MARKET WRAP: WEEK ENDED 12 AUGUST11

Bursa Securities vs Public Mutuals performance*

12 Aug'11 5 Aug'11 FBM KLCI 1,483.67 1,524.43 FBMS Shariah 9,809.18 10,141.62 MSCI FEXJ# 467.87 495.13 MSCI World# 302.11 307.13 Local Funds PSF 0.6269 0.6476 PGF 0.4990 0.5137 PIX 0.7115 0.7369 PIF 0.5751 0.5933 PAGF 0.6692 0.6960 PRSF 0.6157 0.6311 PBF 0.7007 0.7174 P SmallCap 0.8215 0.8555 PEF 0.3118 0.3223 PFSF 0.2589 0.2681 PDSF 0.2713 0.2804 PSSF 0.2993 0.3079 PSA30F 0.3289 0.3407 POGF 0.2668 0.2758 PBBF 0.7985 0.8123 PBGF 0.7826 0.8062 Local Islamic Funds P Ittikal 0.8405 0.8673 PIEF 0.3209 0.3314 PIOF 0.2960 0.3087 PIBF 0.2816 0.2888 PIDF 0.3355 0.3435 PISSF 0.2961 0.3080 PISTF 0.2947 0.3044 PIOGF 0.2758 0.2862 PISEF 0.3473 0.3562 PIA40GF 0.2494 0.2584 PITGF 0.2504 0.2500 PBIEF 0.2585 0.2691 Foreign Funds PFES 0.2481 0.2629 PRSEC 0.2166 0.2300 PGSF 0.1732 0.1789 PFEDF 0.2340 0.2435 PFEBF 0.2056 0.2099 PGBF 0.1995 0.2035 PCSF 0.1755 0.1836 PFEPRF 0.2276 0.2353 PSEASF 0.2720^ 0.2844 PFECTF 0.2588 0.2643 PCTF 0.2084 0.2202 PFETIF 0.3007 0.3224 PNREF 0.2438 0.2584 PAUEF 0.2376 0.2405 PFA30F 0.2495 0.2593 PINDOSF 0.2824 0.2844 PBAEF 0.2214 0.2362 PBADF 0.2628^ 0.2743 PBEPEF 0.1925 0.1992 PBCPEF 0.1622 0.1689 PBCAEF 0.2557 0.2704 PBCAUEF 0.2313 0.2457 PBSGA30EF 0.2512 0.2627 PBAPENTF 0.2275 0.2386 PBAREIF 0.2546 0.2596 PBADBF 0.2993 0.3021 PBINDOBF 0.2739 0.2743 PSGEF 0.2409 0.2471 Foreign Islamic Funds PAIF 0.2484 0.2597 PIADF 0.2181 0.2264 PIABF 0.2075 0.2134 PCIF 0.1842 0.1910 PIALEF 0.2329 0.2447 PBIAEF 0.1977 0.2071 PBIASSF 0.1594 0.1685 Capital Protected Funds PCPSPF 1.1135 1.1170 PBCPRF 1.1064 1.1112 # *Buying Price, in USD ^ NAV as at 11 Aug 11. Non Business day for 12 Aug 11. % chng -2.7 -3.3 -5.5 -1.6 -3.2 -2.9 -3.4 -3.1 -3.9 -2.4 -2.3 -4.0 -3.3 -3.4 -3.2 -2.8 -3.5 -3.3 -1.7 -2.9 -3.1 -3.2 -4.1 -2.5 -2.3 -3.9 -3.2 -3.6 -2.5 -3.5 +0.2 -3.9 -5.6 -5.8 -3.2 -3.9 -2.0 -2.0 -4.4 -3.3 -4.4 -2.1 -5.4 -6.7 -5.7 -1.2 -3.8 -0.7 -6.3 -4.2 -3.4 -4.0 -5.4 -5.9 -4.4 -4.7 -1.9 -0.9 -0.1 -2.5 -4.4 -3.7 -2.8 -3.6 -4.8 -4.5 -5.4 -0.3 -0.4

WEEKLY HIGHLIGHTS The FBM KLCI eased to an 11-month intraday low of 1,423.4 points on Tuesday following declines in regional markets before closing at 1,483.7 points with a loss of 2.7% for the week. Regional markets continued to retreat on concerns of potential sovereign credit downgrades in Europe and a lacklustre outlook for the global economy. Looking ahead, the performance of the local and regional markets will depend on the developments of the sovereign debt issues in the U.S. and European markets. STOCKMARKET COMMENTARY The steep sell-off in regional offshore markets caused the FBM KLCI to fall to an 11-month intraday low of 1,423.4 points on Tuesday. However, buying support subsequently helped the local market to pare down earlier losses with the FBM KLCI closing at 1,483.7 points with a loss of 2.7% for the week. Average daily trading volume increased to 1.6bil from 1.2bil in the preceding week while daily turnover in value terms increased to RM2.9bil from RM1.9bil over the week. Regional markets continued to retreat on concerns of potential sovereign credit downgrades in Europe and a lackluster outlook for the global economy. North Asian markets such as China H shares, South Korea and Hong Kong registered losses ranging between 6% and 9%. On Wall Street, the market was volatile with the Dow easing below the 11,000 points on Monday and Wednesday before bargain hunting subsequently supported the Dow to close at 11,269 points, down 1.5% for the week. The Nasdaq was down 1% to 2,508 points over the same period.

In the U.S., the University of Michigans Consumer Sentiment Index eased to a 30year low of 54.9 in August from 63.7 in July on concerns over weak U.S. job market and a volatile stock market. In view of the sluggish outlook for the U.S. economy, the Federal Open Market Committee stated it will maintain the Fed funds rate at the 0%-0.25% level until mid2013. Oil prices registered a weekly loss of 1.7% and closed at US$85.38/brl on concerns that slower economic activities in the U.S. could dampen global fuel demand. On the local front, Malaysias industrial production growth rebounded to 1.0% in June after contracting by 5.6% in May due to an increase in manufacturing and electricity production. Meanwhile, manufacturing sales growth rose to 12.9% from 7.5% over the same period in line with stronger growth in manufacturing output. On a weekly basis, the Ringgit strengthened by 0.4% against the US$ to close at RM3.002 while on a-year-to-date basis the Ringgit strengthened by 1.9% against the greenback. Looking ahead, investors will continue to monitor the outlook for the U.S. and global economies in the year ahead. Uncertainties among policy makers on whether to continue fiscal stimulus policies or consolidate fiscal finances have caused debt and equity markets in the U.S. and Europe to be volatile in recent months.

At the KLCIs closing level of 1,483.67 points on 12th August 2011, the local stock market is trading at a prospective P/E of 15.6x on 2011 earnings, which is lower than the markets 10-year average P/E ratio of 16.7x. The local market is supported by a gross dividend yield of about 3.8% which is higher than the 10-year average of 3.6% and exceeds the 12-month fixed deposit rate of 3.15%.
Other Markets Performance 12 Aug'11 5 Aug'11 Dow Jones 11,269 11,445 Nasdaq 2,508 2,532 TOPIX 768 801 SH Comp 2,593 2,626 China*, H share 10,453 11,435 MSCI China 5,795 6,202 Hong Kong 19,620 20,946 Taiwan 7,637 7,853 South Korea 1,793 1,944 Singapore 2,851 2,995 Thailand 1,062^ 1,093 Indonesia 3,891 3,922
* Hang Seng China Enterprises Index ^ Index as at 11 Aug11

% chng -1.5 -1.0 -4.1 -1.3 -8.6 -6.6 -6.3 -2.8 -7.7 -4.8 -2.9 -0.8

Bursa Securities Market Valuations^ 12 Aug'11 5 Aug'11 10 yr ave* FBM KLCI 1,483.67 1,524.43 PER'11(x) 15.56 16.66 16.10 Price/NTA(x) 4.03 2.52 4.09 3mth InterBk 3.28 3.29% 3.12% 12mth Fix Dep, % 3.15 3.15% *2001-2010 average ^PMB In-House Statistics

Malaysias Economic Snapshot 2009 GDP growth, % -1.7 Inflation, % 0.6

F=forecast

2010 7.2 1.7

2011F 5.2 3.5

Bursa Securities 10 ye ar P/E Ratio

30 25
P/E Ratio (x)

12 Aug '11 P/E on 2011 earnings: 15.6x

20 15 Average: 16.7x 10 01 02 03 04 05 06 07 08 09 10 11

BOND MARKET REVIEW: FORTNIGHT ENDED 12 Aug11

Public Mutual's Bond Funds Performance 12 Aug'11 29 Jul'11 % chng P BOND 0.9780 0.9705^ +0.8 PI BOND 1.0816 1.0746 +0.7 PIN BOND 1.0184 1.0163 +0.2 PEBF 1.0377 1.0415 -0.4 PSBF 1.0183 1.0157 +0.3 PIEBF 1.0935 1.1053 -1.1 PISBF 1.0157 1.0111^ +0.5 PIINCOME 1.0309 1.0263^ +0.4 PBFI 1.0608 1.0548 +0.6 PBIBF 1.1527 1.1445 +0.7 PBBMTN1 1.0289 1.0218^ +0.7 PBINFBF 1.0479 1.0420 +0.6 PIINFBF 1.0448 1.0369 +0.8 PSTBF 1.0476 1.0388 +0.8 PISTBF 1.0456 1.0346 +1.1 PSKF 1.0002 1.0000 +0.02
^ Adjusted for distribution.

BOND MARKET COMMENTARY For the fortnight ended 12th August 2011, the U.S. Treasury market strengthened as investors demand for safe haven assets increased on expectations of slowing momentum of global economic activities. Sentiment was also lifted by the U.S. Federal Reserves decision to keep interest rates unchanged at 0%-0.25% into mid-2013. The 10-year Treasury yield fell to a 31-month low of 2.11% on 10th August 2011 before closing at 2.25%, 55 basis points (bps) lower over the fortnight. The 3 and 5-year Treasury yields declined by 22 bps and 40 bps to 0.32% and 0.96% respectively over the same period. The Malaysian Government Securities (MGS) market closed higher as investors shifted focus from the equity market to safe haven assets. The 3, 5 and 10-year MGS yields declined by between 4 bps and 20 bps to 3.17%, 3.40% and 3.66% over the fortnight. The local corporate bond market strengthened in tandem with the global bond market with the 3, 5 and 10-year AAA corporate bond yields declining by 5 bps each to 3.87%, 4.14% and 4.69% respectively over the fortnight. In the money market, the spread of the 3month Kuala Lumpur Interbank Offer Rate (KLIBOR) over the yield of the 3-month U.S. Treasury bill widened to 327 bps from 320 bps a fortnight ago as the 3-month U.S. Treasury bill decreased by 8 bps to 0.01% while the 3-month KLIBOR fell marginally by 1 bps to 3.28% over the same period. Looking ahead, U.S. Treasury bond prices may experience some volatility in the medium term on concerns over the outlook for U.S. fiscal position, the stability of the U.S. dollar, higher inflationary pressures as well as the end of quantitative easing measures. On the domestic front, the MGS market gradually consolidate amidst normalisation of monetary conditions higher inflationary pressures over medium-term. may the and the

Public Mutual's Money Market Funds Performance 12 Aug'11 29 Jul'11 % chng PMMF 0.9988 0.9977 +0.1 PIMMF 1.0130 1.0119 +0.1 PBCMF 1.0058 1.0047 +0.1 PBCPF 1.0019 1.0008^ +0.1 PBICMF 1.0019 1.0009 +0.1 PBICPF 1.0032 1.0021^ +0.1
^ Adjusted for distribution.

Change in Interest Rates & Bond Yields 12 Aug'11 29 Jul'11 3 Month Interest Rates KLIBOR 3.28 3.29 U.S. T Bill 0.01 0.09 3 Year 'AAA'Corp. 3.87 3.92 MGS 3.17 3.21 U.S. T Note 0.32 0.54 5 Year 'AAA'Corp. 4.14 4.19 MGS 3.40 3.48 U.S. T Note 0.96 1.36 10 Year 'AAA'Corp. 4.69 4.74 MGS 3.66 3.86 U.S. T Bond 2.25 2.80
*in basis points
6 10 Years MGS MGS Yield

Chng* -1.0 -8.0 -5.0 -4.0 -22.0 -5.0 -8.0 -40.0 -5.0 -20.0 -55.0

3 Years M GS 2
J a n03 Oc t03 J ul04 Apr05 J a n06 Oc t06 J ul07 Apr08 J a n09 Oc t09 J ul1 0 Apr1 1

6 5 4 3

US Treas ury Bond Yield

10 Years US T Bond
2
J a n03 Oc t03 J ul04 Apr05 J a n06 Oc t06 J ul07 Apr08 J a n09 Oc t09 J ul1 0 Apr1 1

You are advised to read and understand the contents of the Master Prospectus of Public Series of Funds dated 30th April 2011 and expires on 29th April 2012, Master Prospectus of Public Series of Shariah-Based Funds dated 30th April 2011 and expires on 29th April 2012, Master Prospectus of PB Series of Funds dated 30th April 2011 and expires on 29th April 2012, Information Memorandum of PB Cash Plus Fund and PB Islamic Cash Plus Fund dated 1st March 2010, Prospectus of Public Capital Protected Select Portfolio Fund dated 29th July 2008 and expires on 11th September 2008, Prospectus of PB Capital Protected Resources Fund dated 20th August 2008 and expires on 3rd October 2008, Information Memorandum of PBB MTN Fund 1 dated 10th November 2009 and expires on 24th December 2009, Prospectus of Public Singapore Equity Fund dated 7th June 2011 and expires on 29th April 2012 and Prospectus of Public Islamic Treasures Growth Fund and Public Sukuk Fund dated 19th July 2011 and expires on 29th April 2012. These prospectus 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.

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