Latest New Focus Investing Fund and Infrasructure Bond Fund

Alpha is defined as excess returns obtained as a result of certain investment strategies undertaken by a fund. One of the strategies for a fund to achieve alpha or excess returns is via ‘focus investing’ which involves maintaining a concentrated portfolio of stocks that are expected to outperform the broader market over time.

In contrast to general equity funds which hold a broader portfolio of 60 stocks or more, funds which practice focus investing provide investors with the opportunity to participate in higher potential returns over the medium to long-term due to the concentration of stocks. In general, these funds are suitable for investors with higher risk profiles as the fund’s concentrated portfolio may result in increased volatility over short-term periods.

Public Islamic Alpha-40 Growth Fund (PIA40GF) is an Islamic equity fund that seeks to achieve capital growth by investing up to a maximum of 40 Shariah-compliant stocks listed in the domestic and regional markets. The fund is able to adopt a more focused investment strategy and achieve potentially higher returns as it concentrates its investment in a portfolio of not more than 40 stocks. To achieve increased diversification, the fund may invest up to 30 percent of its net asset value (NAV) in regional markets.

On the economic front, Malaysia’s economy is expected to rebound by 6.8 percent1 in 2010 from a contraction of 1.7 percent1 in 2009 following a recovery in the manufacturing and services sectors. However, Gross Domestic Product (GDP) growth is envisaged to moderate to 5.2 percent1 in 2011 as export growth moderates. However, on the domestic front, investment and consumer spending is envisaged to be resilient amidst an environment of accommodative interest rates, rising disposable incomes and favourable demographic trends.

The local equity market is supported by fair valuations and sustained domestic liquidity. Despite the FBM KLCI rising by 15.8 percent1 for the year-to-date to 1,466.97 points on 17 September 2010, the local stock market is trading at a prospective P/E of 14.1x1 on 2011 earnings, which is below the market’s 10-year average P/E ratio of 16.5x1. The local market is also supported by a gross dividend yield of about 3.6 percent1, which is in line with the 10-year average of 3.5 percent1 and exceeds the current 12-month fixed deposit rate of 2.85 percent1.

1 Bloomberg, September 2010

You are advised to read and understand the contents of the Prospectus of Public Islamic Alpha-40 Growth Fund and Public Islamic Infrastructure Bond Fund dated 16 November 2010 before investing. The prospectus has been registered with the Securities Commission who takes no responsibility for its contents, and neither should its registration be interpreted to mean that the Commission recommends the investment.

You should note that there are fees and charges involved; and that the prices of units and distribution payable, if any, may go down as well as up. Past performance of a fund is not an indication of its future performance. Applications to purchase units must come in the form of a duly completed application form referred to in and accompanying the prospectus. A copy of the prospectus can be obtained from your unit trust consultant or nearest Public Mutual branch.

Pls read details HERE in English and HERE in Bahasa

KLCI 5 Years Historical Analysis

KLCI 12 Apr 2010 - 11 Oct 2010

Why I stop my Forex Trading? (points 17-20)

FOREIGN DIRECT INVESTMENT
by Dr. Mahathir bin Mohamad on Monday, 20 September 2010 at 22:47

1. One reason advanced by the advocates of letting the Ringgit to be traded abroad is that it will encourage foreign direct investment.

2. There was a time when Malaysia practically pioneered encouragement for foreign direct investment. It was even before FDI became popular with many developing countries as a shortcut to economic growth. Malaysia wanted FDI for job-creating labour intensive industries because of the need to create employment opportunities for its workforce at that time. It was really not about growing the economy.

3. For Malaysia at that time, foregoing taxes and even local participation were not important. The Government did not rely on FDI to fill its treasury.

4. The policy of attracting FDI was so successful that it resolved the problem of unemployment until it created a problem of labour shortage. This led to an inflow of foreign workers and the expatriation of billions of Ringgit back to their countries. FDI no longer helped Malaysia's growth.

5. But being used to this easy approach we keep on inviting FDI believing that it would still help with our economy. But let us look at what really happens when there is foreign direct investment.

6. Most people think that there would be an inflow of capital. But actually only about 10 per cent of the capital needed was brought in. The rest is borrowed from local banks, preferably foreign owned banks. It is therefore Malaysian money that is invested.

7. Apart from tax exemption Malaysia also subsidised the operations of foreign owned companies through subsidised electricity, fuel and domestic transportation. Of course the Malaysian workers contribute through their cheap labour.

8. There is another type of FDI which is even less beneficial. This take the form of investments in the stock market. Usually the objective is not to benefit from profits and dividends but from capital gains.

9. When foreign investors buy Malaysian shares, the prices are likely to appreciate. Foreign institutional investors, especially pension funds can easily push up share prices with their repeated purchases.

10. When the prices are high enough the investors would dump the shares and collect capital gains. The local investors would lose money as prices depreciated.

11. During the financial cirisis of 1997-98, foreign investors dumped their shares so as to quickly change the Ringgit into foreign (US) currency before further falls in the Ringgit would give them less foreign currency in exchange. This invariably caused a steep fall in the share prices and Stock Market Index with consequent losses by local investors.

12. The Malaysian Stock Exchange makes money from commissions or the sales and purchase of shares. Consequently they are happy with more selling and buying on the Exchange. They therefore welcome foreign investors in the market. In fact they believe that if short selling is allowed they will make even more money.But these kinds of market activities do not benefit the nation.

13. FDI is double-edged and caution is needed when deciding on encouraging it. Today FDI is not coming into Malaysia because countries such as China, Vietnam, even Thailand and Indonesia offer lower cost of labour. Besides the economic recession in America and Europe mean less capital is available.

14. But what about the Ringgit? How will it affect the FDI? We need to know whether there was a lowering of FDI due to fixing the Ringgit exchange rate in 1998. If there was, was it directly due to the exchange control or other factors like increase in the cost of labour and competition with the above-mentioned low cost countries?

15. Actually when the Ringgit was fixed at RM3.80 to 1 US Dollar, the cost of investing in Malaysia was lower in terms of foreign currency. Now that the Ringgit has appreciated to RM3.20, the cost has appreciated. If we allow free trading of Ringgit abroad, two things can happen.

16. If the Ringgit strengthens then the cost of investment in Malaysia would increase, This would not facilitate foreign investments.

17. On the other hand the currency traders may once again cause the Ringgit to depreciate. This may result in increased FDI. But remember how we went into recession when our ringgit was devalued by foreign currency traders? Do we want to have that crisis again?

18. The present financial crisis in the world is due to the abuse of regulations in the financial market. No positive steps have been taken so far to regulate it. Certainly currency trading remains unregulated and selective.

19. The latest report says that every day currency trading is valued at four trillion dollars, equal to the total output of Germany in one year.

20. Whereas Germany's 4 trillion dollars yearly output creates millions of jobs, businesses big and small and much trade, the 4 trillion a day currency trade creates practically no jobs, businesses or trade. Of course the currency traders make tons of money. In the process we know that they can cause a repeat of the crisis faced by the world when they lose. Why should the world allow such greedy people to put the world at risk.

21. If we fully free our Ringgit the risk of being attacked by currency traders will once again be faced by us. Do we really want to have the financial crisis once again?

22. So I hope the Government will explain why it wants the Ringgit to be traded again. I hope it is not because we want to be good boys who will always do what we are told to do.

SALAM LEBARAN...

Pantun spontan untuk anda semua...

Hari Jumaat mungkin Raya
Hari Raya hari yg mulia
Hari yg lepas jadikan pedoman
Hari depan kita bina idaman

Dosa lampau jadikan pedoman
Pahala hadapan kita kembangkan
Salah dan silap kita maafkan
Agar hati dipenuhi keimanan

Niat kawan nasihat ikhlas
Jujur dan ikhlas jadi pegangan
Peluang baik usah dilepas
Rezeki baik sedekah zakatkan


... saya mengucapkan kepada semua pembaca blog saya , selamat menyambut Aidil Fitri... salam kemaafan dari saya dan keluarga terhadap salah dan silap yang jelas dan mungkin juga tersimpan di dlm peti hati anda.. semoga anda semua bergembira dan dapat saling menyambung silaturahim sesama kenalan dan saudara-mara sempena bulan Syawal yg bakal tiba. Saya telah sedia memberikan kemaafan kpd sesiapa jua yg mungkin ada sekelumit dosa pun jika ada terhadap saya. Semoga Allah memberikan keampunan, petunjuk dan Hidayah kepada kita semua.

Salam lebaran...
http://mjamilali.blogspot.com

CAMPAIGN HIGHLIGHTS

Public Mutual is celebrating its 35th Anniversary this year and would like to thank all our unitholders for their continuous support over the years. To commemorate this great milestone, we are giving away a brand new Proton Exora and other attractive prizes through our 35th Anniversary Campaign 2010!


Qualified unitholders will stand to win the following:

20K MGQP Draw

* 1x Proton Exora 1.6
* 10 x 42-inch Full HD LCD TV
* 10 x Dell Notebook
* 20 x Global Positioning System (GPS)

200K MGQP Draw

* 5 x Canon DSLR Camera

400K MGQP Draw

* 3 x 55-inch Full HD LCD TV

20K MGQP Draw*
For every 20,000 MGQP that you maintain as at 30 November 2010, you will be entitled for 1 draw under this category.

200K MGQP Draw*
For every 200,000 MGQP that you maintain as at 30 November 2010, you will be entitled for 1 draw under this category, in addition to the 20K MGQP Draw.

400K MGQP Draw*
For every 400,000 MGQP that you maintain as at 30 November 2010, you will be entitled for 1 draw under this category, in addition to the draws under 20K MGQP and 200K MGQP.
Assuming you have 600,000 MGQP as at 30 November 2010, you will be entitled for the following draws:


20K MGQP Draw = 30 Draws

200K MGQP Draw = 3 Draws

400K MGQP Draw = 1 Draw


For more information, please contact your servicing unit trust consultant or call our Hotline at 03-6207 5000.

Prizes presented on all materials (if any) are for display purpose only and do not depict any representation of actual prizes.

*Terms and conditions apply

Public Mutual declares over RM184 million income distributions for its investors

Public Bank’s wholly-owned subsidiary, Public Mutual, declared distributions totaling more than RM184 million for eight of its funds. The company also declared unit splits for two of the funds. The gross distributions and unit splits declared for the respective funds for the financial year ended 31 July 2010 are as follows:

Fund -----------------------------------Unit Split-----------Gross Distribution
----------------------------------------------------------------(sen per unit)

Public Growth Fund -----------------------( - )-------------- 5.00

Public Islamic Opportunities -------------( - )-------------- 2.50

Public Islamic Select Enterprises Fund --( - )-------------- 1.25

Public Far-East Property & Resorts Fund -( - )-------------- 0.50

Public Bond Fund ------------------------( - )--------------- 5.00

Public Islamic Select Bond Fund ---------( 1:50 )--------------- 5.00

Public Islamic Income Fund --------------( 1:25 )--------------- 3.50

PBB MTN Fund 1 -------------------------- ( - )--------------- 2.00

According to The Edge-Lipper Fund Table dated 26 July 2010, Public Growth Fund and Public Islamic Opportunities Fund have generated one-year returns of 18.10% and 28.35% respectively for the period ended 16 July 2010. Public Islamic Opportunities Fund is an award-winning Islamic small-cap fund, having won Failaka Islamic Fund Awards 2009 for Best Malaysian Fund, 3 years category.

Meanwhile, Public Islamic Select Enterprises Fund which is open for EPF Members Investment Scheme generated a one-year return of 13.57% for the period ended 16 July 2010. Public Far-East Property & Resorts Fund which focuses its investments in property, hotel and resorts stocks, and Real Estate Investment Trusts (REITs) generated a one-year return of 6.72% over the same period which is above its benchmark return of 1.38%.

On bond funds, Public Bond Fund, Public Islamic Select Bond Fund and Public Islamic Income Fund, recorded one-year returns of 7.67%, 6.18% and 4.90%, respectively for the period ended 16 July 2010. Public Bond Fund is also an award-winning fund, having garnered a total of 24 awards to date, while Public Islamic Income Fund is open for EPF Members Investment Scheme.

PBB MTN Fund 1, on the other hand, is a close-ended wholesale bond fund. The fund was launched in November last year to provide a steady stream of income returns through investment in subordinated medium-term notes issued by Public Bank Berhad.

All of these funds are distributed by Public Mutual unit trust consultants except for PBB MTN Fund 1, which is distributed via Public Bank branches nationwide.

Public Mutual is Malaysia’s largest private unit trust company with 78 funds under management. It has over 2,320,000 accountholders and as at 30 June 2010, the total net asset value of the funds managed by the company was RM36.5 billion.