, the necessary approvals from the relevant foreign regulatory authorities, where required, will be obtained prior to investing in the above-mentioned permitted markets. The fund may consider investments in 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, and warrants. The fund may also invest in fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits to help generate interest income. 65 DETAILED INFORMATION ON THE FUNDS (CONT’D) Fund Specific Benefits The fund provides you with 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. 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. 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 investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposure to fixed income securities in the portfolio are managed to ensure that risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. The fund’s overseas investments will be monitored to focus in markets with the potential to achieve positive returns that are commensurate with country risks, currency risks and liquidity risks. The fund may utilise foreign exchange forward contracts to hedge its holdings of foreign investments from foreign currency movements. This will enable the fund to mitigate risks arising from foreign currency exposure. As participation in foreign exchange forward contracts for hedging purposes and investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s participation in these instruments 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 PDSF The benchmarks of the fund and their respective percentages are as follows: • • 90% FTSE Bursa Malaysia Top 100 Index (FBM 100), and 10% 3-Month KLIBOR As PDSF 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. 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. Information on the FBM 100 is sourced from FTSE International Limited. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my. The PDSF is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“FTSE”) or by Bursa Malaysia Berhad (“BURSA MALAYSIA”) or by the London Stock Exchange Group companies (the “LSEG”) and neither FTSE nor BURSA MALAYSIA nor LSEG makes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE BURSA MALAYSIA TOP 100 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. However, neither FTSE nor BURSA MALAYSIA nor LSEG shall be liable (whether in negligence or otherwise) to any person for any error in the Index and neither FTSE nor BURSA MALAYSIA nor LSEG shall be under any obligation to advise any person of any error therein. “FTSE®”, “FT-SE®” and “Footsie®” are trade marks of LSEG and are used by FTSE under licence. “BURSA MALAYSIA” is a trade mark of BURSA MALAYSIA. 66 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC FAR-EAST SELECT FUND (PFES) Fund Profile Category of Fund Equity Type of Fund Capital growth Equity Range of Fund 75% to 98% Stock Selection Profile of Fund Blue chip stocks and growth stocks Distribution Policy Incidental Suggested Minimum Investment Period 3 years 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. Fund Objective To seek long-term capital appreciation by investing in blue chips and growth stocks in domestic and regional markets. Note: Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. 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 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 and deposits. 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. 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 assessed. 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 equities and fixed income securities of selected regional markets which include South Korea, China, Hong Kong, Taiwan, Singapore, Philippines, Thailand, Indonesia and other permitted markets. Investments in certain foreign markets require the application of an investment licence or registration of an investor code. As such, the necessary approvals from the relevant foreign regulatory authorities, where required, will be obtained prior to investing in the above-mentioned permitted markets. The fund may consider investments in 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, and warrants. The fund may also invest in fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits to help generate returns. 67 DETAILED INFORMATION ON THE FUNDS (CONT’D) Fund Specific Benefits The fund provides you with 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. 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. 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 investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposures to fixed income securities in the portfolio are managed to ensure that risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. The fund’s overseas investments will be monitored to focus in markets with the potential to achieve positive returns that are commensurate with country risks, currency risks and liquidity risks. The fund may utilise foreign exchange forward contracts to hedge its holdings of foreign investments from foreign currency movements. This will enable the fund to mitigate risks arising from foreign currency exposure. As participation in foreign exchange forward contracts for hedging purposes and investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s participation in these instruments 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 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. Source: MSCI. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent. 68 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC REGIONAL SECTOR FUND (PRSEC) Fund Profile Category of Fund Equity Type of Fund Capital growth Equity Range of Fund 75% to 98% Stock Selection Profile of Fund Index stocks, blue chip stocks and growth stocks Distribution Policy Incidental Suggested Minimum Investment Period 3 years 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. Fund Objective To seek long-term capital appreciation by investing in selected market sectors. Note: Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. 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 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 and deposits. 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. 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 assessed. 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 equities and fixed income securities of selected regional markets which include South Korea, China, Japan, Hong Kong, Taiwan, Singapore, Philippines, Thailand, Indonesia and other permitted markets. Investments in certain foreign markets require the application of an investment licence or registration of an investor code. As such, the necessary approvals from the relevant foreign regulatory authorities, where required, will be obtained prior to investing in the above-mentioned permitted markets. The fund may consider investments in IPOs of companies seeking a listing on the Bursa Securities or other permitted regional markets. The fund may also invest in collective investment schemes both in the domestic and foreign markets, and warrants. The fund may also invest in fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits to help generate returns. 69 DETAILED INFORMATION ON THE FUNDS (CONT’D) Fund Specific Benefits The fund provides you with 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. 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. 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 investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposure to fixed income securities in the portfolio are managed to ensure that risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. The fund’s overseas investments will be monitored to focus in markets with the potential to achieve positive returns that are commensurate with country risks, currency risks and liquidity risks. The fund may utilise foreign exchange forward contracts to hedge its holdings of foreign investments from foreign currency movements. This will enable the fund to mitigate risks arising from foreign currency exposure. As participation in foreign exchange forward contracts for hedging purposes and investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s participation in these instruments 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 PRSEC The benchmarks of the fund and their respective percentages are as follows: • • 90% MSCI AC Far-East Ex-Japan Index*, and 10% 3-Month KLIBOR As PRSEC 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. 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. Source: MSCI. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent. 70 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC GLOBAL SELECT FUND (PGSF) Fund Profile Category of Fund Equity Type of Fund Capital growth Equity Range of Fund 75% to 98% Stock Selection Profile of Fund Blue chip stocks, index stocks and growth stocks Distribution Policy Incidental Suggested Minimum Investment Period 3 years 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. Fund Objective To seek long-term capital appreciation by investing in equities and collective investment schemes in domestic and global markets. Note: Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. 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 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 and deposits. 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 assessed. 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 equities and fixed income securities of 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. Investments in certain foreign markets require the application of an investment licence or registration of an investor code. As such, the necessary approvals from the relevant foreign regulatory authorities, where required, will be obtained prior to investing in the abovementioned permitted markets. 71 DETAILED INFORMATION ON THE FUNDS (CONT’D) The fund may consider investments in IPOs of companies seeking a listing on the Bursa Securities or selected global markets. The fund’s investments may also include warrants. The fund may also invest in fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits to help generate returns. Fund Specific Benefits The fund provides you with 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. 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. 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 investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposure to fixed income securities in the portfolio are managed to ensure that risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. The fund’s overseas investments will be monitored to focus in markets with the potential to achieve positive returns that are commensurate with country risks, currency risks and liquidity risks. The fund may utilise foreign exchange forward contracts to hedge its holdings of foreign investments from foreign currency movements. This will enable the fund to mitigate risks arising from foreign currency exposure. As participation in foreign exchange forward contracts for hedging purposes and investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s participation in these instruments 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 PGSF The benchmarks of the fund and their respective percentages are as follows: • • 90% MSCI All Country World Index (MSCI ACWI), and 10% 1-Month KLIBOR As PGSF 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. 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. 72 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC FAR-EAST DIVIDEND FUND (PFEDF) Fund Profile Category of Fund Equity Type of Fund Income Equity Range of Fund 75% to 98% Stock Selection Profile of Fund Stocks which offer or have the potential to offer attractive dividend yields Distribution Policy Annual Suggested Minimum Investment Period 3 years 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. 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. Note: Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of annual income* and capital growth. * Distribution (if any) will be reinvested unless unitholders opt for distribution to be paid out. Please refer to pages 37 to 39 for more information on distribution policy. 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 and deposits. 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. 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 assessed. Up to 98% of the fund’s NAV can be invested in equities and fixed income securities of selected regional markets which include South Korea, China, Taiwan, Hong Kong, Philippines, Indonesia, Singapore, Thailand and other permitted markets. Investments in certain foreign markets require the application of an investment licence or registration of an investor code. As such, the necessary approvals from the relevant foreign regulatory authorities, where required, will be obtained prior to investing in the above-mentioned permitted markets. 73 DETAILED INFORMATION ON THE FUNDS (CONT’D) 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, and warrants. The fund may invest in fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits to help generate interest income. Fund Specific Benefits The fund provides you with 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. 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. 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 investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposure to fixed income securities in the portfolio are managed to ensure that risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. The fund’s overseas investments will be monitored to focus in markets with the potential to achieve positive returns that are commensurate with country risks, currency risks and liquidity risks. To mitigate risks arising from significant volatilities in times of adverse market movements, foreign currency exposure and foreign interest rate movements, the fund may employ hedging strategies which include futures contracts, foreign exchange forward contracts and options to manage the risks posed to the fund. As participation in futures contracts, foreign exchange forward contracts and options for hedging purposes and investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s participation in these instruments 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 PFEDF The benchmarks of the fund and their respective percentages are as follows: • • 90% MSCI AC Far-East Ex-Japan High Dividend Yield Index, and 10% 3-Month KLIBOR As PFEDF 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 High Dividend Yield 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 High Dividend Yield 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 High Dividend Yield Index comprises securities in the MSCI AC Far-East Ex-Japan Index that have higher-than-average dividend yield, a track record of consistent dividend payments and the capacity to sustain future dividend payments. 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. 74 DETAILED INFORMATION ON THE FUNDS (CONT’D) Information on the 3-Month KLIBOR is provided by Bank Negara Malaysia, which is published in the business sections of the daily newspapers. Information on the MSCI AC Far-East Ex-Japan High Dividend Yield Index is sourced from MSCI. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my. Source: MSCI. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent. 75 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC CHINA SELECT FUND (PCSF) Fund Profile Category of Fund Equity Type of Fund Capital growth Equity Range of Fund 75% to 98% Stock Selection Profile of Fund Blue chip stocks, index stocks and growth stocks Distribution Policy Incidental Suggested Minimum Investment Period 3 years 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. 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. Note: Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. 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 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 and deposits. 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 assessed. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities. 76 DETAILED INFORMATION ON THE FUNDS (CONT’D) Up to 98% of the fund’s NAV can be invested in equities and fixed income securities of selected foreign markets which include Hong Kong, China, Taiwan, Singapore, United States of America and other permitted markets. Investments in certain foreign markets require the application of an investment licence or registration of an investor code. As such, the necessary approvals from the relevant foreign regulatory authorities, where required, will be obtained prior to investing in the above-mentioned permitted markets. 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, and warrants. The fund may also invest in fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits to help generate returns. Fund Specific Benefits The fund provides you with 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. 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. 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 investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposures to fixed income securities in the portfolio are managed to ensure that risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. 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 significant volatilities in times of adverse market movements, foreign currency exposure and foreign interest rate movements, the fund may employ hedging strategies which include futures contracts, foreign exchange forward contracts and options to manage the risks posed to the fund. The fund’s other overseas investments will also be monitored to focus in markets with the potential to achieve positive returns that are commensurate with the associated risks. As participation in futures contracts, foreign exchange forward contracts and options for hedging purposes and investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s participation in these instruments 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 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. Source: MSCI. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent. 77 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC FAR-EAST PROPERTY & RESORTS FUND (PFEPRF) Fund Profile Category of Fund Equity Type of Fund Capital growth and income Equity Range of Fund 75% to 98% Stock Selection Profile of Fund Property, hotel and resorts stocks and real estate investment trusts Distribution Policy Annual Suggested Minimum Investment Period 3 years 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. 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. Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. 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 and deposits. 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. 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 assessed. 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 equities and fixed income securities of selected regional markets which include South Korea, China, Japan, Taiwan, Hong Kong, Australia, New Zealand, Philippines, Indonesia, Singapore, Thailand and other permitted markets. Investments in certain foreign markets require the application of an investment licence or registration of an investor code. As such, the necessary approvals from the relevant foreign regulatory authorities, where required, will be obtained prior to investing in the above-mentioned permitted markets. 78 DETAILED INFORMATION ON THE FUNDS (CONT’D) The fund may consider investments in IPOs of companies seeking a listing on the Bursa Securities or selected regional markets. The fund may invest in collective investment schemes both in the domestic or selected regional markets, and warrants. The fund may also invest in fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits to help generate returns. Fund Specific Benefits The fund provides you with 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. 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. 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 investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposure to fixed income securities in the portfolio are managed to ensure that risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. The fund’s overseas investments will be monitored to focus in markets with the potential to achieve positive returns that are commensurate with country risks, currency risks and liquidity risks. The fund may utilise foreign exchange forward contracts to hedge its holdings of foreign investments from foreign currency movements. This will enable the fund to mitigate risks arising from foreign currency exposure. As participation in foreign exchange forward contracts for hedging purposes and investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s participation in these instruments 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 PFEPRF The benchmark of the fund is a customised benchmark by S&P Dow Jones Indices, LLC 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 S&P Dow Jones Indices, LLC. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my. The “customised benchmark index for PFEPRF” is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by Public Mutual. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); Standard & Poor’s® , S&P® and Dow Jones® are trademarks of the SPDJI; and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Public Mutual. Public Mutual’s PFEPRF is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the “customised benchmark index for PFEPRF”. 79 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC SOUTH-EAST ASIA SELECT FUND (PSEASF) Fund Profile Category of Fund Equity Type of Fund Capital growth Equity Range of Fund 75% to 98% Stock Selection Profile of Fund Blue chip stocks, index stocks and growth stocks Distribution Policy Incidental Suggested Minimum Investment Period 3 years 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. Fund Objective To achieve capital growth over the medium to long-term period by investing in a portfolio of investments in SouthEast Asia markets. Note: Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. 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 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 and deposits. 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 assessed. 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 equities and fixed income securities of selected regional markets which include Indonesia, Philippines, Singapore, Thailand, Vietnam and other permitted markets. Investments in certain foreign markets require the application of an investment licence or registration of an investor code. As such, the necessary approvals from the relevant foreign regulatory authorities, where required, will be obtained prior to investing in the above-mentioned permitted markets. The fund may consider investments in IPOs of companies seeking a listing on the domestic and regional markets in South-East Asia. The fund may invest in collective investment schemes both in the domestic or selected regional markets, and warrants. The fund may also invest in fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits to help generate returns. 80 DETAILED INFORMATION ON THE FUNDS (CONT’D) Fund Specific Benefits The fund provides you with 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. 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. 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 investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposures to fixed income securities in the portfolio are managed to ensure that risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. The fund’s overseas investments will be monitored to focus in markets with the potential to achieve positive returns that are commensurate with country risks, currency risks and liquidity risks. The fund may utilise foreign exchange forward contracts to hedge its holdings of foreign investments from foreign currency movements. This will enable the fund to mitigate risks arising from foreign currency exposure. As participation in foreign exchange forward contracts for hedging purposes and investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s participation in these instruments 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 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 Group companies (“LSEG”) and neither FTSE nor LSEG 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 LSEG nor the Exchanges shall be liable (whether in negligence or otherwise) to any person for any error in the Index and neither FTSE nor the LSEG nor the Exchanges shall be under any obligation to advise any person of any error therein. “FTSE®”, “FT-SE®” and “Footsie®” are trade marks of the LSEG and are used by FTSE International Limited under licence. 81 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC SECTOR SELECT FUND (PSSF) Fund Profile Category of Fund Equity Type of Fund Capital growth Equity Range of Fund 75% to 98% Stock Selection Profile of Fund Index stocks, blue chip stocks and growth stocks Distribution Policy Incidental Suggested Minimum Investment Period 3 years 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. Fund Objective To seek long-term capital appreciation by investing in a portfolio of securities from selected market sectors in the domestic market. Note: Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. 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 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 and deposits. 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. 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. 82 DETAILED INFORMATION ON THE FUNDS (CONT’D) 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. 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 assessed. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities. The fund may participate in IPOs of companies seeking a listing on Bursa Securities. The fund may also invest in collective investment schemes in the domestic market, and warrants. The fund may also invest in fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits to help generate returns. Fund Specific Benefits The fund provides you with 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. 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. 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 investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposures to fixed income securities in the portfolio are managed to ensure that risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. As investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s investments in 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 PSSF 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. Information on FBM 100 is sourced from FTSE International Limited. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my. The PSSF is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“FTSE”) or by Bursa Malaysia Berhad (“BURSA MALAYSIA”) or by the London Stock Exchange Group companies (the “LSEG”) and neither FTSE nor BURSA MALAYSIA nor LSEG makes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE BURSA MALAYSIA TOP 100 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. However, neither FTSE nor BURSA MALAYSIA nor LSEG shall be liable (whether in negligence or otherwise) to any person for any error in the Index and neither FTSE nor BURSA MALAYSIA nor LSEG shall be under any obligation to advise any person of any error therein. “FTSE®”, “FT-SE®” and “Footsie®” are trade marks of LSEG and are used by FTSE under licence. “BURSA MALAYSIA” is a trade mark of BURSA MALAYSIA. 83 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC FAR-EAST CONSUMER THEMES FUND (PFECTF) Fund Profile Category of Fund Equity Type of Fund Capital growth Equity Range of Fund 75% to 98% Stock Selection Profile of Fund Consumer sector stocks Distribution Policy Incidental Suggested Minimum Investment Period 3 years 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. Fund Objective To achieve long term capital appreciation by investing in securities, mainly equities, in the consumer sector in the domestic and foreign markets. Note: Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. 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 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 and deposits. 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. Given the positive demographic factors and rising affluence of the population base in the Far-East region, the longterm 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. 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 assessed. 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. 84 DETAILED INFORMATION ON THE FUNDS (CONT’D) Up to 98% of the fund’s NAV can be invested in equities and fixed income securities of selected foreign markets which include Japan, Korea, Taiwan, China, Hong Kong, Singapore, Thailand, Philippines, Indonesia, United States, Europe, Australia and other permitted markets. Investments in certain foreign markets require the application of an investment licence or registration of an investor code. As such, the necessary approvals from the relevant foreign regulatory authorities, where required, will be obtained prior to investing in the above-mentioned permitted markets. The fund may consider investments in 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, and warrants. The fund may also invest in fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits to help generate returns. Fund Specific Benefits The fund provides you with 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. 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. 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 investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposures to fixed income securities in the portfolio are managed to ensure that risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. The fund’s overseas investments will be monitored to focus in markets with the potential to achieve positive returns that are commensurate with country risks, currency risks and liquidity risks. The fund may utilise foreign exchange forward contracts to hedge its holdings of foreign investments from foreign currency movements. This will enable the fund to mitigate risks arising from foreign currency exposure. As participation in foreign exchange forward contracts for hedging purposes and investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s participation in these instruments 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 PFECTF The benchmark of the fund is a customised index by S&P Dow Jones Indices, LLC 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. Information on the fund’s benchmark is sourced from S&P Dow Jones Indices, LLC. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my. The “customised benchmark index for PFECTF” is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by Public Mutual. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); Standard & Poor’s® , S&P® and Dow Jones® are trademarks of the SPDJI; and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Public Mutual. Public Mutual’s PFECTF is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the “customised benchmark index for PFECTF”. 85 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC CHINA TITANS FUND (PCTF) Fund Profile Category of Fund Equity Type of Fund Capital growth Equity Range of Fund 75% to 98% Stock Selection Profile of Fund Companies with market capitalisation of RM10 billion and above, at the point of purchase Distribution Policy Incidental Suggested Minimum Investment Period 3 years 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. 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. Note: Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. 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 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 and deposits. 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. 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 assessed. 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 equities and fixed income securities of selected foreign markets which include Hong Kong, China, Singapore, United States of America and other permitted markets. Investments in certain foreign markets require the application of an investment licence or registration of an investor code. As such, the necessary approvals from the relevant foreign regulatory authorities, where required, will be obtained prior to investing in the above-mentioned permitted markets. 86 DETAILED INFORMATION ON THE FUNDS (CONT’D) The fund may consider investments in IPOs of companies seeking a listing on the permitted markets. The fund may also invest in collective investment schemes both in the domestic and foreign markets, and warrants. The fund may also invest in fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits to help generate returns. Fund Specific Benefits The fund provides you with 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 stocks of companies that have good earnings growth potential and trade at attractive valuations with sound fundamentals. 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. 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 investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposures to fixed income securities in the portfolio are managed to ensure that risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. 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. The fund may utilise foreign exchange forward contracts to hedge its holdings of foreign investments from foreign currency movements. This will enable the fund to mitigate risks arising from foreign currency exposure. The fund’s other overseas investments will also be monitored to focus in markets with the potential to achieve positive returns that are commensurate with the associated risks. As participation in foreign exchange forward contracts for hedging purposes and investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s participation in these instruments 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 PCTF The benchmarks of the fund and their respective percentages are as follows: • • • 40% Hang Seng China Enterprises Index (HSCEI), 30% Hang Seng Index (HSI), and 30% MSCI Taiwan Large Cap Index The benchmark chosen for PCTF is a composite benchmark index comprising a hypothetical investment in the HSCEI, HSI and MSCI Taiwan Large Cap 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 MSCI Taiwan Large Cap 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 MSCI Taiwan Large Cap 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. Source: MSCI. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent. 87 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC FAR-EAST TELCO & INFRASTRUCTURE FUND (PFETIF) Fund Profile Category of Fund Equity Type of Fund Capital growth Equity Range of Fund 75% to 98% Stock Selection Profile of Fund Telecommunications, infrastructure and utilities stocks Distribution Policy Incidental Suggested Minimum Investment Period 3 years 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. 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. Note: Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. 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 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 and deposits. 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. 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 assessed. 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 equities and fixed income securities of selected foreign markets which include South Korea, China, Japan, Taiwan, Hong Kong, Philippines, Indonesia, Singapore, Thailand and other permitted markets. Investments in certain foreign markets require the application of an investment licence or registration of an investor code. As such, the necessary approvals from the relevant foreign regulatory authorities, where required, will be obtained prior to investing in the above-mentioned permitted markets. The fund may consider investments in 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, and warrants. The fund may also invest in fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits to help generate income returns. 88 DETAILED INFORMATION ON THE FUNDS (CONT’D) Fund Specific Benefits The fund provides you with 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. 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. 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 investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposures to fixed income securities in the portfolio are managed to ensure that risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. The fund’s overseas investments will be monitored to focus in markets with the potential to achieve positive returns that are commensurate with country risks, currency risks and liquidity risks. The fund may utilise foreign exchange forward contracts to hedge its holdings of foreign investments from foreign currency movements. This will enable the fund to mitigate risks arising from foreign currency exposure. As participation in foreign exchange forward contracts for hedging purposes and investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s participation in these instruments 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 PFETIF The benchmark of the fund is a customised index by S&P Dow Jones Indices, LLC 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. Information on the fund’s benchmark is sourced from S&P Dow Jones Indices, LLC. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my. The “customised benchmark index for PFETIF” is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by Public Mutual. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); Standard & Poor’s® , S&P® and Dow Jones® are trademarks of the SPDJI; and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Public Mutual. Public Mutual’s PFETIF is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the “customised benchmark index for PFETIF”. 89 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC SELECT ALPHA-30 FUND (PSA30F) Fund Profile Category of Fund Equity Type of Fund Capital growth Equity Range of Fund 75% to 98% Stock Selection Profile of Fund Blue chip stocks, index stocks and growth stocks Distribution Policy Incidental Suggested Minimum Investment Period 3 years 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 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. Note: Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. 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 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 liquid assets which include money market instruments and deposits. 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’s investment in foreign markets is incidental to its primary focus of investing in the domestic market. Investments in certain foreign markets require the application of an investment licence or registration of an investor code. As such, the necessary approvals from the relevant foreign regulatory authorities, where required, will be obtained prior to investing in 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 assessed. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities. The fund may consider investments in 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, and warrants. The fund may also invest in fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits to help generate returns. Fund Specific Benefits The fund provides you with 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. 90 DETAILED INFORMATION ON THE FUNDS (CONT’D) 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. 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 investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposures to fixed income securities in the portfolio are managed to ensure that risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. The fund’s overseas investments will be monitored to focus in markets with the potential to achieve positive returns that are commensurate with country risks, currency risks and liquidity risks. The fund may utilise foreign exchange forward contracts to hedge its holdings of foreign investments from foreign currency movements. This will enable the fund to mitigate risks arising from foreign currency exposure. As participation in foreign exchange forward contracts for hedging purposes and investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s participation in these instruments 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 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. 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. The PSA30F is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“FTSE”) or by Bursa Malaysia Berhad (“BURSA MALAYSIA”) or by the London Stock Exchange Group companies (the “LSEG”) and neither FTSE nor BURSA MALAYSIA nor LSEG makes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE BURSA MALAYSIA KLCI (“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. However, neither FTSE nor BURSA MALAYSIA nor LSEG shall be liable (whether in negligence or otherwise) to any person for any error in the Index and neither FTSE nor BURSA MALAYSIA nor LSEG shall be under any obligation to advise any person of any error therein. “FTSE®”, “FT-SE®” and “Footsie®” are trade marks of LSEG and are used by FTSE under licence. “BURSA MALAYSIA” is a trade mark of BURSA MALAYSIA. 91 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC WORLDWIDE EQUITY FUND (PWEF) (formerly known as Public Natural Resources Equity Fund) Fund Profile Category of Fund Equity Type of Fund Capital growth Equity Range of Fund 75% to 98% Stock Selection Profile of Fund Blue chip stocks, index stocks and growth stocks Distribution Policy Incidental Suggested Minimum Investment Period 3 years 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. Fund Objective To achieve capital growth over the medium to long-term period by investing in global markets. Note: Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. Investment Policy PWEF invests 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 may also invest 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’s equity exposure will range between 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 and deposits. Investment Strategy PWEF is actively managed to achieve the long-term goal of capital growth by investing in blue chip stocks, index stocks and growth stocks listed on selected global markets. The fund may also invest 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. 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 assessed. 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 equities and fixed income securities of 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. Investments in certain foreign markets require the application of an investment licence or registration of an investor code. As such, the necessary approvals from the relevant foreign regulatory authorities, where required, will be obtained prior to investing in the abovementioned permitted markets. 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’s investments may also include warrants. The fund may also invest in fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits to help generate returns. 92 DETAILED INFORMATION ON THE FUNDS (CONT’D) Fund Specific Benefits The fund provides you with the opportunity to participate in the growth potential of a diversified portfolio of blue chip stocks, index stocks and growth stocks listed on selected global stock markets. 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. 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 investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposures to fixed income securities in the portfolio are managed to ensure that risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. The fund’s overseas investments will be monitored to focus in markets with the potential to achieve positive returns that are commensurate with country risks, currency risks and liquidity risks. To mitigate risks arising from significant volatilities in times of adverse market movements, foreign currency exposure and foreign interest rate movements, the fund may employ hedging strategies which include futures contracts, foreign exchange forward contracts and options to manage the risks posed to the fund. As participation in futures contracts, foreign exchange forward contracts and options for hedging purposes and investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s participation in these instruments 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 PWEF The benchmarks of the fund and their respective percentages are as follows: • • • • 50% Dow Jones Industrial Average; 30% STOXX Europe 50 Index; 10% TOPIX Core 30 Index; and 10% 3-Month KLIBOR As PWEF’s equity exposure will range between 75% to 98% of its NAV, the benchmark chosen for PWEF is a composite benchmark index comprising a hypothetical investment in the Dow Jones Industrial Average, STOXX Europe 50 Index, TOPIX Core 30 Index and 3-Month KLIBOR in a ratio of 50:30:10:10. Therefore, the returns for the benchmark index for any given period of time would comprise of 50% from the returns of the Dow Jones Industrial Average, 30% from STOXX Europe 50 Index, 10% from TOPIX Core 30 Index and 10% from the 3-Month KLIBOR interest earned for the same period of time. The component stocks of Dow Jones Industrial Average, STOXX Europe 50 Index and TOPIX Core 30 Index comprise major stocks from their respective markets. The ratio stated in the composite benchmark index is representative of the fund’s investments in global markets 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 Dow Jones Industrial Average, STOXX Europe 50 Index and TOPIX Core 30 Index are 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. 93 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC AUSTRALIA EQUITY FUND (PAUEF) Fund Profile Category of Fund Equity Type of Fund Capital growth Equity Range of Fund 75% to 98% Stock Selection Profile of Fund Blue chip stocks, index stocks and growth stocks Distribution Policy Incidental Suggested Minimum Investment Period 3 years 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. 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. Note: Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. 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 maintains equity exposures within a range of 75% to 98% against its NAV. The fund may also invest in fixed income securities and liquid assets which include money market instruments and deposits. 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 assessed. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities. The fund may consider investments in IPOs of companies seeking a listing on the Australian, New Zealand and domestic markets. The fund may also invest in collective investment schemes with similar investment objectives in the Australia, New Zealand and domestic markets, and warrants. The fund may also invest in fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits to help generate returns. Fund Specific Benefits The fund provides you with 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. 94 DETAILED INFORMATION ON THE FUNDS (CONT’D) 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. 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 investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposures to fixed income securities in the portfolio are managed to ensure that risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. Country risks, currency risks and liquidity risks associated with the fund’s investments in the Australia market will be monitored on an ongoing basis. The fund may utilise foreign exchange forward contracts to hedge its holdings of foreign investments from foreign currency movements. This will enable the fund to mitigate risks arising from foreign currency exposure. The fund’s other overseas investments will also be monitored to focus in markets with the potential to achieve positive returns that are commensurate with the associated risks. As participation in foreign exchange forward contracts for hedging purposes and investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s participation in these instruments 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 PAUEF The benchmark of the fund is the S&P/ASX 200 Index. The daily closing index for the S&P/ASX 200 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. 95 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC FAR-EAST ALPHA-30 FUND (PFA30F) Fund Profile Category of Fund Equity Type of Fund Capital growth Equity Range of Fund 75% to 98% Stock Selection Profile of Fund Blue chip stocks, index stocks and growth stocks Distribution Policy Incidental Suggested Minimum Investment Period 3 years 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. Fund Objective To achieve capital appreciation over the medium to long term period by investing in the domestic and regional markets. Note: Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. Investment Policy PFA30F will invest in up to a maximum of 30 stocks in the domestic and regional markets. The fund 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 liquid assets which include money market instruments and deposits. 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 assessed. 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 equities and fixed income securities of 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 FarEast 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. Investments in certain foreign markets require the application of an investment licence or registration of an investor code. As such, the necessary approvals from the relevant foreign regulatory authorities, where required, will be obtained prior to investing in the above-mentioned permitted markets. 96 DETAILED INFORMATION ON THE FUNDS (CONT’D) 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, and warrants. The fund may invest in fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits to generate returns. Fund Specific Benefits The fund provides you with 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 fixed income securities and liquid assets which include money market instruments and deposits to help generate returns for 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. 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 investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposures to fixed income securities in the portfolio are managed to ensure that risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. The fund’s overseas investments will be monitored to focus in markets with the potential to achieve positive returns that are commensurate with country risks, currency risks and liquidity risks. To mitigate risks arising from significant volatilities in times of adverse market movements, foreign currency exposure and foreign interest rate movements, the fund may employ hedging strategies which include futures contracts, foreign exchange forward contracts and options to manage the risks posed to the fund. As participation in futures contracts, foreign exchange forward contracts and options for hedging purposes and investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s participation in these instruments 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 PFA30F The benchmarks of the fund and their respective percentages are as follows: • • • 80% customised index by MSCI based on the Top 30 constituents of MSCI AC Far-East Ex-Japan Index, 10% Tokyo Stock Price Index (TOPIX), and 10% 3-Month KLIBOR As PFA30F 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 customised index based on the Top 30 constituents of 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 customised index based on the Top 30 constituents of 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 customised index based on the Top 30 constituents 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, while the component stocks of TOPIX comprise major stocks from Japan. 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. 97 DETAILED INFORMATION ON THE FUNDS (CONT’D) 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 Tokyo Stock Price Index is available on Bloomberg L.P. Information on the customised index based on the Top 30 constituents of MSCI AC Far-East Ex-Japan Index is sourced from MSCI. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my. Source: MSCI. The MSCI data is comprised of a custom index calculated by MSCI for, and as requested by, Public Mutual Berhad. The MSCI data is for internal use only and may not be redistributed or used in connection with creating or offering any securities, financial products or indices. Neither MSCI nor any other third party involved in or related to compiling, computing or creating the MSCI data (the “MSCI Parties”) makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and the MSCI Parties hereby expressly disclaim all the warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to such data. Without limiting any of the foregoing, in no event shall any of the MSCI Parties have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. 98 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC OPTIMAL GROWTH FUND (POGF) Fund Profile Category of Fund Equity Type of Fund Income and capital growth Equity Range of Fund 75% to 98% Stock Selection Profile of Fund Stocks which offer attractive dividend yields and growth stocks Distribution Policy Annual Suggested Minimum Investment Period 3 years 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. Fund Objective To provide income* and capital growth by investing in stocks which offer attractive dividend yields and growth stocks in the domestic market. Note: Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of annual income* and capital growth. * Distribution (if any) will be reinvested unless unitholders opt for distribution to be paid out. Please refer to pages 37 to 39 for more information on distribution policy. 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 liquid assets which include money market instruments and deposits. 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. 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. 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 assessed. Although the fund is actively managed, the frequency of its trading strategy will depend on market opportunities. The fund may participate in 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, and warrants. The fund may also invest in fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits to help generate returns. 99 DETAILED INFORMATION ON THE FUNDS (CONT’D) Fund Specific Benefits The fund provides you with the opportunity to participate in the long-term growth potential of a diversified portfolio of dividend stocks and growth stocks in the domestic market. 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. 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 investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposures to fixed income securities in the portfolio are managed to ensure that risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. As investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s investments in 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 POGF 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. Information on FBM 100 is sourced from FTSE International Limited. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my. The POGF is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“FTSE”) or by Bursa Malaysia Berhad (“BURSA MALAYSIA”) or by the London Stock Exchange Group companies (the “LSEG”) and neither FTSE nor BURSA MALAYSIA nor LSEG makes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE BURSA MALAYSIA TOP 100 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. However, neither FTSE nor BURSA MALAYSIA nor LSEG shall be liable (whether in negligence or otherwise) to any person for any error in the Index and neither FTSE nor BURSA MALAYSIA nor LSEG shall be under any obligation to advise any person of any error therein. “FTSE®”, “FT-SE®” and “Footsie®” are trade marks of LSEG and are used by FTSE under licence. “BURSA MALAYSIA” is a trade mark of BURSA MALAYSIA. 100 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC INDONESIA SELECT FUND (PINDOSF) Fund Profile Category of Fund Equity Type of Fund Capital growth Equity Range of Fund 75% to 98% Stock Selection Profile of Fund Blue chip stocks, index stocks and growth stocks Distribution Policy Incidental Suggested Minimum Investment Period 3 years 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. 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. Note: Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. 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 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 liquid assets which include money market instruments and deposits. 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 assessed. Although the fund is actively managed, the frequency of its trading strategy will depend on market opportunities. The fund may consider investments in IPOs of companies seeking a listing on the Indonesia, domestic and global markets. The fund may also invest in collective investment schemes with similar investment objectives in the Indonesia, domestic and global markets, and warrants. The fund may also invest in domestic and foreign fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits to help generate returns. Fund Specific Benefits The fund provides you with 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. 101 DETAILED INFORMATION ON THE FUNDS (CONT’D) 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. 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 investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposures to fixed income securities in the portfolio are managed to ensure that risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. Country risks, currency risks and liquidity risks associated with the fund’s investments in the Indonesia market will be monitored on an ongoing basis. The fund may utilise foreign exchange forward contracts to hedge its holdings of foreign investments from foreign currency movements. This will enable the fund to mitigate risks arising from foreign currency exposure. The fund’s other overseas investments will also be monitored to focus in markets with the potential to achieve positive returns that are commensurate with the associated risks. As participation in foreign exchange forward contracts for hedging purposes and investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s participation in these instruments 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 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. 102 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC SINGAPORE EQUITY FUND (PSGEF) Fund Profile Category of Fund Equity Type of Fund Capital growth Equity Range of Fund 75% to 98% Stock Selection Profile of Fund Blue chip stocks, index stocks and growth stocks Distribution Policy Incidental Suggested Minimum Investment Period 3 years 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. 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. Note: Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. 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 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 liquid assets which include money market instruments and deposits. 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 may consider investments in IPOs of companies seeking a listing on the Singapore, domestic and global markets. The fund may also invest in collective investment schemes with similar investment objectives in the Singapore, domestic and global markets, and warrants. The fund may also invest in domestic and foreign fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits to help generate returns. Fund Specific Benefits The fund provides you with 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. 103 DETAILED INFORMATION ON THE FUNDS (CONT’D) 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. 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 investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposures to fixed income securities in the portfolio are managed to ensure that risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. Country risks, currency risks and liquidity risks associated with the fund’s investments in the Singapore market will be monitored on an ongoing basis. The fund may utilise foreign exchange forward contracts to hedge its holdings of foreign investments from foreign currency movements. This will enable the fund to mitigate risks arising from foreign currency exposure. The fund’s other overseas investments will also be monitored to focus in markets with the potential to achieve positive returns that are commensurate with the associated risks. As participation in foreign exchange forward contracts for hedging purposes and investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s participation in these instruments 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 PSGEF The benchmark of the fund is the MSCI Singapore Index. The daily closing index for the MSCI Singapore 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. Source: MSCI. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent. 104 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC STRATEGIC SMALLCAP FUND (PSSCF) Fund Profile Category of Fund Equity Type of Fund Capital growth Equity Range of Fund 70% to 98% Stock Selection Profile of Fund Companies with small market capitalisation, at the point of purchase, with special focus on growth stocks Distribution Policy Incidental Suggested Minimum Investment Period 3 years 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. 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 counters which have moved above the market capitalisation range stated in the fund’s investment policy. Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. 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 the component stocks of the FTSE Bursa Malaysia Small Cap Index and small cap stock market indexes of selected foreign markets 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 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 and deposits. 105 DETAILED INFORMATION ON THE FUNDS (CONT’D) 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 investing in a diversified portfolio of small market capitalisation companies with growth prospects that are listed on the Bursa Securities. 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 assessed. 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 equities and fixed income securities of 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. Investments in certain foreign markets require the application of an investment licence or registration of an investor code. As such, the necessary approvals from the relevant foreign regulatory authorities, where required, will be obtained prior to investing in the above-mentioned permitted markets. 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, and warrants. The fund may also invest in fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits to help generate returns. Fund Specific Benefits The fund provides you with 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 stocks of companies with good earnings growth potential and trade at attractive valuations. Fund Specific Risk Management 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 utilise futures contracts and listed options to hedge against market volatility. Investments in fixed income securities may be adversely affected if interest rates were to move up sharply. As such, the fund’s exposure to fixed income securities are managed accordingly to ensure that risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. The fund’s overseas investments will be monitored to focus in markets with the potential to achieve positive returns that are commensurate with country risks, currency risks and liquidity risks. To mitigate risks arising from significant volatilities in times of adverse market movements, foreign currency exposure and foreign interest rate movements, the fund may employ hedging strategies which include futures contracts, foreign exchange forward contracts and options to manage the risks posed to the fund. 106 DETAILED INFORMATION ON THE FUNDS (CONT’D) As participation in futures contracts, foreign exchange forward contracts and options for hedging purposes and investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s participation in these instruments 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 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. Information on the FTSE Bursa Malaysia Small Cap Index is sourced from FTSE International Limited. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my. The PSSCF is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“FTSE”) or by Bursa Malaysia Berhad (“BURSA MALAYSIA”) or by the London Stock Exchange Group companies (the “LSEG”) and neither FTSE nor BURSA MALAYSIA nor LSEG makes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE BURSA MALAYSIA SMALL CAP 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. However, neither FTSE nor BURSA MALAYSIA nor LSEG shall be liable (whether in negligence or otherwise) to any person for any error in the Index and neither FTSE nor BURSA MALAYSIA nor LSEG shall be under any obligation to advise any person of any error therein. “FTSE®”, “FT-SE®” and “Footsie®” are trade marks of LSEG and are used by FTSE under licence. “BURSA MALAYSIA” is a trade mark of BURSA MALAYSIA. 107 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC STRATEGIC GROWTH FUND (PSTGF) Fund Profile Category of Fund Equity Type of Fund Capital growth Equity Range of Fund 75% to 98% Stock Selection Profile of Fund Index stocks, blue chip stocks and growth stocks Distribution Policy Incidental Suggested Minimum Investment Period 3 years 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. Fund Objective To achieve capital growth over the medium to long-term period by investing in a diversified portfolio of stocks. Note: Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. Investment Policy PSTGF 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 between 75% and 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. 50% to 75% of the fund’s NAV will be invested in the domestic equity market with the balance equity holdings invested in foreign markets. Investment Strategy PSTGF is actively managed and seeks to achieve the medium to long-term goal of capital growth by investing 75% to 98% of its NAV in a diversified portfolio of index stocks, blue chip stocks and growth stocks. The balance of the fund’s NAV will be invested in fixed income securities and liquid assets which include money market instruments and deposits. 50% to 75% of the fund’s NAV will be invested in domestic equity market with the balance equity holdings invested in foreign 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 assessed. 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 30% of its NAV in equities and fixed income securities of selected foreign markets which include China, South Korea, Japan, Taiwan, Hong Kong, Singapore, Indonesia, Thailand, Philippines, United States of America and other permitted markets. The fund’s investment in foreign markets is incidental to its primary focus of investing in the domestic market. Investments in certain foreign markets require the application of an investment licence or registration of an investor code. As such, the necessary approvals from the relevant foreign regulatory authorities, where required, will be obtained prior to investing in the above-mentioned permitted markets. 108 DETAILED INFORMATION ON THE FUNDS (CONT’D) The fund may consider investments in 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, and warrants issued during corporate exercises by companies listed in Bursa Securities in which the fund holds shares in. The fund may also invest in fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits to help generate returns. Fund Specific Benefits The fund provides you with the opportunity to participate in the medium to long-term growth potential of the equity market through investments in a diversified portfolio of index stocks, blue chip stocks and growth stocks. Fund Specific Risk Management 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 investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposure to fixed income securities in the portfolio are managed to ensure that the risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. The fund’s overseas investments will be monitored to focus in markets with the potential to achieve positive returns that are commensurate with country risks, currency risks and liquidity risks. The fund may utilise foreign exchange forward contracts to hedge its holdings of foreign investments from foreign currency movements. This will enable the fund to mitigate risks arising from foreign currency exposure. As participation in foreign exchange forward contracts for hedging purposes and investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s participation in these instruments 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 PSTGF The benchmarks of the fund and their respective percentages are as follows: • • • • 60% FTSE Bursa Malaysia KLCI (FBM KLCI), 15% Dow Jones Industrial Average, 15% customised index by MSCI based on the Top 30 constituents of MSCI AC Far-East Ex-Japan Index*, and 10% 3-Month KLIBOR As PSTGF will invest 75% to 98% of its NAV in equities, the benchmark chosen for PSTGF is a composite benchmark index comprising a hypothetical investment in the FBM KLCI, Dow Jones Industrial Average, a customised index by MSCI based on the Top 30 constituents of MSCI AC Far-East Ex-Japan Index and 3-Month KLIBOR in a ratio of 60:15:15:10. Therefore, the returns for the benchmark index for any given period of time would comprise of 60% from the returns of the FBM KLCI, 15% from the Dow Jones Industrial Average, 15% from the customised index by MSCI based on the Top 30 constituents of MSCI AC Far-East Ex-Japan Index and 10% from the 3-Month KLIBOR interest earned for the same period of time. The component stocks of FBM KLCI and Dow Jones Industrial Average comprises major stocks from Malaysia and the United States of America. The component stocks of the customised index based on the Top 30 constituents of MSCI Far-East Ex-Japan Index comprises 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 PSTGF as the fund is an equity fund which invests in domestic and foreign markets as well as generally having an equity weight of 90% of its NAV over the medium to long term. * As indices which focus on Asian markets have 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. 109 DETAILED INFORMATION ON THE FUNDS (CONT’D) 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 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 daily closing index for the Dow Jones Industrial Average and MSCI AC Far-East Ex-Japan Index are 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. The PSTGF is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“FTSE”) or by Bursa Malaysia Berhad (“BURSA MALAYSIA”) or by the London Stock Exchange Group companies (the “LSEG”) and neither FTSE nor BURSA MALAYSIA nor LSEG makes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE BURSA MALAYSIA KLCI (“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. However, neither FTSE nor BURSA MALAYSIA nor LSEG shall be liable (whether in negligence or otherwise) to any person for any error in the Index and neither FTSE nor BURSA MALAYSIA nor LSEG shall be under any obligation to advise any person of any error therein. “FTSE®”, “FT-SE®” and “Footsie®” are trade marks of LSEG and are used by FTSE under licence. “BURSA MALAYSIA” is a trade mark of BURSA MALAYSIA. Source: MSCI. The MSCI data is comprised of a custom index calculated by MSCI for, and as requested by, Public Mutual Berhad. The MSCI data is for internal use only and may not be redistributed or used in connection with creating or offering any securities, financial products or indices. Neither MSCI nor any other third party involved in or related to compiling, computing or creating the MSCI data (the “MSCI Parties”) makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and the MSCI Parties hereby expressly disclaim all the warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to such data. Without limiting any of the foregoing, in no event shall any of the MSCI Parties have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. 110 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC SELECT TREASURES EQUITY FUND (PSTEF) Fund Profile Category of Fund Equity Type of Fund Capital growth Equity Range of Fund 75% to 98% Stock Selection Profile of Fund Small and medium-sized companies, at the point of purchase Distribution Policy Incidental Suggested Minimum Investment Period 3 years 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 market is expected. Fund Objective To achieve capital growth over the medium to long-term period by investing in a portfolio of investments comprising small and medium-sized companies in terms of market capitalisation from diversified economic sectors. Notes: The fund may remain invested in counters which have moved above the market capitalisation range stated in the fund’s investment strategy. Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. Investment Policy PSTEF invests in a diversified portfolio of primarily Malaysian equities and fixed income securities to meet its investment objective. The fund will invest in small and medium-sized companies listed on the domestic market and selected foreign markets at the point of purchase. The fund generally maintains equity exposures within a range of between 75% and 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 and deposits. Investment Strategy PSTEF is actively managed to achieve its goal of capital growth by investing in small and medium-sized companies listed on Bursa Malaysia within the market capitalisation range of FTSE Bursa Malaysia Small Cap Index and FTSE Bursa Malaysia Mid 70 Index respectively at the point of purchase. The fund will also invest in component stocks of the small and mid cap stock market indices of selected foreign markets at the point of purchase. If small and mid cap stock market indices are not available for a foreign market, the fund will invest in stocks of companies which form the bottom 30% of the cumulative market capitalisation of the market in which the stock is listed on at the point of purchase. 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 30%. 111 DETAILED INFORMATION ON THE FUNDS (CONT’D) 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 assessed. 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 equities and fixed income securities of selected foreign markets which include China, South Korea, Japan, Taiwan, Hong Kong, Singapore, Indonesia, Thailand, Philippines and other permitted markets. The fund’s investment in foreign markets is incidental to its primary focus of investing in the domestic market. Investments in certain foreign markets require the application of an investment licence or registration of an investor code. As such, the necessary approvals from the relevant foreign regulatory authorities, where required, will be obtained prior to investing in the above-mentioned permitted markets. The fund may also participate in IPOs of companies seeking a listing on Bursa Securities or other permitted foreign markets. The fund may invest in collective investment schemes both in the domestic and foreign markets, and warrants issued during corporate exercises by companies listed in Bursa Securities in which the fund holds shares in. The fund may also invest in fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits to help generate returns. Fund Specific Benefits The fund provides you with the opportunity to participate in the medium to long-term growth potential of a diversified portfolio of small and medium-sized companies listed on domestic and foreign markets. The focus of the fund is on identifying stocks of companies that have good earnings growth potential and stocks that have the possibility to be rerated positively in terms of valuations. Fund Specific Risk Management The fund may face liquidity risk especially with regard to investments in shares of small and medium-sized companies. 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 investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposure to fixed income securities in the portfolio are managed to ensure that risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. The fund’s overseas investments will be monitored to focus in markets with the potential to achieve positive returns that are commensurate with country risks, currency risks and liquidity risks. The fund may utilise foreign exchange forward contracts to hedge its holdings of foreign investments from foreign currency movements. This will enable the fund to mitigate risks arising from foreign currency exposure. As participation in foreign exchange forward contracts for hedging purposes and investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s participation in these instruments 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 PSTEF The benchmarks of the fund and their respective percentages are as follows: • • • 70% FTSE Bursa Malaysia Mid 70 Index; 20% FTSE Bursa Malaysia Small Cap Index; and 10% 3-Month KLIBOR 112 DETAILED INFORMATION ON THE FUNDS (CONT’D) As PSTEF generally maintains an equity exposure ranging between 75% to 98% of its NAV, the benchmark chosen for it is a composite benchmark index comprising a hypothetical investment in the FTSE Bursa Malaysia Mid 70 Index, FTSE Bursa Malaysia Small Cap Index and 3-Month KLIBOR in a ratio of 70:20:10. Therefore, the returns for the benchmark index for any given period of time would comprise of 70% from the returns of the FTSE Bursa Malaysia Mid 70 Index, 20% from the returns of the FTSE Bursa Malaysia Small Cap Index and 10% from the 3-Month KLIBOR interest earned for the same period of time. The FTSE Bursa Malaysia Mid 70 Index 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. The FTSE Bursa Malaysia Small Cap Index comprises of eligible companies with the top 98% of the Bursa Malaysia Main Market excluding constituents of the FTSE Bursa Malaysia Top 100 Index. This composite benchmark index represents an appropriate performance benchmark for PSTEF which is an equity fund that invests in small and mid cap stocks and generally has an equity weight of 90% of its NAV over the medium to long term. Information on the FTSE Bursa Malaysia Mid 70 Index and the FTSE Bursa Malaysia Small Cap Index are sourced from FTSE International Limited. Information on the 3-Month KLIBOR is provided by Bank Negara Malaysia, which is published in the business sections of the daily newspapers. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my. The PSTEF is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“FTSE”) or by Bursa Malaysia Berhad (“BURSA MALAYSIA”) or by the London Stock Exchange Group companies (the “LSEG” and neither FTSE nor BURSA MALAYSIA nor LSEG makes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE BURSA MALAYSIA MID 70 INDEX and FTSE BURSA MALAYSIA SMALL CAP INDEX (“the Indices”), and/or the figure at which the said Indices stands at any particular time on any particular day or otherwise. The Indices are compiled and calculated by FTSE. However, neither FTSE nor BURSA MALAYSIA nor LSEG shall be liable (whether in negligence or otherwise) to any person for any error in the Indices and neither FTSE nor BURSA MALAYSIA nor LSEG shall be under any obligation to advise any person of any error therein. “FTSE®”, “FT-SE®” and “Footsie® “ are trade marks of LSEG and are used by FTSE under licence. “BURSA MALAYSIA “is a trade mark of BURSA MALAYSIA. 113 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC ADVANTAGE GROWTH EQUITY FUND (PAVGEF) Fund Profile Category of Fund Equity Type of Fund Capital growth Equity Range of Fund 75% to 98% Stock Selection Profile of Fund Growth stocks, index stocks and blue chip stocks Distribution Policy Incidental Suggested Minimum Investment Period 3 years 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. Fund Objective To achieve capital growth over the medium to long-term period by investing in a diversified portfolio of stocks. Note: Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. Investment Policy PAVGEF invests in a diversified portfolio of primarily Malaysian equities to meet its investment objective. Its equity content in terms of NAV will range between 75% and 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 PAVGEF is actively managed and seeks to achieve its medium to long-term goal of capital growth by investing in stocks of companies with potential earnings growth that is above the average earnings growth rate of the market. The fund may also invest in index stocks and blue chip stocks. 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 assessed. 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 equities and fixed income securities of selected foreign markets which include China, South Korea, Japan, Taiwan, Hong Kong, Singapore, Indonesia, Thailand, Philippines, United States of America, Europe and other permitted markets. The fund’s investment in foreign markets is incidental to its primary focus of investing in the domestic market. Investments in certain foreign markets require the application of an investment licence or registration of an investor code. As such, the necessary approvals from the relevant foreign regulatory authorities, where required, will be obtained prior to investing in the above-mentioned permitted markets. 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 invest in collective investment schemes both in the domestic and foreign markets, and warrants. The fund may also invest in fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits to help generate returns. 114 DETAILED INFORMATION ON THE FUNDS (CONT’D) Fund Specific Benefits The fund provides you with the opportunity to participate in the medium to long-term growth potential of the equity market through investments in a diversified portfolio of growth stocks, index stocks and blue chip stocks. Fund Specific Risk Management The asset allocation, liquidity management and diversification strategies employed are central to the efforts to manage the risks posed to the fund. There may even 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 investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposure to fixed income securities in the portfolio are managed to ensure that the risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. The fund’s overseas investments will be monitored to focus in markets with the potential to achieve positive returns that are commensurate with country risks, currency risks and liquidity risks. To mitigate risks arising from significant volatilities in times of adverse market movements, foreign currency exposure and foreign interest rate movements, the fund may employ hedging strategies which include futures contracts, foreign exchange forward contracts and options to manage the risks posed to the fund. As participation in futures contracts, foreign exchange forward contracts and options for hedging purposes and investments in warrants can potentially increase the volatility of the fund’s return, the fund’s participation in these instruments 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 PAVGEF As PAVGEF will focus its investment in the domestic market, the benchmark for PAVGEF 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. The PAVGEF is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“FTSE”) or by Bursa Malaysia Berhad (“BURSA MALAYSIA”) or by the London Stock Exchange Group companies (the “LSEG”) and neither FTSE nor BURSA MALAYSIA nor LSEG makes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE BURSA MALAYSIA KLCI (“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. However, neither FTSE nor BURSA MALAYSIA nor LSEG shall be liable (whether in negligence or otherwise) to any person for any error in the Index and neither FTSE nor BURSA MALAYSIA nor LSEG shall be under any obligation to advise any person of any error therein. “FTSE®”, “FT-SE®” and “Footsie®” are trade marks of LSEG and are used by FTSE under licence. “BURSA MALAYSIA” is a trade mark of BURSA MALAYSIA. 115 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC REGULAR SAVINGS SEQUEL FUND (PRSSQF) Fund Profile Category of Fund Equity Type of Fund Capital growth Equity Range of Fund 70% to 98% Stock Selection Profile of Fund Blue chip stocks, index stocks, growth stocks and stocks that offer or have the potential to offer attractive dividend yields Distribution Policy Annual Suggested Minimum Investment Period 3 years 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. Fund Objective To achieve capital growth and provide income* over the medium to long-term period. Notes: Any material changes to the investment objective of the fund would require unitholders’ approval. This is neither a capital guaranteed nor a capital protected fund. Investor Profile The fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth and annual income*. Note: * Distribution (if any) will be reinvested unless unitholders opt for distribution to be paid out. Please refer to pages 37 to 39 for more information on distribution policy. Investment Policy PRSSQF invests in a diversified portfolio of Malaysian equities comprising blue chip stocks, index stocks, growth stocks and stocks that offer or have the potential to offer attractive dividend yields with the balance invested in fixed income securities to meet its investment objective. Its equity content in terms of NAV will range between 70% and 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 PRSSQF is actively managed and seeks to achieve its objective by investing 70% to 98% of its NAV in a diversified portfolio of blue chip stocks, index stocks, growth stocks and stocks that offer or have the potential to offer attractive dividend yields that are listed on the Bursa Securities. 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 assessed. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities. The fund may consider investments in IPOs of companies seeking a listing on Bursa Securities. The fund may also invest in collective investment schemes in the domestic market, and warrants issued during corporate exercises by companies listed on Bursa Securities in which the fund holds shares in. The fund may also invest in fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits to help generate returns. 116 DETAILED INFORMATION ON THE FUNDS (CONT’D) Fund Specific Benefits The fund provides you with the opportunity to participate in the medium to long-term growth potential of the equity market through investments in a diversified portfolio of blue chip stocks, index stocks, growth stocks and stocks that offer or have the potential to offer attractive dividend yields. The equity exposures of the fund are managed actively with exposures ranging from 70% to 98% depending on the market and economic environment. 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 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 investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposure to fixed income securities in the portfolio are managed to ensure that the risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. As investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s investments in 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 PRSSQF The benchmarks of the fund and their respective percentages are as follows: • • 90% FTSE Bursa Malaysia Top 100 Index (FBM 100); and 10% 3-Month KLIBOR As PRSSQF will invest 70% to 98% of its NAV in equities, the benchmark chosen for PRSSQF 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 90% from the returns of the FBM 100 and 10% from the 3-Month KLIBOR interest earned for the same period of time. 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. This composite benchmark index represents an appropriate performance benchmark for PRSSQF as it is reflective of the fund’s equity investments in the domestic market 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. Information on the FBM 100 is sourced from FTSE International Limited. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my. The PRSSQF is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“FTSE”) or by Bursa Malaysia Berhad (“BURSA MALAYSIA”) or by the London Stock Exchange Group companies (the “LSEG”) and neither FTSE nor BURSA MALAYSIA nor LSEG makes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE BURSA MALAYSIA TOP 100 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. However, neither FTSE nor BURSA MALAYSIA nor LSEG shall be liable (whether in negligence or otherwise) to any person for any error in the Index and neither FTSE nor BURSA MALAYSIA nor LSEG shall be under any obligation to advise any person of any error therein. “FTSE®”, “FT-SE®” and “Footsie®” are trade marks of LSEG and are used by FTSE under licence. “BURSA MALAYSIA” is a trade mark of BURSA MALAYSIA. 117 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC EMERGING OPPORTUNITIES FUND (PEMOF) Fund Profile Category of Fund Equity Type of Fund Capital growth Equity Range of Fund 75% to 98% Stock Selection Profile of Fund Medium and small-sized companies, at the point of purchase Distribution Policy Incidental Suggested Minimum Investment Period 3 years 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. Fund Objective To achieve capital growth through investments in companies with mid and small market capitalisation. Notes: The fund may remain invested in counters which have moved above the market capitalisation range stated in the fund’s investment strategy. Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth. Investment Policy PEMOF invests in a diversified portfolio of equities and fixed income securities to meet its investment objective. The fund will invest in medium and small-sized companies listed on the domestic market and selected foreign markets at the point of purchase. The fund maintains equity exposures within arrange of 75% and 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 and deposits. Investment Strategy PEMOF is actively managed to achieve its goal of capital growth by investing in medium and small-sized companies listed on Bursa Securities within the market capitalisation range of FTSE Bursa Malaysia Small Cap Index and FTSE Bursa Malaysia Mid 70 Index respectively at the point of purchase. The fund will also invest in component stocks of the mid and small cap stock market indices of selected foreign markets at the point of purchase. If mid and small cap stock market indices are not available for a foreign market, the fund will invest in stocks of companies which form the bottom 30% of the cumulative market capitalisation of the market in which the stock is listed on at the point of purchase. 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 30%. 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 assessed. Although the fund is actively managed, the frequency of its trading strategy will very much depend on market opportunities. 118 DETAILED INFORMATION ON THE FUNDS (CONT’D) To achieve increased diversification, the fund may invest up to 25% of its NAV in equities and fixed income securities of selected foreign markets which include China, South Korea, Japan, Taiwan, Hong Kong, Singapore, Indonesia, Thailand, Philippines, Australia and other permitted markets. The fund’s investment in foreign markets is incidental to its primary focus of investing in the domestic market. Investments in certain foreign markets require the application of an investment licence or registration of an investor code. As such, the necessary approvals from the relevant foreign regulatory authorities, where required, will be obtained prior to investing in the above-mentioned permitted markets. 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 invest in collective investment schemes both in the domestic and foreign markets, and warrants. The fund may also invest in fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits to help generate returns. Fund Specific Benefits The fund provides you with the opportunity to participate in the medium to long-term growth potential of a diversified portfolio of medium and small-sized companies listed on domestic and foreign markets. The focus of the fund is on identifying stocks of companies that have good earnings growth potential and stocks that have the possibility to be rerated positively in terms of valuations. Fund Specific Risk Management The fund may face liquidity risk especially with regard to investments in shares of medium and small-sized companies. 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 investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposure to fixed income securities in the portfolio are managed to ensure that the risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. The fund’s overseas investments will be monitored to focus in markets with the potential to achieve positive returns that are commensurate with country risks, currency risks and liquidity risks. To mitigate risks arising from significant volatilities in times of adverse market movements, foreign currency exposure and foreign interest rate movements, the fund may employ hedging strategies which include futures contracts, foreign exchange forward contracts and options to manage the risks posed to the fund. As participation in futures contracts, foreign exchange forward contracts and options for hedging purposes and investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s participation in these instruments 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 PEMOF The benchmarks of the fund and their respective percentages are as follows: • • • 60% FTSE Bursa Malaysia Mid 70 Index; 30% FTSE Bursa Malaysia Small Cap Index; and 10% 3-Month KLIBOR 119 DETAILED INFORMATION ON THE FUNDS (CONT’D) As PEMOF generally maintains an equity exposure ranging between 75% to 98% of its NAV, the benchmark chosen for it is a composite benchmark index comprising a hypothetical investment in the FTSE Bursa Malaysia Mid 70 Index, FTSE Bursa Malaysia Small Cap Index and 3-Month KLIBOR in a ratio of 60:30:10. Therefore, the returns for the benchmark index for any given period of time would comprise of 60% from the returns of the FTSE Bursa Malaysia Mid 70 Index, 30% from the returns of the FTSE Bursa Malaysia Small Cap Index and 10% from the 3-Month KLIBOR interest earned for the same period of time. The FTSE Bursa Malaysia Mid 70 Index 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. The FTSE Bursa Malaysia Small Cap Index comprises of eligible companies with the top 98% of the Bursa Malaysia Main Market excluding constituents of the FTSE Bursa Malaysia Top 100 Index. This composite benchmark index represents an appropriate performance benchmark for PEMOF which is an equity fund that invests in small and mid cap stocks and generally has an equity weight of 90% of its NAV over the medium to long term. Information on the FTSE Bursa Malaysia Mid 70 Index and the FTSE Bursa Malaysia Small Cap Index are sourced from FTSE International Limited. Information on the 3-Month KLIBOR is provided by Bank Negara Malaysia, which is published in the business sections of the daily newspapers. The performance of the fund and its benchmark is available on Public Mutual’s website at www.publicmutual.com.my. The PEMOF is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“FTSE”) or by Bursa Malaysia Berhad (“BURSA MALAYSIA”) or by the London Stock Exchange Group companies (the “LSEG”) and neither FTSE nor BURSA MALAYSIA nor LSEG makes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE BURSA MALAYSIA MID 70 INDEX and FTSE BURSA MALAYSIA SMALL CAP INDEX (“the Indices”), and/or the figure at which the said Indices stands at any particular time on any particular day or otherwise. The Indices are compiled and calculated by FTSE. However, neither FTSE nor BURSA MALAYSIA nor LSEG shall be liable (whether in negligence or otherwise) to any person for any error in the Indices and neither FTSE nor BURSA MALAYSIA nor LSEG shall be under any obligation to advise any person of any error therein. “FTSE®”, “FT-SE®” and “Footsie®” are trade marks of LSEG and are used by FTSE under licence. “BURSA MALAYSIA “is a trade mark of BURSA MALAYSIA. 120 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC TACTICAL ALLOCATION FUND (PTAF) Fund Profile Category of Fund Mixed asset Type of Fund Capital growth Equity Range of Fund 30% to 98% Investment Asset Selection Profile of Fund Blue chip stocks, index stocks, growth stocks, fixed income securities, money market instruments and deposits Distribution Policy Incidental Suggested Minimum Investment Period 3 years 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. Note: Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth through a tactical asset allocation strategy. 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. 121 DETAILED INFORMATION ON THE FUNDS (CONT’D) 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 assessed. The fund may invest in collective investment schemes which invests in stocks listed in domestic and foreign markets, and warrants. 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 (sovereign and corporate) and liquid assets which include money market instruments and deposits. 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 fixed income securities 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 fixed income securities, short-tenured fixed income securities 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 industry in which the issuer company operates. 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 equities and fixed income securities of 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. Investments in certain foreign markets require the application of an investment licence or registration of an investor code. As such, the necessary approvals from the relevant foreign regulatory authorities, where required, will be obtained prior to investing in the above-mentioned permitted markets. Fund Specific Benefits The fund provides you with 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. Fund Specific Risk Management The asset allocation, liquidity management, diversification and hedging strategies employed are therefore 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 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. The fund’s overseas investments will be monitored to focus in markets with the potential to achieve positive returns that are commensurate with country risks, currency risks and liquidity risks. To mitigate risks arising from significant volatilities in times of adverse market movements, foreign currency exposure and foreign interest rate movements, the fund may employ hedging strategies which include futures contracts, foreign exchange forward contracts and options to manage the risks posed to the fund. 122 DETAILED INFORMATION ON THE FUNDS (CONT’D) As participation in futures contracts, foreign exchange forward contracts and options for hedging purposes and investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s participation in these instruments will be assessed on an ongoing basis and managed accordingly. With regards to the investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposures to fixed income securities in the portfolio are managed to ensure that risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. 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 PTAF The benchmarks of the fund and their respective percentages are as follows: • • 70% MSCI AC Far-East Ex-Japan Index*, and 30% 3-Month KLIBOR 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. * 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. Source: MSCI. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent. 123 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC SELECT MIXED ASSET GROWTH FUND (PSMAGF) Fund Profile Category of Fund Mixed asset Type of Fund Capital growth Equity Range of Fund 40% to 70% Fixed Income Securities Range of Fund 30% to 60% Stock Selection Profile of Fund Blue chip stocks, index stocks and growth stocks Fixed Income Securities Selection Profile of Fund Sovereign and corporate fixed income securities Distribution Policy Incidental Suggested Minimum Investment Period 3 years 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 market 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 primarily through a portfolio allocation across equities and fixed income securities. Note: Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth through a mixed asset allocation strategy. Investment Policy PSMAGF will invest primarily in equities, fixed income securities and money market instruments issued by companies domiciled in Malaysia to meet its investment objective. Its equity content will range between 40% to 70% of the fund’s NAV. 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 PSMAGF is actively managed and seeks to achieve its goal of providing capital growth over the medium to longterm period by adopting a mixed asset allocation strategy of investing 40% to 70% 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. 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. 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 assessed. 124 DETAILED INFORMATION ON THE FUNDS (CONT’D) The non-equity portion of the fund is invested in fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits. The fund will invest in fixed income securities of various tenures. The asset allocation between long-tenured fixed income securities, short-tenured fixed income securities 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 considered. 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. 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. To achieve increased diversification, the fund may invest up to 30% of its NAV in equities and fixed income securities of selected foreign markets which include China, South Korea, Japan, Taiwan, Hong Kong, Singapore, Indonesia, Thailand, Philippines and other permitted markets. The fund’s investment in foreign markets is incidental to its primary focus of investing in the domestic market. Investments in certain foreign markets require the application of an investment licence or registration of an investor code. As such, the necessary approvals from the relevant foreign regulatory authorities, where required, will be obtained prior to investing in the above-mentioned permitted markets. The fund may also participate in IPOs of companies seeking a listing on Bursa Securities or other permitted foreign markets. The fund may invest in collective investment schemes both in the domestic and foreign markets, and warrants issued during corporate exercises by companies listed in Bursa Securities in which the fund holds shares in. Fund Specific Benefits The fund provides you with the opportunity to achieve capital growth via the fund’s participation in a portfolio of investments in equities, fixed income securities and money market instruments. 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. 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 investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposures to fixed income securities in the portfolio are managed to ensure that risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. The fund’s overseas investments will be monitored to focus in markets with the potential to achieve positive returns that are commensurate with country risks, currency risks and liquidity risks. The fund may utilise foreign exchange forward contracts to hedge its holdings of foreign investments from foreign currency movements. This will enable the fund to mitigate risks arising from foreign currency exposure. As participation in foreign exchange forward contracts for hedging purposes and investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s participation in these instruments 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 PSMAGF The benchmarks of the fund and their respective percentages are as follows: • • 70% FTSE Bursa Malaysia KLCI (FBM KLCI), and 30% 3-Month KLIBOR 125 DETAILED INFORMATION ON THE FUNDS (CONT’D) As PSMAGF may invest up to 70% of its NAV in equities, the benchmark chosen for PSMAGF is a composite benchmark index comprising a hypothetical investment in the FBM KLCI 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 FBM KLCI and 30% from the 3-Month KLIBOR interest earned for the same period of time. The FBM KLCI is selected as the fund’s equity benchmark as the fund will focus its investments in the domestic market. 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. This composite index of 70% in FBM KLCI and 30% in 3-Month KLIBOR represents an appropriate performance benchmark for PSMAGF as it is reflective of the fund’s asset allocation in equities and fixed income securities 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 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. The PSMAGF is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“FTSE”) or by Bursa Malaysia Berhad (“BURSA MALAYSIA”) or by the London Stock Exchange Group companies (the “LSEG”) and neither FTSE nor BURSA MALAYSIA nor LSEG makes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE BURSA MALAYSIA KLCI (“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. However, neither FTSE nor BURSA MALAYSIA nor LSEG shall be liable (whether in negligence or otherwise) to any person for any error in the Index and neither FTSE nor BURSA MALAYSIA nor LSEG shall be under any obligation to advise any person of any error therein. “FTSE®”, “FT-SE®” and “Footsie® “ are trade marks of LSEG and are used by FTSE under licence. “BURSA MALAYSIA” is a trade mark of BURSA MALAYSIA. 126 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC SELECT MIXED ASSET CONSERVATIVE FUND (PSMACF) Fund Profile Category of Fund Mixed asset (conservative) Type of Fund Income and capital growth Fixed Income Securities Range of Fund 60% to 75% Equity Range of Fund Up to 35% Fixed Income Securities Selection Profile of Fund Sovereign and corporate fixed income securities Stock Selection Profile of Fund Blue chip stocks, index stocks and growth stocks Distribution Policy Annual Suggested Minimum Investment Period 3 years The fund may adopt temporary defensive strategies by lowering its fixed income securities and equity exposures below the respective range and limit stated above while increasing its investments in liquid assets which include money market instruments and deposits if the investment climate is deemed to be unfavourable and weakness in the fixed income securities and equity markets are expected. Fund Objective To provide income* and achieve capital growth over the medium to long-term period primarily through a portfolio allocation across fixed income securities and equities. Note: Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for medium to long-term investors who seek annual income* and capital growth through a conservative mixed asset allocation strategy. * Distribution (if any) will be reinvested unless unitholders opt for distribution to be paid out. Please refer to pages 37 to 39 for more information on distribution policy. Investment Policy PSMACF invests in a portfolio of fixed income securities, equities and money market instruments to meet its objective of providing income and capital growth to its unitholders. The fund maintains fixed income securities exposures of within 60% to 75% of its NAV. The fund may invest up to 35% of its NAV in equities. The balance of the fund’s NAV will be invested in liquid assets which include money market instruments and deposits. Investment Strategy PSMACF is actively managed and seeks to meet its objective by investing in fixed income securities, equities and money market instruments. To provide income, the fund will invest a significant portion of between 60% to 75% of its NAV in fixed income securities (sovereign and corporate). The fund’s investments in fixed income securities of various tenures will depend on economic conditions, interest rate trends and market liquidity conditions. Redeemable loan stocks with convertible features may also be considered. To manage credit risks of its fixed income securities investments, the fund will rely on credit analysis and focus on fixed income securities issued by companies with sound financial positions. To achieve capital growth, the fund can invest up to 35% of its NAV in equities. The equity investments of the fund focus on a diversified portfolio of index stocks, blue chip stocks and growth stocks that are listed on the Bursa Securities. 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 assessed. 127 DETAILED INFORMATION ON THE FUNDS (CONT’D) The balance of the fund’s NAV will be invested in liquid assets which include money market instruments and deposits. The money market instruments invested in 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. 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 equities and fixed income securities in markets which include China, South Korea, Taiwan, Hong Kong, Japan, Singapore, Thailand, Indonesia, Philippines and other permitted markets. Investments in certain foreign markets require the application of an investment licence or registration of an investor code. As such, the necessary approvals from the relevant foreign regulatory authorities, where required, will be obtained prior to investing in the above-mentioned permitted markets. The fund may also participate in IPOs of companies seeking a listing on Bursa Securities or other permitted foreign markets. The fund may invest in collective investment schemes both in the domestic and foreign markets, and warrants issued during corporate exercises by companies listed in Bursa Securities in which the fund holds shares in. Fund Specific Benefits The fund provides you with the opportunity to receive income and achieve capital growth via the fund’s participation in a portfolio of investments in fixed income securities, equities and money market instruments. 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. With regards to the investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposure to fixed income securities in the portfolio are managed to ensure that the risk levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. As for the fund’s equity portfolio, a severe downturn in the equity markets may adversely impact the value of the fund’s investment. When valuations of the equity markets are deemed to be unfavourable, the equity exposure of the fund will be reduced accordingly. The fund’s overseas investments will be monitored to focus in markets with the potential to achieve positive returns that are commensurate with country risks, currency risks and liquidity risks. The fund may utilise foreign exchange forward contracts to hedge its holdings of foreign investments from foreign currency movements. This will enable the fund to mitigate risks arising from foreign currency exposure. As participation in foreign exchange forward contracts for hedging purposes and investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s participation in these instruments 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 PSMACF The benchmarks of the fund and their respective percentages are as follows: • • 65% 3-Month KLIBOR, and 35% FTSE Bursa Malaysia KLCI (FBM KLCI) 128 DETAILED INFORMATION ON THE FUNDS (CONT’D) As PSMACF maintains a fixed income securities exposure ranging between 60% to 75% of its NAV, the benchmark chosen for PSMACF is a composite benchmark index comprising a hypothetical investment in the 3-Month KLIBOR and FBM KLCI in a ratio of 65:35. Therefore, the returns for the benchmark index for any given period of time would comprise of 65% from 3-Month KLIBOR interest earned and 35% from the returns of the FBM KLCI for the same period of time. The FBM KLCI is selected as the fund’s equity benchmark as the fund will focus its investments in the domestic market. 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. This composite benchmark index of 65% in 3-Month KLIBOR rate and 35% in FBM KLCI represents an appropriate performance benchmark for PSMACF as it is reflective of the fund’s asset allocation in fixed income securities and 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. 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. The PSMACF is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“FTSE”) or by Bursa Malaysia Berhad (“BURSA MALAYSIA”) or by the London Stock Exchange Group companies (the “LSEG”) and neither FTSE nor BURSA MALAYSIA nor LSEG makes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE BURSA MALAYSIA KLCI (“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. However, neither FTSE nor BURSA MALAYSIA nor LSEG shall be liable (whether in negligence or otherwise) to any person for any error in the Index and neither FTSE nor BURSA MALAYSIA nor LSEG shall be under any obligation to advise any person of any error therein. “FTSE®”, “FT-SE®” and “Footsie®” are trade marks of LSEG and are used by FTSE under licence. “BURSA MALAYSIA” is a trade mark of BURSA MALAYSIA. 129 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC BALANCED FUND (PBF) Fund Profile Category of Fund Balanced Type of Fund Income and capital growth Equity Range of Fund 40% to 60% Fixed Income Securities Range of Fund 40% to 60% Stock Selection Profile of Fund Index stocks, blue chip stocks and growth stocks Distribution Policy Incidental Suggested Minimum Investment Period 3 years 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. Fund Objective To provide a steady income* and capital growth over the medium to long-term period. Note: Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth and to a lesser extent income*. * Distribution (if any) will be reinvested unless unitholders opt for distribution to be paid out. Please refer to pages 37 to 39 for more information on distribution policy. 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 and deposits. 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 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. 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 assessed. 130 DETAILED INFORMATION ON THE FUNDS (CONT’D) The non-equity portion of the fund is invested in fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits. 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 fixed income securities of various tenures depending on economic growth, interest rate trends and market liquidity conditions. To manage credit risks of its investments in fixed income securities, the fund will rely on the credit analysis and focus on fixed income securities 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 industry in which the issuer company operates. Where yields are attractive and interest rate trends are favourable, the investments in fixed income securities are increased. Notwithstanding the need for a stable and recurring income stream, the investment in fixed income securities and liquid 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 securities and liquid assets to equities. To achieve increased diversification, the fund may invest in equities and fixed income securities of selected 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. Investments in certain foreign markets require the application of an investment licence or registration of an investor code. As such, the necessary approvals from the relevant foreign regulatory authorities, where required, will be obtained prior to investing in the above-mentioned permitted markets. The fund may consider investments in 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, and warrants. Fund Specific Benefits The fund provides you with the opportunity to invest in equities and fixed income securities through a balanced asset allocation approach 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. Fund Specific Risk Management 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. The asset allocation, liquidity management and diversification strategies employed are therefore central to the efforts to manage the risks posed to the fund. 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 investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposures to fixed income securities in the portfolio are managed to ensure that risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. The fund’s overseas investments will be monitored to focus in markets with the potential to achieve positive returns that are commensurate with country risks, currency risks and liquidity risks. The fund may utilise foreign exchange forward contracts to hedge its holdings of foreign investments from foreign currency movements. This will enable the fund to mitigate risks arising from foreign currency exposure. As participation in foreign exchange forward contracts for hedging purposes and investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s participation in these instruments 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”. 131 DETAILED INFORMATION ON THE FUNDS (CONT’D) 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 composite index whose value is subject to the daily changes in the FTSE Bursa Malaysia KLCI (FBM KLCI) and the 3-Month 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. 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. 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. The PBF is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“FTSE”) or by Bursa Malaysia Berhad (“BURSA MALAYSIA”) or by the London Stock Exchange Group companies (the “LSEG”) and neither FTSE nor BURSA MALAYSIA nor LSEG makes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE BURSA MALAYSIA KLCI (“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. However, neither FTSE nor BURSA MALAYSIA nor LSEG shall be liable (whether in negligence or otherwise) to any person for any error in the Index and neither FTSE nor BURSA MALAYSIA nor LSEG shall be under any obligation to advise any person of any error therein. “FTSE®”, “FT-SE®” and “Footsie®” are trade marks of LSEG and are used by FTSE under licence. “BURSA MALAYSIA” is a trade mark of BURSA MALAYSIA. 132 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC FAR-EAST BALANCED FUND (PFEBF) Fund Profile Category of Fund Balanced Type of Fund Income and capital growth Equity Range of Fund 40% to 60% Fixed Income Securities Range of Fund 40% to 60% Stock Selection Profile of Fund Index stocks, blue chip stocks and growth stocks Distribution Policy Incidental Suggested Minimum Investment Period 3 years 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. Fund Objective To provide income* and capital growth over the medium to long-term period. Note: Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth and to a lesser extent income*. * Distribution (if any) will be reinvested unless unitholders opt for distribution to be paid out. Please refer to pages 37 to 39 for more information on distribution policy. 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 and deposits. 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 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. 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 assessed. 133 DETAILED INFORMATION ON THE FUNDS (CONT’D) The non-equity portion of the fund is invested in fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits. 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 fixed income securities of various tenures depending on economic growth, interest rate trends and market liquidity conditions. To manage credit risks of its investments in fixed income securities, the fund will rely on the credit analysis and focus on fixed income securities 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 industry in which the issuer company operates. Where yields are attractive and interest rate trends are favourable, the investments in fixed income securities are increased. Notwithstanding the need for a stable and recurring income stream, the investment in fixed income securities and liquid 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 securities and liquid assets to equities. Up to 60% of the fund’s NAV can be invested in equities and fixed income securities of selected regional markets which include South Korea, China, Hong Kong, Taiwan, Japan, Singapore, Philippines, Thailand, Indonesia and other permitted markets. Investments in certain foreign markets require the application of an investment licence or registration of an investor code. As such, the necessary approvals from the relevant foreign regulatory authorities, where required, will be obtained prior to investing in the above-mentioned permitted markets. The fund may consider investments in 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, and warrants. Fund Specific Benefits The fund provides you with 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. 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. 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 investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposures to fixed income securities in the portfolio are managed to ensure that risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. The fund’s overseas investments will be monitored to focus in markets with the potential to achieve positive returns that are commensurate with country risks, currency risks and liquidity risks. The fund may utilise foreign exchange forward contracts to hedge its holdings of foreign investments from foreign currency movements. This will enable the fund to mitigate risks arising from foreign currency exposure. As participation in foreign exchange forward contracts for hedging purposes and investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s participation in these instruments 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 PFEBF The benchmarks of the fund and their respective percentages are as follows: • • 60% MSCI AC Far-East Ex-Japan Index*, and 40% 3-Month KLIBOR 134 DETAILED INFORMATION ON THE FUNDS (CONT’D) 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 invest 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. * 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. Source: MSCI. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent. 135 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC GROWTH BALANCED FUND (PGRBF) Fund Profile Category of Fund Balanced Type of Fund Capital growth Equity Range of Fund 40% to 60% Fixed Income Securities Range of Fund 40% to 60% Stock Selection Profile of Fund Index stocks, blue chip stocks and growth stocks Distribution Policy Incidental Suggested Minimum Investment Period 3 years 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. Fund Objective To achieve capital growth over the medium to long-term period through a balanced asset allocation approach. Note: Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for medium to long-term investors who are able to withstand ups and downs of the stock market in pursuit of capital growth and to a lesser extent income*. * Distribution (if any) will be reinvested unless unitholders opt for distribution to be paid out. Please refer to pages 37 to 39 for more information on distribution policy. Investment Policy PGRBF invests in a diversified portfolio of primarily in Malaysian equities and fixed income securities to meet the objective of the fund. Its equity content will range in the region of 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 and deposits. Investment Strategy PGRBF is actively managed and seeks to meet its objective 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 fixed income securities and liquid assets which include money market instruments and deposits. 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 stocks, blue chip stocks and growth stocks that are listed on the Bursa Securities. 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 assessed. 136 DETAILED INFORMATION ON THE FUNDS (CONT’D) The non-equity portion of the fund is invested in fixed income securities (sovereign and corporate) and liquid assets which include money market instruments and deposits. 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 fixed income securities of various tenures depending on economic growth, interest rate trends and market liquidity conditions. To manage the credit risks of its investments in fixed income securities and money market instruments, the fund will rely on credit analysis and focus on fixed income securities and money market instruments issued by companies with sound financial position i.e. gearing ratio and interest cover ratio of the issuer are within acceptable levels of the industry in which the issuer company operates. To achieve increased diversification, the fund may invest up to 25% of its NAV in foreign equities and fixed income securities markets which include China, South Korea, Japan, Taiwan, Hong Kong, Singapore, Indonesia, Thailand, Philippines and other permitted markets. The fund’s investment in foreign markets is incidental to its primary focus of investing in the domestic market. Investments in certain foreign markets require the application of an investment licence or registration of an investor code. As such, the necessary approvals from the relevant foreign regulatory authorities, where required, will be obtained prior to investing in the above-mentioned permitted markets. 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 invest in collective investment schemes both in the domestic and foreign markets, and warrants. Fund Specific Benefits The fund provides you with the opportunity to invest in equities and fixed income securities through a balanced asset allocation approach 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. 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. 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 investment in fixed income securities, it should be noted that the performance of the fixed income securities might be adversely affected should interest rates rise sharply. The value of fixed income securities may also fluctuate based on the credit quality of the issuer. As such, exposures to fixed income securities in the portfolio are managed to ensure that risks levels are commensurate with the potential returns. The performance of money market instruments and deposits may also be impacted by the fluctuations in interest rates and the credit risk of the financial institutions. To manage the credit risk of these instruments, the credit ratings of the financial institutions are monitored on an ongoing basis. The fund’s overseas investments will be monitored to focus in markets with the potential to achieve positive returns that are commensurate with country risks, currency risks and liquidity risks. To mitigate risk arising from significant volatilities in times of adverse market movements, foreign currency exposure and foreign interest rate movements, the fund may employ hedging strategies which include futures contracts, foreign exchange forward contracts and options to manage the risks posed to the fund. As participation in futures contracts, foreign exchange forward contracts and options for hedging purposes and investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s participation in these instruments 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 PGRBF The benchmarks of the fund and their respective percentages are as follows: • • 60% FTSE Bursa Malaysia KLCI (FBM KLCI); and 40% 3-Month KLIBOR 137 DETAILED INFORMATION ON THE FUNDS (CONT’D) The benchmark chosen for PGRBF is a composite benchmark index comprising a hypothetical investment in the FBM KLCI 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 FBM KLCI and 40% from the 3-Month KLIBOR interest earned for the same period of time. The FBM KLCI is selected as the fund’s equity benchmark as the fund will focus its investments in the domestic market. The component stocks of 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. This composite benchmark index of 60% in FBM KLCI and 40% in 3 Month-KLIBOR represents an appropriate performance benchmark for PGRBF as it is reflective of the fund’s asset allocation in equities and fixed income securities 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 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. The PGRBF is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“FTSE”) or by Bursa Malaysia Berhad (“BURSA MALAYSIA”) or by the London Stock Exchange Group companies (the “LSEG”) and neither FTSE nor BURSA MALAYSIA nor LSEG makes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE BURSA MALAYSIA KLCI (“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. However, neither FTSE nor BURSA MALAYSIA nor LSEG shall be liable (whether in negligence or otherwise) to any person for any error in the Index and neither FTSE nor BURSA MALAYSIA nor LSEG shall be under any obligation to advise any person of any error therein. “FTSE®”, “FT-SE®” and “Footsie®” are trademarks of LSEG and are used by FTSE under licence. “BURSA MALAYSIA “is a trade mark of BURSA MALAYSIA. 138 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC BOND FUND (P BOND) Fund Profile Category of Fund Bond Type of Fund Income Fixed Income Securities Range of Fund 75% to 98% Investment Asset Selection Profile of Fund Fixed income securities and money market instruments Distribution Policy Annual Suggested Minimum Investment Period 3 years The fund may adopt temporary defensive strategies by lowering its fixed income securities exposure below the above stated range and increasing its investments in liquid assets which include money market instruments and deposits if the investment climate is deemed to be unfavourable and weakness in the fixed income securities markets is expected. Fund Objective To provide a steady stream of income* returns through investment in the money market and private debt securities. Note: Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for medium-term investors who seek annual income*. * Distribution (if any) will be reinvested unless unitholders opt for distribution to be paid out. Please refer to pages 37 to 39 for more information on distribution policy. 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 maintains a fixed income securities 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 and deposits. 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 (sovereign and corporate) with the balance invested in money market instruments and deposits. 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. Investments in certain foreign markets require the application of an investment licence or registration of an investor code. As such, the necessary approvals from the relevant foreign regulatory authorities, where required, will be obtained prior to investing in the above-mentioned permitted markets. Fund Specific Benefits The fund provides you access to the fixed income securities 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 fixed income securities that have different profiles in maturities, credit ratings and sectors, to produce returns that are generally higher than fixed deposits. 139 DETAILED INFORMATION ON THE FUNDS (CONT’D) Fund Specific Risk Management The fund will seek to maximise its potential return by investing in fixed income securities 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 fixed income securities improves, then the fund stands to benefit from the resultant price appreciation. Nevertheless, the credit risks assumed are limited to the extent that any fixed income securities 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’s overseas investments will be monitored to focus in markets with the potential to achieve positive returns that are commensurate with country risks, currency risks and liquidity risks. To mitigate risks arising from foreign currency exposure and foreign interest rate movements, the fund may employ hedging strategies which include futures contracts, foreign exchange forward contracts and options to manage the risks posed to the fund. 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 P BOND The benchmark for P BOND is based on FDR as opposed to a more conventional corporate bond index as the fund is essentially managed in a fairly conservative manner with the primary aim of outperforming fixed deposit returns. It is therefore appropriate to benchmark the fund against an accumulation index based on the 12-Month 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. 140 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC INSTITUTIONAL BOND FUND (PIN BOND) Fund Profile Category of Fund Bond Type of Fund Income Fixed Income Securities Range of Fund 75% to 98% Investment Asset Selection Profile of Fund Fixed income securities and money market instruments Distribution Policy Annual Suggested Minimum Investment Period 3 years The fund may adopt temporary defensive strategies by lowering its fixed income securities exposure below the above stated range and increasing its investments in liquid assets which include money market instruments and deposits if the investment climate is deemed to be unfavourable and weakness in the fixed income securities markets is expected. Fund Objective To provide annual income* through investment in private debt securities. Note: Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for medium-term investors who seek annual income*. * Distribution (if any) will be reinvested unless unitholders opt for distribution to be paid out. Please refer to pages 37 to 39 for more information on distribution policy. 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 fixed income securities 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 fixed income securities with a minimum credit rating of A at the point of purchase. The fund maintains a fixed income securities 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 and deposits. 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 (sovereign and corporate) with the balance invested in money market instruments and deposits. 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. Fund Specific Benefits The fund provides you with the opportunity to invest in the fixed income securities market for returns that are potentially higher than fixed deposits. The fund essentially offers you the benefits of risk management, proper diversification and liquidity management. 141 DETAILED INFORMATION ON THE FUNDS (CONT’D) Fund Specific Risk Management The fund will seek to maximise its potential returns by investing in fixed income securities 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 fixed income securities 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 fixed income securities of credit rating no lower than AA and the balance in fixed income securities 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’s overseas investments will be monitored to focus in markets with the potential to achieve positive returns that are commensurate with country risks, currency risks and liquidity risks. To mitigate risks arising from foreign currency exposure and foreign interest rate movements, the fund may employ hedging strategies which include futures contracts, foreign exchange forward contracts and options to manage the risks posed to the fund. 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 PIN BOND The benchmark chosen for PIN BOND will be the Corporate Bond Index – 1 Year And Above (CORP 1V) 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. 142 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC ENHANCED BOND FUND (PEBF) Fund Profile Category of Fund Bond Type of Fund Income and capital growth Fixed Income Securities Range of Fund 70% to 85% Equity Range of Fund Up to 20% Security Selection Profile of Fund Fixed income securities and equities Distribution Policy Annual Suggested Minimum Investment Period 3 years The fund may adopt temporary defensive strategies by lowering its fixed income securities exposure below the above stated range as well as its equity exposure while increasing its investments in liquid assets which include money market instruments and deposits if the investment climate is deemed to be unfavourable and weakness in the fixed income securities and equity markets are expected. Fund Objective Seeks to provide a combination of annual income* and modest capital growth primarily through a portfolio allocation across quality bonds and equities. Note: Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for medium to long-term investors who seek annual income* and to a lesser extent capital growth. * Distribution (if any) will be reinvested unless unitholders opt for distribution to be paid out. Please refer to pages 37 to 39 for more information on distribution policy. 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 fixed income securities 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 fixed income securities 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 equities and fixed income securities of selected foreign markets which include Singapore, Taiwan, South Korea, Japan, Hong Kong, China, Thailand, Indonesia, Philippines and other permitted markets. Investments in certain foreign markets require the application of an investment licence or registration of an investor code. As such, the necessary approvals from the relevant foreign regulatory authorities, where required, will be obtained prior to investing in the above-mentioned permitted markets. 143 DETAILED INFORMATION ON THE FUNDS (CONT’D) 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, fixed income securities 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 fixed income securities, the focus of the fund’s asset allocation strategies therefore lies chiefly with the fixed income securities portfolio. The fund’s fixed income securities exposures are managed according to the risk-reward characteristics of the fixed income securities asset class, which is defined by the inverse relationship between prices of fixed income securities and interest rates. Essentially, where interest rate trends are favourable (i.e. a trend of declining interest rates), the exposure to fixed income securities is generally increased in view of its positive impact on prices of fixed income securities. Conversely, the fund’s exposure to fixed income securities is reduced when interest rates are anticipated to trend upwards. Within the fixed income securities portfolio, fixed income securities issues of longer duration are more sensitive to interest rate movements than fixed income securities of shorter duration. The interest rate sensitivity of the fixed income securities 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 fixed income securities exposures to meet the challenges of changing interest rates trends. To mitigate credit and liquidity risks, the fund ensures that its fixed income securities portfolio is sufficiently diversified in its investment concentration. Diversified portfolio of fixed income securities 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% of NAV. 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. The fund may consider investments in IPOs of companies seeking a listing on the Bursa Securities or other permitted foreign markets. The fund may invest in collective investment schemes both in the domestic or selected global markets, and warrants. The balance of the fund’s assets will be invested in cash equivalents and money market instruments. Fund Specific Benefits The fund provides you with 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 you 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. Fund Specific Risk Management 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 fixed income securities investments. 144 DETAILED INFORMATION ON THE FUNDS (CONT’D) The fund’s overseas investments will be monitored to focus in markets with the potential to achieve positive returns that are commensurate with country risks, currency risks and liquidity risks. The fund may utilise foreign exchange forward contracts to hedge its holdings of foreign investments from foreign currency movements. This will enable the fund to mitigate risks arising from foreign currency exposure. As participation in foreign exchange forward contracts for hedging purposes and investments in warrants can potentially increase the volatility of the fund’s returns, the fund’s participation in these instruments 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 PEBF The benchmark for PEBF is based on FDR as opposed to a more conventional corporate bond index as the fund is essentially managed in a fairly conservative manner with the primary aim of outperforming fixed deposit returns. It is therefore appropriate to benchmark the fund against an accumulation index based on the 12-Month 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. 145 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC SELECT BOND FUND (PSBF) Fund Profile Category of Fund Bond Type of Fund Income Fixed Income Securities Range of Fund 75% to 98% Investment Asset Selection Profile of Fund Fixed income securities and money market instruments Distribution Policy Annual Suggested Minimum Investment Period 3 years The fund may adopt temporary defensive strategies by lowering its fixed income securities exposure below the above stated range and increasing its investments in liquid assets which include money market instruments and deposits if the investment climate is deemed to be unfavourable and weakness in the fixed income securities markets is expected. 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. Note: Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for medium-term investors who seek annual income*. * Distribution (if any) will be reinvested unless unitholders opt for distribution to be paid out. Please refer to pages 37 to 39 for more information on distribution policy. 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 and deposits. 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 maintains fixed income securities 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 and deposits. Fund Specific Benefits The fund provides you access to the fixed income securities 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 fixed income securities that have different profiles in maturities, credit ratings and sectors, to produce returns that are generally higher than fixed deposits. 146 DETAILED INFORMATION ON THE FUNDS (CONT’D) Fund Specific Risk Management The fund will seek to invest in fixed income securities 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 fixed income securities 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. 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 PSBF The benchmark for PSBF is based on FDR as opposed to a more conventional corporate bond index as the fund is essentially managed in a fairly conservative manner with the primary aim of outperforming fixed deposit returns. It is therefore appropriate to benchmark the fund against an accumulation index based on the 12-Month 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. 147 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC STRATEGIC BOND FUND (PSTBF) Fund Profile Category of Fund Bond Type of Fund Income Fixed Income Securities Range of Fund At least 75% Investment Asset Selection Profile of Fund Fixed income securities and money market instruments Distribution Policy Annual Suggested Minimum Investment Period 3 years The fund may adopt temporary defensive strategies by lowering its fixed income securities exposure below the above stated range and increasing its investments in liquid assets which include money market instruments and deposits if the investment climate is deemed to be unfavourable and weakness in the fixed income securities markets is expected. Fund Objective To provide annual income* to investors through investments in fixed income securities and money market instruments. Note: Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for medium-term investors who seek annual income*. * Distribution (if any) will be reinvested unless unitholders opt for distribution to be paid out. Please refer to pages 37 to 39 for more information on distribution policy. 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 fixed income securities. 50% of the fund’s fixed income securities investment will be invested in fixed income securities which have remaining maturities of 5 years and below. The remaining 50% of the fund’s fixed income securities 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 money market instruments and deposits. To achieve increased diversification, the fund may invest up to 25% of its NAV in foreign fixed income securities. Investment Strategy The fund will invest at least 75% of its NAV in fixed income securities. 50% of the fund’s fixed income securities investment will be invested in fixed income securities which have remaining maturities of 5 years and below. The remaining 50% of the fund’s fixed income securities 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 money market instruments and deposits. The fund is actively managed and its portfolio of fixed income securities 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 fixed income securities 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 fixed income securities. 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. Investments in certain foreign markets require the application of an investment licence or registration of an investor code. As such, the necessary approvals from the relevant foreign regulatory authorities, where required, will be obtained prior to investing in the above-mentioned permitted markets. 148 DETAILED INFORMATION ON THE FUNDS (CONT’D) Fund Specific Benefits The fund provides you access to the fixed income securities 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 fixed income securities that have different profiles in maturities, credit ratings and sectors, to produce returns that are generally higher than money market deposits. Fund Specific Risk Management 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 fixed income securities 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 fixed income securities, short-tenured fixed income securities 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. The fund’s overseas investments will be monitored to focus in markets with the potential to achieve positive returns that are commensurate with country risks, currency risks and liquidity risks. The fund may utilise foreign exchange forward contracts to hedge its holdings of foreign investments from foreign currency movements. This will enable the fund to mitigate risks arising from foreign currency exposure. 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 PSTBF The benchmark for PSTBF is based on FDR as opposed to a more conventional corporate bond index as the fund is essentially managed in a fairly conservative manner with the primary aim of outperforming fixed deposit returns. It is therefore appropriate to benchmark the fund against an accumulation index based on the 12-Month FDR quoted by Public Bank. 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. 149 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC ENTERPRISES BOND FUND (PENTBF) Fund Profile Category of Fund Bond Type of Fund Income Fixed Income Securities Range of Fund At least 75% Investment Asset Selection Profile of Fund Fixed income securities and money market instruments Distribution Policy Annual Suggested Minimum Investment Period 3 years The fund may adopt temporary defensive strategies by lowering its fixed income securities exposure below the above stated range and increasing its investments in liquid assets which include money market instruments and deposits if the investment climate is deemed to be unfavourable and weakness in the fixed income securities markets is expected. Fund Objective To provide annual income* through investments in fixed income securities and money market instruments. Note: Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for medium-term investors who seek annual income*. * Distribution (if any) will be reinvested unless unitholders opt for distribution to be paid out. Please refer to pages 37 to 39 for more information on distribution policy. 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 fixed income securities 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, money market instruments and deposits. Redeemable loan stocks with convertible features to enhance the fund’s returns are also included in the fund’s portfolio. 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 and deposits. 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. Investments in certain foreign markets require the application of an investment licence or registration of an investor code. As such, the necessary approvals from the relevant foreign regulatory authorities, where required, will be obtained prior to investing in the above-mentioned permitted markets. 150 DETAILED INFORMATION ON THE FUNDS (CONT’D) Fund Specific Benefits The fund provides you access to the fixed income securities 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 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 fixed income securities issued by larger and more stable corporations/entities. Fund Specific Risk Management 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 fixed income securities 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 longtenured fixed income securities, short-tenured fixed income securities 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. The fund’s overseas investments will be monitored to focus in markets with the potential to achieve positive returns that are commensurate with country risks, currency risks and liquidity risks. The fund may utilise foreign exchange forward contracts to hedge its holdings of foreign investments from foreign currency movements. This will enable the fund to mitigate risks arising from foreign currency exposure. 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 PENTBF The benchmark for PENTBF is based on FDR as opposed to a more conventional corporate bond index as the fund is essentially managed in a fairly conservative manner with the primary aim of outperforming fixed deposit returns. It is therefore appropriate to benchmark the fund against an accumulation index based on the 12-Month FDR quoted by Public Bank. 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. 151 DETAILED INFORMATION ON THE FUNDS (CONT’D) PUBLIC MONEY MARKET FUND (PMMF) Fund Profile Category of Fund Money market Type of Fund Income Money Market Range of Fund Up to 100% Investment Asset Selection Profile of Fund Debentures and money market instruments Distribution Policy Annual Suggested Minimum Investment Period Short term 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 37 to 39 for more information on distribution policy. Any material changes to the investment objective of the fund would require unitholders’ approval. Investor Profile The fund is suitable for short-term investors who seek capital preservation. Note: This is neither a capital guaranteed nor a capital protected fund. 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 current income. Consequently, the fund invests up to 100% of its NAV in money market instruments and deposits. The investments of PMMF are largely confined to 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 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. Fund Specific Benefits PMMF provides a safe option for you to park your monies on a short-term basis. Fund Specific Risk Management 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. 152 DETAILED INFORMATION ON THE FUNDS (CONT’D) 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 institution 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 fixed income securities 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. Furthermore, the above investments are subject to limits and restrictions that are precisely spelt out in the sections titled “Permitted Investments” and “Investment Restrictions”. 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. Selected Performance Benchmark for PMMF The benchmarks of the fund and their respective percentages are as follows: • • 90% Public Bank 1-Month FDR, and 10% Public Bank Savings Rate – ACE Account The benchmark chosen for PMMF is a composite benchmark index comprising a hypothetical investment in the Public Bank 1-Month FDR and Public Bank Savings Rate – ACE Account in the ratio of 90:10. Therefore, the returns of the benchmark index for any given period of time would comprise 90% from the returns of the Public Bank 1-Month FDR and 10% Public Bank Savings Rate – ACE Account for the same period of time. This composite benchmark represents an appropriate performance benchmark for PMMF as it is reflective of the fund’s investments in short-term instruments. 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. 153 DETAILED INFORMATION ON THE FUNDS (CONT’D) 3.3 INVESTMENT RISKS Specific Risks of the Funds Equity, Mixed Asset and Balanced Funds Liquidity risk Liquidity risk is defined as the risk of the fund manager having to liquidate the fund’s holdings of illiquid securities at a discount to its fair value to meet the redemption requirements. For P SmallCap, PSSCF, PSTEF and PEMOF, 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. This may adversely impact the fund’s NAV and unit price. This impact can, however, be mitigated through the process of security selection and portfolio diversification by the Fund Managers. Country risk Funds 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. In addition, certain countries require the application of an investment licence or registration of an investor code before investments can be made in these countries. If investments in such countries are undertaken and if the licence to invest is not renewed by the relevant authority, the fund’s investments in these countries will be affected. To mitigate this, the Manager will closely monitor the investment regulatory requirements in these countries. 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, PTAF and PFEBF may be affected by changes in the political and economic conditions of the Far-East and regional markets. PGSF and PWEF may be affected by changes in the political and economic conditions of the global markets. PCSF and PCTF may be affected by changes in the political and economic conditions of the greater China markets. PSEASF may be affected by changes in the political and economic conditions of the South-East Asian markets. PAUEF may be affected by changes in the political and economic conditions of Australia and New Zealand. PINDOSF may be affected by changes in the political and economic conditions of Indonesia. PSGEF may be affected by changes in the political and economic conditions of Singapore. Industry/sector risk Industry/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: Any material changes associated with the property investment and development sector and real estate investment trusts (REITs) may have an adverse impact on the NAV of the fund. PFECTF: Any material changes associated with the consumer sector may have an adverse impact on the NAV of the fund. PFETIF: Any material changes associated with the telecommunications and infrastructure sector may have an adverse impact on the NAV of the fund. PINDGF, PRSEC and PSSF: Any material changes associated with the sectors that the funds invest in may have an adverse 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 40 to 41 of this Master Prospectus. Bond and Money Market Funds Risks of investing in bond and money market funds include interest rate risk, credit risk, liquidity risk and country risk. As PEBF has investment in equities, specific security risk is also applicable to the fund. These risks have been described on pages 40 to 41 of this Master Prospectus. 154 DETAILED INFORMATION ON THE FUNDS (CONT’D) 3.4 PERMITTED INVESTMENTS The Manager has absolute discretion, subject to the Deed, 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. Equity, Mixed Asset and Balanced Funds (a) All equity, mixed asset and balanced funds will invest in the following: i. Equity securities of companies listed in the respective Eligible Markets; Note: The funds may invest in warrants of companies listed in the respective Eligible Markets. For funds which are offered under the EPF-MIS, investments in warrants will be subject to EPF’s requirements. (b) (c) ii. 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 fixed income securities traded in the respective Eligible Markets; vi. Malaysian Government Securities, Treasury Bills, Bank Negara Monetary Notes, Government Investment Issues and other Government approved and/or guaranteed securities; vii. Deposits and money market instruments with licensed domestic and foreign financial institutions; viii. Units of other collective investment schemes; and ix. Any other form of investments which is in line with the objective of the funds as may be agreed upon by the Manager and the trustee from time to time. P SmallCap, PFEDF, PFA30F, PCSF, PWEF, PSSCF, PAVGEF, PEMOF, PTAF and PGRBF will also invest in/utilise the following: i. 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; and ii. 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. PFA30F and PSSCF will also invest in participation notes of equity securities of companies listed in Eligible Markets. The funds may participate in lending of securities within the meaning of the SC Guidelines on Securities Borrowing and Lending when permitted by the SC and other relevant authorities. Bond Funds (a) All bond funds will 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 and/or guaranteed securities; v. Deposits and money market instruments with licensed domestic and foreign financial institutions; 155 DETAILED INFORMATION ON THE FUNDS (CONT’D) vi. Units of other collective investment schemes; and vii. Any other form of investments which is in line with the objective of the funds as may be agreed upon by the Manager and the trustee from time to time. (b) P BOND, PIN BOND and PENTBF will also utilise 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 will also invest in the following: i. Equity securities of companies listed in the respective Eligible Markets; Note: The fund may invest in warrants of companies listed in the respective Eligible Markets. If the fund is offered under the EPF-MIS, investments in warrants will be subject to EPF’s requirements. ii. IPOs of companies seeking a listing in the respective Eligible Markets. The funds may participate in lending of securities within the meaning of the SC Guidelines on Securities Borrowing and Lending when permitted by the SC and other relevant authorities. Money Market Fund (a) PMMF will invest in the following: i. Listed RM denominated fixed income securities traded in the Eligible Markets; ii. Unlisted RM 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 and/or guaranteed securities; iv. Deposits and money market instruments with licensed domestic and foreign financial institutions; v. Units of other collective investment schemes; and vi. Any other form of investments which is in line with the objective of the fund 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: Equity, Mixed Asset and Balanced Funds 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 OTC derivative transaction with any single counter-party must not exceed 10% of the respective fund’s NAV. 156 DETAILED INFORMATION ON THE FUNDS (CONT’D) (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, as the case may be, any single issuer/institution must not exceed 25% of the respective fund’s NAV. (g) The value of each of the fund’s investments in units 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 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 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, PINDGF, PAGF, P SmallCap, PEF, PFSF, PDSF, PSA30F, PSSCF, PBF, PSTGF and PSMAGF 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, PWEF, 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 fund’s NAV. Holdings in foreign investments of PSTEF, PAVGEF, PEMOF, PSMACF and PGRBF shall not exceed 25% of the 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. 157 DETAILED INFORMATION ON THE FUNDS (CONT’D) Bond Funds P BOND, PIN BOND, PSBF, PSTBF and PENTBF Investment Spread Limits (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 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, as the case may be, 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 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. Investment Concentration Limits (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 in any one collective investment scheme. General (a) The value of each of the fund’s investments in unlisted securities must not exceed 10% of the respective fund’s NAV. This exposure limit does not apply to:i. debentures traded on an organised OTC market; and ii. structured products. (b) For PIN BOND, 50% of the fund’s holding in fixed income securities must comprise of fixed income securities 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 fixed income securities 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. 158 DETAILED INFORMATION ON THE FUNDS (CONT’D) (d) Each of the fund’s exposure from derivatives position must not exceed the NAV of the respective funds at all times. PEBF Investment Spread Limits (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. (e) The aggregate value of the fund’s investments in transferable securities, money market instruments and deposits issued by or placed with, as the case may be, 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). (f) The value of the fund’s investments in units of any collective investment scheme must not exceed 20% of the fund’s NAV. (g) The value of the fund’s investments in debentures issued by any group of companies must not exceed 30% of the fund’s NAV. (h) 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. Investment Concentration Limits (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. (d) The fund’s investments in collective investment schemes must not exceed 25% of the units in any one collective investment scheme. General (a) The value of the fund’s investments in unlisted securities must not exceed 10% of the respective fund’s NAV. This exposure limit does not apply to debentures traded on an organised OTC market. (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. 159 DETAILED INFORMATION ON THE FUNDS (CONT’D) Money Market Fund PMMF Investment Spread Limits (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 of any collective investment scheme must not exceed 20% of the fund’s NAV. Investment Concentration Limits (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 in any collective investment scheme. 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 fixed income securities 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 of PMMF refer to debentures, money market instruments and placements of deposits with financial institutions. 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 redemption 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. 160 DETAILED INFORMATION ON THE FUNDS (CONT’D) 3.6 VALUATION OF PERMITTED INVESTMENTS Listed equities, warrants and options – valuation is based on market price of the respective exchanges. If no market price is available or valuation based on market price does not represent the fair value of investments, the securities will be valued at fair value, as determined in good faith by the Manager, based on the methods or bases approved by the trustee after appropriate technical consultation. Unlisted equities – fair valuations which are based on methods 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. If no market price is available or valuation based on market price does not represent the fair value of the fixed income securities, the fixed income securities will be valued at fair value, as determined in good faith by the Manager, based on the methods or bases approved by the trustee after appropriate technical consultation. In the case of unlisted fixed income securities denominated in RM, 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 Financial Services Act 2013 and/or Islamic Financial Services Act 2013 (FSA/IFSA). Other unlisted fixed income securities which include foreign unlisted fixed income securities 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 – commercial papers are valued at purchase yields with interest accrued daily. Money market instruments – money market instruments which include negotiable instrument of deposits are valued at market yields based on the remaining days to maturity. Deposits – the value of such investments shall be determined on a daily basis by reference to their nominal values and the accrued interest thereon for the relevant period. Units in other collective investment schemes – the last published repurchase price per unit or if not available, the units will be valued at fair value as determined in good faith by the Manager, based on methods or bases approved by the trustee after appropriate technical consultation. Foreign exchange forward contracts – all foreign exchange forward contracts are marked-to-market daily and valued at fair value using forward rate of the remaining tenure to maturity. Futures contracts – 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 stocks have gone below the suspended price, whereupon their value will be ascertained in a manner as agreed upon by the Manager and trustee. Translation of foreign securities and assets – all foreign securities and assets are translated into RM 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 the 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, the valuation point may be extended to 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). 161 DETAILED INFORMATION ON THE FUNDS (CONT’D) Illustration: For the market close of 2 September 2015, the valuation date will be next day in which the Manager is open for trading, that is, 3 September 2015. Thus the newspaper publication date for the prices as at 2 September 2015 will be 4 September 2015. You may obtain the latest prices of units of the funds by contacting the Manager directly. The Manager may declare certain Business 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 you will be given a fair valuation of the funds at all times, be it when purchasing or redeeming units of the funds. A notice on non-Business Days will be posted on Public Mutual’s website. 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. 162 4 PERFORMANCE OF THE FUNDS This section covers the following funds that have been in operation for 1 financial year or more: Public Savings Fund (PSF) Public Growth Fund (PGF) Public Index Fund (PIX) Public Industry Growth Fund (PINDGF) Public Aggressive Growth Fund (PAGF) Public Regular Savings Fund (PRSF) Public SmallCap Fund (P SmallCap) Public Equity Fund (PEF) Public Focus Select Fund (PFSF) Public Dividend Select Fund (PDSF) Public Far-East Select Fund (PFES) Public Regional Sector Fund (PRSEC) Public Global Select Fund (PGSF) Public Far-East Dividend Fund (PFEDF) Public China Select Fund (PCSF) Public Far-East Property & Resorts Fund (PFEPRF) Public South-East Asia Select Fund (PSEASF) Public Sector Select Fund (PSSF) Public Far-East Consumer Themes Fund (PFECTF) Public China Titans Fund (PCTF) Public Far-East Telco & Infrastructure Fund (PFETIF) Public Select Alpha-30 Fund (PSA30F) Public Worldwide Equity Fund (PWEF) (Formerly known as Public Natural Resources Equity Fund) Public Australia Equity Fund (PAUEF) Public Far-East Alpha-30 Fund (PFA30F) Public Optimal Growth Fund (POGF) Public Indonesia Select Fund (PINDOSF) Public Singapore Equity Fund (PSGEF) Public Strategic SmallCap Fund (PSSCF) Public Strategic Growth Fund (PSTGF) Public Tactical Allocation Fund (PTAF) Public Select Mixed Asset Growth Fund (PSMAGF) Public Select Mixed Asset Conservative Fund (PSMACF) Public Balanced Fund (PBF) Public Far-East Balanced Fund (PFEBF) Public Bond Fund (P BOND) Public Institutional Bond Fund (PIN BOND) Public Enhanced Bond Fund (PEBF) Public Select Bond Fund (PSBF) Public Strategic Bond Fund (PSTBF) Public Enterprises Bond Fund (PENTBF) Public Money Market Fund (PMMF) Page 164 Page 165 Page 166 Page 167 Page 168 Page 169 Page 170 Page 171 Page 172 Page 173 Page 174 Page 175 Page 176 Page 177 Page 178 Page 179 Page 180 Page 181 Page 182 Page 183 Page 184 Page 185 Page 186 Page 187 Page 188 Page 189 Page 190 Page 191 Page 192 Page 193 Page 194 Page 195 Page 196 Page 197 Page 198 Page 199 Page 200 Page 201 Page 202 Page 203 Page 204 Page 205 Notes: The total returns and average annual returns of the funds presented on pages 164 to 205 are calculated on NAVto-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. Performance of PSTEF, PAVGEF, PGRBF, PEMOF and PRSSQF are not tabulated as the funds will be having their first financial period ending on 31 August 2016, 30 September 2016, 31 October 2016, 31 January 2017 and 28 February 2017 respectively. Please visit our website for the latest updates on fund performance. Past performance of the funds is not an indication of their future performance. 163 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC SAVINGS FUND (PSF) Average Annual Returns for the following periods ended 31 December 2015 1-Year 3-Year 5-Year 10-Year Since Commencement* PSF (%) -1.71 3.10 3.08 13.54 30.85 Benchmark index (%)** -3.90 0.07 2.28 8.80 6.86 Annual Total Return for the Financial Years Ended 31 December 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 PSF (%) 24.24 36.77 -28.32 43.90 16.40 -5.28 11.49 12.39 -1.06 -1.71 Benchmark index (%)** 21.83 31.82 -39.33 45.17 19.34 0.78 10.34 10.54 -5.66 -3.90 * 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 full market capitalisation listed on the Bursa Malaysia Main Market. 1-Year Fund Performance Review The PSF registered a total return of -1.71% for the financial year ended 31 December 2015 in comparison to the benchmark’s return of -3.90% over the same period. Asset Allocation 2013 2014 2015 95.5% 96.3% 100.9% Fixed income securities 0.5% 1.1% 1.2% Money market instruments & others 4.0% 2.6% -2.1% Equities The fund’s equity weighting increased from 95.5% (91.0% after distribution reinvestment) for the financial year ended 2013 to 96.3% (89.9% after distribution reinvestment) for the financial year ended 2014 and increased further to 100.9% (95.3% after distribution reinvestment) for the financial year ended 2015 to capitalise on investment opportunities in the domestic and regional markets. Portfolio Turnover Ratio (PTR) PTR (time) 2013 2014 2015 0.37 0.31 0.35 The fund’s PTR decreased from 0.37 times for the financial year ended 2013 to 0.31 times for the financial year ended 2014 due to lower level of rebalancing activities. For the financial year ended 2015, the fund’s PTR subsequently increased to 0.35 times due to higher level of rebalancing activities undertaken by the fund. Distribution 2013 2014 2015 Gross distribution per unit (sen) 3.00 4.00 3.00 Net distribution per unit (sen) 2.92 3.95 3.00 Distribution is in the form of cash. 164 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC GROWTH FUND (PGF) Average Annual Returns for the following periods ended 31 July 2015 1-Year 3-Year 5-Year 10-Year Since Commencement* PGF (%) -3.46 7.14 7.20 14.01 35.49 Benchmark index (%)** -7.92 1.87 5.32 8.37 16.22 Annual Total Return for the Financial Years Ended 31 July PGF (%) Benchmark index (%)** 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 4.78 51.85 -7.75 5.29 14.26 23.08 -8.97 16.13 8.30 -3.46 46.79 -15.33 1.02 15.83 13.81 5.35 8.64 5.57 -7.92 -0.16 * The figure shown is for the period since the fund’s commencement (9 January 1985). ** 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 full market capitalisation listed on the Bursa Malaysia Main Market. 1-Year Fund Performance Review The PGF registered a total return of -3.46% for the financial year ended 31 July 2015 as compared to its benchmark which registered a total return of -7.92% over the same period. Asset Allocation 2013 2014 2015 96.3% 99.9% 98.2% Fixed income securities 0.0% 0.5% 0.5% Money market instruments & others 3.7% -0.4% 1.3% Equities The fund’s equity weighting increased from 96.3% (90.8% after distribution reinvestment) for the financial year ended 2013 to 99.9% (93.9% after distribution reinvestment) for the financial year ended 2014 to capitalise on investment opportunities in the domestic and selected regional markets. The fund’s equity weighting subsequently decreased to 98.2% (91.6% after distribution reinvestment) for the financial year ended 2015 to weather the consolidation phase in the domestic and selected regional markets. Portfolio Turnover Ratio (PTR) PTR (time) 2013 2014 2015 0.33 0.28 0.40 The fund’s PTR declined from 0.33 times for the financial year ended 2013 to 0.28 times for the financial year ended 2014 due to lower level of rebalancing activities. For the financial year ended 2015, the fund’s PTR subsequently increased to 0.40 times due to higher level of rebalancing activities undertaken by the fund. Distribution 2013 2014 2015 Gross distribution per unit (sen) 3.00 3.25 3.25 Net distribution per unit (sen) 2.96 3.22 3.25 Distribution is in the form of cash. 165 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC INDEX FUND (PIX) Average Annual Returns for the following periods ended 31 January 2016 1-Year 3-Year 5-Year 10-Year Since Commencement* PIX (%) -3.04 4.73 4.44 12.27 30.08 Benchmark index (%)** -5.83 1.10 2.15 8.86 8.00 Annual Total Return for the Financial Years Ended 31 January 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 PIX (%) 33.29 19.82 -36.07 45.02 23.15 1.50 5.44 15.95 1.55 -3.04 Benchmark index (%)** 30.12 17.14 -36.52 42.62 23.49 1.77 5.34 11.49 -1.62 -5.83 * The figure shown is for the period since the fund’s commencement (31 March 1992). ** 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 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 top 100 large and mid cap companies by full market capitalisation listed on the Bursa Malaysia Main Market. 1-Year Fund Performance Review The PIX registered a total return of -3.04% for the financial year ended 31 January 2016 as compared to the benchmark’s return of -5.83% over the same period. Asset Allocation Equities Money market instruments & others 2014 2015 2016 99.6% 94.2% 89.0% 0.4% 5.8% 11.0% The fund’s equity weighting decreased from 99.6% (93.3% after distribution reinvestment) for the financial year ended 2014 to 94.2% (87.8% after distribution reinvestment) for the financial year ended 2015 and decreased further to 89.0% (85.9% after distribution reinvestment) for the financial year ended 2016 to weather the consolidation phase in the domestic market. Portfolio Turnover Ratio (PTR) PTR (time) 2014 2015 2016 0.24 0.14 0.18 The fund’s PTR decreased from 0.24 times for the financial year ended 2014 to 0.14 times for the financial year ended 2015 due to lower level of rebalancing activities. For the financial year ended 2016, the fund’s PTR subsequently increased to 0.18 times due to higher level of rebalancing activities undertaken by the fund. Distribution 2014 2015 2016 Gross distribution per unit (sen) 5.00 5.00 2.25 Net distribution per unit (sen) 4.80 4.92 2.25 Distribution is in the form of cash. 166 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC INDUSTRY GROWTH FUND (PINDGF) Average Annual Returns for the following periods ended 31 October 2015 1-Year 3-Year 5-Year 10-Year Since Commencement* 0.82 5.67 7.21 13.89 12.87 -10.21 -0.15 2.12 8.29 2.29 PINDGF (%) Benchmark index (%)** Annual Total Return for the Financial Years Ended 31 October PINDGF (%) Benchmark index (%)** 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 18.05 59.69 -40.11 35.63 14.68 4.21 11.60 9.07 6.39 0.82 8.51 43.04 -38.91 43.96 21.11 -0.91 12.14 8.00 2.67 -10.21 * The figure shown is for the period since the fund’s commencement (17 December 1993). ** 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 full market capitalisation listed on the Bursa Malaysia Main Market. 1-Year Fund Performance Review The PINDGF registered a total return of +0.82% for the financial year ended 31 October 2015 as compared to its benchmark’s return of -10.21% over the same period. Asset Allocation Equities Money market instruments & others 2013 2014 2015 104.5% 99.0% 99.5% -4.5% 1.0% 0.5% The fund’s equity weighting decreased from 104.5% (95.4% after distribution reinvestment) for the financial year ended 2013 to 99.0% (90.0% after distribution reinvestment) for the financial year ended 2014 to lock in profits on selected equity investments. For the financial year ended 2015, the fund’s equity weighting increased to 99.5% (94.6% after distribution reinvestment) to capitalise on investment opportunities in the domestic and regional equity markets. Portfolio Turnover Ratio (PTR) PTR (time) 2013 2014 2015 0.72 0.59 0.44 The fund’s PTR decreased from 0.72 times for the financial year ended 2013 to 0.59 times for the financial year ended 2014 and decreased further to 0.44 times for the financial year ended 2015 due to lower level of rebalancing activities undertaken by the fund. Distribution 2013 2014 2015 Gross distribution per unit (sen) 5.00 5.00 2.50 Net distribution per unit (sen) 4.99 4.98 2.50 Distribution is in the form of cash. 167 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC AGGRESSIVE GROWTH FUND (PAGF) Average Annual Returns for the following periods ended 31 March 2015 1-Year 3-Year 5-Year 10-Year Since Commencement* 2.61 6.58 7.71 16.64 12.10 -1.00 4.89 7.72 11.00 4.09 PAGF (%) Benchmark index (%)** Annual Total Return for the Financial Years Ended 31 March PAGF (%) Benchmark index (%)** 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 12.28 42.39 9.30 -28.69 54.32 23.78 -6.52 2.99 13.32 2.61 6.34 34.56 0.05 -30.06 51.35 17.00 3.31 4.72 10.62 -1.00 * The figure shown is for the period since the fund’s commencement (24 May 1994). ** 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 full market capitalisation listed on the Bursa Malaysia Main Market. 1-Year Fund Performance Review The PAGF registered a total return of +2.61% as compared to the benchmark’s return of -1.00% for the financial year ended 31 March 2015. Asset Allocation Equities Fixed income securities Money market instruments & others 2013 2014 2015 88.5% 97.6% 97.8% 0.2% 0.2% 0.2% 11.3% 2.2% 2.0% The fund’s equity weighting increased from 88.5% (85.1% after distribution reinvestment) for the financial year ended 2013 to 97.6% (94.1% after distribution reinvestment) for the financial year ended 2014 and increased further to 97.8% (93.5% after distribution reinvestment) for financial year ended 2015 to capitalise on investment opportunities in the domestic and selected regional markets. Portfolio Turnover Ratio (PTR) PTR (time) 2013 2014 2015 0.41 0.47 0.22 The fund’s PTR increased from 0.41 times for the financial year ended 2013 to 0.47 times for the financial year ended 2014 due to higher level of rebalancing activities. For the financial year ended 2015, the fund’s PTR subsequently decreased to 0.22 times due to lower level of rebalancing activities undertaken by the fund. Distribution 2013 2014 2015 Gross distribution per unit (sen) 2.50 2.50 3.00 Net distribution per unit (sen) 2.43 2.45 3.00 Distribution is in the form of cash. 168 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC REGULAR SAVINGS FUND (PRSF) Average Annual Returns for the following periods ended 31 March 2015 1-Year 3-Year 5-Year 10-Year Since Commencement* 3.61 9.00 12.58 20.33 26.07 -1.59 4.69 8.18 11.51 4.31 PRSF (%) Benchmark index (%)** Annual Total Return for the Financial Years Ended 31 March PRSF (%) Benchmark index (%)** 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 11.75 33.39 3.24 -23.24 57.65 18.41 8.33 7.69 13.84 3.61 6.34 34.56 0.05 -30.06 52.44 18.88 3.92 4.76 10.66 -1.59 * The figure shown is for the period since the fund’s commencement (24 May 1994). ** 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 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 top 100 large and mid cap companies by full market capitalisation listed on the Bursa Malaysia Main Market. 1-Year Fund Performance Review The PRSF registered a total return of +3.61% as compared to the benchmark’s return of -1.59% over the financial year ended 31 March 2015. Asset Allocation 2013 2014 2015 92.5% 90.1% 93.3% Fixed income securities 4.2% 3.0% 2.7% Money market instruments & others 3.3% 6.9% 4.0% Equities The fund’s equity weighting decreased from 92.5% (85.8% after distribution reinvestment) for the financial year ended 2013 to 90.1% (84.4% after distribution reinvestment) for the financial year ended 2014 due to inflow of new funds. The fund’s equity weighting subsequently increased to 93.3% (87.9% after distribution reinvestment) for the financial year ended 2015 to capitalise on investment opportunities in the domestic market. Portfolio Turnover Ratio (PTR) PTR (time) 2013 2014 2015 0.24 0.19 0.27 The fund’s PTR declined from 0.24 times for the financial year ended 2013 to 0.19 times for the financial year ended 2014 due to lower level of rebalancing activities. For the financial year ended 2015, the fund’s PTR subsequently increased to 0.27 times due to higher level of rebalancing activities undertaken by the fund. Distribution 2013 2014 2015 Gross distribution per unit (sen) 5.00 4.50 4.00 Net distribution per unit (sen) 4.87 4.44 3.97 Distribution is in the form of cash. 169 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC SMALLCAP FUND (P SmallCap) Average Annual Returns for the following periods ended 31 August 2015 1-Year 3-Year 5-Year 10-Year Since Commencement* -4.46 13.93 12.08 30.32 35.61 -25.98 4.33 4.72 8.36 7.34 P SmallCap (%) Benchmark index (%)** Annual Total Return for the Financial Years Ended 31 August P SmallCap (%) Benchmark index (%)** 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 11.42 55.60 -2.13 9.66 35.15 -0.46 13.67 21.55 22.03 -4.46 32.96 -14.75 10.01 13.55 1.71 7.56 18.53 28.77 -25.98 4.88 * 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. 1-Year Fund Performance Review The P SmallCap registered a total return of -4.46% for the financial year ended 31 August 2015 as compared to its benchmark’s return of -25.98% over the same period. Asset Allocation 2013 2014 2015 90.1% 90.1% 84.2% Fixed income securities 1.4% 0.0% 0.0% Money market instruments & others 8.5% 9.9% 15.8% Equities & derivatives The fund’s equity weighting remain unchanged at 90.1% for the financial year ended 2013 and 2014. For the financial year ended 2015, the fund’s equity weighting decreased to 84.2% (78.4% after distribution reinvestment) to weather the consolidation phase in the domestic and regional markets. Portfolio Turnover Ratio (PTR) PTR (time) 2013 2014 2015 0.21 0.09 0.09 The fund’s PTR declined from 0.21 times for the financial year ended 2013 to 0.09 times for the financial year ended 2014 due to lower level of rebalancing activities. For the financial year ended 2015, the fund’s PTR remained at 0.09 times due to ongoing rebalancing activities undertaken by the fund. Distribution 2013 2014 2015 Gross distribution per unit (sen) 6.00 8.00 6.00 Net distribution per unit (sen) 5.87 7.72 6.00 Distribution is in the form of cash. 170 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC EQUITY FUND (PEF) Average Annual Returns for the following periods ended 31 October 2015 1-Year 3-Year 5-Year 10-Year Since Commencement* -1.78 5.73 4.10 13.75 20.38 -10.21 -0.15 2.12 8.29 10.04 PEF (%) Benchmark index (%)** Annual Total Return for the Financial Years Ended 31 October PEF (%) Benchmark index (%)** 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 15.26 51.35 -41.53 58.52 21.92 -2.69 5.68 14.99 3.75 -1.78 8.57 43.04 -38.91 43.96 21.11 -0.91 12.14 8.00 * The figure shown is for the period since the fund’s commencement (4 September 2001). ** Prior to 6 July 2009, the fund’s benchmark was Kuala Lumpur Composite Index (KLCI). 2.67 -10.21 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 full market capitalisation listed on the Bursa Malaysia Main Market. 1-Year Fund Performance Review The PEF registered a total return of -1.78% for the financial year ended 31 October 2015 in comparison to the benchmark’s return of -10.21% over the same period. Asset Allocation 2013 2014 2015 98.7% 97.7% 92.8% Fixed income securities 0.6% 0.6% 0.7% Money market instruments & others 0.7% 1.7% 6.5% Equities The fund’s equity weighting decreased from 98.7% (92.3% after distribution reinvestment) for the financial year ended 2013 to 97.7% (91.2% after distribution reinvestment) for the financial year ended 2014 to weather the consolidation phase in the domestic and regional markets. The fund’s equity weighting decreased further to 92.8% (86.0% after distribution reinvestment) for the financial year ended 2015 to lock in profits on selected equity investments. Portfolio Turnover Ratio (PTR) PTR (time) 2013 2014 2015 0.55 0.26 0.25 The fund’s PTR declined from 0.55 times for the financial year ended 2013 to 0.26 times for the financial year ended 2014 and declined further to 0.25 times for the financial year ended 2015 due to lower level of rebalancing activities undertaken by the fund. Distribution 2013 2014 2015 Gross distribution per unit (sen) 2.00 2.00 2.00 Net distribution per unit (sen) 1.98 1.99 2.00 Distribution is in the form of cash. 171 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC FOCUS SELECT FUND (PFSF) Average Annual Returns for the following periods ended 31 December 2015 1-Year 3-Year 5-Year 10-Year Since Commencement* PFSF (%) 6.30 4.43 8.00 18.61 18.04 Benchmark index (%)** 0.54 2.16 4.10 12.25 10.99 Annual Total Return for the Financial Years Ended 31 December 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 PFSF (%) 30.59 29.62 -32.89 42.66 26.16 5.17 17.52 6.65 -0.07 6.30 Benchmark index (%)** 21.83 31.82 -42.57 51.95 31.79 6.22 6.55 14.98 -7.88 0.54 * The figure shown is for the period since the fund’s commencement (15 December 2004). ** 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. 1-Year Fund Performance Review The PFSF achieved a total return of +6.30% for the financial year ended 31 December 2015 as compared to the benchmark’s return of +0.54% over the same period. Asset Allocation 2013 2014 2015 Equities 86.9% 88.0% 92.7% Money market instruments & others 13.1% 12.0% 7.3% The fund’s equity weighting increased from 86.9% (81.1% after distribution reinvestment) for the financial year ended 2013 to 88.0% (83.3% after distribution reinvestment) for the financial year ended 2014 and increased further to 92.7% (89.3% after distribution reinvestment) for the financial year ended 2015 to capitalise on investment opportunities in the domestic and regional markets. Portfolio Turnover Ratio (PTR) PTR (time) 2013 2014 2015 0.38 0.19 0.19 The fund’s PTR declined from 0.38 times for the financial year ended 2013 to 0.19 times for the financial year ended 2014 due to lower level of rebalancing activities. For the financial year ended 2015, the fund’s PTR remained at 0.19 times due to ongoing rebalancing activities undertaken by the fund. Distribution 2013 2014 2015 Gross distribution per unit (sen) 2.00 1.50 1.00 Net distribution per unit (sen) 1.98 1.47 1.00 Distribution is in the form of cash. 172 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC DIVIDEND SELECT FUND (PDSF) Average Annual Returns for the following periods ended 31 May 2015 1-Year 3-Year 5-Year 10-Year Since Commencement* PDSF (%) -3.32 6.52 11.47 17.22 17.11 Benchmark index (%)** -5.44 3.77 7.53 10.70 9.95 Annual Total Return for the Financial Years Ended 31 May 2006* 2007 2008 2009 2010 2011 2012 2013 2014 2015 PDSF (%) 9.03 42.33 2.75 -10.16 20.59 26.24 4.27 15.37 7.15 -3.32 Benchmark index (%)** 4.08 45.17 -5.26 -18.18 23.97 21.68 1.66 13.36 3.81 -5.44 * The figure shown is for the period since the fund’s commencement (17 May 2005). ** 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 KLIBOR as this composite benchmark index is a better representative of the fund’s investments. 1-Year Fund Performance Review The PDSF registered a total return of -3.32% for the financial year ended 31 May 2015 as compared to the benchmark’s return of -5.44% over the same period. Asset Allocation Equities Fixed income securities Money market instruments & others 2013 2014 2015 82.6% 82.8% 87.4% 0.0% 1.3% 1.1% 17.4% 15.9% 11.5% The fund’s equity weighting increased from 82.6% (77.6% after distribution reinvestment) for the financial year ended 2013 to 82.8% (77.0% after distribution reinvestment) for the financial year ended 2014 and increased further to 87.4% (84.3% after distribution reinvestment) for the financial year ended 2015 to capitalise on investment opportunities in the domestic and regional markets. Portfolio Turnover Ratio (PTR) PTR (time) 2013 2014 2015 0.26 0.31 0.41 The fund’s PTR increased from 0.26 times for the financial year ended 2013 to 0.31 times for the financial year ended 2014 and increased further to 0.41 times for the financial year ended 2015 due to higher level of rebalancing activities undertaken by the fund. Distribution 2013 2014 2015 Gross distribution per unit (sen) 2.00 2.35 2.00 Net distribution per unit (sen) 1.98 2.31 1.99 Distribution is in the form of cash. 173 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC FAR-EAST SELECT FUND (PFES) Average Annual Returns for the following periods ended 31 May 2015 1-Year 3-Year 5-Year Since Commencement* PFES (%) 31.08 19.43 6.45 11.40 Benchmark index (%)** 23.42 16.89 11.12 9.66 Annual Total Return for the Financial Years Ended 31 May 2006* 2007 2008 2009 2010 2011 2012 2013 2014 2015 PFES (%) 4.47 38.74 16.87 -14.49 8.54 22.83 -31.95 13.37 6.45 31.08 Benchmark index (%)** 5.52 29.91 2.43 -21.92 12.24 20.54 -14.30 13.14 7.83 23.42 * The figure shown is for the period since the fund’s commencement (12 December 2005). ** 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. 1-Year Fund Performance Review The PFES registered a total return of +31.08% for the financial year ended 31 May 2015 as compared to its benchmark’s return of +23.42% over the same period. Asset Allocation Equities & derivatives Money market instruments & others 2013 2014 2015 92.6% 96.3% 95.1% 7.4% 3.7% 4.9% The fund’s equity weighting increased from 92.6% for the financial year ended 2013 to 96.3% for the financial year ended 2014 to capitalise on investment opportunities in the domestic and selected regional markets. For the financial year ended 2015, the fund’s equity weighting subsequently decreased to 95.1% (90.8% after distribution reinvestment) to lock in profits on selected equity investments. Portfolio Turnover Ratio (PTR) PTR (time) 2013 2014 2015 0.75 0.26 0.59 The fund’s PTR declined from 0.75 times for the financial year ended 2013 to 0.26 times for the financial year ended 2014 due to lower level of rebalancing activities. For the financial year ended 2015, the fund’s PTR subsequently increased to 0.59 times due to higher level of rebalancing activities undertaken by the fund. Distribution 2013 2014 2015 Gross distribution per unit (sen) - - 1.50 Net distribution per unit (sen) - - 1.48 Distribution is in the form of cash. 174 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC REGIONAL SECTOR FUND (PRSEC) Average Annual Returns for the following periods ended 31 May 2015 1-Year 3-Year 5-Year Since Commencement* PRSEC (%) 16.99 17.97 5.20 7.93 Benchmark index (%)** 21.32 15.42 10.37 6.24 Annual Total Return for the Financial Years Ended 31 May 2007* 2008 2009 2010 2011 2012 2013 2014 2015 PRSEC (%) 27.65 11.39 -10.60 7.70 21.30 -32.48 18.63 10.82 16.99 Benchmark index (%)** 15.94 5.41 -21.66 8.08 18.72 -12.53 12.16 7.42 21.32 * The figure shown is for the period since the fund’s commencement (10 April 2006). ** The fund’s benchmark is a composite index of 90% MSCI AC Far-East Ex-Japan Index and 10% 3-Month KLIBOR. 1-Year Fund Performance Review The PRSEC registered a total return of +16.99% for the financial year ended 31 May 2015 as compared to its benchmark’s return of +21.32% over the same period. Asset Allocation 2013 2014 2015 Equities & derivatives 82.0% 82.4% 97.4% Money market instruments & others 18.0% 17.6% 2.6% The fund’s equity weighting increased from 82.0% for the financial year ended 2013 to 82.4% for the financial year ended 2014 and increased further to 97.4% (86.8% after distribution reinvestment) for the financial year ended 2015 to capitalise on investment opportunities in the domestic and selected regional markets. Portfolio Turnover Ratio (PTR) PTR (time) 2013 2014 2015 1.03 0.43 1.17 The fund’s PTR declined from 1.03 times for the financial year ended 2013 to 0.43 times for the financial year ended 2014 due to lower level of rebalancing activities. The fund’s PTR subsequently increased to 1.17 times for the financial year ended 2015 due to higher level of rebalancing activities undertaken by the fund. Distribution 2013 2014 2015 Gross distribution per unit (sen) - - 3.00 Net distribution per unit (sen) - - 2.98 Distribution is in the form of cash. 175 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC GLOBAL SELECT FUND (PGSF) Average Annual Returns for the following periods ended 31 May 2015 1-Year 3-Year 5-Year Since Commencement* PGSF (%) 16.81 21.24 12.95 4.05 Benchmark index (%)** 16.17 20.62 13.62 3.19 Annual Total Return for the Financial Years Ended 31 May 2008 2009 2010 2011 2012 2013 2014 2015 PGSF (%) 2007* 7.41 -11.11 -19.28 6.25 12.29 -10.34 21.37 15.40 16.81 Benchmark index (%)** 6.76 -7.07 -28.13 4.69 14.57 -8.39 18.61 17.38 16.17 * 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 KLIBOR. 1-Year Fund Performance Review The PGSF registered a total return of +16.81% for the financial year ended 31 May 2015 in comparison to its benchmark’s return of +16.17% over the same period. Asset Allocation 2013 2014 2015 Equities & derivatives 81.1% 90.4% 97.7% Money market instruments & others 18.9% 9.6% 2.3% The fund’s equity weighting increased from 81.1% for the financial year ended 2013 to 90.4% for the financial year ended 2014 and increased further to 97.7% (95.3% after distribution reinvestment) for the financial year ended 2015 to capitalise on investment opportunities in the global and regional markets. Portfolio Turnover Ratio (PTR) PTR (time) 2013 2014 2015 0.93 0.73 1.31 The fund’s PTR declined from 0.93 times for the financial year ended 2013 to 0.73 times for the financial year ended 2014 due to lower level of rebalancing activities. For the financial year ended 2015, the fund’s PTR subsequently increased to 1.31 times due to higher level of rebalancing activities undertaken by the fund. Distribution 2013 2014 2015 Gross distribution per unit (sen) - - 0.75 Net distribution per unit (sen) - - 0.74 Distribution is in the form of cash. 176 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC FAR-EAST DIVIDEND FUND (PFEDF) Average Annual Returns for the following periods ended 30 November 2015 PFEDF (%) Benchmark index (%)** 1-Year 3-Year 5-Year Since Commencement* 13.00 11.28 2.72 4.12 2.37 5.55 2.83 3.59 Annual Total Return for the Financial Years Ended 30 November 2008 2009 2010 2011 2012 2013 2014 2015 PFEDF (%) 30.17 2007* -39.86 44.04 6.86 -16.04 1.10 7.87 9.79 13.00 Benchmark index (%)** 30.77 -48.91 58.16 9.19 -11.50 10.60 7.22 6.26 2.37 * The figure shown is for the period since the fund’s commencement (18 December 2006). ** 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). From 30 April 2010 to 29 April 2013, the fund’s benchmark was a composite index of 90% MSCI AC Far-East Ex-Japan Index and 10% 3-Month KLIBOR. Effective from 30 April 2013, the equity component of the fund’s benchmark has been replaced with the MSCI AC Far-East Ex-Japan High Dividend Yield Index as this benchmark index is a better representative of the fund’s investment strategy. 1-Year Fund Performance Review The PFEDF registered a total return of +13.00% for the financial year ended 30 November 2015 as compared to the benchmark’s return of +2.37% over the same period. Asset Allocation Equities & derivatives Money market instruments & others 2013 2014 2015 91.3% 96.1% 89.9% 8.7% 3.9% 10.1% The fund’s equity weighting increased from 91.3% for the financial year ended 2013 to 96.1% (94.5% after distribution reinvestment) for the financial year ended 2014 to capitalise on investment opportunities in the domestic and regional equity markets. The fund’s equity weighting subsequently decreased to 89.9% (88.6% after distribution reinvestment) for the financial year ended 2015 to lock in profits on selected equity investments. Portfolio Turnover Ratio (PTR) PTR (time) 2013 2014 2015 1.31 0.25 0.42 The fund’s PTR decreased from 1.31 times for the financial year ended 2013 to 0.25 times for the financial year ended 2014 due to lower level of rebalancing activities. For the financial year ended 2015, the fund’s PTR subsequently increased to 0.42 times due to higher level of rebalancing activities undertaken by the fund. Distribution 2013 2014 2015 Gross distribution per unit (sen) - 0.40 0.40 Net distribution per unit (sen) - 0.40 0.40 Distribution is in the form of cash. 177 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC CHINA SELECT FUND (PCSF) Average Annual Returns for the following periods ended 31 July 2015 1-Year 3-Year 5-Year Since Commencement* PCSF (%) 23.97 21.59 6.82 -0.02 Benchmark index (%)** 17.64 17.45 8.36 3.56 Annual Total Return for the Financial Years Ended 31 July 2008* PCSF (%) 2009 2010 2011 2012 2013 2014 2015 -18.07 0.21 -9.34 11.68 -27.11 16.88 13.72 23.97 -6.72 3.26 -5.65 4.59 -10.99 12.94 14.63 17.64 Benchmark index (%)** * 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. 1-Year Fund Performance Review The PCSF registered a total return of +23.97% for the financial year ended 31 July 2015 as compared to the benchmark’s return of +17.64% over the same period. Asset Allocation Equities & derivatives Money market instruments & others 2013 2014 2015 92.2% 94.9% 94.7% 7.8% 5.1% 5.3% The fund’s equity weighting increased from 92.2% for the financial year ended 2013 to 94.9% for the financial year ended 2014 to capitalise on investment opportunities in the greater China markets. For the financial year ended 2015, the fund’s equity weighting decreased marginally to 94.7% to weather the consolidation phase in the greater China markets. Portfolio Turnover Ratio (PTR) PTR (time) 2013 2014 2015 0.87 0.36 0.39 The fund’s PTR declined from 0.87 times for the financial year ended 2013 to 0.36 times for the financial year ended 2014 due to lower level of rebalancing activities. The fund’s PTR subsequently increased to 0.39 times for the financial year ended 2015 due to higher level of rebalancing activities undertaken by the fund. Distribution 2013 2014 2015 Gross distribution per unit (sen) - - - Net distribution per unit (sen) - - - 178 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC FAR-EAST PROPERTY & RESORTS FUND (PFEPRF) Average Annual Returns for the following periods ended 31 July 2015 1-Year 3-Year 5-Year Since Commencement* PFEPRF (%) 4.29 11.41 13.66 6.58 Benchmark index (%)** 6.48 10.96 11.15 -0.62 Annual Total Return for the Financial Years Ended 31 July 2008* 2009 2010 2011 2012 2013 2014 2015 PFEPRF (%) -29.04 25.76 1.61 14.01 10.03 25.30 2.71 4.29 Benchmark index (%)** -32.06 -7.43 -3.00 12.41 4.32 17.09 6.57 6.48 * The figure shown is for the period since the fund’s commencement (30 July 2007). ** 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 by S&P Dow Jones Indices, LLC 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 thencurrent Global Industry Classification Standard (GICS). The new benchmark index is more representative of the performance of the stock markets which it represents. 1-Year Fund Performance Review The PFEPRF registered a total return of +4.29% for the financial year ended 31 July 2015 as compared to the benchmark’s return of +6.48% over the same period. Asset Allocation Equities & derivatives Fixed income securities Money market instruments & others 2013 2014 2015 74.2% 95.5% 90.6% 3.6% 3.8% 4.1% 22.2% 0.7% 5.3% The fund’s equity weighting increased from 74.2% (69.6% after distribution reinvestment) for the financial year ended 2013 to 95.5% (88.0% after distribution reinvestment) for the financial year ended 2014 to capitalise on investment opportunities in the domestic and regional markets. For the financial year ended 2015, the fund’s equity weighting decreased to 90.6% (83.2% after distribution reinvestment) to weather the consolidation phase in the domestic and regional markets. Portfolio Turnover Ratio (PTR) PTR (time) 2013 2014 2015 0.64 0.39 0.40 The fund’s PTR declined from 0.64 times for the financial year ended 2013 to 0.39 times for the financial year ended 2014 due to lower level of rebalancing activities. The fund’s PTR subsequently increased to 0.40 times for the financial year ended 2015 due to higher level of rebalancing activities undertaken by the fund. Distribution 2013 2014 2015 Gross distribution per unit (sen) 2.00 2.50 2.50 Net distribution per unit (sen) 1.99 2.50 2.49 Distribution is in the form of cash. 179 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC SOUTH-EAST ASIA SELECT FUND (PSEASF) Average Annual Returns for the following periods ended 31 October 2015 1-Year 3-Year 5-Year Since Commencement* PSEASF (%) 6.37 7.72 7.71 6.98 Benchmark index (%)** 1.86 3.81 3.36 3.15 Annual Total Return for the Financial Years Ended 31 October 2009 2010 2011 2012 2013 2014 2015 PSEASF (%) -42.12 2008* 54.73 25.73 -2.35 15.26 7.56 7.62 6.37 Benchmark index (%)** -45.61 60.09 22.52 -1.90 6.87 5.78 3.42 1.86 * 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. 1-Year Fund Performance Review The PSEASF registered a total return of +6.37% for the financial year ended 31 October 2015 against the benchmark’s return of +1.86% over the same period. Asset Allocation Equities & derivatives Fixed income securities Money market instruments & others 2013 2014 2015 96.6% 95.0% 100.0% 5.1% 5.1% 0.0% -1.7% -0.1% 0.0% The fund’s equity weighting decreased from 96.6% (92.5% after distribution reinvestment) for the financial year ended 2013 to 95.0% (90.3% after distribution reinvestment) for the financial year ended 2014 to weather the consolidation phase in the domestic and selected South-East Asia markets. For the financial year ended 2015, the fund’s equity weighting subsequently increased to 100.0% (95.0% after distribution reinvestment) to capitalise on investment opportunities in the domestic and selected South-East Asia markets. Portfolio Turnover Ratio (PTR) PTR (time) 2013 2014 2015 0.40 0.33 0.62 The fund’s PTR declined from 0.40 times for the financial year ended 2013 to 0.33 times for the financial year ended 2014 due to lower level of rebalancing activities. The fund’s PTR subsequently increased to 0.62 times for the financial year ended 2015 due to higher level of rebalancing activities undertaken by the fund. Distribution 2013 2014 2015 Gross distribution per unit (sen) 1.25 1.50 1.50 Net distribution per unit (sen) 1.25 1.50 1.50 Distribution is in the form of cash. 180 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC SECTOR SELECT FUND (PSSF) Average Annual Returns for the following periods ended 31 October 2015 1-Year 3-Year 5-Year Since Commencement* -1.79 5.52 6.30 8.39 -10.08 0.16 2.66 2.69 PSSF (%) Benchmark index (%)** Annual Total Return for the Financial Years Ended 31 October 2009 2010 2011 2012 2013 2014 2015 PSSF (%) -36.64 2008* 52.90 30.59 1.25 11.47 11.98 5.97 -1.79 Benchmark index (%)** -39.15 43.96 22.18 0.54 12.15 9.74 1.83 -10.08 * The figure shown is for the period since the fund’s commencement (3 December 2007). ** 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 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 top 100 large and mid cap companies by full market capitalisation listed on the Bursa Malaysia Main Market. 1-Year Fund Performance Review The PSSF generated a total return of -1.79% for the financial year ended 31 October 2015 as compared to its benchmark’s total return of -10.08% over the same period. Asset Allocation 2013 2014 2015 96.9% 88.3% 85.5% Fixed income securities 1.4% 1.4% 1.2% Money market instruments & others 1.7% 10.3% 13.3% Equities The fund’s equity weighting decreased from 96.9% (92.5% after distribution reinvestment) for the financial year ended 2013 to 88.3% (83.0% after distribution reinvestment) for the financial year ended 2014 and decreased further to 85.5% (79.8% after distribution reinvestment) for the financial year ended 2015 to weather the consolidation phase in the domestic market. Portfolio Turnover Ratio (PTR) PTR (time) 2013 2014 2015 0.28 0.13 0.22 The fund’s PTR declined from 0.28 times for the financial year ended 2013 to 0.13 times for the financial year ended 2014 due to lower level of rebalancing activities. The fund’s PTR subsequently increased to 0.22 times for the financial year ended 2015 due to higher level of rebalancing activities undertaken by the fund. Distribution 2013 2014 2015 Gross distribution per unit (sen) 1.50 2.00 2.00 Net distribution per unit (sen) 1.46 1.98 2.00 Distribution is in the form of cash. 181 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC FAR-EAST CONSUMER THEMES FUND (PFECTF) Average Annual Returns for the following periods ended 30 June 2015 1-Year 3-Year 5-Year Since Commencement* PFECTF (%) -1.22 5.92 5.66 7.27 Benchmark index (%)** -0.12 7.32 9.01 7.43 Annual Total Return for the Financial Years Ended 30 June 2008* 2009 2010 2011 2012 2013 2014 2015 PFECTF (%) -5.44 9.09 16.32 19.69 -8.96 9.05 9.33 -1.22 Benchmark index (%)** -8.13 -10.23 29.67 28.29 -7.28 9.10 11.93 -0.12 * 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 by S&P Dow Jones Indices, LLC 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). The new benchmark index is more representative of the performance of the stock markets it represents. 1-Year Fund Performance Review The PFECTF registered a total return of -1.22% for the financial year ended 30 June 2015 in comparison to the benchmark’s return of -0.12% over the same period. Asset Allocation 2013 2014 2015 Equities & derivatives 76.4% 99.5% 99.3% Money market instruments & others 23.6% 0.5% 0.7% The fund’s equity weighting increased from 76.4% for the financial year ended 2013 to 99.5% (93.5% after distribution reinvestment) for the financial year ended 2014 to capitalise on investment opportunities in the regional markets. For the financial year ended 2015, the fund’s equity weighting subsequently decreased to 99.3% (92.8% after distribution reinvestment) to weather the consolidation phase in the regional markets. Portfolio Turnover Ratio (PTR) PTR (time) 2013 2014 2015 0.60 0.48 0.50 The fund’s PTR declined from 0.60 times for the financial year ended 2013 to 0.48 times for the financial year ended 2014 due to lower level of rebalancing activities. The fund’s PTR subsequently increased to 0.50 times for the financial year ended 2015 due to higher level of rebalancing activities undertaken by the fund. Distribution 2013 2014 2015 Gross distribution per unit (sen) - 1.75 1.75 Net distribution per unit (sen) - 1.75 1.75 Distribution is in the form of cash. 182 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC CHINA TITANS FUND (PCTF) Average Annual Returns for the following periods ended 31 May 2015 1-Year 3-Year 5-Year Since Commencement* PCTF (%) 34.79 19.45 8.37 4.69 Benchmark index (%)** 41.51 22.75 11.02 4.83 Annual Total Return for the Financial Years Ended 31 May 2009* 2010 2011 2012 2013 2014 2015 -4.32 -1.76 9.67 -18.28 9.49 7.23 34.79 -14.82 1.70 13.89 -19.00 11.33 6.71 41.51 PCTF (%) Benchmark index (%)** * The figure shown is for the period since the fund’s commencement (21 April 2008). ** The fund’s benchmark is a composite index of 40% Hang Seng China Enterprises Index (HSCEI), 30% Hang Seng Index (HSI) and 30% FTSE TWSE Taiwan 50 Index. 1-Year Fund Performance Review The PCTF registered a total return of +34.79% for the financial year ended 31 May 2015 in comparison to the benchmark’s return of +41.51% over the same period. Asset Allocation Equities & derivatives Money market instruments & others 2013 2014 2015 90.7% 92.4% 87.8% 9.3% 7.6% 12.2% The fund’s equity weighting increased from 90.7% for the financial year ended 2013 to 92.4% for the financial year ended 2014 to capitalise on investment opportunities in the greater China markets. For the financial year ended 2015, the fund’s equity weighting subsequently decreased to 87.8% to lock in profits on selected equity investments. Portfolio Turnover Ratio (PTR) PTR (time) 2013 2014 2015 0.53 0.52 0.54 The fund’s PTR declined from 0.53 times for the financial year ended 2013 to 0.52 times for the financial year ended 2014 due to lower level of rebalancing activities. For the financial year ended 2015, the fund’s PTR subsequently increased to 0.54 times due to higher level of rebalancing activities undertaken by the fund. Distribution 2013 2014 2015 Gross distribution per unit (sen) - - - Net distribution per unit (sen) - - - 183 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC FAR-EAST TELCO & INFRASTRUCTURE FUND (PFETIF) Average Annual Returns for the following periods ended 30 April 2015 1-Year 3-Year 5-Year Since Commencement* PFETIF (%) 24.31 17.37 8.90 14.17 Benchmark index (%)** 27.73 17.37 13.32 6.55 Annual Total Return for the Financial Years Ended 30 April 2009* 2010 2011 2012 2013 2014 2015 15.24 17.53 25.59 -24.34 14.02 7.32 24.31 -17.70 5.21 9.64 -0.08 16.54 2.19 27.73 PFETIF (%) Benchmark index (%)** * The figure shown is for the period since the fund’s commencement (28 July 2008). ** 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 a customised index by S&P Dow Jones Indices, LLC 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). The new benchmark index is more representative of the performance of the stock markets which it represents. 1-Year Fund Performance Review The PFETIF registered a total return of +24.31% for the financial year ended 30 April 2015 as compared to the benchmark’s return of +27.73% over the same period. Asset Allocation Equities & derivatives Money market instruments & others 2013 2014 2015 96.3% 95.2% 96.8% 3.7% 4.8% 3.2% The fund’s equity weighting decreased from 96.3% for the financial year ended 2013 to 95.2% (90.9% after distribution reinvestment) for the financial year ended 2014 to weather the consolidation phase in the domestic and regional markets. For the financial year ended 2015, the fund’s equity weighting subsequently increased to 96.8% (93.1% after distribution reinvestment) to capitalise on investment opportunities in the domestic and regional markets. Portfolio Turnover Ratio (PTR) PTR (time) 2013 2014 2015 0.53 0.34 0.41 The fund’s PTR declined from 0.53 times for the financial year ended 2013 to 0.34 times for the financial year ended 2014 due to lower level of rebalancing activities. For the financial year ended 2015, the fund’s PTR subsequently increased to 0.41 times due to higher level of rebalancing activities undertaken by the fund. Distribution 2013 2014 2015 Gross distribution per unit (sen) - 1.50 1.50 Net distribution per unit (sen) - 1.48 1.50 Distribution is in the form of cash. 184 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC SELECT ALPHA-30 FUND (PSA30F) Average Annual Returns for the following periods ended 30 November 2015 1-Year 3-Year 5-Year Since Commencement* PSA30F (%) -8.43 2.75 2.68 9.94 Benchmark index (%)** -8.17 1.27 2.52 10.70 Annual Total Return for the Financial Years Ended 30 November 2009* 2010 2011 2012 2013 2014 2015 PSA30F (%) 25.76 16.11 -4.26 9.42 16.34 1.59 -8.43 Benchmark index (%)** 28.46 17.96 -0.88 9.42 12.53 0.45 -8.17 * The figure shown is for the period since the fund’s commencement (27 April 2009). ** 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 full market capitalisation listed on the Bursa Malaysia Main Market. 1-Year Fund Performance Review The PSA30F registered a total return of -8.43% for the financial year ended 30 November 2015 in comparison to the benchmark’s return of -8.17% over the same period. Asset Allocation Equities Money market instruments & others 2013 2014 2015 99.0% 94.5% 84.6% 1.0% 5.5% 15.4% The fund’s equity weighting decreased from 99.0% (92.8% after distribution reinvestment) for the financial year ended 2013 to 94.5% (88.2% after distribution reinvestment) for the financial year ended 2014 to weather the consolidation phase in the domestic and selected regional markets. The fund’s equity weighting decreased further to 84.6% (78.6% after distribution reinvestment) for the financial year ended 2015 to lock in profits on selected equity investments. Portfolio Turnover Ratio (PTR) PTR (time) 2013 2014 2015 0.54 0.52 0.39 The fund’s PTR declined from 0.54 times for the financial year ended 2013 to 0.52 times for the financial year ended 2014 and declined further to 0.39 times for the financial year ended 2015 due to lower level of rebalancing activities undertaken by the fund. Distribution 2013 2014 2015 Gross distribution per unit (sen) 2.25 2.25 2.00 Net distribution per unit (sen) 2.17 2.23 2.00 Distribution is in the form of cash. 185 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC WORLDWIDE EQUITY FUND (PWEF) (Formerly known as Public Natural Resources Equity Fund) Average Annual Returns for the following periods ended 30 November 2015 PWEF (%) Benchmark index (%)** 1-Year 3-Year 5-Year Since Commencement* -7.62 -1.41 -5.12 -2.60 -11.89 -7.73 -7.54 -3.55 Annual Total Return for the Financial Years Ended 30 November 2010* 2011 2012 2013 2014 2015 PWEF (%) 12.12 -19.49 -3.51 9.80 -5.57 -7.62 Benchmark index (%)** 24.30 -11.77 -8.14 -1.65 -11.36 -11.89 * The figure shown is for the period since the fund’s commencement (20 July 2009). ** The benchmark of the fund is a customised index by S&P Dow Jones Indices, LLC 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). 1-Year Fund Performance Review The PWEF registered a total return of -7.62% for the financial year ended 30 November 2015 in comparison to the benchmark’s return of -11.89% over the same period. Asset Allocation Equities & derivatives Fixed income securities Money market instruments & others 2013 2014 2015 85.3% 93.3% 73.1% 2.4% 3.3% 3.7% 12.3% 3.4% 23.2% The equity exposure of the fund increased from 85.3% for the financial year ended 2013 to 93.3% for the financial year ended 2014 to capitalise on investment opportunities in the natural resources sectors. For the financial year ended 2015, the fund’s equity weighting subsequently decreased to 73.1% to weather the consolidation phase in the equity markets. Portfolio Turnover Ratio (PTR) PTR (time) 2013 2014 2015 0.74 0.34 0.27 The fund’s PTR declined from 0.74 times for the financial year ended 2013 to 0.34 times for the financial year ended 2014 and declined further to 0.27 times for the financial year ended 2015 due to lower level of rebalancing activities undertaken by the fund. Distribution 2013 2014 2015 Gross distribution per unit (sen) - - - Net distribution per unit (sen) - - - 186 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC AUSTRALIA EQUITY FUND (PAUEF) Average Annual Returns for the following periods ended 31 July 2015 1-Year 3-Year 5-Year Since Commencement* PAUEF (%) -4.09 7.04 7.68 6.15 S&P/ASX 200 Index (%) -4.37 4.61 4.73 2.27 Annual Total Return for the Financial Years Ended 31 July 2010* 2011 2012 2013 2014 2015 PAUEF (%) -1.84 16.18 -1.61 7.81 17.14 -4.09 S&P/ASX 200 Index (%) -8.46 11.48 -2.53 4.61 13.79 -4.37 * The figure shown is for the period since the fund’s commencement (28 September 2009). 1-Year Fund Performance Review The PAUEF registered a total return of -4.09% for the financial year ended 31 July 2015 in comparison to the benchmark’s return of -4.37% over the same period. Asset Allocation 2013 2014 2015 88.0% 104.2% 99.0% Fixed income securities 2.8% 0.0% 0.0% Money market instruments & others 9.2% -4.2% 1.0% Equities & derivatives The equity exposure of the fund increased from 88.0% (84.8% after distribution reinvestment) for the financial year ended 2013 to 104.2% (97.4% after distribution reinvestment) for the financial year ended 2014 to capitalise on investment opportunities in the Australian market. The fund’s equity weighting subsequently decreased to 99.0% (91.8% after distribution reinvestment) for the financial year ended 2015 to weather the consolidation phase in the Australian market. Portfolio Turnover Ratio (PTR) PTR (time) 2013 2014 2015 0.59 0.33 0.36 The fund’s PTR declined from 0.59 times for the financial year ended 2013 to 0.33 times for the financial year ended 2014 due to lower level of rebalancing activities. For the financial year ended 2015, the fund’s PTR subsequently increased to 0.36 times due to higher level of rebalancing activities undertaken by the fund. Distribution 2013 2014 2015 Gross distribution per unit (sen) 1.00 2.00 2.00 Net distribution per unit (sen) 1.00 2.00 2.00 Distribution is in the form of cash. 187 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC FAR-EAST ALPHA-30 FUND (PFA30F) Average Annual Returns for the following periods ended 30 November 2015 1-Year 3-Year 5-Year Since Commencement* PFA30F (%) 19.07 15.62 3.85 5.15 Benchmark index (%)** 16.00 15.17 8.31 8.64 Annual Total Return for the Financial Years Ended 30 November 2011 2012 2013 2014 2015 PFA30F (%) 2010* 8.00 -20.48 2.13 16.37 5.98 19.07 Benchmark index (%)** 4.46 -10.85 9.13 16.79 7.40 16.00 * The figure shown is for the period since the fund’s commencement (26 April 2010). ** Prior to 30 April 2013, the benchmark of the fund was a composite index of 80% MSCI AC Far-East Ex-Japan Index, 10% Tokyo Stock Price Index and 10% 3-Month KLIBOR. Effective from 30 April 2013, the MSCI AC Far-East Ex-Japan Index in the fund’s benchmark has been replaced with the Top 30 constituents of MSCI AC Far-East Ex-Japan Index as it is a better representative of the fund’s investment strategy. 1-Year Fund Performance Review The PFA30F registered a total return of +19.07% for the financial year ended 30 November 2015 as compared to the benchmark’s return of +16.00% over the same period. Asset Allocation Equities & derivatives Money market instruments & others 2013 2014 2015 93.1% 90.4% 84.7% 6.9% 9.6% 15.3% The fund’s equity weighting decreased from 93.1% for the financial year ended 2013 to 90.4% for the financial year ended 2014 to weather the consolidation phase in the regional markets. The fund’s equity weighting decreased further to 84.7% for the financial year ended 2015 to lock in profits on selected equity investments. Portfolio Turnover Ratio (PTR) PTR (time) 2013 2014 2015 1.23 0.30 0.37 The fund’s PTR decreased from 1.23 times for the financial year ended 2013 to 0.30 times for the financial year ended 2014 due to lower level of rebalancing activities. For the financial year ended 2015, the fund’s PTR subsequently increased to 0.37 times due to higher level of rebalancing activities undertaken by the fund. Distribution 2013 2014 2015 Gross distribution per unit (sen) - - - Net distribution per unit (sen) - - - 188 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC OPTIMAL GROWTH FUND (POGF) Average Annual Returns for the following periods ended 31 July 2015 1-Year 3-Year 5-Year Since Commencement* POGF (%) -3.61 7.76 11.25 11.84 FBM 100 (%)** -8.55 1.75 5.84 6.42 Annual Total Return for the Financial Years Ended 31 July 2011* 2012 2013 2014 2015 POGF (%) 18.20 10.01 13.13 13.04 -3.61 FBM 100 (%)** 19.98 5.09 9.94 4.69 -8.55 * 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 top 100 large and mid cap companies by full market capitalisation listed on the Bursa Malaysia Main Market. 1-Year Fund Performance Review The POGF registered a total return of -3.61% for the financial year ended 31 July 2015 in comparison to its benchmark’s return of -8.55% over the same period. Asset Allocation 2013 2014 2015 Equities 88.4% 88.1% 82.5% Money market instruments & others 11.6% 11.9% 17.5% The fund’s equity weighting decreased marginally from 88.4% (81.8% after distribution reinvestment) for the financial year ended 2013 to 88.1% (81.8% after distribution reinvestment) for the financial year ended 2014 and decreased further to 82.5% (78.5% after distribution reinvestment) for the financial year ended 2015 to lock in profits on selected equity investments. Portfolio Turnover Ratio (PTR) PTR (time) 2013 2014 2015 0.82 0.93 0.40 The fund’s PTR increased from 0.82 times for the financial year ended 2013 to 0.93 times for the financial year ended 2014 due to higher level of rebalancing activities. For the financial year ended 2015, the fund’s PTR decreased to 0.40 times due to lower level of rebalancing activities undertaken by the fund. Distribution 2013 2014 2015 Gross distribution per unit (sen) 2.50 2.50 1.50 Net distribution per unit (sen) 2.47 2.49 1.50 Distribution is in the form of cash. 189 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC INDONESIA SELECT FUND (PINDOSF) Average Annual Returns for the following periods ended 31 August 2015 1-Year 3-Year Since Commencement* PINDOSF (%) -8.03 0.36 4.15 Benchmark index (%)** -2.91 0.29 1.96 Annual Total Return for the Financial Years Ended 31 August 2011* 2012 2013 2014 2015 PINDOSF (%) 10.96 7.41 -5.85 16.75 -8.03 Benchmark index (%)** 14.15 -4.63 -6.47 11.06 -2.91 * The figure shown is for the period since the fund’s commencement (21 September 2010). ** 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. 1-Year Fund Performance Review The PINDOSF registered a total return of -8.03% for the financial year ended 31 August 2015 in comparison to its benchmark’s return of -2.91% over the same period. Asset Allocation 2013 2014 2015 88.2% 92.3% 91.7% Fixed income securities 6.1% 3.5% 3.7% Money market instruments & others 5.7% 4.2% 4.6% Equities & derivatives The fund’s equity weighting increased from 88.2% (82.9% after distribution reinvestment) for the financial year ended 2013 to 92.3% (88.9% after distribution reinvestment) for the financial year ended 2014 to capitalise on investment opportunities in the Indonesian market. For the financial year ended 2015, the fund’s equity weighting subsequently decreased to 91.7% (88.0% after distribution reinvestment) to weather the consolidation phase in the Indonesian market. Portfolio Turnover Ratio (PTR) PTR (time) 2013 2014 2015 0.49 0.46 0.69 The fund’s PTR decreased from 0.49 times for the financial year ended 2013 to 0.46 times for the financial year ended 2014 due to lower level of rebalancing activities. For the financial year ended 2015, the fund’s PTR subsequently increased to 0.69 times due to higher level of rebalancing activities undertaken by the fund. Distribution 2013 2014 2015 Gross distribution per unit (sen) 1.50 1.00 1.00 Net distribution per unit (sen) 1.50 1.00 1.00 Distribution is in the form of cash. 190 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC SINGAPORE EQUITY FUND (PSGEF) Average Annual Returns for the following periods ended 30 September 2015 1-Year 3-Year Since Commencement* PSGEF (%) 6.30 5.54 5.65 Straits Times Index (%) 2.36 4.37 3.52 Annual Total Return for the Financial Years Ended 30 September 2012* 2013 2014 2015 PSGEF (%) 6.36 7.60 2.00 6.30 Straits Times Index (%) 1.65 7.92 2.43 2.36 * The figure shown is for the period since the fund’s commencement (27 June 2011). 1-Year Fund Performance Review The PSGEF registered a total return of +6.30% for the financial year ended 30 September 2015 in comparison to its benchmark’s return of +2.36% over the same period. Asset Allocation Equities & derivatives Money market instruments & others 2013 2014 2015 96.5% 98.2% 85.7% 3.5% 1.8% 14.3% The fund’s equity weighting increased from 96.5% (93.2% after distribution reinvestment) for the financial year ended 2013 to 98.2% (93.9% after distribution reinvestment) for the financial year ended 2014 to capitalise on investment opportunities in the Singapore market. For the financial year ended 2015, the fund’s equity weighting subsequently decreased to 85.7% (82.0% after distribution reinvestment) to weather the consolidation phase in the Singapore market. Portfolio Turnover Ratio (PTR) PTR (time) 2013 2014 2015 0.38 0.16 0.25 The fund’s PTR decreased from 0.38 times for the financial year ended 2013 to 0.16 times for the financial year ended 2014 due to lower level of rebalancing activities. For the financial year ended 2015, the fund’s PTR subsequently increased to 0.25 times due to higher level of rebalancing activities undertaken by the fund. Distribution 2013 2014 2015 Gross distribution per unit (sen) 1.00 1.25 1.25 Net distribution per unit (sen) 1.00 1.25 1.25 Distribution is in the form of cash. 191 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC STRATEGIC SMALLCAP FUND (PSSCF) Average Annual Returns for the following periods ended 30 September 2015 PSSCF (%) Benchmark index (%)** 1-Year 3-Year Since Commencement* -4.53 9.38 9.70 -21.37 8.30 5.08 Annual Total Return for the Financial Years Ended 30 September PSSCF (%) Benchmark index (%)** 2012* 2013 2014 2015 4.32 17.75 14.03 -4.53 -5.83 29.87 22.35 -21.37 * The figure shown is for the period since the fund’s commencement (9 April 2012). ** The fund’s benchmark is the 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. 1-Year Fund Performance Review The PSSCF registered a total return of -4.53% for the financial year ended 30 September 2015 in comparison to its benchmark’s return of -21.37% over the same period. Asset Allocation 2013 2014 2015 Equities & derivatives 71.4% 69.3% 68.9% Money market instruments & others 28.6% 30.7% 31.1% The fund’s equity weighting decreased from 71.4% (69.1% after distribution reinvestment) for the financial year ended 2013 to 69.3% (67.3% after distribution reinvestment) for the financial year ended 2014 and decreased further to 68.9% (66.7% after distribution reinvestment) for the financial year ended 2015 due to inflows of new monies into the fund. Portfolio Turnover Ratio (PTR) PTR (time) 2013 2014 2015 0.51 0.37 0.21 The fund’s PTR declined from 0.51 times for the financial year ended 2013 to 0.37 times for the financial year ended 2014 and declined further to 0.21 times for the financial year ended 2015 due to lower level of rebalancing activities undertaken by the fund. Distribution 2013 2014 2015 Gross distribution per unit (sen) 1.00 1.00 1.00 Net distribution per unit (sen) 0.99 0.98 1.00 Distribution is in the form of cash. 192 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC STRATEGIC GROWTH FUND (PSTGF) Total Return for the following period ended 31 August 2015 Since Commencement* PSTGF (%) 2.08 Benchmark index (%)** -2.03 Annual Total Return for the Financial Period Ended 31 August 2015* PSTGF (%) 2.08 Benchmark index (%)** -2.03 * The figure shown is for the period since the fund’s commencement (28 December 2014). ** The benchmark of the fund is a composite index of 60% FTSE Bursa Malaysia KLCI (FBM KLCI), 15% Dow Jones Industrial Average, 15% customised index by MSCI based on the Top 30 constituents of MSCI AC FarEast Ex-Japan Index and 10% 3-Month KLIBOR. Fund Performance Review The PSTGF registered a total return of +2.08% for the financial period ended 31 August 2015 in comparison to its benchmark’s return of -2.03% over the same period. Asset Allocation 2015 Equities & derivatives 87.9% Money market instruments & others 12.1% Following its launch, the fund’s equities weighting progressively increased to 87.9% (86.8% after distribution reinvestment) for the financial period ended 2015 to capitalise on investment opportunities in the domestic and regional equity markets. There is no comparison figure as the commencement date of the fund was 28 December 2014. Portfolio Turnover Ratio (PTR) 2015 PTR (time) 0.96 The fund recorded a PTR of 0.96 times for the financial period ended 2015. There is no comparison figure as the commencement date of the fund was 28 December 2014. Distribution 2015 Gross distribution per unit (sen) 0.30 Net distribution per unit (sen) 0.30 Distribution is in the form of cash. 193 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC TACTICAL ALLOCATION FUND (PTAF) Average Annual Returns for the following periods ended 30 April 2015 1-Year 3-Year Since Commencement* PTAF (%) 25.57 13.30 13.56 Benchmark index (%)*** 18.86 10.96 12.11 Annual Total Return for the Financial Years Ended 30 April 2008** 2009 2010 2012 2011 30.4.11- 12.12.11*9.12.11 30.4.12 2013 2014 2015 PTAF (%) -5.62 -15.76 14.68 2.53 -7.74 4.35 4.81 6.30 25.57 Benchmark index (%)*** -2.31 -19.73 13.97 6.01 -5.11 6.17 5.72 5.75 18.86 * The figure shown is for the period since the fund’s (formerly known as Public Global Balanced Fund (PGBF)) commencement (12 December 2011). Upon the issuance of supplementary prospectus on 12 December 2011, PGBF has adopted its new name Public Tactical Allocation Fund (PTAF) to reflect the change in fund objective, investment policy, investment strategy and benchmark. ** The figure shown is for the period since PGBF’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 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 KLIBOR as it is more reflective of the new investment strategy of the fund. 1-Year Fund Performance Review The PTAF registered a total return of +25.57% for the financial year ended 30 April 2015 as compared to the benchmark’s return of +18.86% over the same period. Asset Allocation Equities & derivatives Fixed income securities Money market instruments & others 2013 2014 2015 72.2% 77.7% 80.2% 2.1% 2.3% 0.0% 25.7% 20.0% 19.8% The fund’s equity weighting increased from 72.2% for the financial year ended 2013 to 77.7% for the financial year ended 2014 and increased further to 80.2% for the financial year ended 2015 to capitalise on investment opportunities in the domestic and regional markets. Portfolio Turnover Ratio (PTR) PTR (time) 2013 2014 2015 1.27 0.58 0.58 The fund’s PTR decreased from 1.27 times for the financial year ended 2013 to 0.58 times for the financial year ended 2014 due to lower level of rebalancing activities. The fund’s PTR remained at 0.58 times for the financial year ended 2015 due to ongoing rebalancing activities undertaken by the fund. Distribution 2013 2014 2015 Gross distribution per unit (sen) - - - Net distribution per unit (sen) - - - 194 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC SELECT MIXED ASSET GROWTH FUND (PSMAGF) Total Return for the following period ended 30 April 2015 Since Commencement* PSMAGF (%) 3.84 Benchmark index (%)** -0.21 Annual Total Return for the Financial Period Ended 30 April 2015* PSMAGF (%) 3.84 Benchmark index (%)** -0.21 * The figure shown is for the period since the fund’s commencement (5 November 2014). ** The fund’s benchmark is a composite index of 70% FTSE Bursa Malaysia KLCI (FBM KLCI) and 30% 3-Month KLIBOR. Fund Performance Review The PSMAGF registered a total return of +3.84% for the financial period ended 30 April 2015 in comparison to its benchmark’s return of -0.21% over the same period. Asset Allocation 2015 Equities & derivatives 59.2% Fixed income securities 8.8% Money market instruments & others 32.0% Following its launch, the fund’s equities weighting progressively increased to 59.2% for the financial period ended 2015 to capitalise on investment opportunities in the domestic market. The fund’s fixed income securities weighting gradually increased to 8.8% for the financial period ended 2015 to capitalise on investment opportunities in the fixed income securities market. There is no comparison figure as the commencement date of the fund was 5 November 2014. Portfolio Turnover Ratio (PTR) 2015 PTR (time) 0.53 The fund recorded a PTR of 0.53 times for the financial period ended 2015. There is no comparison figure as the commencement date of the fund was 5 November 2014. Distribution 2015 Gross distribution per unit (sen) - Net distribution per unit (sen) - 195 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC SELECT MIXED ASSET CONSERVATIVE FUND (PSMACF) Total Return for the following period ended 30 April 2015 Since Commencement* PSMACF (%) 4.60 Benchmark index (%)** 0.83 Annual Total Return for the Financial Period Ended 30 April 2015* PSMACF (%) 4.60 Benchmark index (%)** 0.83 * The figure shown is for the period since the fund’s commencement (5 November 2014). ** The fund’s benchmark is a composite index of 65% 3-Month KLIBOR and 35% FTSE Bursa Malaysia KLCI (FBM KLCI). Fund Performance Review The PSMACF registered a total return of +4.60% for the financial period ended 30 April 2015 in comparison to its benchmark’s return of +0.83% over the same period. Asset Allocation 2015 Equities & derivatives 27.7% Fixed income securities 26.2% Money market instruments & others 46.1% Following its launch, the fund’s equities weighting gradually increased to 27.7% (27.5% after distribution reinvestment) for the financial period ended 2015 to capitalise on investment opportunities in the domestic and regional equity markets. There is no comparison figure as the commencement date of the fund was 5 November 2014. Portfolio Turnover Ratio (PTR) 2015 PTR (time) 0.58 The fund recorded a PTR of 0.58 times for the financial period ended 2015. There is no comparison figure as the commencement date of the fund was 5 November 2015. Distribution 2015 Gross distribution per unit (sen) 0.20 Net distribution per unit (sen) 0.20 Distribution is in the form of cash. 196 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC BALANCED FUND (PBF) Average Annual Returns for the following periods ended 31 May 2015 1-Year 3-Year 5-Year 10-Year Since Commencement* 3.28 6.75 5.00 11.30 11.35 -2.59 3.61 5.77 7.67 5.40 PBF (%) PBEIX (%)** Annual Total Return for the Financial Years Ended 31 May PBF (%) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 11.60 38.85 4.00 -8.46 15.50 15.79 -10.22 8.38 7.40 3.28 5.98 27.18 -1.35 -9.87 14.42 13.68 8.43 4.90 -2.59 PBEIX (%)** 2.30 * The figure shown is for the period since the fund’s commencement (6 July 1995). ** The Public Balanced Equity Index (PBEIX) is a composite 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 KLIBOR in the ratio of 60:40. It is the appropriate benchmark for balanced funds, which have equity weightings capped at a maximum 60% of the fund’s NAV. 1-Year Fund Performance Review The PBF registered a total return of +3.28% as compared to the benchmark’s return of -2.59% for the financial year ended 31 May 2015. Asset Allocation 2013 2014 2015 Equities 57.5% 54.4% 60.9% Fixed income securities 33.3% 31.5% 31.1% 9.2% 14.1% 8.0% Money market instruments & others The fund’s equity weighting decreased from 57.5% (55.4% after distribution reinvestment) for the financial year ended 2013 to 54.4% (51.6% after distribution reinvestment) for the financial year ended 2014 to weather the consolidation phase in the domestic and selected regional markets. For the financial year ended 2015, the fund’s equity weighting subsequently increased to 60.9% (58.1% after distribution reinvestment) to capitalise on investment opportunities in the domestic and selected regional markets. Portfolio Turnover Ratio (PTR) PTR (time) 2013 2014 2015 0.36 0.17 0.19 The fund’s PTR declined from 0.36 times for the financial year ended 2013 to 0.17 times for the financial year ended 2014 due to lower level of rebalancing activities. For the financial year ended 2015, the fund’s PTR subsequently increased to 0.19 times due to higher level of rebalancing activities undertaken by the fund. Distribution 2013 2014 2015 Gross distribution per unit (sen) 2.50 3.75 3.25 Net distribution per unit (sen) 2.49 3.71 3.24 Distribution is in the form of cash. 197 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC FAR-EAST BALANCED FUND (PFEBF) Average Annual Returns for the following periods ended 30 April 2015 1-Year 3-Year 5-Year Since Commencement* PFEBF (%) 13.15 7.69 4.72 3.50 Benchmark index (%)** 16.61 9.86 7.06 5.24 Annual Total Return for the Financial Years Ended 30 April 2009 2010 2011 2012 2013 2014 2015 PFEBF (%) 2008* 4.60 -15.33 17.60 6.49 -5.70 3.02 5.59 13.15 Benchmark index (%)** 9.58 -18.43 18.28 8.35 -3.86 5.40 5.44 16.61 * The figure shown is for the period since the fund’s commencement (12 February 2007). ** The fund’s benchmark is a composite index of 60% MSCI AC Far-East Ex-Japan Index and 40% 3-Month KLIBOR. 1-Year Fund Performance Review The PFEBF registered a total return of +13.15% for the financial year ended 30 April 2015 in comparison to the benchmark’s return of +16.61% over the same period. Asset Allocation 2013 2014 2015 Equities & derivatives 58.5% 55.8% 59.5% Fixed income securities 35.2% 24.3% 25.8% 6.3% 19.9% 14.7% Money market instruments & others The fund’s equity weighting decreased from 58.5% for the financial year ended 2013 to 55.8% for the financial year ended 2014 to lock in profits on selected equity investments. The fund’s equity weighting subsequently increased to 59.5% (59.1% after distribution reinvestment) for the financial year ended 2015 to capitalise on investment opportunities in the domestic and regional markets. Portfolio Turnover Ratio (PTR) PTR (time) 2013 2014 2015 0.40 0.31 0.46 The fund’s PTR declined from 0.40 times for the financial year ended 2013 to 0.31 times for the financial year ended 2014 due to lower level of rebalancing activities. For the financial year ended 2015, the fund’s PTR subsequently increased to 0.46 times due to higher level of rebalancing activities undertaken by the fund. Distribution 2013 2014 2015 Gross distribution per unit (sen) - - 0.20 Net distribution per unit (sen) - - 0.19 Distribution is in the form of cash. 198 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC BOND FUND (P BOND) Average Annual Returns for the following periods ended 31 July 2015 1-Year 3-Year 5-Year 10-Year Since Commencement* P BOND (%) 4.22 3.66 5.73 6.51 14.15 12-Month FDR (%)** 3.30 3.31 3.34 3.78 6.04 Annual Total Return for the Financial Years Ended 31 July 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 P BOND (%) 2.90 8.75 -1.33 8.01 7.64 8.78 6.58 3.43 2.96 4.22 12-Month FDR (%)** 3.77 3.75 3.71 3.09 2.49 2.91 3.18 3.15 3.15 3.30 * The figure shown is for the period since the fund’s commencement (10 July 1996). ** The benchmark 12-Month FDR (12-MFD) is computed based on daily returns from 12-MFD quoted by Malayan Banking Berhad. 1-Year Fund Performance Review The P BOND registered a total return of +4.22% for the financial year ended 31 July 2015 as compared to its benchmark’s return of +3.30% over the same period. Asset Allocation Fixed income securities Money market instruments & others 2013 2014 2015 96.5% 96.7% 99.3% 3.5% 3.3% 0.7% The fund’s fixed income securities weighting increased from 96.5% (91.5% after distribution reinvestment) for the financial year ended 2013 to 96.7% (91.3% after distribution reinvestment) for the financial year ended 2014 and increased further to 99.3% (94.5% after distribution reinvestment) for the financial year ended 2015 due to outflows of funds following redemption of units by unitholders. Portfolio Turnover Ratio (PTR) PTR (time) 2013 2014 2015 0.28 0.10 0.14 The fund’s PTR declined from 0.28 times for the financial year ended 2013 to 0.10 times for the financial year ended 2014 due to lower level of rebalancing activities. For the financial year ended 2015, the fund’s PTR increased to 0.14 times due to higher level of rebalancing activities undertaken by the fund. Distribution 2013 2014 2015 Gross distribution per unit (sen) 5.25 5.50 4.75 Net distribution per unit (sen) 5.25 5.50 4.75 Distribution is in the form of cash. 199 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC INSTITUTIONAL BOND FUND (PIN BOND) Average Annual Returns for the following periods ended 30 April 2015 1-Year 3-Year 5-Year 10-Year Since Commencement* PIN BOND (%) 4.03 3.63 3.88 4.32 4.47 CORP 1V (%)** 6.47 4.89 6.62 8.48 7.96 Annual Total Return for the Financial Years Ended 30 April 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 PIN BOND (%) 2.71 4.09 2.93 4.37 4.46 3.93 3.59 3.23 3.27 4.03 CORP 1V (%)** 6.45 10.13 2.76 7.39 7.32 8.34 7.15 5.47 2.13 6.47 * The figure shown is for the period since the fund’s commencement (20 May 2003). ** 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. 1-Year Fund Performance Review The PIN BOND registered a total return of +4.03% for the financial year ended 30 April 2015 as compared to the benchmark’s return of +6.47% over the same period. Asset Allocation 2013 2014 2015 Fixed income securities 86.3% 89.9% 85.9% Money market instruments & others 13.7% 10.1% 14.1% The fund’s fixed income securities weighting increased from 86.3% for the financial year ended 2013 to 89.9% for the financial year ended 2014 to capitalise on investment opportunities in the fixed income securities markets. For the financial year ended 2015, the fund’s fixed income securities weighting subsequently decreased to 85.9% due to the disposal of selected bond investments. Portfolio Turnover Ratio (PTR) PTR (time) 2013 2014 2015 0.13 0.37 0.10 The fund’s PTR increased from 0.13 times for the financial year ended 2013 to 0.37 times for the financial year ended 2014 due to higher level of rebalancing activities. For the financial year ended 2015, the fund’s PTR subsequently decreased to 0.10 times due to lower level of rebalancing activities undertaken by the fund. Distribution 2013 2014 2015 Gross distribution per unit (sen) 3.71 3.61 3.87 Net distribution per unit (sen) 3.71 3.61 3.87 Distribution is in the form of cash. 200 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC ENHANCED BOND FUND (PEBF) Average Annual Returns for the following periods ended 31 January 2016 1-Year 3-Year 5-Year 10-Year Since Commencement* PEBF (%) 3.64 4.14 4.74 6.53 7.00 12-Month FDR (%)** 3.29 3.33 3.39 3.75 3.87 Annual Total Return for the Financial Years Ended 31 January PEBF (%) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 10.99 7.75 -5.62 8.83 8.81 4.54 5.28 4.07 4.21 3.64 3.84 3.70 3.67 2.53 2.80 3.07 3.16 3.14 3.23 3.29 12-Month FDR (%)** * The figure shown is for the period since the fund’s commencement (2 February 2005). ** The benchmark 12-Month FDR (12-MFD) is computed based on daily returns from 12-MFD quoted by Malayan Banking Berhad. 1-Year Fund Performance Review The PEBF registered a total return of +3.64% for the financial year ended 31 January 2016 as compared to the benchmark’s return of +3.29% over the same period. Asset Allocation 2014 2015 2016 Equities 19.6% 16.8% 13.4% Fixed income securities 75.2% 72.4% 80.3% 5.2% 10.8% 6.3% Money market instruments & others The fund’s fixed income securities weighting decreased from 75.2% (71.8% after distribution reinvestment) for the financial year ended 2014 to 72.4% (69.0% after distribution reinvestment) for the financial year ended 2015 due to an increase in the fund’s NAV following inflows of new funds. The fund’s fixed income securities weighting subsequently increased to 80.3% (76.7% after distribution reinvestment) for the financial year ended 2016 to capitalise on investment opportunities in the bond market. The fund’s equity weighting decreased from 19.6% (18.7% after distribution reinvestment) for the financial year ended 2014 to 16.8% (16.0% after distribution reinvestment) for the financial year ended 2015 and decreased further to 13.4% (12.8% after distribution reinvestment) for the financial year ended 2016 to weather the consolidation phase in the domestic equity market. Portfolio Turnover Ratio (PTR) PTR (time) 2014 2015 2016 0.10 0.09 0.17 The fund’s PTR decreased from 0.10 times for the financial year ended 2014 to 0.09 times for the financial year ended 2015 due to lower level of rebalancing activities. For the financial year ended 2016, the fund’s PTR subsequently increased to 0.17 times due to higher level of rebalancing activities undertaken by the fund. Distribution 2014 2015 2016 Gross distribution per unit (sen) 5.00 5.00 4.75 Net distribution per unit (sen) 4.96 4.93 4.75 Distribution is in the form of cash. 201 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC SELECT BOND FUND (PSBF) Average Annual Returns for the following periods ended 31 May 2015 1-Year 3-Year 5-Year Since Commencement* PSBF (%) 4.01 3.49 3.98 4.97 12-Month FDR (%)** 3.27 3.30 3.32 3.72 Annual Total Return for the Financial Years Ended 31 May 2006* 2007 2008 2009 2010 2011 2012 2013 2014 2015 PSBF (%) 1.28 6.95 2.89 3.78 6.00 3.57 4.82 3.71 2.40 4.01 12-Month FDR (%)** 1.72 3.79 3.70 3.29 2.51 2.86 3.16 3.15 3.14 3.27 * The figure shown is for the period since the fund’s commencement (12 December 2005). ** The benchmark 12-Month FDR (12-MFD) is computed based on daily returns from 12-MFD quoted by Malayan Banking Berhad. 1-Year Fund Performance Review The PSBF registered a total return of +4.01% for the financial year ended 31 May 2015 as compared to the benchmark’s return of +3.27% over the same period. Asset Allocation 2013 2014 2015 Fixed income securities 87.7% 95.3% 95.8% Money market instruments & others 12.3% 4.7% 4.2% The fund’s fixed income securities weighting increased from 87.7% (84.9% after distribution reinvestment) for the financial year ended 2013 to 95.3% (92.3% after distribution reinvestment) for the financial year ended 2014 and increased further to 95.8% (92.6% after distribution reinvestment) for the financial year ended 2015 due to outflows of funds following redemption of units by unitholders. Portfolio Turnover Ratio (PTR) PTR (time) 2013 2014 2015 0.40 0.19 0.12 The fund’s PTR declined from 0.40 times for the financial year ended 2013 to 0.19 times for the financial year ended 2014 and declined further to 0.12 times for the financial year ended 2015 due to lower level of rebalancing activities undertaken by the fund. Distribution 2013 2014 2015 Gross distribution per unit (sen) 3.25 3.25 3.50 Net distribution per unit (sen) 3.25 3.25 3.50 Distribution is in the form of cash. 202 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC STRATEGIC BOND FUND (PSTBF) Average Annual Returns for the following periods ended 31 December 2015 1-Year 3-Year 5-Year Since Commencement* PSTBF (%) 4.13 3.48 4.41 4.41 12-Month FDR (%)** 3.35 3.35 3.40 3.40 Annual Total Return for the Financial Years Ended 31 December 2011* 2012 2013 2014 2015 PSTBF (%) 6.41 3.87 2.50 3.46 4.13 12-Month FDR (%)** 3.04 3.17 3.15 3.24 3.35 * The figure shown is for the period since the fund’s commencement (30 December 2010). ** The benchmark 12-Month FDR (12-MFD) is computed based on the daily compounding of the average 12MFD quoted by Public Bank. 1-Year Fund Performance Review The PSTBF registered a total return of +4.13% for the financial year ended 31 December 2015 as compared to the benchmark’s return of +3.35% over the same period. Asset Allocation Fixed income securities Money market instruments & others 2013 2014 2015 98.9% 89.6% 90.8% 1.1% 10.4% 9.2% The fund’s fixed income securities weighting decreased from 98.9% (95.7% after distribution reinvestment) for the financial year ended 2013 to 89.6% (86.2% after distribution reinvestment) for the financial year ended 2014 due to the disposal of selected bond investments. The fund’s fixed income securities weighting subsequently increased to 90.8% (87.4% after distribution reinvestment) for the financial year ended 2015 to capitalise on investment opportunities in the bond market. Portfolio Turnover Ratio (PTR) PTR (time) 2013 2014 2015 0.21 0.17 0.11 The fund’s PTR declined from 0.21 times for the financial year ended 2013 to 0.17 times for the financial year ended 2014 and declined further to 0.11 times for the financial year ended 2015 due to lower level of rebalancing activities undertaken by the fund. Distribution 2013 2014 2015 Gross distribution per unit (sen) 3.50 4.00 4.00 Net distribution per unit (sen) 3.50 4.00 4.00 Distribution is in the form of cash. 203 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC ENTERPRISES BOND FUND (PENTBF) Average Annual Returns for the following periods ended 30 September 2015 1-Year 3-Year Since Commencement* PENTBF (%) 3.41 3.10 3.30 12-Month FDR (%)** 3.35 3.34 3.35 Annual Total Return for the Financial Years Ended 30 September 2012* 2013 2014 2015 PENTBF (%) 1.95 2.75 2.89 3.41 12-Month FDR (%)** 1.47 3.17 3.19 3.35 * The figure shown is for the period since the fund’s commencement (9 April 2012). ** The benchmark 12-Month FDR (12-MFD) is computed based on the daily compounding of the average 12MFD quoted by Public Bank. 1-Year Fund Performance Review The PENTBF registered a total return of +3.41% for the financial year ended 30 September 2015 as compared to the benchmark’s return of +3.35% over the same period. Asset Allocation Fixed income securities Money market instruments & others 2013 2014 2015 97.8% 93.1% 90.9% 2.2% 6.9% 9.1% The fund’s fixed income securities weighting decreased from 97.8% (94.5% after distribution reinvestment) for the financial year ended 2013 to 93.1% (90.4% after distribution reinvestment) for the financial year ended 2014 and decreased further to 90.9% (87.9% after distribution reinvestment) for the financial year ended 2015 following the disposal of selected bond investments. Portfolio Turnover Ratio (PTR) PTR (time) 2013 2014 2015 0.45 0.24 0.41 The fund’s PTR decreased from 0.45 times for the financial year ended 2013 to 0.24 times for the financial year ended 2014 due to lower level of rebalancing activities. For the financial year ended 2015, the fund’s PTR subsequently increased to 0.41 times due to higher level of rebalancing activities undertaken by the fund. Distribution 2013 2014 2015 Gross distribution per unit (sen) 3.50 3.00 3.50 Net distribution per unit (sen) 3.50 3.00 3.50 Distribution is in the form of cash. 204 PERFORMANCE OF THE FUNDS (CONT’D) PERFORMANCE OF PUBLIC MONEY MARKET FUND (PMMF) Average Annual Returns for the following periods ended 31 January 2016 1-Year 3-Year 5-Year 10-Year Since Commencement* PMMF (%) 3.51 3.28 3.25 3.33 3.50 Benchmark index (%)** 3.03 3.05 3.19 3.54 3.63 Annual Total Return for the Financial Years Ended 31 January 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 PMMF (%) 3.21 3.13 3.14 2.05 2.37 2.84 2.93 2.88 3.11 3.51 Benchmark index (%)** 3.75 3.62 3.58 2.17 2.71 3.04 3.10 2.90 2.94 3.03 * The figure shown is for the period since the fund’s commencement (16 December 2003). ** Prior to 30 April 2010, the fund’s benchmark was 3-Month KLIBOR. From 30 April 2010 to 29 April 2013, the fund’s benchmark has been replaced with 1-Month KLIBOR. Effective from 30 April 2013, the fund’s benchmark has been replaced to a composite benchmark index of 90% Public Bank 1-Month FDR and 10% Public Bank Savings Rate – ACE Account as this benchmark is a better representative of the fund’s investments. 1-Year Fund Performance Review The PMMF registered a total return of +3.51% for the financial year ended 31 January 2016 as compared to the benchmark’s return of +3.03% over the same period. Asset Allocation Money market instruments & others 2014 2015 2016 100.0% 100.0% 100.0% The fund focuses its investments in short-term money market instruments that are highly liquid and deposit placements with licensed financial institutions. Portfolio Turnover Ratio (PTR) PTR (time) 2014 2015 2016 0.27 0.36 0.06 The fund’s PTR increased from 0.27 times for the financial year ended 2014 to 0.36 times for the financial year ended 2015 due to higher level of rebalancing activities. For the financial year ended 2016, the fund’s PTR subsequently decreased to 0.06 times due to lower level of rebalancing activities undertaken by the fund. Distribution 2014 2015 2016 Gross distribution per unit (sen) 3.00 2.50 3.00 Net distribution per unit (sen) 3.00 2.50 3.00 Distribution is in the form of cash. 205 5 HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS 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 3 financial years preceding the date of this Master Prospectus: Public Savings Fund (PSF) Page 208 Public Growth Fund (PGF) Page 208 Public Index Fund (PIX) Page 209 Public Industry Growth Fund (PINDGF) Page 209 Public Aggressive Growth Fund (PAGF) Page 210 Public Regular Savings Fund (PRSF) Page 210 Public SmallCap Fund (P SmallCap) Page 211 Public Equity Fund (PEF) Page 211 Public Focus Select Fund (PFSF) Page 212 Public Dividend Select Fund (PDSF) Page 212 Public Far-East Select Fund (PFES) Page 213 Public Regional Sector Fund (PRSEC) Page 213 Public Global Select Fund (PGSF) Page 214 Public Far-East Dividend Fund (PFEDF) Page 214 Public China Select Fund (PCSF) Page 215 Public Far-East Property & Resorts Fund (PFEPRF) Page 215 Public South-East Asia Select Fund (PSEASF) Page 216 Public Sector Select Fund (PSSF) Page 216 Public Far-East Consumer Themes Fund (PFECTF) Page 217 Public China Titans Fund (PCTF) Page 217 Public Far-East Telco & Infrastructure Fund (PFETIF) Page 218 Public Select Alpha-30 Fund (PSA30F) Page 218 Public Worldwide Equity Fund (PWEF) (Formerly known as Public Natural Resources Equity Fund) Page 219 Public Australia Equity Fund (PAUEF) Page 219 Public Far-East Alpha-30 Fund (PFA30F) Page 220 Public Optimal Growth Fund (POGF) Page 220 Public Indonesia Select Fund (PINDOSF) Page 221 Public Singapore Equity Fund (PSGEF) Page 221 Public Strategic SmallCap Fund (PSSCF) Page 222 Public Strategic Growth Fund (PSTGF) Page 222 206 HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS (CONT’D) Public Tactical Allocation Fund (PTAF) Page 223 Public Select Mixed Asset Growth Fund (PSMAGF) Page 223 Public Select Mixed Asset Conservative Fund (PSMACF) Page 224 Public Balanced Fund (PBF) Page 224 Public Far-East Balanced Fund (PFEBF) Page 225 Public Bond Fund (P BOND) Page 225 Public Institutional Bond Fund (PIN BOND) Page 226 Public Enhanced Bond Fund (PEBF) Page 226 Public Select Bond Fund (PSBF) Page 227 Public Strategic Bond Fund (PSTBF) Page 227 Public Enterprises Bond Fund (PENTBF) Page 228 Public Money Market Fund (PMMF) Page 228 Note: There are no extracts of Statement of Income and Expenditure and Statement of Assets and Liabilities for PSTEF, PAVGEF, PGRBF, PEMOF and PRSSQF as the funds will be having their first financial period ending on 31 August 2016, 30 September 2016, 31 October 2016, 31 January 2017 and 28 February 2017 respectively. Past performance of the funds is not an indication of their future performance. 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. 207 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 2015 RM’000 2014 RM’000 2013 RM’000 Investment income Total expenses 522 (34,533) 11,675 (35,870) 255,617 (32,176) Net investment (loss)/income (34,011) (24,195) 223,441 Net (loss)/income before taxation (34,011) (24,195) 223,441 Net (loss)/income after taxation (34,487) (24,858) 220,942 2015 RM’000 2014 RM’000 2013 RM’000 Total investments Total other assets 1,875,969 24,619 1,929,711 114,642 2,164,963 26,772 Total assets 1,900,588 2,044,353 2,191,735 Extract of Statement of Assets and Liabilities as at 31 December Total liabilities (110,337) NAV/Unitholders’ capital 1,790,251 (140,381) 1,903,972 (107,457) 2,084,278 PUBLIC GROWTH FUND (PGF) Extract of Statement of Income and Expenditure for the financial years ended 31 July 2015 RM’000 2014 RM’000 2013 RM’000 Investment (loss)/income Total expenses (18,822) (19,264) 108,536 (19,374) 172,786 (18,479) Net investment (loss)/income (38,086) 89,162 154,307 Net (loss)/income before taxation (38,086) 89,162 154,307 Net (loss)/income after taxation (38,351) 88,557 153,358 2015 RM’000 2014 RM’000 2013 RM’000 988,961 49,575 1,098,856 43,811 1,056,039 37,413 1,038,536 1,142,667 1,093,452 Extract of Statement of Assets and Liabilities as at 31 July Total investments Total other assets Total assets Total liabilities (77,419) NAV/Unitholders’ capital 961,117 Note: Unitholders’ capital refers to the NAV attributable to unitholders. 208 (70,598) 1,072,069 (62,550) 1,030,902 HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS (CONT’D) PUBLIC INDEX FUND (PIX) Extract of Statement of Income and Expenditure for the financial years ended 31 January 2016 RM’000 2015 RM’000 2014 RM’000 Investment (loss)/income Total expenses (13,509) (15,817) 27,499 (15,449) 138,504 (14,720) Net investment (loss)/income (29,326) 12,050 123,784 Net (loss)/income before taxation (29,326) 12,050 123,784 Net (loss)/income after taxation (29,366) 12,018 122,670 2016 RM’000 2015 RM’000 2014 RM’000 Total investments Total other assets 906,288 1,130 935,882 507 907,125 7,948 Total assets 907,418 936,389 915,073 Extract of Statement of Assets and Liabilities as at 31 January Total liabilities (34,289) NAV/Unitholders’ capital 873,129 (66,508) 869,881 (58,247) 856,826 PUBLIC INDUSTRY GROWTH FUND (PINDGF) Extract of Statement of Income and Expenditure for the financial years ended 31 October 2015 RM’000 2014 RM’000 2013 RM’000 Investment income Total expenses 8,418 (5,174) 16,945 (4,075) 19,036 (3,596) Net investment income 3,244 12,870 15,440 Net income before taxation 3,244 12,870 15,440 Net income after taxation 3,291 12,753 15,348 2015 RM’000 2014 RM’000 2013 RM’000 Total investments Total other assets 323,239 9,759 237,721 11,997 190,973 2,736 Total assets 332,998 249,718 193,709 Extract of Statement of Assets and Liabilities as at 31 October Total liabilities (23,558) NAV/Unitholders’ capital 309,440 209 (24,378) 225,340 (17,086) 176,623 HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS (CONT’D) PUBLIC AGGRESSIVE GROWTH FUND (PAGF) Extract of Statement of Income and Expenditure for the financial years ended 31 March 2015 RM’000 2014 RM’000 2013 RM’000 Investment income Total expenses 20,154 (8,106) 72,171 (9,353) 23,057 (9,772) Net investment income 12,048 62,818 13,285 Net income before taxation 12,048 62,818 13,285 Net income after taxation 11,988 62,288 12,691 2015 RM’000 2014 RM’000 2013 RM’000 Total investments Total other assets 445,754 19,263 504,234 9,046 461,588 45,052 Total assets 465,017 513,280 506,640 Extract of Statement of Assets and Liabilities as at 31 March Total liabilities (21,952) NAV/Unitholders’ capital 443,065 (21,244) 492,036 (23,534) 483,106 PUBLIC REGULAR SAVINGS FUND (PRSF) Extract of Statement of Income and Expenditure for the financial years ended 31 March 2015 RM’000 2014 RM’000 2013 RM’000 Investment income Total expenses 247,578 (79,990) 495,780 (59,021) 257,404 (47,456) Net investment income 167,588 436,759 209,948 Net income before taxation 167,588 436,759 209,948 Net income after taxation 166,540 433,559 205,236 2015 RM’000 2014 RM’000 2013 RM’000 Total investments Total other assets 5,267,931 18,068 4,319,449 46,068 2,991,817 13,661 Total assets 5,285,999 4,365,517 3,005,478 Extract of Statement of Assets and Liabilities as at 31 March Total liabilities (343,034) NAV/Unitholders’ capital 4,942,965 210 (280,523) 4,084,994 (227,708) 2,777,770 HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS (CONT’D) PUBLIC SMALLCAP FUND (P SmallCap) Extract of Statement of Income and Expenditure for the financial years ended 31 August 2015 RM’000 2014 RM’000 2013 RM’000 Investment (loss)/income Total expenses (33,179) (17,906) 218,509 (16,546) 193,355 (15,395) Net investment (loss)/income (51,085) 201,963 177,960 Net (loss)/income before taxation (51,085) 201,963 177,960 Net (loss)/income after taxation (51,792) 200,933 174,602 2015 RM’000 2014 RM’000 2013 RM’000 996,015 29,079 1,093,864 16,997 875,275 62,771 1,025,094 1,110,861 938,046 Extract of Statement of Assets and Liabilities as at 31 August Total investments Total other assets Total assets Total liabilities (76,592) NAV/Unitholders’ capital 948,502 (90,068) 1,020,793 (68,528) 869,518 PUBLIC EQUITY FUND (PEF) Extract of Statement of Income and Expenditure for the financial years ended 31 October 2015 RM’000 2014 RM’000 2013 RM’000 Investment (loss)/income Total expenses (855) (14,948) 49,055 (15,686) 130,818 (15,668) Net investment (loss)/income (15,803) 33,369 115,150 Net (loss)/income before taxation (15,803) 33,369 115,150 Net (loss)/income after taxation (15,943) 33,063 114,597 2015 RM’000 2014 RM’000 2013 RM’000 Total investments Total other assets 822,670 6,944 893,337 11,295 864,497 21,162 Total assets 829,614 904,632 885,659 Extract of Statement of Assets and Liabilities as at 31 October Total liabilities (65,061) NAV/Unitholders’ capital 764,553 211 (61,076) 843,556 (57,754) 827,905 HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS (CONT’D) PUBLIC FOCUS SELECT FUND (PFSF) Extract of Statement of Income and Expenditure for the financial years ended 31 December 2015 RM’000 2014 RM’000 2013 RM’000 Investment income Total expenses 60,416 (13,969) 11,912 (13,068) 37,638 (10,699) Net investment income/(loss) 46,447 (1,156) 26,939 Net income/(loss) before taxation 46,447 (1,156) 26,939 Net income/(loss) after taxation 46,111 (1,592) 25,824 2015 RM’000 2014 RM’000 2013 RM’000 Total investments Total other assets 770,960 43,906 686,779 72,896 738,233 12,541 Total assets 814,866 759,675 750,774 Extract of Statement of Assets and Liabilities as at 31 December Total liabilities (29,540) NAV/Unitholders’ capital 785,326 (40,674) 719,001 (51,095) 699,679 PUBLIC DIVIDEND SELECT FUND (PDSF) Extract of Statement of Income and Expenditure for the financial years ended 31 May 2015 RM’000 2014 RM’000 2013 RM’000 Investment (loss)/income Total expenses (32,131) (31,792) 130,984 (25,705) 171,384 (18,284) Net investment (loss)/income (63,923) 105,279 153,100 Net (loss)/income before taxation (63,923) 105,279 153,100 Net (loss)/income after taxation (64,291) 104,247 151,253 2015 RM’000 2014 RM’000 2013 RM’000 Total investments Total other assets 1,765,825 75,522 1,643,846 72,717 1,182,020 69,750 Total assets 1,841,347 1,716,563 1,251,770 Extract of Statement of Assets and Liabilities as at 31 May Total liabilities (64,884) NAV/Unitholders’ capital 1,776,463 212 (121,164) 1,595,399 (79,304) 1,172,466 HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS (CONT’D) PUBLIC FAR-EAST SELECT FUND (PFES) Extract of Statement of Income and Expenditure for the financial years ended 31 May 2015 RM’000 2014 RM’000 2013 RM’000 Investment income Total expenses 97,278 (6,657) 28,410 (6,698) 52,992 (7,744) Net investment income 90,621 21,712 45,248 Net income before taxation 90,621 21,712 45,248 Net income after taxation 89,882 21,040 44,611 2015 RM’000 2014 RM’000 2013 RM’000 Total investments Total other assets 355,041 17,516 316,812 9,139 366,129 25,451 Total assets 372,557 325,951 391,580 Extract of Statement of Assets and Liabilities as at 31 May Total liabilities (20,800) NAV/Unitholders’ capital 351,757 (2,225) 323,726 (8,538) 383,042 PUBLIC REGIONAL SECTOR FUND (PRSEC) Extract of Statement of Income and Expenditure for the financial years ended 31 May 2015 RM’000 2014 RM’000 2013 RM’000 Investment income Total expenses 43,743 (6,120) 31,256 (4,969) 47,022 (5,809) Net investment income 37,623 26,287 41,213 Net income before taxation 37,623 26,287 41,213 Net income after taxation 37,192 25,825 40,792 2015 RM’000 2014 RM’000 2013 RM’000 Total investments Total other assets 215,766 28,950 208,131 35,231 230,983 36,349 Total assets 244,716 243,362 267,332 Extract of Statement of Assets and Liabilities as at 31 May Total liabilities (29,422) NAV/Unitholders’ capital 215,294 213 (1,026) 242,336 (1,373) 265,959 HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS (CONT’D) PUBLIC GLOBAL SELECT FUND (PGSF) Extract of Statement of Income and Expenditure for the financial years ended 31 May 2015 RM’000 2014 RM’000 2013 RM’000 Investment income Total expenses 24,836 (3,514) 16,615 (2,436) 17,888 (1,883) Net investment income 21,322 14,179 16,005 Net income before taxation 21,322 14,179 16,005 Net income after taxation 20,805 13,793 15,751 2015 RM’000 2014 RM’000 2013 RM’000 Total investments Total other assets 154,065 3,731 130,017 10,774 69,113 14,452 Total assets 157,796 140,791 83,565 Extract of Statement of Assets and Liabilities as at 31 May Total liabilities (6,012) NAV/Unitholders’ capital 151,784 (1,601) 139,190 (369) 83,196 PUBLIC FAR-EAST DIVIDEND FUND (PFEDF) Extract of Statement of Income and Expenditure for the financial years ended 30 November 2015 RM’000 2014 RM’000 2013 RM’000 Investment income Total expenses 41,979 (5,919) 31,427 (5,447) 35,888 (9,188) Net investment income 36,060 25,980 26,700 Net income before taxation 36,060 25,980 26,700 Net income after taxation 35,244 25,051 25,700 2015 RM’000 2014 RM’000 2013 RM’000 Total investments Total other assets 260,857 11,307 269,160 9,352 302,480 15,820 Total assets 272,164 278,512 318,300 Extract of Statement of Assets and Liabilities as at 30 November Total liabilities (4,819) NAV/Unitholders’ capital 267,345 214 (5,877) 272,635 (1,327) 316,973 HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS (CONT’D) PUBLIC CHINA SELECT FUND (PCSF) Extract of Statement of Income and Expenditure for the financial years ended 31 July 2015 RM’000 2014 RM’000 2013 RM’000 Investment income Total expenses 193,235 (15,359) 114,517 (15,260) 147,536 (18,939) Net investment income 177,876 99,257 128,597 Net income before taxation 177,876 99,257 128,597 Net income after taxation 175,267 97,314 126,172 2015 RM’000 2014 RM’000 2013 RM’000 Total investments Total other assets 787,913 27,924 730,462 27,979 749,096 50,202 Total assets 815,837 758,441 799,298 Extract of Statement of Assets and Liabilities as at 31 July Total liabilities (9,889) NAV/Unitholders’ capital 805,948 (3,726) 754,715 (5,431) 793,867 PUBLIC FAR-EAST PROPERTY & RESORTS FUND (PFEPRF) Extract of Statement of Income and Expenditure for the financial years ended 31 July 2015 RM’000 2014 RM’000 2013 RM’000 Investment income Total expenses 21,063 (6,723) 15,489 (7,363) 86,137 (8,194) Net investment income 14,340 8,126 77,943 Net income before taxation 14,340 8,126 77,943 Net income after taxation 13,749 7,499 77,316 2015 RM’000 2014 RM’000 2013 RM’000 Total investments Total other assets 285,442 29,191 323,411 16,866 330,601 75,406 Total assets 314,633 340,277 406,007 Extract of Statement of Assets and Liabilities as at 31 July Total liabilities (26,809) NAV/Unitholders’ capital 287,824 215 (29,284) 310,993 (25,536) 380,471 HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS (CONT’D) PUBLIC SOUTH-EAST ASIA SELECT FUND (PSEASF) Extract of Statement of Income and Expenditure for the financial years ended 31 October 2015 RM’000 2014 RM’000 2013 RM’000 Investment income Total expenses 34,314 (9,060) 37,973 (7,987) 43,639 (9,046) Net investment income 25,254 29,986 34,593 Net income before taxation 25,254 29,986 34,593 Net income after taxation 24,697 29,375 33,733 2015 RM’000 2014 RM’000 2013 RM’000 Total investments Total other assets 390,809 3,942 391,334 12,702 420,769 5,142 Total assets 394,751 404,036 425,911 Extract of Statement of Assets and Liabilities as at 31 October Total liabilities (20,291) NAV/Unitholders’ capital 374,460 (22,835) 381,201 (20,285) 405,626 PUBLIC SECTOR SELECT FUND (PSSF) Extract of Statement of Income and Expenditure for the financial years ended 31 October 2015 RM’000 2014 RM’000 2013 RM’000 Investment (loss)/income Total expenses (830) (8,890) 37,588 (8,408) 56,464 (8,010) Net investment (loss)/income (9,720) 29,180 48,454 Net (loss)/income before taxation (9,720) 29,180 48,454 Net (loss)/income after taxation (9,869) 28,959 47,973 2015 RM’000 2014 RM’000 2013 RM’000 Total investments Total other assets 498,355 1,468 522,443 273 488,311 5,261 Total assets 499,823 522,716 493,572 Extract of Statement of Assets and Liabilities as at 31 October Total liabilities (36,128) NAV/Unitholders’ capital 463,695 216 (32,424) 490,292 (22,529) 471,043 HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS (CONT’D) PUBLIC FAR-EAST CONSUMER THEMES FUND (PFECTF) Extract of Statement of Income and Expenditure for the financial years ended 30 June 2015 RM’000 2014 RM’000 2013 RM’000 Investment income Total expenses 1,463 (3,084) 17,457 (3,313) 17,915 (3,676) Net investment (loss)/income (1,621) 14,144 14,239 Net (loss)/income before taxation (1,621) 14,144 14,239 Net (loss)/income after taxation (1,812) 13,965 14,065 2015 RM’000 2014 RM’000 2013 RM’000 Total investments Total other assets 122,739 7,668 136,562 11,898 142,171 14,177 Total assets 130,407 148,460 156,348 Extract of Statement of Assets and Liabilities as at 30 June Total liabilities (8,664) NAV/Unitholders’ capital 121,743 (12,513) 135,947 (463) 155,885 PUBLIC CHINA TITANS FUND (PCTF) Extract of Statement of Income and Expenditure for the financial years ended 31 May 2015 RM’000 2014 RM’000 2013 RM’000 Investment income Total expenses 27,025 (1,806) 7,203 (1,805) 7,712 (1,624) Net investment income 25,219 5,398 6,088 Net income before taxation 25,219 5,398 6,088 Net income after taxation 25,006 5,135 5,859 2015 RM’000 2014 RM’000 2013 RM’000 93,530 10,843 71,585 3,968 84,724 4,949 104,373 75,553 89,673 Extract of Statement of Assets and Liabilities as at 31 May Total investments Total other assets Total assets Total liabilities (707) NAV/Unitholders’ capital 103,666 217 (165) 75,388 (839) 88,834 HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS (CONT’D) PUBLIC FAR-EAST TELCO & INFRASTRUCTURE FUND (PFETIF) Extract of Statement of Income and Expenditure for the financial years ended 30 April 2015 RM’000 2014 RM’000 2013 RM’000 Investment income Total expenses 17,760 (1,585) 6,767 (1,544) 11,266 (1,613) Net investment income 16,175 5,223 9,653 Net income before taxation 16,175 5,223 9,653 Net income after taxation 16,068 5,086 9,533 2015 RM’000 2014 RM’000 2013 RM’000 Total investments Total other assets 85,924 3,105 64,920 5,105 76,031 1,648 Total assets 89,029 70,025 77,679 Extract of Statement of Assets and Liabilities as at 30 April Total liabilities (3,483) NAV/Unitholders’ capital 85,546 (3,576) 66,449 (56) 77,623 PUBLIC SELECT ALPHA-30 FUND (PSA30F) Extract of Statement of Income and Expenditure for the financial years ended 30 November 2015 RM’000 2014 RM’000 2,348 (1,590) 2013 RM’000 Investment (loss)/income Total expenses (5,802) (1,529) 9,546 (1,171) Net investment (loss)/income (7,331) 758 8,375 Net (loss)/income before taxation (7,331) 758 8,375 Net (loss)/income after taxation (7,331) 758 8,316 2015 RM’000 2014 RM’000 2013 RM’000 Total investments Total other assets 75,932 2,176 87,176 647 72,134 2,091 Total assets 78,108 87,823 74,225 Extract of Statement of Assets and Liabilities as at 30 November Total liabilities (5,553) NAV/Unitholders’ capital 72,555 218 (6,054) 81,769 (5,056) 69,169 HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS (CONT’D) PUBLIC WORLDWIDE EQUITY FUND (PWEF) (Formerly known as Public Natural Resources Equity Fund) Extract of Statement of Income and Expenditure for the financial years ended 30 November 2015 RM’000 Investment (loss)/income Total expenses 2014 RM’000 2013 RM’000 (9,249) (3,050) (3,903) (3,713) 25,350 (4,981) Net investment (loss)/income (12,299) (7,616) 20,369 Net (loss)/income before taxation (12,299) (7,616) 20,369 Net (loss)/income after taxation (12,466) (7,775) 20,117 Extract of Statement of Assets and Liabilities as at 30 November 2015 RM’000 2014 RM’000 2013 RM’000 Total investments Total other assets 137,864 11,973 146,856 3,132 188,146 15,045 Total assets 149,837 149,988 203,191 Total liabilities (1,905) NAV/Unitholders’ capital 147,932 (687) 149,301 (900) 202,291 PUBLIC AUSTRALIA EQUITY FUND (PAUEF) Extract of Statement of Income and Expenditure for the financial years ended 31 July 2015 RM’000 2014 RM’000 2013 RM’000 Investment (loss)/income Total expenses (4,281) (4,789) 46,925 (4,990) 26,613 (5,528) Net investment (loss)/income (9,070) 41,935 21,085 Net (loss)/income before taxation (9,070) 41,935 21,085 Net (loss)/income after taxation (9,156) 41,801 21,002 2015 RM’000 2014 RM’000 2013 RM’000 Total investments Total other assets 225,302 11,317 253,394 5,436 262,765 7,800 Total assets 236,619 258,830 270,565 Extract of Statement of Assets and Liabilities as at 31 July Total liabilities (17,826) NAV/Unitholders’ capital 218,793 219 (20,500) 238,330 (17,966) 252,599 HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS (CONT’D) PUBLIC FAR-EAST ALPHA-30 FUND (PFA30F) Extract of Statement of Income and Expenditure for the financial years ended 30 November 2015 RM’000 2014 RM’000 2013 RM’000 Investment income Total expenses 19,981 (2,164) 7,797 (2,092) 22,121 (3,204) Net investment income 17,817 5,705 18,917 Net income before taxation 17,817 5,705 18,917 Net income after taxation 17,570 5,451 18,633 2015 RM’000 2014 RM’000 2013 RM’000 97,087 10,353 91,707 7,371 115,160 6,760 107,440 99,078 121,920 Extract of Statement of Assets and Liabilities as at 30 November Total investments Total other assets Total assets Total liabilities (389) NAV/Unitholders’ capital 107,051 (540) 98,538 (1,085) 120,835 PUBLIC OPTIMAL GROWTH FUND (POGF) Extract of Statement of Income and Expenditure for the financial years ended 31 July 2015 RM’000 Investment (loss)/income Total expenses 2014 RM’000 2013 RM’000 (5,014) (5,470) 12,231 (2,031) 4,745 (726) Net investment (loss)/income (10,484) 10,200 4,019 Net (loss)/income before taxation (10,484) 10,200 4,019 Net (loss)/income after taxation (10,577) 10,127 3,932 2015 RM’000 2014 RM’000 2013 RM’000 Total investments Total other assets 338,552 2,556 214,013 4,516 38,961 271 Total assets 341,108 218,529 39,232 Extract of Statement of Assets and Liabilities as at 31 July Total liabilities (17,167) NAV/Unitholders’ capital 323,941 220 (20,579) 197,950 (3,372) 35,860 HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS (CONT’D) PUBLIC INDONESIA SELECT FUND (PINDOSF) Extract of Statement of Income and Expenditure for the financial years ended 31 August 2015 RM’000 Investment (loss)/income Total expenses 2014 RM’000 2013 RM’000 (6,360) (5,423) 41,705 (4,780) (15,484) (3,262) Net investment (loss)/income (11,783) 36,925 (18,746) Net (loss)/income before taxation (11,783) 36,925 (18,746) Net (loss)/income after taxation (12,200) 36,360 (19,118) 2015 RM’000 2014 RM’000 2013 RM’000 Total investments Total other assets 201,235 6,353 223,755 12,365 149,802 6,083 Total assets 207,588 236,120 155,885 Extract of Statement of Assets and Liabilities as at 31 August Total liabilities (12,939) NAV/Unitholders’ capital 194,649 (9,243) 226,877 (9,382) 146,503 PUBLIC SINGAPORE EQUITY FUND (PSGEF) Extract of Statement of Income and Expenditure for the financial years ended 30 September 2015 RM’000 2014 RM’000 2013 RM’000 Investment income Total expenses 18,091 (4,392) 9,146 (4,163) 19,130 (4,116) Net investment income 13,699 4,983 15,014 Net income before taxation 13,699 4,983 15,014 Net income after taxation 13,652 4,908 14,932 2015 RM’000 2014 RM’000 2013 RM’000 Total investments Total other assets 201,882 27,025 215,427 9,366 218,329 4,080 Total assets 228,907 224,793 222,409 Extract of Statement of Assets and Liabilities as at 30 September Total liabilities (10,074) NAV/Unitholders’ capital 218,833 221 (11,461) 213,332 (8,832) 213,577 HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS (CONT’D) PUBLIC STRATEGIC SMALLCAP FUND (PSSCF) Extract of Statement of Income and Expenditure for the financial years ended 30 September 2015 RM’000 2014 RM’000 2013 RM’000 Investment (loss)/income Total expenses (14,371) (9,103) 41,633 (5,413) 17,318 (1,957) Net investment (loss)/income (23,474) 36,220 15,361 Net (loss)/income before taxation (23,474) 36,220 15,361 Net (loss)/income after taxation (23,553) 36,171 15,073 2015 RM’000 2014 RM’000 2013 RM’000 Total investments Total other assets 546,716 6,106 474,217 9,299 181,444 6,061 Total assets 552,822 483,516 187,505 Extract of Statement of Assets and Liabilities as at 30 September Total liabilities (18,285) NAV/Unitholders’ capital 534,537 (17,210) 466,306 (8,017) 179,488 PUBLIC STRATEGIC GROWTH FUND (PSTGF) Extract of Statement of Income and Expenditure for the financial period ended 31 August From 8.12.14 to 31.8.15 RM’000 Investment income Total expenses 596 (461) Net investment income 135 Net income before taxation 135 Net income after taxation 124 Extract of Statement of Assets and Liabilities as at 31 August 2015 RM’000 Total investments Total other assets 26,515 3,309 Total assets 29,824 Total liabilities (483) NAV/Unitholders’ capital 29,341 222 HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS (CONT’D) PUBLIC TACTICAL ALLOCATION FUND (PTAF) Extract of Statement of Income and Expenditure for the financial years ended 30 April 2015 RM’000 Investment income Total expenses 2014 RM’000 2013 RM’000 10,894 (988) 4,056 (1,051) 3,819 (1,415) Net investment income 9,906 3,005 2,404 Net income before taxation 9,906 3,005 2,404 Net income after taxation 9,816 2,904 2,270 2015 RM’000 2014 RM’000 2013 RM’000 Total investments Total other assets 40,954 6,700 36,587 7,273 42,519 6,971 Total assets 47,654 43,860 49,490 Extract of Statement of Assets and Liabilities as at 30 April Total liabilities (434) NAV/Unitholders’ capital 47,220 (355) 43,505 (227) 49,263 PUBLIC SELECT MIXED ASSET GROWTH FUND (PSMAGF) Extract of Statement of Income and Expenditure for the financial period ended 30 April From 16.10.14 to 30.4.15 RM’000 Investment income Total expenses 546 (118) Net investment income 428 Net income before taxation 428 Net income after taxation 428 Extract of Statement of Assets and Liabilities as at 30 April 2015 RM’000 Total investments Total other assets 12,274 528 Total assets 12,802 Total liabilities (54) NAV/Unitholders’ capital 12,748 223 HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS (CONT’D) PUBLIC SELECT MIXED ASSET CONSERVATIVE FUND (PSMACF) Extract of Statement of Income and Expenditure for the financial period ended 30 April From 16.10.14 to 30.4.15 RM’000 Investment income Total expenses 238 (25) Net investment income 213 Net income before taxation 213 Net income after taxation 213 Extract of Statement of Assets and Liabilities as at 30 April 2015 RM’000 Total investments Total other assets 5,314 440 Total assets 5,754 Total liabilities (51) NAV/Unitholders’ capital 5,703 PUBLIC BALANCED FUND (PBF) Extract of Statement of Income and Expenditure for the financial years ended 31 May 2015 RM’000 2014 RM’000 2013 RM’000 Investment income Total expenses 19,524 (6,825) 35,220 (6,706) 37,864 (6,964) Net investment income 12,699 28,514 30,900 Net income before taxation 12,699 28,514 30,900 Net income after taxation 12,567 28,292 30,574 2015 RM’000 2014 RM’000 2013 RM’000 Total investments Total other assets 384,483 8,337 383,250 19,699 390,589 14,897 Total assets 392,820 402,949 405,486 Extract of Statement of Assets and Liabilities as at 31 May Total liabilities (19,090) NAV/Unitholders’ capital 373,730 224 (22,453) 380,496 (20,581) 384,905 HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS (CONT’D) PUBLIC FAR-EAST BALANCED FUND (PFEBF) Extract of Statement of Income and Expenditure for the financial years ended 30 April 2015 RM’000 2014 RM’000 2013 RM’000 Investment income Total expenses 20,129 (2,913) 13,938 (3,519) 10,814 (4,309) Net investment income 17,216 10,419 6,505 Net income before taxation 17,216 10,419 6,505 Net income after taxation 17,072 10,241 6,245 2015 RM’000 2014 RM’000 2013 RM’000 Total investments Total other assets 126,142 13,295 150,044 17,092 187,616 8,226 Total assets 139,437 167,136 195,842 Extract of Statement of Assets and Liabilities as at 30 April Total liabilities (2,031) NAV/Unitholders’ capital 137,406 (905) 166,231 (1,082) 194,760 PUBLIC BOND FUND (P BOND) Extract of Statement of Income and Expenditure for the financial years ended 31 July 2015 RM’000 2014 RM’000 2013 RM’000 Investment income Total expenses 55,859 (9,010) 44,772 (9,540) 55,620 (10,325) Net investment income 46,849 35,232 45,295 Net income before taxation 46,849 35,232 45,295 Net income after taxation 46,605 34,974 44,590 2015 RM’000 2014 RM’000 2013 RM’000 Total investments Total other assets 1,107,523 305 1,176,458 194 1,287,087 363 Total assets 1,107,828 1,176,652 1,287,450 Extract of Statement of Assets and Liabilities as at 31 July Total liabilities (65,504) NAV/Unitholders’ capital 1,042,324 225 (66,909) 1,109,743 (70,561) 1,216,889 HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS (CONT’D) PUBLIC INSTITUTIONAL BOND FUND (PIN BOND) Extract of Statement of Income and Expenditure for the financial years ended 30 April 2015 RM’000 2014 RM’000 2013 RM’000 Investment income Total expenses 82,697 (9,588) 66,482 (9,210) 63,926 (8,953) Net investment income 73,109 57,272 54,973 Net income before taxation 73,109 57,272 54,973 Net income after taxation 73,109 57,272 54,973 2015 RM’000 2014 RM’000 2013 RM’000 Total investments Total other assets 1,901,086 669 1,813,129 66 1,755,828 69 Total assets 1,901,755 1,813,195 1,755,897 Extract of Statement of Assets and Liabilities as at 30 April Total liabilities (16,205) NAV/Unitholders’ capital 1,885,550 (755) 1,812,440 (732) 1,755,165 PUBLIC ENHANCED BOND FUND (PEBF) Extract of Statement of Income and Expenditure for the financial years ended 31 January 2016 RM’000 2015 RM’000 2014 RM’000 Investment income Total expenses 15,245 (3,736) 16,847 (3,478) 15,585 (3,328) Net investment income 11,509 13,369 12,257 Net income before taxation 11,509 13,369 12,257 Net income after taxation 11,435 13,302 12,006 2016 RM’000 2015 RM’000 2014 RM’000 Total investments Total other assets 320,449 216 334,886 244 314,545 1,371 Total assets 320,665 335,130 315,916 Extract of Statement of Assets and Liabilities as at 31 January Total liabilities (15,399) NAV/Unitholders’ capital 305,266 226 (15,632) 319,498 (15,110) 300,806 HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS (CONT’D) PUBLIC SELECT BOND FUND (PSBF) Extract of Statement of Income and Expenditure for the financial years ended 31 May 2015 RM’000 2014 RM’000 2013 RM’000 Investment income Total expenses 55,199 (9,226) 46,079 (11,583) 71,449 (12,346) Net investment income 45,973 34,496 59,103 Net income before taxation 45,973 34,496 59,103 Net income after taxation 45,973 34,496 59,103 2015 RM’000 2014 RM’000 2013 RM’000 Total investments Total other assets 1,064,913 351 1,301,102 64 1,850,298 114 Total assets 1,065,264 1,301,166 1,850,412 Extract of Statement of Assets and Liabilities as at 31 May Total liabilities (43,906) NAV/Unitholders’ capital 1,021,358 (45,298) 1,255,868 (73,947) 1,776,465 PUBLIC STRATEGIC BOND FUND (PSTBF) Extract of Statement of Income and Expenditure for the financial years ended 31 December 2015 RM’000 2014 RM’000 2013 RM’000 Investment income Total expenses 19,703 (3,314) 19,105 (3,650) 20,159 (4,851) Net investment income 16,389 15,455 15,308 Net income before taxation 16,389 15,455 15,308 Net income after taxation 16,310 15,379 15,182 2015 RM’000 2014 RM’000 2013 RM’000 Total investments Total other assets 401,575 178 405,993 1,405 542,043 60 Total assets 401,753 407,398 542,103 Extract of Statement of Assets and Liabilities as at 31 December Total liabilities (16,217) NAV/Unitholders’ capital 385,536 227 (15,345) 392,053 (18,935) 523,168 HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS (CONT’D) PUBLIC ENTERPRISES BOND FUND (PENTBF) Extract of Statement of Income and Expenditure for the financial years ended 30 September 2015 RM’000 2014 RM’000 2013 RM’000 Investment income Total expenses 3,267 (662) 3,494 (831) 3,482 (875) Net investment income 2,605 2,663 2,607 Net income before taxation 2,605 2,663 2,607 Net income after taxation 2,605 2,663 2,607 2015 RM’000 2014 RM’000 2013 RM’000 Total investments Total other assets 84,967 57 82,439 73 125,301 341 Total assets 85,024 82,512 125,642 Extract of Statement of Assets and Liabilities as at 30 September Total liabilities (3,069) NAV/Unitholders’ capital 81,955 (2,869) 79,643 (4,335) 121,307 PUBLIC MONEY MARKET FUND (PMMF) Extract of Statement of Income and Expenditure for the financial years ended 31 January 2016 RM’000 2015 RM’000 2014 RM’000 Investment income Total expenses 15,018 (1,307) 11,823 (1,380) 12,028 (1,495) Net investment income 13,711 10,443 10,533 Net income before taxation 13,711 10,443 10,533 Net income after taxation 13,711 10,443 10,533 2016 RM’000 2015 RM’000 2014 RM’000 Total investments Total other assets 368,681 3,776 363,430 2,545 364,487 3,960 Total assets 372,457 365,975 368,447 Extract of Statement of Assets and Liabilities as at 31 January Total liabilities (13,204) NAV/Unitholders’ capital 359,253 228 (9,445) 356,530 (10,878) 357,569 HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS (CONT’D) 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 name Management fee Trustee fee Other expenses Total annual expenses RM’000 %# RM’000 %# RM’000 %# RM’000 %# PSF 29,889 1.46 618 0.03 236 0.01 30,743 1.50 PGF 16,160 1.46 610 0.06 185 0.01 16,955 1.53 PIX 14,178 1.50 567 0.06 116 0.01 14,861 1.57 PINDGF 4,230 1.50 170 0.06 94 0.03 4,494 1.59 PAGF 7,148 1.48 289 0.06 95 0.02 7,532 1.56 PRSF 72,366 1.50 600 0.01 575 0.01 73,541 1.52 P SmallCap 16,707 1.50 613 0.06 142 0.01 17,462 1.57 PEF 13,012 1.46 536 0.06 151 0.01 13,699 1.53 PFSF 12,403 1.50 496 0.06 119 0.01 13,018 1.57 PDSF 27,030 1.50 600 0.03 381 0.02 28,011 1.55 PFES 4,954 1.48 201 0.06 149 0.04 5,304 1.58 PRSEC 3,839 1.60 144 0.06 143 0.06 4,126 1.72 PGSF 2,505 1.79 84 0.06 118 0.08 2,707 1.93 PFEDF 4,748 1.60 178 0.06 132 0.04 5,058 1.70 PCSF 12,201 1.45 503 0.06 296 0.04 13,000 1.55 PFEPRF 5,639 1.70 199 0.06 134 0.04 5,972 1.80 PSEASF 6,703 1.60 251 0.06 238 0.06 7,192 1.72 PSSF 7,840 1.50 314 0.06 77 0.01 8,231 1.57 PFECTF 2,332 1.70 82 0.06 110 0.08 2,524 1.84 PCTF 1,344 1.58 51 0.06 70 0.08 1,465 1.72 PFETIF 1,247 1.67 45 0.06 82 0.11 1,374 1.84 PSA30F 1,250 1.49 50 0.06 33 0.04 1,333 1.59 PWEF 2,622 1.69 93 0.06 63 0.04 2,778 1.79 PAUEF 4,109 1.64 151 0.06 111 0.04 4,371 1.74 PFA30F 1,728 1.60 65 0.06 72 0.07 1,865 1.73 POGF 4,558 1.49 183 0.06 58 0.02 4,799 1.57 PINDOSF 3,777 1.66 137 0.06 202 0.09 4,116 1.81 PSGEF 3,762 1.60 142 0.06 138 0.06 4,042 1.72 PSSCF 8,061 1.49 324 0.06 91 0.02 8,476 1.57 PSTGF 264 1.47 14 0.08 37 0.21 315 1.76 PTAF 712 1.65 26 0.06 65 0.15 803 1.86 58 1.06 10 0.19 16 0.30 84 1.55 PSMAGF 6 0.25 1 0.06 7 0.37 14 0.68 PBF PSMACF 6,000 1.50 240 0.06 108 0.03 6,348 1.59 PFEBF 2,237 1.60 84 0.06 106 0.07 2,427 1.73 229 HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS (CONT’D) Fund name Management fee Trustee fee Total annual expenses Other expenses RM’000 %# RM’000 %# RM’000 %# RM’000 %# P BOND 8,626 0.75 302 0.02 82 0.01 9,010 0.78 PIN BOND 9,273 0.50 300 0.02 15 - 9,588 0.52 PEBF 3,466 1.00 122 0.03 46 0.01 3,634 1.04 PSBF 8,834 0.75 300 0.02 92 0.01 9,226 0.78 PSTBF 3,118 0.74 148 0.03 48 0.02 3,314 0.79 608 0.75 29 0.03 25 0.03 662 0.81 1,194 0.28 83 0.02 30 0.01 1,307 0.31 PENTBF PMMF # Reflected as a percentage of average NAV. ^ Less than 0.01% Note: Other expenses exclude brokerage fee. The MER of the funds for the past 3 financial years is as follows: Fund name MER (%) Fund name MER (%) PSF 31 December 2015 31 December 2014 31 December 2013 1.50 1.54 1.55 PDSF 31 May 2015 31 May 2014 31 May 2013 1.55 1.56 1.57 PGF 31 July 2015 31 July 2014 31 July 2013 1.53 1.58 1.57 PFES 31 May 2015 31 May 2014 31 May 2013 1.58 1.71 1.68 PIX 31 January 2016 31 January 2015 31 January 2014 1.57 1.57 1.57 PRSEC 31 May 2015 31 May 2014 31 May 2013 1.72 1.71 1.71 PINDGF 31 October 2015 31 October 2014 31 October 2013 1.59 1.60 1.59 PGSF 31 May 2015 31 May 2014 31 May 2013 1.93 1.91 1.90 PAGF 31 March 2015 31 March 2014 31 March 2013 1.56 1.58 1.58 PFEDF 30 November 2015 30 November 2014 30 November 2013 1.70 1.72 1.72 PRSF 31 March 2015 31 March 2014 31 March 2013 1.52 1.52 1.52 PCSF 31 July 2015 31 July 2014 31 July 2013 1.55 1.69 1.67 P SmallCap 31 August 2015 31 August 2014 31 August 2013 1.57 1.58 1.59 PFEPRF 31 July 2015 31 July 2014 31 July 2013 1.80 1.80 1.77 230 HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS (CONT’D) Fund name MER (%) Fund name MER (%) PEF 31 October 2015 31 October 2014 31 October 2013 1.53 1.58 1.57 PSEASF 31 October 2015 31 October 2014 31 October 2013 1.72 1.72 1.72 PFSF 31 December 2015 31 December 2014 31 December 2013 1.57 1.58 1.57 PSSF 31 October 2015 31 October 2014 31 October 2013 1.57 1.58 1.56 PFECTF 30 June 2015 30 June 2014 30 June 2013 1.84 1.83 1.83 PBF 31 May 2015 31 May 2014 31 May 2013 1.59 1.59 1.59 PCTF 31 May 2015 31 May 2014 31 May 2013 1.72 1.74 1.71 PFEBF 30 April 2015 30 April 2014 30 April 2013 1.73 1.72 1.71 PFETIF 30 April 2015 30 April 2014 30 April 2013 1.84 1.87 1.85 PTAF 30 April 2015 30 April 2014 30 April 2013 1.86 1.86 1.83 PSA30F 30 November 2015 30 November 2014 30 November 2013 1.59 1.63 1.63 P BOND 31 July 2015 31 July 2014 31 July 2013 0.78 0.78 0.78 PWEF 30 November 2015 30 November 2014 30 November 2013 1.79 1.81 1.80 PIN BOND 30 April 2015 30 April 2014 30 April 2013 0.52 0.52 0.52 PAUEF 31 July 2015 31 July 2014 31 July 2013 1.74 1.74 1.73 PEBF 31 January 2016 31 January 2015 31 January 2014 1.04 1.05 1.05 PFA30F 30 November 2015 30 November 2014 30 November 2013 1.73 1.73 1.73 PSBF 31 May 2015 31 May 2014 31 May 2013 0.78 0.77 0.77 POGF 31 July 2015 31 July 2014 31 July 2013 1.57 1.61 1.65 PSTBF 31 December 2015 31 December 2014 31 December 2013 0.79 0.79 0.79 PINDOSF 31 August 2015 31 August 2014 31 August 2013 1.81 1.77 1.80 PENTBF 30 September 2015 30 September 2014 30 September 2013 0.81 0.82 0.80 231 HISTORICAL FINANCIAL HIGHLIGHTS OF THE FUNDS (CONT’D) Fund name MER (%) PSGEF 30 September 2015 30 September 2014 30 September 2013 1.72 1.72 1.72 PSSCF 30 September 2015 30 September 2014 30 September 2013 1.57 1.59 1.55 PSMAGF* 30 April 2015 1.55 Fund name * These funds were launched for less than 3 financial years. 232 MER (%) PMMF 31 January 2016 31 January 2015 31 January 2014 0.31 0.41 0.40 PSTGF* 31 August 2015 1.76 PSMACF* 30 April 2015 0.68 6 GETTING STARTED WITH PUBLIC MUTUAL 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 FIMM. You 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 Customer Service Centres are located at its nationwide branch offices 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 276 to 279 of the Master Prospectus for details of their addresses and telephone numbers. 6.2 HOW TO PURCHASE, REDEEM OR SWITCH UNITS OF THE FUNDS Read and Understand the Prospectus and Product Highlights Sheet of the Funds It is important that you should fully understand 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 and product highlights sheet. It is important that you read the prospectus and product highlights sheet carefully, and seek further clarification on any matter that may concern you. In reading the prospectus, do make sure that you fully understand: • • • • • • the nature of collective investment schemes; the fund category, objective and its distribution policy; the types of fund transactions available; your rights as a unitholder; the nature and amount of fees and expenses of the fund which you would have to bear; the reports that you will receive as a unitholder which keeps you fully informed about the performances of 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 other funds, you would need to complete the fund application form that comes with the prospectus and product highlights sheet obtainable free upon request. Your application form, together with the investment amount made out in a cheque can then be submitted to any of the Public Bank branches (please refer to How You Should Write Your Cheque on page 234 for more details). Please ensure that you obtain the bank-validated copy of the application form 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 existing investors who are PMO subscribers, you may purchase units of the funds online. For investors who are investing under the EPF-MIS (of which application to invest will be subject to the approval by EPF), you are required to complete the application form for EPF-MIS 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* - PIN BOND : RM10,000,000 All other funds : RM1,000 Note: * The Manager may vary the minimum initial investment amount from time to time. 233 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 banks. 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 cheque into the collection accounts maintained at Public Bank (please refer to How You Should Write Your Cheque for more details). For existing investors who are PMO subscribers, you may purchase additional units of the funds online. Minimum additional investment - PIN BOND : RM5,000,000 All other funds : RM100 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. How You Should Write Your Cheque Your cheques for investment are to be issued in the following manner: Initial investment : For individual investors, cheque must be made payable to “Public Mutual Berhad” followed by “new NRIC No. of first holder”. For corporate investors, cheque must be made payable to “Public Mutual Berhad” followed by your “company registration number”. Additional investment : Cheque issued must be made payable to “Public Mutual Berhad” followed by “Account No. of targeted fund/new NRIC No. of first holder”. You are advised to write down your name, new NRIC/passport number/company registration number and telephone number at the back of the cheque. You are advised NOT TO MAKE PAYMENT IN CASH to any of our unit trust consultants or staff when purchasing units of the funds. If you wish to pay in cash, you are advised to do so personally at any Public Bank branch counter, and ensure that a bank-validated copy of the fund application form/ bank-in-slip is obtained before leaving the bank. Exercise of Cooling-off Right If you 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 within 10 days from the date of exercise of this cooling-off right. The refund for every unit held will be the sum of the price of a unit on the day the units were purchased and the sales charge imposed (and GST) on the day the units were purchased. 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 registered to deal in unit trust funds are not entitled to the cooling-off right. 234 GETTING STARTED WITH PUBLIC MUTUAL (CONT’D) Exercise of Redemption, Switching and Transfer of Units Redemption Units of the funds may be redeemed on any Business Day. There is no restriction on the frequency of redemption. Should you need to partially or fully redeem your units, you would need to complete and submit the repurchase form to your nearest Public Mutual branch office or Public Mutual Head Office. You can also execute your redemption request using PMO. You will be paid the redemption proceeds within 10 days from our receipt of your redemption request. For EPF unitholders, the net redemption proceeds will be remitted to EPF for crediting into your provident accounts. Switching You may move your investments between various funds under the Public Series of Funds and Public Series of Shariah-Based Funds on any Business Day subject to fees and conditions. You would need to complete and return the switching form to your nearest Public Mutual branch office or Public Mutual Head Office. You can also execute your switching request using PMO. (A) For switching made within 90 days from the date of purchase or switching of units into that fund: To Recipient Fund Switch-out / (Exit) From Equity / Mixed Asset / Balanced funds Bond funds Money Market fund Equity / Mixed Asset / Balanced funds Switching fee of up to 0.75%* Switching fee of up to 0.75%* Switching fee of up to 0.75%* - Loaded units # Switching fee of up to 0.25%* Switching fee of up to 0.25%* Switching fee of up to 0.25%* - 1%-load units ## Sales charge of up to 4.5% Switching fee of up to 0.25%* Switching fee of up to 0.25%* - Low-load units ### Sales charge of up to 5.25% Sales charge of up to 0.75% Switching fee of up to 0.25%* - Loaded units # Switching fee of up to RM25 Switching fee of up to RM25 Switching fee of up to RM25 - 1%-load units ## Sales charge of up to 4.5% Switching fee of up to RM25 Switching fee of up to RM25 - Low-load units ### Sales charge of up to 5.25% Sales charge of up to 0.75% Switching fee of up to RM25 - Zero-load units #### Sales charge of up to 5.5% Sales charge of up to 1.0% Switching fee of up to RM25 Bond funds Money Market funds Note: * Subject to a minimum of RM50, whichever is the higher. This switching fee will be retained by the switch-out funds. 235 GETTING STARTED WITH PUBLIC MUTUAL (CONT’D) (B) For switching made after 90 days from the date of purchase or switching of units into that fund: To Recipient Fund Switch-out / (Exit) From Equity / Mixed Asset / Balanced funds Bond funds Money Market fund Equity / Mixed Asset / Balanced funds Switching fee of up to RM25 Switching fee of up to RM25 No switching fee - Loaded units # Switching fee of up to RM25 Switching fee of up to RM25 No switching fee - 1%-load units ## Sales charge of up to 4.5% Switching fee of up to RM25 No switching fee - Low-load units ### Sales charge of up to 5.25% Sales charge of up to 0.75% No switching fee - Loaded units # Switching fee of up to RM25 Switching fee of up to RM25 No switching fee - 1%-load units ## Sales charge of up to 4.5% Switching fee of up to RM25 No switching fee - Low-load units ### Sales charge of up to 5.25% Sales charge of up to 0.75% No switching fee - Zero-load units #### Sales charge of up to 5.5% Sales charge of up to 1.0% No switching fee Bond funds Money Market funds Notes: # ## ### #### Loaded units are units which have incurred a sales charge of 3% or more. 1%-load units are units which have incurred a sales charge of 1.0%. Low-load units are units which have incurred a sales charge of 0.25% or less. Zero-load units are units which have not incurred any sales charge. 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 You may fully or partially transfer your units in the fund(s) to another unitholder subject to terms and conditions. An administration fee of RM25 is charged on each transfer transaction. For transfer of units, you need to complete and submit the transfer form to your nearest Public Mutual branch office or Public Mutual Head Office. Transfer facility is not available for PIN BOND. All the above fees and charges are subject to GST which are payable by you. 236 GETTING STARTED WITH PUBLIC MUTUAL (CONT’D) Minimum Units for Redemption, Switching or Transfer PIN BOND All other funds : : 1,000,000 units (transfer facility is not available for PIN BOND) 1,000 units Minimum Account Balance Whatever you may do by way of redemption, switching or transfer of funds, you must always ensure that you leave the following minimum balance of units in your account at all times in order to stay invested with the fund: PIN BOND All other funds : : 1,000,000 units 1,000 units In the case of partial redemption, switching or transfer, the Manager may elect to redeem, switch or transfer the entire account if the partial redemption, switching or transfer results in less than the required minimum balance of units being held in your 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 FlexiLoan 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. You should be aware of the loan financing risk as stated on page 41 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 Investing in unit trust funds involves market risks and it would be considered unwise for you to undertake borrowing to purchase units as it may serve to accentuate any capital loss incurred by you. Consequently, investing in a unit trust fund with borrowed money is more risky than investing with your own savings. Please refer to loan financing risk on page 41 of this Master Prospectus. You are advised to read and fully understand the Loan Financing Risk Disclosure Statement that forms part of the fund application form before signing off on the form. It is our 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 with a record of transactions 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 Annual and interim Statements of Investment which include a Summary of Distribution (if any), will be sent to you together with the funds’ annual and interim reports. 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. 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 within 2 months from the close of each financial year or interim period. You may refer to pages 37 to 39 for more information on the mode of distributions and policies and procedures on unclaimed monies/distributions. 237 GETTING STARTED WITH PUBLIC MUTUAL (CONT’D) 6.4 KEEPING TRACK OF THE DAILY PRICES OF UNITS Units are valued at their NAV per unit on every Business Day. You 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 239 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 PMO, our e-commerce website for online transactions, account enquiries and e-statements and e-reports. 238 7 TRANSACTION INFORMATION 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 NAV of the fund is calculated. For funds with no foreign investments, the valuation of the 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, the valuation point may be extended to 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 15 July 2016: Total NAV (RM) 1,625,250,000 UIC (units) 3,250,500,000 NAV per unit (RM) 0.50000000 (Total NAV/UIC) Forward Pricing for both Purchase and Redemption Transactions Both the purchase and redemption transactions are traded at prices next determined. A request issued today by you to purchase units of the fund will be carried out at a price next determined i.e. the transaction will be calculated at the next valuation point after the application to purchase units is received and accepted by the Manager. Similarly, a request to redeem units by you will be done at the price next determined i.e. the transaction will be executed at the next valuation point after the redemption 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 and transaction requests made 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 and transaction requests made after 4:00 p.m. via these channels will be processed based on the price determined for the next Business Day. Any investment and transaction requests made on a non-Business Day will be treated as investments or transaction requests 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) (ii) is equal or more than zero point five per centum (0.5%) of the NAV per unit; and results in a sum total of Ringgit Malaysia Ten (RM10.00) or more to be reimbursed to the affected unitholder for each purchase or redemption 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. 239 TRANSACTION INFORMATION (CONT’D) 7.2 COMPUTATION OF PRICES Purchase and redemption of units are quoted and transacted at a single price, which is at the NAV per unit of the fund(s). Sales charge and redemption charge (if any) that are to be levied on the purchase and redemption of units will not be incorporated in the quoted prices of the funds. These charges will be computed and charged separately. Making an Investment Purchase of units is transacted at the NAV per unit of the funds. Upon the purchase of units of the funds, a sales charge of up to 5.5% of NAV per unit is levied for equity, mixed asset and balanced funds and up to 1.0% of NAV per unit is levied for bond funds. No sales charge is levied for money market funds. For investments under the EPF-MIS, a sales 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 15 July 2016, 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 sales 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 = NAV per unit Sales charge per unit RM10,000 RM0.50000000 = NAV per unit = RM0.50000000 = RM0.02750000 Total sales charge incurred by Investor A 20,000 units x Sales charge (%) x 5.5% = Sales charge per unit = RM0.02750000 = RM550 x x Units credited to investor 20,000 units Following the above, the total amount payable by Investor A: = Amount invested in PEF = RM10,000 = RM10,550 + + Sales charge incurred RM550 You are advised NOT TO MAKE PAYMENT IN CASH to any of our unit trust consultants or staff when purchasing units of the funds. If you wish to pay in cash, you are advised to do so personally at any Public Bank branch counter, and ensure that a bank-validated copy of the fund application form/ bank-in-slip is obtained before leaving the bank. 240 TRANSACTION INFORMATION (CONT’D) Redeeming an Investment Redemption of units is transacted at the NAV per unit of the funds. The Manager does not impose a redemption charge on the redemption of units of the funds. 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 redemption charge levied on the redemption of units of the fund. Based on the above, the amount redeemed from PEF Redemption charge per unit = Units redeemed = 20,000 units = RM10,000 = NAV per unit = RM0.50000000 = Nil Total redemption charge incurred by Investor B x Amount redeemed from PEF = RM10,000 = RM10,000 - - x x RM0.50000000 0% = Redemption charge per unit = RM0 = Nil x 20,000 units Redemption charge incurred RM0 Note: All the above fees and charges are subject to GST which are payable by you. 241 NAV per unit Redemption charge (%) Following the above, the redemption proceeds received by Investor B: = x x Units redeemed 8 FEES, CHARGES AND EXPENSES 8.1 CHARGES IMPOSED ON PURCHASE AND REDEMPTION OF UNITS Purchase and redemption of units are quoted and transacted at a single price, which is at the NAV per unit of the funds. Sales charge and redemption charge (if any) that are to be levied on the purchase and redemption of units will not be incorporated in the quoted prices of the funds. These charges will be computed and charged separately. For the purpose of calculating sales charge and redemption charge, the computation is based on the NAV per unit of the fund that has not been rounded up. Charges imposed on Purchase or Redemption of Units % / RM Charges Equity, Mixed Asset and Balanced Funds Bond Funds Sales charge per unit Purchase of units through unit trust consultants and the Manager: Up to 5.5% of NAV per unit. Purchase of units through unit trust consultants and the Manager: Up to 1.0% of NAV per unit. Investments under the EPF-MIS will be levied a sales charge of up to 3% of NAV per unit, as regulated by EPF. The Manager may at its discretion charge a lower sales charge based on the size of investment and/or other criterion as may be determined from time to time. The Manager may at its discretion charge a lower sales charge based on the size of investment and/ or other criterion as may be determined from time to time. Money Market Fund Nil. Example: Let us assume that the NAV per unit of PEF is RM0.50000000 and the sales charge is 5.5%. Sales charge per unit = NAV per unit x Sales charge = RM0.50000000 x = RM0.02750000 5.5% Redemption charge per unit Nil. Switching charges Please refer to pages 235 and 236 for charges on switching transactions. Transfer charges An administration fee of RM25 will be charged for each transfer transaction. 242 FEES, CHARGES AND EXPENSES (CONT’D) 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, foreign custodian, auditor, tax agent, administrative charges such as printing of interim and annual reports, 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 % / RM Fees Equity, Mixed Asset and Balanced Funds Bond Funds Management PSMACF: 1.25% per annum of the NAV. fee P BOND, PSBF, PSTBF and PENTBF: 0.75% per annum of the PSF, PGF, PIX, PINDGF, PAGF, PRSF, NAV. P SmallCap, PEF, PFSF, PDSF, PSSF, PSA30F, POGF, PSSCF, PSTGF, PSTEF, PEBF: PAVGEF, PRSSQF, PSMAGF, PBF and 1.0% per annum of the PGRBF: NAV. 1.50% per annum of the NAV. PIN BOND: PFES, PRSEC, PFEDF, PCSF, PSEASF, 0.5% per annum of the PCTF, PFA30F, PSGEF and PFEBF: NAV. 1.60% per annum of the NAV. Money Market Fund PMMF: 0.375% per annum of the NAV. PAUEF, PEMOF and PTAF: 1.65% per annum of the NAV. PFEPRF, PFECTF, PFETIF, PWEF and PINDOSF: 1.70% per annum of the NAV. PGSF: 1.80% per annum of the NAV. 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. 0.035% per annum of NAV, subject to a minimum fee of RM18,000 and a maximum fee of RM300,000 per annum. 0.02% per annum of NAV, subject to a minimum fee of RM18,000 and a maximum fee of RM300,000 per annum. 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. Note: All the above fees and charges are subject to GST which are payable by you. 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 unitholders. There are fees and charges involved and investors are advised to consider them before investing in the funds. 243 9 9.1 THE MANAGER CORPORATE PROFILE OF PUBLIC MUTUAL The funds listed under this Master Prospectus are managed by Public Mutual, a wholly owned subsidiary of Public Bank. Public Mutual is a licensed fund manager and Private Retirement Scheme (PRS) Provider 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. As at LPD, Public Mutual manages 115 unit trust funds and 9 PRS funds with a total NAV of over RM63.1 billion. 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 As at LPD, Public Mutual has a staff strength of approximately 940 personnel to manage and administer its unit trust funds. 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 FIMM. Public Mutual has a broad network of Customer Service Centres which are located at its nationwide branches 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 PMO. 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. 9.3 FUNCTIONS, DUTIES AND RESPONSIBILITIES OF THE MANAGER The Manager of a unit trust fund 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 fund. 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 fund. 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:– • • • • • 1 to ensure that a unit trust fund is managed within the ambit of the Deed, the CMSA 2007, the securities laws and the relevant guidelines at all times; any application to the SC e.g. the renewal of the Master Prospectus etc.; the success in the launch and sales of any unit trust fund, and to provide customer support and distribution agency networks to best serve the unitholders of the fund; to keep the unitholders informed of the management and performance of the unit trust fund through the interim and annual reports; to ensure that the interest of the unitholders is best served and protected at all times. Source: Lipper, 29 January 2016 244 THE MANAGER (CONT’D) 9.4 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 3 financial years ended 31 December: Paid-up capital Shareholders’ funds Turnover Profit before tax Profit after tax 2013 RM’000 2014 RM’000 2015 RM’000 6,000 141,213 1,026,601 426,228 365,912 6,000 149,386 1,092,536 489,888 419,173 6,000 159,948 1,166,041 541,199 460,562 As at LPD, 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. 9.5 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. As at LPD, the names of the members on the Board and their profiles are set out below. Board Members Tan Sri Dato’ Sri Dr. Teh Hong Piow – Non Independent Director (Chairman) Tan Sri Dato’ Sri Tay Ah Lek – Non Independent Director Dato’ Sri Lee Kong Lam – Non Independent Director Dato’ (Dr) Haji Mohamed Ishak Bin Haji Mohamed Ariff – Independent Director Dato’ Haji Abdul Aziz Bin Dato’ Dr. Omar – Independent Director Mr. Quah Poh Keat – Non Independent Director Dato’ Mohammed Najeeb Bin Abdullah – Independent Director Ms. Yeoh Kim Hong – Chief Executive Officer / Non Independent Executive Director Director (Chairman) – Non Independent Tan 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 65 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’s Commercial Banker of the Year 1991 The ASEAN Businessman of the Year 1994 Malaysia’s Business Achiever of the Year 1997 Malaysia’s CEO of the Year 1998 Best CEO in Malaysia 2004 The Most PR Savvy CEO 2004 The Asian Banker Leadership Achievement Award 2005 for Malaysia Award for Outstanding Contribution to the Development of Financial Services in Asia 2006 Lifetime Achievement Award 2006 Award for Lifetime Achievement in Corporate Excellence, Dedication and Industry 2006 Asia’s Banker of High Distinction Award 2006 245 THE MANAGER (CONT’D) • • • • • • • • • • • • • • • • • • • • • • • • • • The BrandLaureate Brand Personality Award 2007 ASEAN Most Astute Banker Award 2007 Lifetime Entrepreneurship Achievement Award 2007 The Pila Recognition Award 2007 Asian Banker Par Excellence Award 2008 Best CEO in Malaysia 2009 Asia’s Banking Grandmaster 2010 Asian Corporate Director Recognition Award 2010 for Malaysia Value Creator: Malaysia’s Outstanding CEO 2010 The BrandLaureate - Tun Dr. Mahathir Mohamad Man of the Year Award 2010–2011 Best CEO (Investor Relations) 2011 for Malaysia Asian Corporate Director Recognition Award 2011 for Malaysia The BrandLaureate Premier Brand Icon Leadership Award 2011 Best CEO (Investor Relations) 2012 for Malaysia Asian Corporate Director Recognition Award 2012 for Malaysia Best CEO (Investor Relations) 2013 for Malaysia Asian Corporate Director Recognition Award 2013 for Malaysia BrandLaureate Banker of the Year Award 2012–2013 Best CEO (Investor Relations) 2014 for Malaysia Asian Corporate Director Recognition Award 2014 for Malaysia Banker Extraordinaire 2015 Global Chinese Entrepreneur Lifetime Achievement Award 2015 BrandLaureate “Icon of Icons - The King of Banking” Best CEO (Investor Relations) 2015 for Malaysia William “Bill” Seidman Lifetime Achievement in Financial Service Industry Award 2015 Asian Corporate Director Recognition Award 2015 for Malaysia 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 an Emeritus Fellow of the Malaysian Institute of Management and is a Fellow of the Asian Institute of Chartered Bankers (formerly known as the Institute of Bankers Malaysia); the Chartered Institute of Bankers, United Kingdom; the Institute of Administrative Management, United Kingdom; and the Governance Institute of Australia. Director – Non Independent Tan Sri Dato’ Sri Tay Ah Lek is a Director of Public Mutual since August 1995. He has 54 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/Chief Executive Officer 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 an Emeritus Fellow of the Malaysian Institute of Management and is a Fellow of CPA Australia, the Financial Services Institute of Australasia, and the Asian Institute of Chartered Bankers (formerly known as the Institute of Bankers Malaysia). He is presently the Chairman of the Association of Hire Purchase Companies Malaysia and is a Member of the National Payments Advisory Board. 246 THE MANAGER (CONT’D) Director – Non Independent Dato’ Sri Lee Kong Lam is a Director of Public Mutual since July 1999. He has 48 years experience in the banking and finance industry. 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. He was appointed as an Executive Director of Public Bank on 28 November 2001 and was re-designated as Non-Independent Non-Executive Director of Public Bank with effect from 28 November 2013, following his retirement as Executive Director/Deputy Chief Executive Officer of Public Bank. He was appointed as Non-Independent Non-Executive Deputy Chairman of Public Bank with effect from 1 September 2015. 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. Director – Independent Dato’ (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. Director – Independent Dato’ 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. He was the President and Chief Executive Officer of a Malaysian bank from 1986 to 1993. His 45 years experience also include the areas of audit and accounting, taxation, property, plantation, hotelling, trading and manufacturing, both locally and abroad. Dato’ Haji Abdul Aziz is a Member of the Boards of Directors of PB Trustee Services Berhad and AIA PUBLIC Takaful Berhad. Director – Non Independent Mr. Quah Poh Keat is a Director of Public Mutual since 1 September 2009. He was appointed as Deputy Chief Executive Officer II of Public Bank on 1 October 2013 and was redesignated as Deputy Chief Executive Officer on 28 November 2013. He retired as Deputy Chief Executive Officer on 31 December 2015. 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 a Director on the Boards of Directors of Public Financial Holdings Ltd, Public Bank (Hong Kong) Ltd, Cambodian Public Bank Plc, Campu Lonpac Insurance Plc, LPI Capital Bhd and Lonpac Insurance Bhd. He is also a Director of Kuala Lumpur Kepong Berhad. 247 THE MANAGER (CONT’D) Director – Independent Dato’ Mohammed Najeeb bin Abdullah is a Director of Public Mutual since September 2014. He is an MBA graduate of the University of Charles Darwin, Australia and is also a graduate from the Chartered Institute of Marketing (UK). He has more than 35 years experience in both conventional and Islamic banking. He started his career in banking in a local bank and later worked in Public Bank Berhad for over 27 years. Through the years he has built an exciting and successful career in banking, attaining a top management position. In April 2010, Dato’ Mohammed Najeeb was appointed as a Senator of the Upper House of Parliament, by the Government of Malaysia for a 3-year term. Having accepted the appointment, he relinquished his position as General Manager of Public Islamic Bank Bhd, in compliance with Bank Negara Malaysia’s regulations. As a Senator, he participated in many international forums and conferences. In October 2012, he led a Senatorial delegation to the United Nations 67th General Assembly, New York, where he presented Malaysia’s two policy statements at the Second Committee Meeting on Economic & Financial. Dato’ Mohammed Najeeb is an Independent Non-Executive Director of Public Islamic Bank Bhd, Cambodian Public Bank Plc, Campu Lonpac Insurance Plc and a member of the Audit Committee of Public Islamic Bank Berhad. He is also a member of the Board of Trustees for Yayasan Negeri Sembilan and the Director of Ambienz Holidays Sdn Bhd. Chief Executive Officer / Executive Director – Non Independent Ms. Yeoh Kim Hong, CA(M), CPA, CFP has more than 20 years experience in the unit trust industry. Ms. Yeoh is the Chief Executive Officer of Public Mutual since July 2007. She is also a member of the Board of Directors and the Investment Committees of Public Mutual. Ms. Yeoh has played an active role in the development of the unit trust industry. She sits in the Board of the FIMM and is a member of the Industry Development Committee, Regulatory Committee, Governance Committee, Disciplinary Committee and Audit Committee. Prior to that, Ms. Yeoh was a member of the Board of Governors as well as the Chairman of the Education and Examination Committee in the Financial Planning Association Malaysia (FPAM). 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 a member of the Malaysian Institute of Certified Public Accountants and the Malaysian Institute of Accountants. 9.6 PROFILE OF KEY MANAGEMENT STAFF Chief Executive Officer / Executive Director Ms. Yeoh Kim Hong – Please refer to her profile as set out in Section 9.5 (page 248) of this Chapter. Senior General Manager – Investment Mr. 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 25 years of experience in fund management, investment research and stockbroking. Prior to joining Public Mutual, Mr. Lum held management positions at various established local and foreign stockbroking 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. 248 THE MANAGER (CONT’D) Senior General Manager – Retail Business & Support Mr. 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 assumed his current position as Senior General Manager in 2014. He currently oversees areas relating to nationwide agency development and monitoring performance of branches network. Senior General Manager – Information Technology Mr. 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. General Manager – Customer Service & Unit Trust Operations Ms. Hang Siew Eng joined Public Mutual in 1980 and was appointed as General Manager 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 holds a diploma in Administrative Management and has more than 20 years experience in the various aspects of unit trust management. General Manager – Finance, Fund Administration & Support Ms. 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 on 1 July 2007 and assumed her position as General Manager in January 2010. Ms. Tang oversees the areas relating to finance, fund accounting, fund operations, product development, AML & operational standards, administration and properties. 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. General Manager – Business Learning & Development Ms. 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 20 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. Evelyn joined Public Mutual as Deputy General Manager – Agency Development & Training in 2006 and assumed her present post in 2013. She is responsible for Public Mutual’s agency development and training operations. Assistant General Manager – Compliance En. Abdul Samad B. Jaafar is the designated person responsible for compliance matters. 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 20 years working experience in audit and compliance. He first joined Public Mutual as the Internal Audit Manager and assumed his present post in 2010. 9.7 PROFILE OF KEY INVESTMENT PERSONNEL The investment management of the unit trust funds under the management of Public Mutual is undertaken by the Investment Department of Public Mutual 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 more than 20 portfolio managers and a research team of more than 30 research analysts who are involved in monitoring macro-economic variables and developments as well as undertaking financial analyses of various listed companies. 249 THE MANAGER (CONT’D) The profiles of the key investment personnel are as follows: Senior General Manager – Investment Mr. Lum Ming Jang – Mr. Lum obtained his CMSRL on 31 December 2004. Mr. Lum’s profile is set out in Section 9.6 (page 248) of this Chapter. Head of Research – Investment Ms. Lilian Pang Wui Lie – Ms. Lilian Pang graduated with a First Class Honours degree in Civil Engineering from the National University of Singapore and also holds a Master of Business Administration degree from the University of Edinburgh, United Kingdom. Ms. Lilian Pang joined Public Mutual in 2013 as Head of Research – Investment. Ms. Lilian Pang has over 13 years of investment and fund management experience. Prior to joining Public Mutual, Ms. Lilian Pang was attached with a global fund management company. She is also experienced in undertaking investments in private equities. Deputy General Manager – Investment, Equities Section Mr. Chiang Kang Pey – Mr. Chiang obtained his CMSRL 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 18 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 and subsequently Deputy General Manager in 2015. 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 an 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, Research Mr. Philip Wong Chee Pin – Mr. Wong obtained his CMSRL on 15 November 2013. Mr. Wong holds a Master of Investment Analysis degree from the University of Stirling and a Bachelor of Arts degree in Accountancy Studies from the University of Huddersfield in the United Kingdom. Mr. Wong joined Public Mutual in 2013 as Assistant General Manager – Investment Research. Mr. Wong has over 20 years of experience in investment research and portfolio management. Prior to joining Public Mutual, Mr. Wong was the Chief Investment Officer for a foreign investment management company. He also accumulated extensive experience when he served as Senior Vice President – Institutional Equity Investment, at an established investment management company. Assistant General Manager – Investment, Fixed Income Section Mr. Chan Kam Khoon – Mr. Chan obtained his CMSRL 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. 250 THE MANAGER (CONT’D) Assistant General Manager – Investment, Fixed Income Section En. Zaharudin bin Ghazali – En. Zaharudin obtained his CMSRL 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. He was promoted to Assistant General Manager in 2013. En. Zaharudin has been involved in overseeing and formulating the investment strategy for fixed income portfolios and has contributed to the development and advancement of operations and system capabilities of the Fixed Income section. Assistant General Manager – Investment, Equities Section Ms. Tan Chee Chin – Ms. Tan obtained her CMSRL 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. She was promoted to Assistant General Manager – Investment, Equities Section in 2014. 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 stockbroking 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. Assistant General Manager – Investment, Equities Section En. Mat Radzuan bin Abd Razak – En. Mat Radzuan obtained his CMSRL 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 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. He was promoted to Assistant General Manager – Investment, Equities Section in 2014. 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 Section Ms. Chen Yuet Fong – Ms. Chen obtained her CMSRL on 19 October 2005. 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 stockbroking house and her investment research experience includes assessing corporate earnings growth prospects, computation of stock valuations and financial analysis of listed companies. 251 THE MANAGER (CONT’D) Senior Portfolio Manager – Investment, Equities Section Ms. Lum Peck Woon – Ms. Lum obtained her CMSRL 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. In 2013, Ms. Lum was subsequently promoted to Senior Manager – Investment Equities Section. 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. Senior Portfolio Manager – Investment, Equities Section Mr. Liew Mun Hon – Mr. Liew obtained his CMSRL 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. He was subsequently promoted to Senior Portfolio Manager – Investment, Equities Section in 2013. 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. Senior Portfolio Manager – Investment, Fixed Income Section Ms. Evelyn Cheong Sun Ngean – Ms. Evelyn Cheong obtained CMSRL on 7 March 2013. Ms. Evelyn Cheong holds a Master in Business Administration majoring in Finance from International Islamic University Malaysia (IIUM) and is an Associate Member of The Institute of Chartered Secretaries and Administrators, United Kingdom. She joined Public Mutual in 2009 as Manager, Investment Fixed Income and assumed her position as Senior Manager – Investment, Fixed Income Section in 2013. Her responsibilities in the Fixed Income Section include dealing in fixed income securities and foreign exchange operations. Ms. Evelyn Cheong has 20 years experience in the banking industry. Prior to joining Public Mutual, she was attached to various domestic commercial banks and was involved in Treasury dealings and operations, financial markets and risk management activities. Portfolio Manager – Investment, Equities Section Mr. Andrew Seah Saik Weng – Mr. Seah obtained his CMSRL 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 Section En. Pitta Sham bin Ahmad Morshidi – En. Pitta Sham obtained his CMSRL on 13 February 2013. En. Pitta Sham holds a Degree in Bachelor of Business Administration (Hons) Finance with Multimedia from Multimedia University, Cyberjaya and Graduate Diploma in Investment and Applied Finance from Securities Institute of Australasia/ PNB Institute, Kuala Lumpur. He joined Public Mutual in 2012 as Manager – Investment, Equities Section. Prior to joining Public Mutual, En. Pitta Sham worked as a Portfolio Manager in an asset management company of a banking group. He started off his career as an equity analyst in an asset management company and has more than 10 years of experience in the Malaysian equity market. 252 THE MANAGER (CONT’D) Portfolio Manager – Investment, Equities Section Ms. Ng Joo Tsong – Ms. Ng obtained her CMSRL on 5 February 2013. Ms. Ng graduated with a Bachelor of Commerce in Accounting from University of New South Wales, Australia. She is a CFA charterholder and also a Certified Practicing Accountant, Australia. She joined Public Mutual in 2013 as Portfolio Manager – Investment, Equities Section. Prior to joining Public Mutual, she worked as a fund manager in a local asset management company. She has 18 years of experience in investment research and fund management, including financial analysis of listed and unlisted companies. Portfolio Manager – Investment, Equities Section Mr. Loo See Seong – Mr. Loo obtained his CMSRL 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. He assumed his current position as Manager – Investment, Equities Section in 2014. Portfolio Manager – Investment, Equities Section Mr. Lum Meng Seng – Mr. Lum obtained his CMSRL 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. He was promoted to Manager – Investment, Equities Section in 2014. 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 Section Mr. Cheong Kooi Seong – Mr. Cheong obtained his CMSRL on 13 January 2015. Mr. Cheong holds a Bachelor of Science (Hons) in Accounting and Finance from the University of London. He joined Public Mutual in 2014 as Manager – Investment, Equity Section. Prior to joining Public Mutual, Mr. Cheong was attached to a local asset management company as a fund manager. Mr. Cheong was also previously a fund manager at a foreign owned insurance firm where he was involved in the areas of portfolio management and equity research. He has more than 10 years of experience in investment research and portfolio management in the Malaysian equity market. Portfolio Manager – Investment, Equities Section Mr. Tan Kok Keong – Mr. Tan obtained his CMSRL 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. Mr. Tan was subsequently promoted to Deputy Manager – Investment, Equities Section in 2014 and Manager – Investment, Equities Section in 2015. Prior to joining Public Mutual, Mr. Tan was attached to a local stockbroking house and an asset management company as an investment analyst responsible for equity research in the Malaysian capital market. 253 THE MANAGER (CONT’D) Portfolio Manager – Investment, Fixed Income Section Ms. Vivian Looi Voon Ai – Ms. Vivian obtained her CMSRL on 5 March 2013. Ms. Vivian graduated with a Bachelor of Economics from Universiti Putra Malaysia. She joined Public Mutual in 2004 as an Executive in the Investment Department. Her responsibilities in the Fixed Income Section include money market operations, bond valuations and fixed income credit research. Her job scope was expanded to portfolio management and she assumed her current position Portfolio Manager – Investment, Fixed Income Section in 2013. Prior to joining Public Mutual, Ms. Vivian was attached to a local money broking house and was involved in institutional sales in fixed income instruments, money market instruments and foreign exchange. Portfolio Manager – Investment, Equities Section En. Shahnaz bin Saiful Mulok – En. Shahnaz obtained his CMSRL 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 includes formulating investment strategy and management of equity and fixed income portfolios. Portfolio Manager – Investment, Equities Section Mr. Oh Siew Wei – Mr. Oh obtained his CMSRL on 22 March 2015. Mr. Oh graduated with a Masters of Commerce (Accounting) with Merit from University of Sydney and Bachelor of Science (Theoretical Physics) from University of Adelaide. He joined Public Mutual in 2014 as Portfolio Manager – Investment, Equities Section. Prior to joining Public Mutual, Mr. Oh was an investment manager at a private fund management company where he was responsible for managing a global equity fund and a multi-asset fund of funds. He was also previously an equity analyst at a local asset management company. Portfolio Manager – Investment, Fixed Income Section Cik Haniza binti Yang Razali – Cik Haniza obtained her CMSRL 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 position 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 Section En. Mohd Hafizh bin Shamsul Ariffin – En. Mohd Hafizh obtained his CMSRL on 5 March 2012. En. Mohd Hafizh is an affiliate of The Association of Chartered Certified Accountants (ACCA), United Kingdom. He joined Public Mutual in 2012 as Deputy Manager – Investment, Equities Section and assumed his position of Portfolio Manager – Investment, Equities Section in 2012. Prior to joining Public Mutual, En. Mohd Hafizh was attached to a local financial institution and was responsible for undertaking investment research and financial analysis on listed companies. He started off his career as an investment analyst in an asset management company, responsible for assessing corporate earnings growth prospects, computation of stock valuation and financial analysis of listed companies on Bursa Securities and Asia Ex-Japan equity markets. 254 THE MANAGER (CONT’D) Portfolio Manager – Investment, Equities Section Mr. Chong Kok Wai – Mr. Chong obtained his CMSRL on 13 September 2013. Mr. Chong holds a Bachelor of Commerce, majoring in Banking and Finance from Liverpool John Moores University. He joined Public Mutual in 2013 as Assistant Manager – Investment, Equities Section and was subsequently promoted to Deputy Manager – Investment, Equities Section in 2015. Prior to joining Public Mutual, Mr. Chong was attached to a foreign owned asset management company as a fund manager. Mr. Chong was also previously an investment analyst at a local asset management company where he had gained experience in equity research and portfolio construction. Portfolio Manager – Investment, Equities Section Mr. Lim Wai Yin – Mr. Lim obtained his CMSRL on 16 December 2014. Mr. Lim holds a Bachelor of Applied Science (Honours), majoring in Mathematics and Economics from Universiti Sains Malaysia. He is a CFA charterholder. He joined Public Mutual in 2007 as an Analyst – Investment, Equities Section and was promoted to Senior Analyst – Investment, Equities Section in 2011. Subsequently, he was promoted to Assistant Manager – Investment, Equities Section in 2014. His experience in investment research includes financial analysis of companies listed on domestic and regional markets. Portfolio Manager – Investment, Equities Section Mr. James See Yuin Fong – Mr. James obtained his CMSRL on 16 December 2015. James holds a Bachelor of Economics (Hons) from Universiti Kebangsaan Malaysia and is a Fellow Member of The Association of Chartered Certified Accountants (ACCA), United Kingdom. He joined Public Mutual in 2014 as Senior Analyst and was promoted to Assistant Manager – Investment, Equities Section in 2015. Prior to joining Public Mutual, James was attached to a local asset management company and was responsible for portfolio management and investment research. He started off his career as an analyst in an asset management company in 2007 and was responsible for fundamental research of listed companies in Malaysia. Portfolio Manager – Investment, Equities Section Mr. Ng Boon Keat – Mr. Ng obtained his CMSRL on 26 February 2016. Mr. Ng is a CFA charterholder and graduated with a Bachelor of Science (Hons) in Computing from Staffordshire University, United Kingdom. He joined Public Mutual in 2006 as an Analyst – Investment, Equities Section and was promoted to Senior Analyst – Investment, Equities Section in 2010. He was subsequently promoted to Assistant Manager – Investment, Equities Section in 2012 and assumed his position as Deputy Manager – Equity Portfolio of Investment Department in 2016. Prior to joining Public Mutual, Mr. Ng was attached to a local equity research firm as an Analyst responsible for conducting research on Malaysian equities. Assistant General Manager – Investment, Economic Research & Communications Section Mr. Long Shih Rome – Mr. Long obtained his CMSRL 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 was promoted to Senior Manager in 2007. He was subsequently promoted to Assistant General Manager in 2016. 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 more than 10 years of experience covering various sectors of the Malaysia and Singapore equity markets. 255 THE MANAGER (CONT’D) 9.8 THE INVESTMENT COMMITTEE 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. Members of the Investment Committee Tan Sri Dato’ Sri Tay Ah Lek Dato’ Sri Lee Kong Lam Dato’ (Dr) Haji Mohamed Ishak Bin Haji Mohamed Ariff (Independent) Dato’ Haji Abdul Aziz Bin Dato’ Dr. Omar (Independent) Mr. Quah Poh Keat Dato’ Mohammed Najeeb Bin Abdullah (Independent) Ms. Yeoh Kim Hong For profiles of the members of the Investment Committee, please refer to pages 246 to 248. The Investment 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: • • • • • 9.9 Review the performance and portfolios of the funds. Review the performance of the markets and their respective outlook. Review and approve the portfolio strategies recommended by the Investment Department. Review the foreign portfolio strategies of the funds. Review the reports on weekly sale and purchase of investments. 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: • • • dealings on sale and purchase of investment securities and instruments by the funds. money market deposits and placements by the funds. holding of units in the funds by related parties. 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 obtain prior written approval and declare their dealings in securities. 256 THE MANAGER (CONT’D) 9.10 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, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001. The policies and procedures encompassed the following key initiatives: • • • Provision of training and education on the subject matter to all employees, with emphasis on front-line personnel and members of the agency force; Setting up specific measures and controls with regard to customer identification and acceptance which include verification of the identity of customer via relevant identification documents; Ensuring prompt reporting of suspicious transactions to the Financial Intelligence and Enforcement Department of Bank Negara Malaysia. 9.11 DOCUMENTS AVAILABLE FOR INSPECTION For a period of at least 12 months from the date of this Master Prospectus, copies of the following documents (where applicable) may be inspected at the registered office of the Manager or such other place as the SC may determine: (a) (b) (c) (d) (e) (f) The master deed and supplemental deeds; Each material contract disclosed in this Master Prospectus and, in the case of contracts not reduced to writing, a memorandum which gives full particulars of the contracts; The audited financial statements of the funds for the current financial year (where applicable) and for the last 3 financial years or if the funds have been established/incorporated for a period of less than 3 years, the entire period preceding the date of this Master Prospectus; All reports, letters or other documents, valuations and statements by any expert, any part of which is extracted or referred to in this Master Prospectus. Where a summary expert’s report is included in this Master Prospectus, the corresponding full expert’s report is available for inspection; Writ and relevant cause papers for all material litigation and arbitration disclosed in this Master Prospectus (if any); and All consents given by experts disclosed in this Master Prospectus. 257 10 THE TRUSTEES 10.1 THE TRUSTEES’ WILLINGNESS TO ASSUME POSITION AmanahRaya Trustees Berhad (“ART”), Maybank Trustees Berhad (“MTB”) and CIMB Commerce Trustee Berhad (“CCTB”) 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 trustees fully informed of the details of the Manager’s policies in investments and any changes thereof; and 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 48 years in trustee business. ART has been registered and approved by the SC to act as trustee to unit trust funds and has 201 unit trust funds under ART’s trusteeship. As at LPD, ART has 82 staff (60 Executives and 22 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) AmanahRaya Development Sdn Bhd (546094-U) Amanah Raya Capital Sdn Bhd (549057-K) AmanahRaya Investment Bank Ltd (LL05633) AmanahRaya Hartanah Sdn Bhd (760290-W) 20 20 20 20 20 258 THE TRUSTEES (CONT’D) Financial Performance The following is a summary of ART’s performance based on its audited financial statements for the past 3 financial years ended 31 December: Paid-up share capital Shareholders’ funds Turnover Profit before tax Profit after tax 2013 2014 RM’000 RM’000 2015 (Unaudited) RM’000 1,000 9,421 27,861 20,332 15,281 1,000 9,657 30,326 22,806 17,236 1,000 11,144 32,205 24,311 18,887 As at LPD, 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 Dato’ Haji Ismail bin Ibrahim – Director (Chairman) Dato’ Haji Che Pee bin Samsudin – Director Datuk Johar bin Che Mat – Director Tuan Haji Mansor bin Salleh – Director Tuan Haji Zulkifly bin Sulaiman – Director Puan Mahfuzah binti Baharin – Director Chief Executive Officer Puan 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: • • • To act as sub-custodian for the selected cross-border investment of the funds including the opening of cash and custody accounts and to hold in safe keeping the assets of the funds such as equities, bonds and other assets. To act as paying bank for the selected cross-border investment which include trade settlement and fund transfer services. To provide corporate action information or entitlements arising from the above underlying assets and to provide 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 23 years of experience as trustee to unit trust funds, MTB has under its trusteeship a total of 60 unit trust funds, 6 wholesale funds, 1 private retirement scheme (consisting of 4 funds) and 4 real estate investment trust/property funds. As at LPD, MTB has a total of 33 staff, comprising 26 Executives and 7 non-Executives. 259 THE TRUSTEES (CONT’D) Financial Performance The following is a summary of the past performance of MTB based on audited financial statements for the past 3 financial years ended 31 December: Paid-up share capital Shareholders’ funds Turnover Profit before tax Profit after tax 2013 2014 RM’000 RM’000 2015 (unaudited) RM’000 500 21,002 21,316 11,826 8,895 500 31,451 25,574 14,091 10,448 500 36,999 19,199 8,977 5,548 Material Litigation and Arbitration As at LPD, 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 Arranger, 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. 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 Arranger 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 (collectively “PASB And Their Associated Defendants”) but found the trustee and the Arranger equally liable to the bondholders. The Federal Court had on 5 April 2012 granted the trustee leave to appeal to the Federal Court against certain parts of the decision of the Court of Appeal (“Federal Court Appeal”). The Federal Court Appeal was heard on 6, 7, 8, 20, 21 and 23 November 2012 and on 2, 3 and 4 January 2013. The hearing dates of 17 to 19 October 2012 and 19 November 2012 were vacated. The Federal Court had on 10 February 2014 delivered its decision (“Decision”) wherein it had, among others, allowed the trustee a full indemnity against PASB And Their Associated Defendants and reduced the judgement sum against the trustee to approximately RM107 million without apportionment of liability against the Arranger. PASB’s Chief Executive Officer and associate companies of the Chief Executive Officer (collectively the “Pesaka Defendants”) had filed an application for the Federal Court to grant leave to review its Decision against them (“Review Application 1”). On 29 September 2014, the Federal Court allowed the Pesaka Defendants’ application to withdraw Review Application 1. Most of the bondholders had filed an application for the Federal Court to grant leave to review its Decision in finding the Arranger not liable (“Review Application 2”). On 29 September 2014, the Federal Court dismissed Review Application 2. 260 THE TRUSTEES (CONT’D) 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, has 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 Arranger, PASB’s Chief Executive Officer and one of PASB’s directors. MIDF withdrew its claim against the Arranger in November 2014. The trustee has defended the CP/MTN Suit and trial has concluded. On 14 August 2015, the High Court dismissed MIDF’s claim against the trustee (“Dismissal”) and found PASB’s Chief Executive Officer and one of PASB’s directors liable for MIDF’s loss. MIDF has filed a Notice of Appeal against the Dismissal (“Appeal”). The Appeal is scheduled for hearing on 16 March 2016. 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. The trustee has also obtained leave of the court to proceed with the actions against PASB following the court’s order to wind-up PASB further to the unrelated suit. 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. Several holders of the bonds (“bondholders”) issued by Aldwich Berhad [In Receivership] (“Aldwich”) have sued Aldwich for its failure to settle its indebtedness to the bondholders following the default of the said bonds in 2010 and cited the trustee as one of 6 co-defendants under Kuala Lumpur High Court Suit No. D-22NCC-1622-11/2012 (the “Aldwich Bondholders’ Suit”). The claim against the trustee is for the sum of RM177,248,747.31 or any other sum that the Court deems fit. The other defendants are the holding company of Aldwich, the Chief Executive Officer of the holding company of Aldwich, the Security Agent and the Reporting Accountant. The trustee does not admit liability to the Aldwich Bondholders’ Suit and has defended it. Trial has concluded and oral submissions are fixed on 17 and 24 February 2016. The Aldwich Bondholders’ Suit will not materially affect the business or financial position of the trustee. Board of Directors En. Zainal Abidin Jamal Dato’ Mohd. Hanif bin Suadi Dato’ Dr Tan Tat Wai Ms. Ong Sau Yin – – – – Non-Independent Non-Executive Director & Chairman Non-Independent Non-Executive Director Independent Non-Executive Director Independent Non-Executive Director Chief Executive Officer Mr. Chong Kin Tuck – Chief Executive Officer Delegation of Custodian Function 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. MCS provides clearing and custody services for Malaysian equity and fixed income securities to domestic and foreign institutional clients. In addition, MCS offers global custody services to domestic institutions/clients who have foreign investments. The roles and duties of the trustee’s delegate, MCS, are as follows: • • • • • • Safekeep, reconcile and maintain assets holdings records of funds against trustee’s instructions; Act as settlement agent for shares and monies to counterparties against trustee’s instructions; Act as agents for money market placement where applicable against trustee’s instructions; Disseminate listed companies’ announcements to and follow through for corporate actions instructions from trustee; Compile, prepare and submit holdings report to trustee and beneficial owners where relevant; and Other ad-hoc payments for work done for the funds against trustee’s instructions, etc. 261 THE TRUSTEES (CONT’D) 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: • • • To act as sub-custodian for the selected cross-border investment of the funds including the opening of cash and custody accounts and to hold in safe keeping the assets of the funds such as equities, bonds and other assets. To act as paying agent for the selected cross-border investment which include trade settlement and fund transfer services. To provide corporate action information or entitlements arising from the above underlying assets and to provide regular reporting on the activities of the invested portfolios. 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 20 years of experience as a trustee to unit trust funds, CCTB has under its stewardship a total of 56 unit trust funds, 15 wholesale funds, 1 Real Estate Investment Trust and 1 private retirement scheme (5 funds) and a staff strength of 25 employees, comprising of 25 Executives as at LPD. Financial Performance The following is a summary of the past performance of CCTB based on financial statements for the past 3 financial years ended 31 December: Paid-up share capital Shareholders’ funds Turnover Profit before tax Profit after tax 2013 2014 RM’000 RM’000 2015 (Unaudited) RM’000 1,750 11,739 8,502 4,216 3,138 1,750 10,375 9,872 5,692 4,236 1,750 14,255 10,179 4,960 3,880 As at LPD, 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 Omardin En. Mohamad Safri Bin Shahul Hamid Ms. Liew Pik Yoong Chief Executive Officer Ms. Liew Pik Yoong 262 THE TRUSTEES (CONT’D) Delegation of Custodian Function CCTB has appointed CIMB Bank Berhad (CIMB Bank) as the Custodian of the funds’ assets. CIMB Bank’s ultimate holding company is CIMB Group Holdings Berhad, a listed company in Bursa Malaysia and currently the second largest financial services provider in Malaysia. CIMB Bank provides full fledged custodial services, typically clearing, settlement and safekeep all types of investment assets and classes, to a cross section of investors and intermediaries client base, both locally and overseas. For the local Ringgit assets, they are held through its wholly owned nominee subsidiary “CIMB Group Nominees (Tempatan) Sdn Bhd”. For foreign non-Ringgit assets, CIMB Bank appoints global custodian as its agent bank to clear, settle and safekeep on its behalf and to its order. 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 Bank Berhad acts only in accordance with instructions from the trustee. The roles and duties of the trustee’s delegates, CIMB Bank Berhad and Citibank N.A, Singapore, are as follows: • • • To act as sub-custodian for the selected cross-border investment of the fund(s) including the opening of cash and custody accounts and to hold in safe keeping the assets of the fund(s) such as equities, bonds and other assets. To act as paying agent for the selected cross-border investment which include trade settlement and fund transfer services. To provide corporate action information or entitlements arising from the above underlying assets and to provide regular reporting on the activities of the invested portfolios. 263 11 SALIENT TERMS OF THE DEED 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 right. 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 within two months from the close of each financial year or 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. 264 SALIENT TERMS OF THE DEED (CONT’D) 11.3 MAXIMUM FEES AND CHARGES PERMITTED BY THE DEED Fund Management fee Trustee fee Sales charge Redemption charge PSF 1.5% per annum of Not exceeding 0.2% per annum 7% of the NAV 5 sen per unit. the NAV. and not less than 0.08% per per unit. annum, calculated daily on the NAV. PGF 1.5% per annum of Not exceeding 0.2% per annum 7% of the NAV 5 sen per unit. the NAV. and not less than 0.08% per per unit. annum, calculated daily on the NAV. PIX 1.5% per annum of Not exceeding 0.2% per annum 7% of the NAV 5 sen per unit. the NAV. and not less than 0.08% per per unit. annum, calculated daily on the NAV. PINDGF 1.5% per annum of Not exceeding 0.08% per annum, 7% of the NAV 5 sen per unit. the NAV. calculated daily on the NAV. per unit. PAGF 1.5% per annum of Not exceeding 0.08% per annum, 7% of the NAV 5 sen per unit. the NAV. calculated daily on the NAV. per unit. PRSF 1.5% per annum of Not exceeding 0.08% per annum, 7% of the NAV 5 sen per unit. the NAV. calculated daily on the NAV. per unit. P SmallCap 2.0% per annum of Not exceeding 0.15% per annum, 7% of the NAV 5 sen per unit. the NAV. calculated daily on the NAV. per unit. PEF 1.5% per annum of Not exceeding 0.08% per annum, 7% of the NAV 3% of the NAV the NAV. calculated daily on the NAV. per unit. per unit. PFSF 1.5% per annum of Not exceeding 0.07% per annum, 7% of the NAV 3% of the NAV the NAV. calculated daily on the NAV, but per unit. per unit. 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. PDSF 1.5% per annum of Not exceeding 0.07% per annum, 7% of the NAV 3% of the NAV the NAV. calculated daily on the NAV, but per unit. per unit. 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. PFES 1.6% per annum of Not exceeding 0.06% per annum, 7% of the NAV 3% of the NAV the NAV. calculated daily on the NAV, but per unit. per unit. 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. 265 SALIENT TERMS OF THE DEED (CONT’D) Fund Management fee Trustee fee Sales charge Redemption charge PRSEC 1.6% per annum of Not exceeding 0.07% per annum, 7% of the NAV 3% of the NAV the NAV. calculated daily on the NAV, but per unit. per unit. 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. PGSF 2.0% per annum of Not exceeding 0.08% per annum, 7% of the NAV 3% of the NAV per unit. the NAV. calculated daily on the NAV, per unit. but subject to a minimum fee (inclusive of the custodian fee) of RM18,000.00 per annum. PFEDF 1.8% per annum of Not exceeding 0.08% per annum, 7% of the NAV 3% of the NAV per unit. the NAV. calculated daily on the NAV, per unit. but subject to a minimum fee (inclusive of the custodian fee) of RM18,000.00 per annum. PCSF 1.8% per annum of Not exceeding 0.08% per annum, 7% of the NAV 3% of the NAV the NAV. calculated daily on the NAV, per unit. per unit. but subject to a minimum fee (inclusive of the custodian fee) of RM18,000.00 per annum. PFEPRF 1.8% per annum of Not exceeding 0.08% per annum, 7% of the NAV 3% of the NAV the NAV. calculated daily on the NAV, per unit. per unit. but subject to a minimum fee (inclusive of the custodian fee) of RM18,000.00 per annum. PSEASF 1.8% per annum of Not exceeding 0.08% per annum, 7% of the NAV 3% of the NAV the NAV. calculated daily on the NAV, per unit. per unit. but subject to a minimum fee (inclusive of the custodian fee) of RM18,000.00 per annum. PSSF 1.8% per annum of Not exceeding 0.08% per annum, 7% of the NAV 3% of the NAV the NAV. calculated daily on the NAV, per unit. per unit. but subject to a minimum fee (inclusive of the custodian fee) of RM18,000.00 per annum. PFECTF 1.8% per annum of Not exceeding 0.08% per annum, 7% of the NAV 3% of the NAV the NAV. calculated daily on the NAV, per unit. per unit. but subject to a minimum fee (inclusive of the custodian fee) of RM18,000.00 per annum. PCTF 1.8% per annum of Not exceeding 0.08% per annum, 7% of the NAV 3% of the NAV the NAV. calculated daily on the NAV, per unit. per unit. but subject to a minimum fee (inclusive of the custodian fee) of RM18,000.00 per annum. 266 SALIENT TERMS OF THE DEED (CONT’D) Fund Management fee Trustee fee Sales charge Redemption charge PFETIF 1.8% per annum of Not exceeding 0.08% per annum, 7% of the NAV 3% of the NAV the NAV. calculated daily on the NAV, per unit. per unit. but subject to a minimum fee (inclusive of the custodian fee) of RM18,000.00 per annum. PSA30F 1.8% per annum of Not exceeding 0.08% per annum, 7% of the NAV 3% of the NAV the NAV. calculated daily on the NAV, per unit. per unit. but subject to a minimum fee (inclusive of the custodian fee) of RM18,000.00 per annum. PWEF 1.8% per annum of Not exceeding 0.08% per annum, 7% of the NAV 3% of the NAV the NAV. calculated daily on the NAV, per unit. per unit. but subject to a minimum fee (inclusive of the custodian fee) of RM18,000.00 per annum. PAUEF 1.8% per annum of Not exceeding 0.08% per annum, 7% of the NAV 3% of the NAV per unit. the NAV. calculated daily on the NAV, per unit. but subject to a minimum fee (inclusive of the custodian fee) of RM18,000.00 per annum. PFA30F 1.8% per annum of Not exceeding 0.08% per annum, 7% of the NAV 3% of the NAV the NAV. calculated daily on the NAV, per unit. per unit. but subject to a minimum fee (inclusive of the custodian fee) of RM18,000.00 per annum. POGF 1.8% per annum of Not exceeding 0.08% per annum, 7% of the NAV 3% of the NAV the NAV. calculated daily on the NAV, per unit. per unit. but subject to a minimum fee (inclusive of the custodian fee) of RM18,000.00 per annum. PINDOSF 2.0% per annum of Not exceeding 0.08% per annum, 7% of the NAV 3% of the NAV the NAV. calculated daily on the NAV, per unit. per unit. but subject to a minimum fee (inclusive of the custodian fee) of RM18,000.00 per annum. PSGEF 2.0% per annum of Not exceeding 0.08% per annum, 7% of the NAV 3% of the NAV calculated daily on the NAV, per unit. the NAV. per unit. but subject to a minimum fee (inclusive of the custodian fee) of RM18,000.00 per annum. PSSCF 2.0% per annum of Not exceeding 0.08% per annum, 7% of the NAV 3% of the NAV the NAV. calculated daily on the NAV, per unit. per unit. but subject to a minimum fee (inclusive of the custodian fee) of RM18,000.00 per annum. 267 SALIENT TERMS OF THE DEED (CONT’D) Fund Management fee Trustee fee Sales charge Redemption charge PSTGF 2.0% per annum of Not exceeding 0.06% per annum, 7% of the NAV 3% of the NAV calculated daily on the NAV, but per unit. per unit. the NAV. 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 be agreed upon by the Manager and the trustee. PSTEF 2.0% per annum of Not exceeding 0.06% per annum, 7% of the NAV 3% of the NAV calculated daily on the NAV, but per unit. per unit. the NAV. 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 be agreed upon by the Manager and the trustee. PAVGEF 2.0% per annum of Not exceeding 0.06% per annum, 7% of the NAV 3% of the NAV calculated daily on the NAV, but per unit. per unit. the NAV. 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 be agreed upon by the Manager and the trustee. PRSSQF 2.0% per annum of Not exceeding 0.06% per annum, 7% of the NAV 3% of the NAV calculated daily on the NAV, but per unit. per unit. the NAV. 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 be agreed upon by the Manager and the trustee. PEMOF 2.0% per annum of Not exceeding 0.06% per annum, 7% of the NAV 3% of the NAV the NAV. calculated daily on the NAV, but per unit. per unit. 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 be agreed upon by the Manager and the trustee. PTAF 2.0% per annum of Not exceeding 0.08% per annum, 7% of the NAV 3% of the NAV the NAV. calculated daily on the NAV, per unit. per unit. but subject to a minimum fee (inclusive of the custodian fee) of RM18,000.00 per annum. PSMAGF 2.0% per annum of Not exceeding 0.06% per annum, 7% of the NAV 3% of the NAV the NAV. calculated daily on the NAV, but per unit. per unit. 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 be agreed upon by the Manager and trustee. 268 SALIENT TERMS OF THE DEED (CONT’D) Fund Management fee Trustee fee Sales charge Redemption charge PSMACF 2.0% per annum of Not exceeding 0.06% per annum, 7% of the NAV 3% of the NAV the NAV. calculated daily on the NAV, but per unit. per unit. 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 be agreed upon by the Manager and trustee. PBF 1.5% per annum of Not exceeding 0.08% per annum, 7% of the NAV 5 sen per unit. the NAV. calculated daily on the NAV. per unit. PFEBF 1.8% per annum of Not exceeding 0.08% per annum, 7% of the NAV 3% of the NAV per unit. the NAV. calculated daily on the NAV, per unit. but subject to a minimum fee (inclusive of the custodian fee) of RM18,000.00 per annum. PGRBF 2.0% per annum of Not exceeding 0.06% per annum, 7% of the NAV 3% of the NAV the NAV. calculated daily on the NAV, but per unit. per unit. 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 be agreed upon by the Manager and the trustee. P BOND 0.75% per annum of Not exceeding 0.04% per annum, 3% of the NAV 3 sen per unit. the NAV. calculated daily on the NAV. per unit. PIN BOND 1.25% per annum of Not exceeding 0.1% per annum, 3% of the NAV 3% of the NAV the NAV. calculated daily on the NAV, but per unit. per unit. 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. PEBF 1.5% per annum of Not exceeding 0.07% per annum, 3% of the NAV 3% of the NAV the NAV. calculated daily on the NAV, but per unit. per unit. 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. PSBF 1.5% per annum of Not exceeding 0.06% per annum, 7% of the NAV 3% of the NAV the NAV. calculated daily on the NAV, but per unit. per unit. 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. 269 SALIENT TERMS OF THE DEED (CONT’D) Fund Management fee Trustee fee Sales charge Redemption charge PSTBF 1.8% per annum of Not exceeding 0.08% per annum, 7% of the NAV 3% of the NAV per unit. the NAV. calculated daily on the NAV, per unit. but subject to a minimum fee (inclusive of the custodian fee) of RM18,000.00 per annum. PENTBF 1.8% per annum of Not exceeding 0.08% per annum, 7% of the NAV 3% of the NAV the NAV. calculated daily on the NAV, per unit. per unit. but subject to a minimum fee (inclusive of the custodian fee) of RM18,000.00 per annum. PMMF 1.0% per annum of Not exceeding 0.1% per annum, 1% of the NAV 1% of the NAV the NAV. calculated daily on the NAV, but per unit. per unit. 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. 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. All the above fees and charges are subject to GST. The Manager shall charge and the unitholder shall pay the amount of GST imposed on any transaction requested by the unitholder. 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 and/or 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 foreign 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; (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. 270 SALIENT TERMS OF THE DEED (CONT’D) 11.5 RETIREMENT, REMOVAL AND REPLACEMENT OF THE MANAGER The Manager may retire upon giving 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) (b) (c) (d) An Extraordinary Resolution to that effect has been duly passed by the unitholders at a meeting called for that purpose; The Manager is in breach of its obligations under the Deed; 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 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 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) (b) (c) (d) (e) (f) The trustee has ceased to exist; The trustee has not been validly appointed; The trustee is not eligible to be appointed or to act as trustee under section 290 of the CMSA 2007; 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; 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 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. 271 SALIENT TERMS OF THE DEED (CONT’D) 11.7 TERMINATION OF THE FUNDS A fund may be terminated or wound-up upon the occurrence of any of the following events: (a) (b) (c) (d) the SC’s approval is revoked under Section 212(7)(A) of the CMSA 2007; 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; an Extraordinary Resolution is passed at a unitholders’ meeting to terminate or wind-up the fund; or 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 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 5 unitholders, whether present in person or by proxy, holding in aggregate at least 25% of the units in issue for that fund at the time of the meeting. If the fund has 5 or less unitholders, the quorum required shall be 2 unitholders, whether present or by proxy and if the meeting requires an Extraordinary Resolution the quorum for that meeting shall be 2 unitholders, whether present in person or by proxy, holding in aggregate at least 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. 272 TAXATION OF THE FUNDS AND UNITHOLDERS Public Mutual Berhad Block B, Sri Damansara Business Park Persiaran Industri Bandar Sri Damansara 52200 Kuala Lumpur 4 March 2016 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 Growth 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 Worldwide Equity Fund (formerly known as 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 Strategic Growth Fund, Public Select Treasures Equity Fund, Public Advantage Growth Equity Fund, Public Regular Savings Sequel Fund, Public Emerging Opportunities Fund, Public Tactical Allocation Fund, Public Select Mixed Asset Growth Fund, Public Select Mixed Asset Conservative Fund, Public Balanced Fund, Public Far-East Balanced Fund, Public Bond Fund, Public Institutional Bond Fund, Public Enhanced Bond Fund, Public Growth Balanced 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 are 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 rate of 24% with effect from Year of Assessment (“YA”) 2016. Gains from the realisation of investments by the funds will not be subject to income tax. Interest income earned by the funds from the following are exempt from tax:– • any savings certificates issued by the Government; or • securities or bonds issued or guaranteed by the Government; or • debentures or sukuk, other than convertible loan stock, approved or authorized by, or lodged with, the Securities Commission; or • Bon Simpanan Malaysia issued by the Central Bank of Malaysia; or • a bank or financial institution licensed under the Financial Services Act 2013 or Islamic Financial Services Act 2013; or • any development financial institution regulated under the Development Financial Institutions Act 2002; or • sukuk originating from Malaysia, other than convertible loan stocks, issued in any currency other than Ringgit and approved or authorized by, or lodged with, the Securities Commission, or approved by the 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. Discounts earned by the funds from the following are also exempt from tax:– • securities or bonds issued or guaranteed by the Government; or • debentures or Islamic Securities, other than convertible loan stock, approved by the Securities Commission; or • Bon Simpanan Malaysia issued by the Central Bank of Malaysia. Tax 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 a prescribed 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. 273 TAXATION OF THE FUNDS AND UNITHOLDERS (CONT’D) Real Property Gains Tax (“RPGT”) Gains on disposal of investments by the funds will not be subject to income tax in Malaysia. However, such gains may be subject to RPGT in Malaysia, if the gains are derived from sale of Malaysian real properties and shares in Malaysian real property companies. Such gains would be subject to RPGT at the applicable rate depending on the holding period of the chargeable assets. Goods and Services Tax (“GST”) GST has been implemented with effect from 1 April 2015 to replace Sales Tax and Service Tax. The GST prevailing rate is 6%. The issue, holding or redemption of any unit under a trust fund is regarded as an exempt supply. The investment activities of the funds such as buying and selling of securities are exempt supplies and thus not subject to GST. Thus, if the funds are just making such exempt supplies, it is not required to be registered for GST. However, certain expenses incurred by the funds such as fund manager’s fees, trustee fees and professional fees will be subject to GST at a standard rate if the service providers are registered persons. If the funds are only making exempt supplies, any input tax incurred by the funds for the aforementioned expenses are not claimable. 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 24% (effective from YA 2016) 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 19% (effective from YA 2016) on chargeable income of up to RM500,000. For chargeable income in excess of RM500,000, the tax rate of 24% (effective from YA 2016) is still applicable. However, the said tax rate of 19% 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 scale tax rates range from 0% to 28% with effect from YA 2016. Individuals and other non-corporate unit holders who are not resident in Malaysia, for tax purposes, will be subject to Malaysian income tax at the tax rate of 28% with effect from YA 2016. 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 generally treated as capital gains which are not subject to income tax in Malaysia. However, certain unit holders may be subject to income tax in Malaysia on such gains, due to specific circumstances of the unit holders. 274 TAXATION OF THE FUNDS AND UNITHOLDERS (CONT’D) The following gains or income received by the unit holders are not subject to GST:• the distribution of income from the funds to the unit holders which may comprise of dividends, interest income and gain from realisation of investments; • distribution of foreign income from the funds; • unit split by the funds and reinvestment of distribution; and • gain made from selling or redemption of units. Any fee based charges in relation to buying of the units and transferring of units should generally be subject to GST if the supplier is GST registered. The tax position is based on the Malaysian tax legislations 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 Heng Executive Director KPMG Tax Services Sdn Bhd 275 NETWORK OF PUBLIC MUTUAL BRANCH OFFICES Head Office Block B, Sri Damansara Business Park, Persiaran Industri, Bandar Sri Damansara, 52200 Kuala Lumpur. Tel: 03-62796800 Fax: 03-62779800 Hotline: 03-62075000 Web: http://www.publicmutual.com.my Mutual Gold Centre No. 1 & 3, 3rd Floor, Jalan Solaris 1, Solaris Mont Kiara, 50480 Kuala Lumpur. Tel: 03-62075000 Fax: 03-62036682 Financial Planning Centre 15th Floor, Bangunan PBB, No. 6 Jalan Sultan Sulaiman, 50000 Kuala Lumpur. Tel: 03-20316300 Fax: 03-22732188 Branches and Customer Service Centres West Malaysia Northern Region Alor Star 1888A & 1888B, Jalan Stadium, 05100 Alor Star, Kedah. Tel: 04-3055000 Fax: 04-7310178 Senior Branch Manager: Khaw Bee Ruh Butterworth 4223, Jalan Bagan Luar, 12000 Butterworth, Penang. Tel: 04-3055000 Fax: 04-3317775 Senior Branch Manager: Charmane Chew Hui Hsia Ipoh 37 & 39, Persiaran Greentown 4, Greentown Business Centre, 30450 Ipoh, Perak. Tel: 05-2105000 Fax: 05-2559859 Senior Branch Manager: Foong Kuan Mun Penang 16, Lintang Burma, 10250 Pulau Tikus, Penang. Tel: 04-3055000 Fax: 04-2295171 Senior Branch Manager: Vincent Seow Weng Sim Sungai Petani 9D & 9E, Jalan Kampung Baru, 08000 Sungai Petani, Kedah. Tel: 04-3055000 Fax: 04-4230663 Branch Manager: Annie Ong Sok Nee Bukit Mertajam 2646 - 2648, 2nd Floor, Jalan Che Bee Noor, 14000 Bukit Mertajam, Seberang Prai Tengah, Penang. Tel: 04-3055000 Fax: 04-5376580 Branch Manager: Cheryl Oon Lay Pheng Central Region 1 Utama Shopping Centre Lot LG-313-E, 1, Lebuh Bandar Utama, Bandar Utama City Centre, Bandar Utama, 47800 Petaling Jaya, Selangor. Tel: 03-62075000 Fax: 03-77263811 Cheras 44-2, 44-3, 44-4 & 34-2, Cheras Commercial Centre, Jalan 5/101C, Off Jalan Kaskas, 56100 Cheras, Kuala Lumpur. Tel: 03-62075000 Fax: 03-91321022 Senior Branch Manager: Khoo Peng Seng Bangsar 11, 15 & 17, Jalan Bangsar Utama 3, Bangsar Utama, 59000 Kuala Lumpur. Tel: 03-62075000 Fax: 03-22835739 Senior Branch Manager: Chooi Chan Yen Klang 28, 30 & 32, Lorong Batu Nilam 3B, Bandar Bukit Tinggi, 41200 Klang, Selangor. Tel: 03-62075000 Fax: 03-33235632 Branch Manager: Ng Tong Chia Damansara Perdana 1 & 3, Jalan PJU 8/5 I, Perdana Business Centre, Bandar Damansara Perdana, 47820 Petaling Jaya, Selangor. Tel: 03-62075000 Fax: 03-77222475 Senior Branch Manager: Ong Chen Hung Puchong 39 & 41, Jalan Puteri 1/4, Bandar Puteri Puchong, 47100 Puchong, Selangor. Tel: 03-62075000 Fax: 03-80653010 Branch Manager: Bryan Koh Yi Earl 276 NETWORK OF PUBLIC MUTUAL BRANCH OFFICES (CONT’D) Central Region (cont’d) Shah Alam 54 & 56, Jalan Pahat G15/G, Kompleks Otomobil, Persiaran Selangor, Seksyen 15, 40200 Shah Alam, Selangor. Tel: 03-62075000 Fax: 03-55139288 Southern Region Batu Pahat 119, Jalan Chengal, Taman Makmur, 83000 Batu Pahat, Johor. Tel: 07-4325688 Fax: 07-4326588 Branch Manager: Rui Lee Chong Siew Johor Bahru B-19, Jalan Molek 1/5A, Taman Molek, 81100 Johor Bahru, Johor. Tel: 07-3607500 Fax: 07-3548600 Senior Branch Manager: Teng Lee Yen Kluang 3, Jalan Dato Teoh Siew Khor, 86000 Kluang, Johor. Tel: 07-7736193/4 Fax: 07-7736195 Branch Manager: Tan Kheng Aun Melaka No. 929 & 930, Jalan Merdeka, Taman Melaka Raya, 75000 Melaka. Tel: 06-2837654 Fax: 06-2837354 Senior Branch Manager: Carl Wong Yon Lian Muar 46, Jalan Sayang, 84000 Muar, Johor. Tel: 06-9542323/5323 Fax: 06-9536830 Branch Manager: Angie Ng Seow Mai Seremban 1A & 1B, Jalan Tuanku Munawir, 70000 Seremban, Negeri Sembilan. Tel: 06-6372500 Fax: 06-7644237 Branch Manager: Michael Wong Cheong Tee East Coast Region Kota Bharu PT304 and PT305, Jalan Kebun Sultan, 15300 Kota Bharu, Kelantan. Tel: 09-7476021 Fax: 09-7476026 Branch Manager: Puan Abiesharni Abdul Kadir Kuala Terengganu 1-C, Jalan Air Jernih, 20300 Kuala Terengganu, Terengganu. Tel: 09-6317020/40 Fax: 09-6317030 Branch Manager: Wee Suat Hwee Kuantan 71 & 73, Jalan Haji Abdul Aziz, 25000 Kuantan, Pahang. Tel: 09-5118500 Fax: 09-5161223 Branch Manager: Sharon Ting Mooi Choon Temerloh 10, 11 & 12, 2nd Floor, Jalan Ahmad Shah, Bandar Sri Semantan, 28000 Temerloh, Pahang. Tel: 09-2968068 Fax: 09-2968060 Branch Manager: Agnes Choong Lee Yoon 277 NETWORK OF PUBLIC MUTUAL BRANCH OFFICES (CONT’D) East Malaysia Sabah Sandakan Lot 16, Block B, Ground Floor, Bandar Maju Commercial Centre, Mile 1.5, North Road, 90000 Sandakan, Sabah. Postal Address : Public Mutual Berhad, Sandakan Branch P.O. Box No. 3488, 90739 Sandakan, Sabah. Tel: 089-222922 Fax: 089-222889 Senior Branch Manager: Jonathan Yong Lok Sang Kota Kinabalu Lot 1-0-10, Ground & 1st Floor, Lorong Api-Api 1, Api-Api Centre, 88000 Kota Kinabalu, Sabah. Tel: 088-231080/2 Fax: 088-238389 Branch Manager: Lim Shaw Siang Tawau TB 4437, Lot 28, Block D, Sabindo Square, Jalan Dunlop, 91000 Tawau, Sabah. Tel: 089-765325 Fax: 089-765326 Branch Manager: Janice Chong Mui Lin Sarawak Bintulu 4, Lot 2646, Jalan Tun Ahmad Zaidi, 97000 Bintulu, Sarawak. Tel: 086-334718 Fax: 086-330221 Branch Manager: Lilian Lo Fui Ping Kuching Lot 205 & 206, Section 49, Jalan Tunku Abdul Rahman, 93100 Kuching, Sarawak. Tel: 082-239285 Fax: 082-239825 Senior Branch Manager: Jones Chen Chung Sze Miri Lot 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: 085-416195 Branch Manager: Allan Ngo Say Khiang Sibu 10, Lorong 2, Jalan Tuanku Osman, 96000 Sibu, Sarawak. Tel: 084-317463 Fax: 084-330269 Branch Manager: Wayne Moh Yuon Fat Public Mutual offices are open on Mondays to Fridays, except public holidays, from 9:00 a.m. to 5:00 p.m. 278 NETWORK OF PUBLIC MUTUAL AGENCY OFFICES Sarawak (Sarikei) Ling Chai Kua Agency Office No. 43, 1st Floor, Jalan Masjid Lama, 96100 Sarikei, Sarawak. Tel:084-654108 Fax:084-653318 Penang (Bayan Baru) Liang Wing Sim Agency Office 104, 1st Floor, Jalan Mayang Pasir, Taman Sri Tunas, Bayan Baru, 11950 Bayan Lepas, Penang. Tel: 04-6422170/1 Fax: 04-6411268 279 PRO22592-1104169