Public Bank will launch its first China fund, PB China Pacific Equity Fund(PBCPEF) on today which is 23 October 2007. 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.
PBCPEF offers investors the opportunity to tap on the solid growth prospects in China. In the past 5 years, equity markets in this region have enjoyed a sustained uptrend in global economies. China has emerged as a major growth engine for this region apart from the U.S with real Gross Domestic Product (GDP) sustained at a robust pace averaging 9.2% annually.
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 investmen.
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. When valuations of China stocks are not compelling, the fund may invest in other North Asian markets which include Japan, Korea and Taiwan. The equity exposure of PBCPEF will generally range from 75% to 90% of its NAV.
PBCPEF is suitable for aggressive investors who can withstand extended periods of market highs and lows to achieve medium to long-term capital growth for their investments.
The issue price / NAV of PBCPEF is at RM0.25 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. Terms and conditions apply. The minimum initial investment for the fund is RM1,000 and the minimum additional investment is RM100.
