MARKET WRAP: WEEK ENDED

26 SEPTEMBER’08 WEEKLY HIGHLIGHTS

Bursa Securities vs Public Mutual’s performance*
26 Sept'08 19 Sept'08 % chng • The KLCI moved in a trading range
KL Composite 1,020.53 1,025.70 -0.5
FBMS Shariah 6,950.09 7,001.24 -0.7
before closing at 1,020.53 points to
MSCI FEXJ# 358.50 368.86 -2.8 register a loss of 0.5% for the week.
MSCI World 311.40 320.31 -2.8
Local Funds • Most regional markets eased as
PSF 0.6234 0.6299 -1.0
PGF 0.4196 0.4295 -2.3
investors were cautious ahead of U.S.
PIX 0.6091 0.6122 -0.5 congressional negotiations over the
PIF 0.5672 0.5706 -0.6 proposed US$700 bil financial rescue
PAGF 0.6183 0.6350 -2.6 plan by the U.S. government.
PRSF 0.4807 0.4857 -1.0
PBF 0.6757 0.6831 -1.1
P SmallCap 0.6524 0.6522 +0.03 • The local market will continue to
PEF 0.3040 0.3121 -2.6 move in tandem with overseas
PFSF 0.1900 0.1916 -0.8
markets as investors monitor the
PDSF 0.2391 0.2407 -0.7
PSSF 0.1889 0.1906 -0.9 outlook for commodity prices,
PBBF 0.7876 0.7930 -0.7 economic growth and interest rates.
PBGF 0.7193 0.7229 -0.5
Local Islamic Funds
P Ittikal 0.7628 0.7838 -2.7
STOCKMARKET COMMENTARY
PIEF 0.2691 0.2719 -1.0
PIOF 0.2600 0.2596 +0.2 The KLCI moved within a range of 1,020
PIBF 0.2424 0.2440 -0.7 and 1,040 points over the week. Trading
PIDF 0.2558 0.2572 -0.5 activity declined as investors reduced
PISSF 0.1893 0.1915 -1.1
PISTF 0.2227 0.2222 +0.2 their positions ahead of the Hari Raya
PIOGF 0.2100 0.2123 -1.1 break. The KLCI closed at 1,020.53
PISEF 0.2477 0.2488 -0.4 points to register a loss of 0.5% for the
PBIEF 0.2069 0.2091 -1.1
week.
Foreign Funds
PFES 0.2196 0.2304 -4.7
PRSEC 0.1859 0.1933 -3.8 Average daily trading volume fell to 0.4
PGSF 0.1920 0.1943 -1.2 bil units from 0.5 bil units over the week
PFEDF 0.2038 0.2089 -2.4
PFEBF 0.1842 0.1902 -3.2
while daily turnover in value terms
PGBF 0.2012 0.2014 -0.1 decreased to RM0.7 bil from RM1 bil in
PCSF 0.1582 0.1656 -4.5 the previous week.
PFEPRF 0.1415 0.1487 -4.8
PSEASF 0.1868 0.1919 -2.7
PFECTF 0.2111 0.2151 -1.9
Most regional markets also closed easier
PCTF 0.2081 0.2126 -2.1 as investors were cautious ahead of U.S.
PFETIF 0.2278 0.2399 -5.0 congressional negotiations over the
PBAEF 0.2092 0.2188 -4.4 proposed US$700 bil financial rescue
PBADF 0.1945 0.1996 -2.6
PBEPEF 0.1636 0.1680 -2.6 plan by the U.S. government. The
PBCPEF 0.1439 0.1515 -5.0 Shanghai Composite Index rose by 10.5%
PBCAEF 0.2110 0.2235 -5.6 following several government measures
PBAREIF 0.1804 0.1883 -4.2
PBCPDF 0.9751 0.9819 -0.7
to support the stock market including the
Foreign Islamic Funds encouragement of major state-owned
PAIF 0.2095 0.2127 -1.5 enterprises to undertake share buy back
PIADF 0.1805 0.1857 -2.8 programmes.
PIABF 0.2009 0.2038 -1.4
PCIF 0.1668 0.1728 -3.5
PBIAEF 0.1803 0.1852 -2.6 On Wall Street, share prices were volatile
PBIASSF
#
0.1638 0.1682 -2.6 amidst concerns that the U.S. Congress
*Buying Price, in USD
will not approve the US$700 billion
rescue plan proposed by the Treasury to
restore liquidity in credit markets. The

1
Dow fell below 11,000 points earlier in
the week before closing at 11,143 points
to register a weekly loss of 2.2%. The
Nasdaq was 4% lower at 2,183 points
over the week.
1998 and May 2001. The local market is
also supported by a gross dividend yield
of 5.9%, which is comparable to its
historical high of 6% registered in August
1998 following the Asian financial crisis.

U.S. GDP growth for 2Q2008 was Other Markets’ Performance

revised down to 2.1% compared to earlier 26 Sept'08 19 Sept'08 % chng
Dow Jones 11,143 11,388 -2.2
estimates of 2.2% on the back of lower
Nasdaq 2,183 2,274 -4.0
consumer spending. Consumer spending Nikkei 11,893 11,921 -0.2
growth moderated to 1.3% in 2Q2008 SH Comp 2,294 2,075 +10.5
from 1.5% in 1Q2008. On an annualised China*, H share 9,589 9,975 -3.9
quarterly basis, U.S. GDP growth rose by Hong Kong 18,682 19,328 -3.3
2.8% in 2Q2008 compared to 0.9% in Taiwan 5,930 5,970 -0.7
1Q2008. U.S. existing home sales South Korea 1,476 1,456 +1.4
Singapore 2,411 2,559 -5.8
contracted by 2.2% month-on-month to Thailand 619 625 -0.9
4.91 million units in August after rising Indonesia 1,846 1,892 -2.4
by 3.5% in July. Existing home prices * Hang Seng China Enterprises Index
decreased for the second consecutive
month by 3.4% month-on-month to Bursa Securities Market Valuations
US$203,100 in August compared to a 26 Sept'08 19 Sept'08 8 yr ave*
contraction of 2.2% in July. KLCI 1,020.53 1,025.70 -
PER'08(x) 12.45 12.33 16.90
Price/NTA(x) 2.64 2.65 2.32
Crude oil prices touched a 4-week high of
Div Yield (%) 5.96 5.78 3.22
US$120.92/brl on Monday due to supply
3mth InterBk 3.69% 3.69% 3.27%
disruptions in the Gulf of Mexico before * 2000-2007 average
easing sharply to US$106.89/brl to
register a weekly gain of 2.2%. Malaysia’s Economic Snapshot
2007 2008F 2009F
On the local front, the local inflation rate GDP growth, % 6.3 5.7 5.4
Inflation, % 2.0 5.5-6.0 4.7
was sustained at a 27-year high of 8.5%
12mth Fix Dep, % 3.75 3.75 3.75
in August, the same level as in July as
higher food prices were mitigated by
lower transportation costs. To adjust Bursa Securities 8 year P/E Ratio
30
domestic fuel prices in line with
prevailing global oil prices, the
P/E Ratio (x)

25
Malaysian government lowered petrol Average: 16.9x
and diesel prices by 3.9% and 4.0% to
20
RM2.45 per litre and RM2.40 per litre
respectively effective from 25th 15
September 2008.
10
Looking ahead, the local market is 99 00 01 02 03 04 05 06 07 08
anticipated to continue moving in tandem
with overseas markets over the near term.
Investors will continue to monitor the
outlook for commodity prices, economic
growth and interest rates.

At the KLCI’s closing level of 1,020.53

points on 26th September 2008, the local
stock market is valued at a P/E of 12.4x
on 2008 earnings, which is close to the
P/E ratio of 11.4x registered in the
previous two market troughs of August
2
 BOND MARKET REVIEW:
FORTNIGHT ENDED
26 SEPTEMBER’08 BOND MARKET COMMENTARY
Public Mutual's Bond Funds Performance
26 Sept'08 12 Sept'08 % chng For the fortnight ended 26th September
P BOND 0.9185 0.9145 +0.4 2008, the U.S. Treasury market ended
PI BOND 1.0009 0.9844 +1.7 mixed as the U.S. credit crisis caused
PIN BOND 0.9913 0.9895 +0.2 investors to shift funds to shorter-tenured
PEBF 0.9511 0.9527 -0.2
PSBF 0.9823 0.9775 +0.5
bonds from longer tenured bonds. The 3-
PIEBF 0.9623 0.9582 +0.4 year U.S. Treasury bond yield fell by 16
PISBF 1.0058 0.9993 +0.7 basis points (bps) to 1.90% over the
PBFI 0.9844 0.9842 +0.02 fortnight while the 5 and 10-year U.S.
PBIBF 1.0037 0.9964 +0.7 Treasury bond yields rose by 10 bps and
13 bps to 3.05% and 3.85% respectively
Public Mutual's Money Market Funds Performance
26 Sept'08 12 Sept'08
over the same period.
% chng
PMMF 1.0098 1.0087 +0.1
PIMMF 1.0153 1.0141 +0.1 The Malaysian Government Securities
PBCMF 1.0108 1.0096 +0.1 (MGS) market strengthened on easing
PBCPF 1.0027 1.0014 +0.1 inflationary expectations after fuel prices
PBICMF 1.0066 1.0055 +0.1 were reduced on 25th September amidst
PBICPF 1.0042 1.0029 +0.1 lower oil prices. The 3, 5 and 10-year
Change in Interest Rates & Bond Yields
MGS yield fell by between 4 bps and 13
26 Sept’08 12 Sept’08 Chng* bps to 3.97%, 4.08% and 4.65%
3 Month Interest Rates respectively over the fortnight.
KLIBOR 3.69 3.69 -
U.S. T Bill 0.84 1.47 -63.0 Trading activity on the local corporate
3 Year bond market remained thin despite the
'AAA'Corp. 4.55 4.75 -20.0
decline in the 3-year AAA corporate
MGS 3.97 4.01 -4.0
U.S. T Bond 1.90 2.06 -16.0
bond yield by 20 bps to 4.55%. Yields on
5 Year the 5 and 10-year AAA corporate bonds
'AAA'Corp. 4.57 4.57 - remained unchanged at 4.57% and 5.95%
MGS 4.08 4.15 -7.0 respectively over the fortnight.
U.S. T Bond 3.05 2.95 10.0
10 Year In the money market, the spread of the 3-
'AAA'Corp. 5.95 5.95 - month Kuala Lumpur Interbank Offer
MGS 4.65 4.78 -13.0
U.S. T Bond 3.85 3.72 13.0
Rate (KLIBOR) over the yield on the 3-
*in basis points month U.S. Treasury bill widened to 285
MGS Yield bps from 222 bps a fortnight ago as the 3-
6
10 Years MGS
month U.S. Treasury bill yield fell by 63
bps to 0.84% on safe haven buying
amidst the recent turmoil in the U.S.
4
financial market.

3 Years M GS The U.S. Treasury bond market is

2
J a n- Aug- M a r- Oc t- M a y- De c - J ul- F e b- S e p- Apr-
expected to be supported by easing
03 03 04 04 05 05 06 07 07 08 inflationary pressures in 2H2008 and
US Treasury Bond Yield
sustained demand for safe haven assets
6 amidst the ongoing economic slowdown
5 in U.S. economic activities. However,
Treasury bond prices may remain volatile
4
in the near term pending uncertainties on
3 the government’s funding of the proposed
10 Years US T Bond
US$700 bil rescue plan.
2
J a n- Aug- M a r- Oc t- M a y- De c - J ul- F e b- S e p- Apr-
03 03 04 04 05 05 06 07 07 08

3
 On the domestic front, the local bond market is expected to remain cautious over the
medium term as investors continue to monitor the trend in inflationary pressures. However,
the government’s decision to adjust fuel prices according to prevailing global oil prices
may help to ease inflationary pressures for the coming months.

Over the long term, the local bond market is projected to be underpinned by resilient
demand for quality corporate bonds and sustained liquidity in the domestic economy.

PORTFOLIO ASSET ALLOCATION

As at 29 August 2008
Money Fixed Current Fund Size
Equities &
Type of Market & Income
Fund name Derivatives NAV Units
Fund Others Securities
(%) (RM Mil) (Mil)
(%) (%)
Public Index Fund 89.12 6.70 4.18 523.49 800.76
PB Islamic Equity Fund 86.97 13.03 - 62.37 248.90
Public Aggressive Growth Fund 86.56 13.44 - 260.60 387.27
Public Equity Fund 86.42 11.35 2.23 442.56 1,341.60
Public Growth Fund 83.86 6.52 9.62 613.85 1,347.04
Public SmallCap Fund 82.24 17.76 - 237.64 315.57
Public Regular Savings Fund 81.97 8.79 9.24 915.22 1,783.70
Public Industry Fund 81.46 18.54 - 167.59 276.08
Public Dividend Select Fund 79.09 2.50 18.41 350.62 1,400.62
Equities Public Islamic Opportunities Fund 79.03 15.87 5.10 291.75 1,063.16
( Local ) Public Ittikal Fund 76.18 23.82 - 1,272.76 1,556.45
PB Growth Fund 74.32 25.68 - 123.59 162.39
Public Focus Select Fund 73.85 26.15 - 152.79 759.48
Public Islamic Optimal Growth Fund 72.88 27.12 - 306.43 1,375.46
Public Sector Select Fund 70.74 29.26 - 104.35 517.13
Public Savings Fund 70.68 5.25 24.07 431.29 658.29
Public Islamic Equity Fund 69.83 22.18 7.99 612.55 2,160.61
Public Islamic Dividend Fund 68.91 21.88 9.21 1,257.88 4,672.65
Public Islamic Sector Select Fund 63.95 36.05 - 197.77 974.81
Public Islamic Select Treasures Fund 56.04 43.96 - 275.17 1,180.31
Equities PB China ASEAN Equity Fund 92.62 7.38 - 32.04 135.71
(regional) PB Euro Pacific Equity Fund 90.49 9.51 - 215.36 1,172.42
Public Far-East Select Fund 89.98 10.02 - 420.75 1,710.32
PB Asia Equity Fund 88.38 11.62 - 137.94 593.37
PB China Pacific Equity Fund 88.07 11.93 - 521.48 3,043.24
Public Regional Sector Fund 87.25 12.75 - 299.39 1,424.34
Public China Select Fund 85.29 13.77 0.94 1,576.59 8,507.17
Public Far-East Dividend Fund 82.45 14.00 3.55 844.09 3,766.85
PB Islamic Asia Strategic Sector Fund 80.87 19.13 - 96.44 532.27
Public Islamic Asia Dividend Fund 80.64 18.28 1.08 913.47 4,660.04
Public China Ittikal Fund 80.18 18.86 0.96 1,033.33 5,495.84
PB ASEAN Dividend Fund 77.19 22.81 - 308.41 1,440.23
Public South-East Asia Select Fund 76.90 20.53 2.57 774.95 3,747.92
Public Far-East Property & Resorts
76.71 23.29 - 341.45 2042.86
Fund
PB Islamic Asia Equity Fund 69.43 30.57 - 213.12 1,086.76
Public Far-East Consumer Themes
59.82 40.18 - 148.68 646.25
Fund
Public China Titans Fund 59.12 40.88 - 47.28 208.80
Public Far-East Balanced Fund 57.70 13.72 28.58 440.06 2,162.24

4
 Public Asia Ittikal Fund 55.85 44.15 - 558.29 2,515.07
PB Asia Real Estate Income Fund 44.64 22.67 32.69 47.32 233.82
Equities Public Global Select Fund 70.11 29.89 - 129.83 641.08
(global) Public Global Balanced Fund 49.21 22.62 28.17 96.84 467.35
Public Balanced Fund 56.44 5.42 38.14 327.60 467.56
Public Islamic Balanced Fund 56.32 2.09 41.59 532.73 2,111.99
Balanced
PB Balanced Fund 55.33 6.55 38.12 183.57 222.73
Public Islamic Asia Balanced Fund 55.23 7.70 37.07 120.03 569.39
Public Islamic Bond Fund - -0.24 100.24 560.75 573.49
Public Bond Fund - 0.06 99.94 962.91 1,064.81
Public Institutional Bond Fund - 0.03 99.97 1,233.46 1,249.84
PB Fixed Income Fund - 2.16 97.84 185.76 189.47
Bond Public Select Bond Fund - 3.47 96.53 584.40 599.03
PB Islamic Bond Fund - 7.82 92.18 57.68 58.22
Public Islamic Select Bond Fund - 16.69 83.31 48.70 48.92
Public Islamic Enhanced Bond Fund 11.58 10.15 78.27 126.96 132.75
Public Enhanced Bond Fund 16.38 5.75 77.87 473.13 495.15
PB Capital Protected Dragon Fund 6.35 93.65 - 95.99 97.62
PB Cash Plus Fund - 100.00 - 863.14 860.77
Public Money Market Fund - 100.00 - 938.65 931.73
Money PB Cash Management Fund - 100.00 - 161.53 160.18
Market PB Islamic Cash Plus Fund - 100.00 - 50.75 50.55
PB Islamic Cash Management Fund - 100.00 - 44.58 44.39
Public Islamic Money Market Fund - 79.51 20.49 302.73 298.88

Return and Volatility Measures for Public Mutual’s Funds

For the 3 Years Period Ended 30 June 2008
Average
Fund Type Benchmark/ Annual Beta R-Squared Standard
Fund Return (R2) Deviation
Equity KLCI 11.17 1.00 1.00 13.59
PBGF 27.30 1.12 0.86 16.40
PIF 19.42 1.19 0.91 16.91
PAGF 25.37 1.20 0.87 17.49
P SmallCap 26.33 n.a. n.a. n.a.
PEF 18.20 1.06 0.91 15.07
PIX 15.68 1.04 0.96 14.38
PRSF 17.00 0.95 0.91 13.60
PSF 17.50 0.94 0.93 13.24
PGF 18.97 1.02 0.89 14.66
PFSF 15.67 n.a. n.a. n.a.
PDSF 16.16 0.84 0.88 12.16

Islamic Equity Benchmark* 14.44 1.00 1.00 14.44

P Ittikal 18.56 0.91 0.89 13.82
PIEF 17.27 0.92 0.93 13.83
PIOF 21.97 0.85 0.69 14.72
PBIEF n.a. n.a. n.a. n.a.

Balanced PBEIX 8.66 1.00 1.00 8.00

PBBF 17.44 1.35 0.89 11.42
PBF 15.53 1.37 0.90 11.58

Bond KLIBOR 3.65 1.00 1.00 0.10

PBFI 5.00 n.a. n.a. 3.13
P Bond 4.00 n.a. n.a. 2.93
PI Bond 3.70 n.a. n.a. 2.89
5
 PIN Bond 2.71 n.a. n.a. 1.00
PEBF 6.04 n.a. n.a. 4.55

Money Market PMMF 3.24 n.a. n.a. 0.06

* PB series of funds are highlighted to differentiate them from the Public series of funds

Benchmarks: KLCI = KLSE Composite Index,

PBEIX = Public Balanced Equity Index,
KLIBOR = KLIBOR
Benchmark*: Kuala Lumpur Syariah Index ( Prior 1 November 2007).
FTSE Bursa Malaysia Emas Shariah Index ( w.e.f 1 November 2007).

n.a.= Not available as the above statistics are not meaningful for funds which have less
than three year’s track record and not applicable to bond and money market funds as
appropriate benchmark is not available.

Average Annual Return = the percentage change in fund prices (adjusted for splits and
distribution paid out) for the period divided by the number of years under review

Beta = A historical measure of a fund's sensitivity to movements in the benchmark index.

A fund with a beta of 1.50 is significantly more volatile than its benchmark. It would tend
to gain 1.5% for every 1% rise in the market and lose 1.5% for every 1% decline in the
market

R-squared = A historical measure which indicates how closely a fund's past fluctuations
have correlated with the fluctuations of its benchmark index. R-squared values range
from 0 to 1.0. An R-squared of 0 means that a fund's returns have no correlation with a
benchmark's fluctuations while an R-squared of 1.0 indicates that a fund's returns are
completely correlated with the benchmark’s returns.

Standard Deviation = A statistical measure of the range of a fund's performance. This

statistic compares a fund with its own past record (and not against a benchmark as seen in
the computation of beta and R-squared). Standard deviation is the degree to which a
fund's returns have fluctuated above or below its mean (or average) return over the
previous 36 months. When a fund has a high standard deviation, its range of
performance has been very wide, indicating that there is a greater potential for volatility
of returns.

Note that all risk measures have limitations. No single measure of risk paints a complete
picture of the fund’s returns. These measures of risks are based on past performance
which may not be indicative of future returns.

A more detailed write up on the above measures of returns and risks is available in Public
Mutual Agents’ Website.

6
 You are advised to read and understand the contents of the Master Prospectus of Public Series of
Funds dated 30th April 2008 and expires on 29th April 2009, Master Prospectus of Public Series of
Syariah-Based Funds dated 30thApril 2008 and expires on 29th April 2009, Master Prospectus of
PB Series of Funds dated 30thApril 2008 and expires on 29th April 2009, Information
Memorandum of PB Cash Plus Fund and PB Islamic Cash Plus Fund dated 1st March 2008 and
expires on 28th February 2009, Prospectus of PB Capital Protected Dragon Fund dated 24th
March 2008, Prospectus of Public Far-East Telco & Infrastructure Fund dated 8th July 2008 and
expires on 29th April 2009, Prospectus of Public Capital Protected Select Portfolio Fund dated 29th
July 2008, Prospectus of Public Islamic Select Enterprises Fund and Public Islamic Income Fund
dated 14th August 2008 and expires on 29th April 2009 and Prospectus of PB Capital Protected
Resources Fund dated 20th August 2008 before investing. These prospectuses have been registered
with the Securities Commission who takes no responsibility for their contents, and neither should
their 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. Applications to purchase 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 attending agent, corporate representative or nearest
Public Mutual office.
Past performance should not be taken as an indication of future performance.

7
Public Mutual Berhad (23419-A)
Block B, Sri Damansara Business Park, Persiaran Industri, Bandar Sri Damansara, 52200 Kuala Lumpur, Malaysia. P.O. Box 10045, 50700 Kuala Lumpur
Tel: 03-62796800 Fax: 603-62779800 Website:http://www.publicmutual.com.my