MARKET WRAP: WEEK ENDED 2 SEPTEMBER11

Bursa Securities vs Public Mutuals performance* 2 Sept'11 26 Aug'11

FBM KLCI 1,474.09 1,444.81 FBMS Shariah 9,770.87 9,573.81 # MSCI FEXJ 480.87 460.85 MSCI World# 302.19 297.60 Local Funds PSF 0.6190 0.6060 +2.1 PGF 0.4851 0.4796 +1.1 PIX 0.7034 0.6879 +2.3 PIF 0.5658 0.5540 +2.1 PAGF 0.6492 0.6384 +1.7 PRSF 0.6058 0.5948 +1.8 PBF 0.6853 0.6816 +0.5 P SmallCap 0.6824 0.6702^^ +1.8 PEF 0.3019 0.2971 +1.6 PFSF 0.2569 0.2517 +2.1 PDSF 0.2710 0.2669 +1.5 PSSF 0.2931 0.2863 +2.4 PSA30F 0.3218 0.3170 +1.5 POGF 0.2655 0.2610 +1.7 PBBF 0.7863 0.7772 +1.2 PBGF 0.7679 0.7519 +2.1 Local Islamic Funds P Ittikal 0.8284 0.8154 +1.6 PIEF 0.3215 0.3147 +2.2 PIOF 0.2919 0.2866 +1.8 PIBF 0.2793 0.2754 +1.4 PIDF 0.3395 0.3320 +2.3 PISSF 0.2923 0.2863 +2.1 PISTF 0.2895 0.2842 +1.9 PIOGF 0.2734 0.2676 +2.2 PISEF 0.3458 0.3402 +1.6 PIA40GF 0.2490 0.2446 +1.8 PITGF 0.2497 0.2484 +0.5 PBIEF 0.2362 0.2302^^ +2.6 Foreign Funds PFES 0.2383 0.2334 +2.1 PRSEC 0.2078 0.2040 +1.9 PGSF 0.1696 0.1683 +0.8 PFEDF 0.2304 0.2226 +3.5 PFEBF 0.2046 0.2004 +2.1 PGBF 0.1987 0.1973 +0.7 PCSF 0.1715 0.1646 +4.2 PFEPRF 0.2279 0.2241 +1.7 PSEASF 0.2695 0.2655 +1.5 PFECTF 0.2542 0.2472 +2.8 PCTF 0.2069 0.1994 +3.8 PFETIF 0.2967 0.2873 +3.3 PNREF 0.2418 0.2370 +2.0 PAUEF 0.2480 0.2427 +2.2 PFA30F 0.2416 0.2338 +3.3 PINDOSF 0.2774^ 0.2774 0.0 PBAEF 0.2130 0.2089 +2.0 PBADF 0.2606 0.2564 +1.6 PBEPEF 0.1877 0.1827 +2.7 PBCPEF 0.1587 0.1543 +2.9 PBCAEF 0.2428 0.2384 +1.8 PBCAUEF 0.1964 0.1919^^ +2.4 PBSGA30EF 0.2468 0.2408 +2.5 PBAPENTF 0.2230 0.2169 +2.8 PBAREIF 0.2551 0.2520 +1.2 PBADBF 0.3101 0.3048 +1.7 PBINDOBF 0.2704^ 0.2704 0.0 PSGEF 0.2394 0.2360 +1.4 Foreign Islamic Funds PAIF 0.2514 0.2443 +2.9 PIADF 0.2227 0.2170 +2.6 PIABF 0.2098 0.2054 +2.1 PCIF 0.1803 0.1739 +3.7 PIALEF 0.2360 0.2295 +2.8 PBIAEF 0.2006 0.1949 +2.9 PBIASSF 0.1630 0.1580 +3.2 Capital Protected Funds PCPSPF 1.1168 1.1149 +0.2 PBCPRF 1.1105 1.1083 +0.2 # *Buying Price in USD ^^ Adjusted for distribution. ^NAV as at 26 Aug11. Non Business day from 29 Aug11 to 2 Sept11 % chng +2.0 +2.1 +4.3 +1.5

WEEKLY HIGHLIGHTS Led by a rebound in regional markets, the FBM KLCI rebounded over the holiday-shortened week to close at 1,474.1 points, up 2% for the week. Most regional markets rebounded with weekly gains ranging from 2% and 5% on expectations that the U.S. Federal Reserve is prepared for further monetary stimulus to aid the recovery of the U.S. economy. Looking ahead, market sentiment is anticipated to remain cautious in the near term as investors continue to focus on the slowing momentum in global economic activities and the ongoing sovereign debt issues in developed markets.

STOCKMARKET COMMENTARY Higher regional markets helped the FBM KLCI to rebound over the two-day trading week with the index rising by 26.8 points on Friday. The FBM KLCI closed 1,474.1 points to register a gain of 2% for the week. Average daily trading volume decreased to 0.7 bil from 1.0 bil in the preceding week while daily turnover in value terms fell to RM1.5 bil from RM1.9 bil over the same period. On Wall Street, share prices closed on a mixed note as investors remained sidelined by weak labour market data and consumer sentiment for August. The Dow eased by 0.4% to close at a 2-week low of 11,240 points while the broader-based S&P 500 Index fell by 0.2% to 1,174 points. The Nasdaq was unchanged at 2,480 points over the same period.

In the U.S, the labour market deteriorated with the non-farm jobs falling to an 11month low of zero jobs created in August after expanding by 85,000 jobs in July due to decreased hiring in the services and manufacturing sectors. Meanwhile, the unemployment rate remained unchanged at 9.1% over the same period. The Institute of Supply Management (ISM) Manufacturing Purchasing Managers Index, which gauges the health of the manufacturing sector, fell to a 2-year low of 50.6 in August from 50.9 in July on lower production. However, the reading remains above 50, indicating that manufacturing activities continue to expand for the 25th consecutive month. Consumer sentiment weakened with the U.S. Conference Board consumer confidence index falling to a 2-year low of 44.5 in August from 59.2 in July on the back of a lacklustre employment outlook. Crude oil prices rose to a 4-week high of US$88.93/brl on 1st September 2011 before closing at US$86.45/brl to register a weekly gain of 1.3% on expectations of lower oil production in the U.S. due to bad weather conditions. On the local front, Malaysias current account balance fell to RM23.4 bil in 2Q2011 from RM25.9 bil in 1Q2011 due to a lower trade surplus. Meanwhile, a surge in portfolio investment flows mainly into the Malaysian bond market led to an increase in the financial account surplus to RM44.5 bil in 2Q2011 after declining by RM6.0 bil in 1Q2011. Given that surpluses were recorded on both the current and financial account for 2Q2011, Malaysia registered an overall surplus of RM61.7 bil in 2Q2011 compared to RM15.9 bil in the previous quarter. On a weekly basis, the Ringgit strengthened by 0.6% against the US$ to close at RM2.97 while on a year-to-date basis, the Ringgit appreciated by 3.0% against the greenback. Looking ahead, the local and regional markets are expected to remain volatile as investors continue to monitor the outlook for global economic growth and the debt crisis in the peripheral nations of the Eurozone.
2

As at 2nd September 2011, the local stock market is valued at a P/E of about 16.0x on 2011 earnings, which is lower than its 10-year average P/E ratio of 16.7x. The local market is also supported by a gross dividend yield of 3.9%, which exceeds the 10-year average of 3.6% and the 12-month fixed deposit rate of 3.15%.
Other Markets Performance 2 Sept'11 26 Aug'11 Dow Jones 11,240 11,285 Nasdaq 2,480 2,480 TOPIX 770 756 SH Comp 2,528 2,612 China*, H share 10,664 10,300 MSCI China 5,964 5,708 Hong Kong 20,213 19,583 Taiwan 7,757 7,445 South Korea 1,868 1,779 Singapore 2,843 2,748 Thailand 1,065 1,037 Indonesia 3,842^ 3,842
* Hang Seng China Enterprise Index ^ Index as at 26 Aug11

% chng -0.4 +0.02 +1.8 -3.2 +3.5 +4.5 +3.2 +4.2 +5.0 +3.5 +2.7 0.0

Bursa Securities Market Valuations^ 2 Sept'11 26 Aug'11 FBM KLCI 1,474.09 1,444.81 PER'11(x) 15.65 15.96 Price/NTA(x) 4.21 4.36 3mth InterBk 3.27% 3.27% 12mth Fix Dep, % 3.15% 3.15%
*2001-2010 average ^PMB In-House Statistics

10 yr ave* 16.66 2.52 3.12% -

Malaysias Economic Snapshot 2010 2011F GDP growth, % 7.2 4.7 Inflation, % 1.7 3.5
F=forecast

2012F 4.5 2.7

Bursa Securities 10 year P/E Ratio

30 25 20 15 10 Average: 16.7x 01 02 03 04 05 06 07 08 09 10 11 2 Sept '11 P/E on 2011 earnings: 16.0x

P/E Ratio (x)

REGIONAL MARKET WRAP: WEEK ENDED 2 SEPTEMBER11

Regional Markets Performance 2 Sept'11 26 Aug'11 FBM KLCI 1,474 1,445 MSCI FEXJ# 481 461 China*, H share 10,664 10,300 SH Comp 2,528 2,612 MSCI China 5,964 5,708 Hong Kong 20,213 19,583 Taiwan 7,757 7,445 TOPIX 770 756 South Korea 1,868 1,779 Singapore 2,843 2,748 Thailand 1,065 1,037 Indonesia 3,842^ 3,842 Philippines 4,393 4,306 Australia 4,243 4,200 % chng +2.0 +4.3 +3.5 -3.2 +4.5 +3.2 +4.2 +1.8 +5.0 +3.5 +2.7 0.0 +2.0 +1.0

FORTNIGHTLY REGIONAL MARKETS COMMENTARY WEEKLY HIGHLIGHTS Most regional markets rebounded with weekly gains ranging from 2% and 5% on expectations that U.S. Federal Reserve is prepared for further monetary stimulus to aid the recovery of the U.S. economy. Regional economic activities were sustained with Chinas Manufacturing Purchasing Managers Index inching up while Hong Kong retail sales remained resilient. Regional markets continue moving global markets as the outlook for activities. are anticipated to in tandem with investors monitor global economic

# in USD ^ Index as at 26 Aug11

* Hang Seng China Enterprise Index

Regional Economies Snapshot GDP Growth (%) 2010 2011f China 10.3 9.0 Indonesia 6.1 6.3 Singapore 14.5 5.0 Thailand 7.8 4.0 Philippines 7.6 5.0 Taiwan 10.9 4.8 Hong Kong 7.0 5.0 South Korea 6.1 3.8 Japan 3.9 -0.6 Australia 2.7 1.2

2012f 8.0 6.5 4.0 4.0 4.5 4.0 4.5 3.6 1.7 2.0

STOCKMARKET COMMENTARY In North Asia, the South Korea and Taiwan markets rebounded by 5.0% and 4.2% respectively on expectations that U.S. Federal Reserve is prepared for further monetary stimulus to aid the recovery of the U.S. economy. The China Hang Seng Enterprise Index and the Hong Kong market registered weekly gains of 3.5% and 3.2% respectively. In South East Asia, the Singapore and Thailand markets rose by 3.5% and 2.7% respectively in tandem with regional markets. The Australian market registered a weekly gain of 1.0% as commodity stocks closed higher for the week.

Source: International Monetary Fund, f=consensus forecast

Regional Markets Valuations Estimated Prospective Dividend P/E Yield (%) (x) Australia 11.56 5.05 Taiwan 14.06 4.23 Hong Kong 10.80 3.71 China H Shares 8.78 3.67 Thailand 12.08 3.88 Singapore 13.19 3.38 Philippines 14.34 2.95 Shanghai Comp 11.65 2.52 Japan 13.49 2.40 Indonesia 15.06 2.21 South Korea 9.43 1.61
Source: Bloomberg, 2 Sept11
PER 26 23 20 17 14 11 8 5 1987 1991

MSCI AC Far-East Ex-Japan- P/E RATIO

Average: 15.62

2 September '11 = 11.25x

1995 1999 2003 2007

Chinas Manufacturing Purchasing Managers Index (PMI) inched up to a 50.9 in August from 50.7 in July due to higher output and inventories. Meanwhile, Hong Kongs retail sales growth was sustained at 29.1% in July compared to 28.8% in June on the back of resilient consumer purchases of food and clothing. South Koreas exports expanded by 27.1% in August on higher exports to Europe while imports increased by 29.2% over the same period. As imports outpaced exports, South Koreas cumulative trade surplus for the first eight months of 2011 narrowed by 3.8% to US$22.8 bil compared to US$23.7 bil in the same period last year. South Koreas inflation rate rose to a 3-year high of 5.3% in August from 4.7% in July on higher food, housing and transport costs. As at 2nd September 2011, the valuations of regional markets, as proxied by the MSCI Far East ex-Japan Index, is at a P/E of 11.3x on 2011 earnings, which is 28% lower than its 22year average P/E ratio of 15.6x. Following the recent retracement of regional markets, selected markets are currently trading at attractive P/E valuations of 10x and below, offering opportunities for value-based investors to accumulate undervalued quality stocks.

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