Public Mutual is one of Malaysia’s largest and most established private unit trust management companies, wholly owned by Public Bank. It offers a wide range of unit trust and private retirement schemes that allow individuals and institutions to invest in equities, bonds, and mixed-asset portfolios.
Public Mutual organized its Investor Day featuring speakers that included a Fund Manager, an Analyst, an Economist, and a Financial Planner (I forgotten their names).
Recordings and screenshots were not allowed, but these are the main insights shared by Public Mutual’s investment experts:
- The team remains positive on both the US (technology driven earnings, interest rate easing, moderate premium) and China markets (pivot to consumption, AI, low market valuations, US-China trade truce) and advises investors to ignore short term noise.
- They maintain a bullish outlook on AI and semiconductor sectors, citing continued structural growth.
- Valuations differ across regions - US and China markets are currently trading at a premium, while Malaysia remains undervalued, presenting potential opportunities.
- Trade tariffs’ impact is expected to surface more noticeably in Q4 2025, as Q3 absorption was largely handled by sellers to maintain price stability.
- All central banks have lowered interest rates except for Japan. There is anticipation for further interest rate lowering in future to support economic growth.
| Market | Current P/E | Forward P/E | Discount/Premium (%) | Dividend Yield (%) |
|---|---|---|---|---|
| US S&P | 19.9 | 22.1 | +11.3 (Premium) | 1.3 |
| China HSCEI | 10.7 | 8.6 | +24.3 (Premium) | 2.9 |
| Malaysia KLCI | 16.1 | 14.1 | –12.7 (Discount) | 4.4 |
The US and China market is trading at a notable premium, reflecting strong investor confidence and high expectations for growth. In contrast, Malaysia are trading at discounts, indicating more cautious sentiment but potentially offering better value opportunities, particularly given Malaysia’s relatively high dividend yield. Investors seeking growth may favor the US, while those looking for value and income might find Malaysia and China more attractive in the current market environment.
During the session on mutual fund distributions, the speaker compared growth funds (incidental distribution) and income funds (semi-annual) to durians both desirable, like “Musang King” and “Black Thorn,” but offering different experiences. The key message was that both types of funds provide distributions, though income funds tend to offer more predictable payouts at fixed intervals. These distributions may come from dividends, interest, or occasionally from selling assets to maintain consistency. When a fund issues a distribution, its Net Asset Value (NAV) decreases by the same amount, as part of the fund’s assets is paid out. Investors who choose reinvestment will have these distributions converted into additional fund units, while others will receive the payout directly into their bank accounts
The final speaker, a financial planner from Public Mutual, encouraged investors to practice Dollar Cost Averaging (DCA) through PMO (Public Mutual Online) Direct Debit Authorization (DDA), emphasizing that consistently investing small amounts into Public Mutual funds can help build retirement savings over time.
Overall, the session was fairly basic in content and seemed more suited for beginner investors.
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