Vol 10, No 3 - Financial Planning Association of Malaysia

NEWS IN BRIEF
April - June 2010
PINDOSF: For Investors
with Aggressive Risk Appetite
Public Bank’s wholly-owned subsidiary,
Public Mutual Bhd launched a new fund
– Public Indonesia Select Fund (PINDOSF) –
on September 1, 2010. The fund invests in
a diversified portfolio of blue chips, index
stocks and growth stocks primarily in the
Indonesian market, with up to 30 percent
of its net asset value (NAV) invested in the
Malaysian and other global markets.
Public Mutual’s chief executive officer
Yeoh Kim Hong said Indonesia, which
has the largest economy in Southeast
Asia, is poised to be one of the fastest
growing economies in Asia after China
and India. “Supported by the fourth
largest population in the world and rich
in resources, the Indonesian market
offers good long-term capital growth
opportunities,” she said.
Yeoh added that Indonesia charted a
healthy growth rate averaging 5.1 percent
per annum over the 2000-2009 period as
it was underpinned by resilient domestic
demand and a series of economic reforms.
“Due to its large domestic base, Indonesia’s
economic performance is envisaged to be
more resilient than other economies in the
event of slower global growth,” she said.
Meanwhile, Indonesia’s fiscal position
has improved in recent years due to its
sound fiscal and debt management. Its
government maintained a fiscal deficit
of less than 3 percent of gross domestic
product (GDP) over the 2000-2009 period.
Its GDP growth is expected to rebound
from 4.5 percent in 2009 to 5.8 percent in
2010 and to grow at 6.2 percent in 2011
on the back of resilient consumer and
investment spending as well as strong
global demand for commodities. Its
domestic demand is expected to remain
resilient amidst an accommodative
interest rate environment and
manageable inflationary pressures.
In addition, Indonesia was one of the best
performing regional markets in 2009 with
a 114.7 percent return. The Indonesian
stock market registered a further gain
of 17.5 percent on a year-to-date basis
to July 28, 2010 amidst robust economic
activities.
PINDOSF, Yeoh said, would focus on
sectors which include banking and
finance, commodities, building materials
and consumer. “The banking and finance
sector in Indonesia has experienced strong
growth in loans and financial services,
whereas strong output growth is projected
for its commodities sector. Meanwhile, the
building materials sector benefited from
sustained infrastructure spending, and
improved purchasing power has benefited
the consumer sector,” she pointed out.
PINDOSF’s equity exposure will generally
range from 75 percent to 98 percent of its
NAV. The fund is a niche product suitable for
investors with aggressive risk appetite who
wish to capitalise on the long-term growth
prospects of the Indonesian market.
Yeoh: PINDOSF will focus on sectors which include
banking and finance, commodities, building materials
and consumer.
“Supported by the fourth largest population in the
world and rich in resources, the a market offers good
long-term capital growth opportunities.”
38 The 4E Journal