RETAIL FUNDS | Cesar Tordesillas, Malaysia

Public Bank capitalises on Aussie prospects

Public Bank now allows investors to capitalise on the growth potential of the Australian market with its new fund. Called the PB Australia Dynamic Balanced Fund, it will be managed by the bank's wholly-owned subsidiary, Public Mutual.

Public Mutual’s Chairman Tan Sri Dato’ Sri Dr. Teh Hong Piow said PBADBF will give investors the opportunity to capitalise on the growth potential of the Australian market. The long-term prospects of the Australian market are supported by a resilient services sector and rich natural resources.

"Commodity exports in Australia are expected to benefit from a pick-up in demand from emerging economies such as China and India," he said. He added that following the correction in global equity markets, the valuations of the Australian market have created opportunities for accumulating undervalued blue chip stocks.

PBADBF is a balanced fund that seeks to achieve income and capital growth over the medium- to long-term period by investing in equities, primarily in the Australian market with the balance of up to 10 percent of equity investments invested in the New Zealand market. The fund maintains a mix of equities and fixed income securities in the ratio of 60:40.

Tan Sri Teh said PBADBF is suitable for investors with conservative to moderate risk-reward temperaments who have a preference for receiving income and a respectable measure of capital growth. The fund is also suitable for investors to hedge their children’s future educational expenses. "Investing in Australian equities are expected to keep pace with the rising cost of Australia’s university education over the long term," he said.

The initial issue price of PBADBF is US.0703 cents per unit which is available up to 1 June 2009. During the offer period, a special promotional service charge of 5 percent of initial issue price per unit is extended to the purchase of units of PBADBF by investors. Investors who opt for Direct Debit Instruction with PBADBF during the offer period will enjoy a special promotional service charge of 5.25 percent of NAV per unit for as long as the Direct Debit is active. Terms and conditions apply. The minimum initial investment for the fund is US$281.33 and the minimum additional investment is US$28.13.

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