Detail on Public Far-East Telco & Infrastructure Fund (PFETIF)

The Public Far-East Telco & Infrastructure Fund (PFETIF) is an equity fund that seeks 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. PFETIF is attractive to investors who would like to participate in the long-term growth potential of a portfolio of regional stocks in sectors which include telecommunications, construction, building materials, expressways, transportation, water works, infrastructure and utilities.

Given the current global economic uncertainties, investing in regional telecommunications and infrastructure stocks enables investors to participate in the roll-out of infrastructure services to meet the growing needs of the region. Investors will be able to capitalize on the resilient earnings growth prospects of a diversified portfolio of stocks in sectors which include telecommunications, construction, building materials, expressways, transportation, water works, infrastructure and utilities. Asian countries are expected to spend an estimated US$1.8 trillion on construction of roads, railways, power plants, telecommunications and other infrastructure projects over the 5-year period until 2012.

Asian economies need to continue investing in roads, railways, power plants and telecommunications networks to ensure their infrastructure is able to support and sustain their long term economic growth. This will sustain investment spending in infrastructure networks in the region over the medium-to-long term. In addition, infrastructure assets also offer positive long-term prospects as the underlying cash flow of concession companies are usually stable and linked to an inflation index through a negotiated pricing formula.

The presence of growth stocks in the equity portfolio of the fund in particular may result in the fund experiencing significant volatility in times of adverse market movements. The asset allocation, liquidity management, diversification and hedging strategies employed are central to the efforts to manage the risks posed to the fund.

New fund: Public Far-East Telco and Infrastructure Fund (PFETIF)

Main Features:
An aggressive equity fund that seeks 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.

Asset Allocation:
Equities: 75% to 90% of NAV
(up to 98% of PFETIF’s NAV can be invested in selected foreign markets which includes South Korea, China, Japan, Taiwan, Hong Kong, Philipines, Indonesia, Singapore, Thailand, and other approved markets).

Target Market:
Investor with aggressive risk-reward temperament and can withstand extend periods of market highs and lows in pursuit of capital growth.

Offer Period: 8 July 2008 to 28 July 2008

Issue Price: RM0.2500 per unit

Service Charge:
During offer period: Up to 5.00%
After offer period : Up to 5.50%

Annual Management Fee: 1.70% per annum of NAV

Direct Debit Investment: Service Charge rate of 5.25% during offer period. (Terms and conditions applied)

Benchmark:
The benchmark of the Fund is a customised index based on selected sectors within the Dow Jones Asia Pacific Index comprising markets in 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 Index. The selected sectors are customised to the following weights i.e. 40% Telecommunications, 30% Construction & Materials and 30% Utilities sectors.
For the three-year period to 13 June 2008, this index has achieved an impressive total return of 57.2% in Ringgit terms (i.e. annualised return of 16.3%).

Almost time to invest China Fund

Be prepare, it is almost time to invest in China fund, since the China stock market decline more than 50%.

I like to use Shanghai composite index as my guideline for China market. The index decline below 3000 points after achieved its peak at 6000 points last year. My target is 2000 points and if you dare enough you can wait till 1500 points, it may happen because China bull market is started at 1500 points on june 2006. No one can predict how low it can go, don't blame me if you lose any opportunity since you decide the entry points yourself. But to be safe, you can make regular average down, which means you can buy at 2000 points and 1500 points and 1000 points if it achieve that low point.

Due to I am Public Mutual Agent, of course I promote on Public Mutual various China Fund. There are few China Fund, Public China Select Fund (PCSF), Public China Ittikal Fund (PCIF) and Public China Titans Fund (PCTF). The details and features of the funds can refer to www.publicmutual.com.my . I personally will recommend Public China Titans Fund (PCTF), it invested in China big market capitalisation stocks. I personally believe that this kind of stocks will rebound faster than other stocks if the China market rebound.

If you feel China Fund which fully invest in China is too risky for you and you would like to diversify the risk, you may invest in Public Mutual Far East Funds, they not fully invest in China but big portion. You may get the information of the Far East Funds from Public Mutual website. Among the funds, I like to recommend Public Far East Consumer Theme Fund (PFECTF), it invest in consumer related goods and services stocks. The stocks with consumer related goods and services which are necessary can easily rebound after market achieve low point.

So, what you should do is just prepare your cash and wait till the opportunity. Good luck!