Public Bank launched its first China fund, PB China Pacific Equity Fund on 23 October 2007 (Tuesday). PB China Pacific Equity Fund (PBCPEF) will invest mainly in China stocks and the balance in North Asian markets such as Japan, Korea and Taiwan. The fund will be managed by its wholly-owned subsidiary, Public Mutual.

  • A minimum of 50% and up to a maximum of 98% of the fund’s net asset value (NAV) will be invested in China stocks listed on the China, Hong Kong, United States of America, Singapore and other approved markets.
  • The fund may invest in other North Asian markets which include Japan, Korea and Taiwan.
  • Equity exposure: Generally range from 75% to 90% of its NAV.

According to Public Mutual’s Chairman Tan Sri Dato’s Sri Dr. Teh Hong Piow:

The China Pacific region which encompasses China, Hong Kong, Taiwan, South Korea and Japan presents significant growth opportunities. The Chinese economy is projected to grow steadily at 11.2% for 2007 and 10.6% for 2008, supported by robust domestic consumption and exports. Driven by strong domestic demand and robust tourist arrivals, Hong Kong’s GDP growth is set to expand at above 5% for 2007/2008. Meanwhile, GDP growth for South Korea and Taiwan is projected at above 4% for 2007/2008 amidst resilient investment spending and global demand for electronic products. In comparison, Japan, being a developed economy, is expected to register moderate GDP growth of about 2% in 2007/2008 on sustained consumption and investment

This fund will be distributed via Public Bank branch nationwide. You can’t get it directly from your Public Mutual agent though.

The issue price / NAV of PBCPEF is at RM0.2500 per unit during the 21-day initial offer period of 23 October 2007 to 12 November 2007. During the offer period, a special promotional service charge of 5.45% of NAV per unit is extended to the purchase of units of PBCPEF by investors. Investors who opt for Direct Debit Instruction with PBCPEF during the offer period will also enjoy the special promotional service charge of 5.45% of NAV per unit for as long as the Direct Debit is active.

Download the prospectus here.


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