Precisely my point! And also, there are many others simply posting here to increase post count. Not giving info, but yapping n crapping non-facts.

Point to note:

1) For every $1 profit, distribute 5 cents. Fund will last longer at least 5 years. Keep people money and profit in BN pocket better.

2) This is 1st Class Structured Investment developed specially for 3rd World people who cannot read or understand simple plain english.

3) Malaysia's exports, the mainstay of the economy, fell 22.6 percent year on year in June. Foreign investment has also seen a big dip this year, with foreign direct investment for the first five months stood at RM4.2 billion compared to RM46 billion in 2008.

Do you actually have people working in PNB to make these wild allegations?

Seriously, I got friends who know the operation, and you can be certain that they do consult Securities commission and the lawyers to ascertain the legality of their investments. Each of the funds are being managed by a different team of Fund managers, and they are not stupid people like you think they are.

You need more information, not retarded comments.

I suspect you see PNB as your competitor , and you have a stack in Financial industry threatened by the overwhelming response to PNB funds.

This post has been edited by soul2soul: Aug 6 2009, 06:12 PM

Thanks, we seriously need more filters like you. It annoys me to see ppl contributing trash in this post. With regards to the PNB competitor theory, I opine the same. Since the share market is expected to slowly pick up by the Q4 soon, I am totally not surprised.

soul2soul,

1) Are you OLD enough to know UEM reverse take over of Renong in 97/98?? If not, do a google and find out. Yes, securities commission suspended their rule to let it happened. And, the majority shareholders of UEM are the GLIC like EPF, PNB and so on.

I invested in UEM. I lost my money in UEM. From then on, I promised myself not to invest on ANY GLC or GLIC.

2) I believe bumi should invest in ASB. I believe non-bumi that invested in ASx to be "running dogs". They voted for this government with their money in spite of what is going on lately. So, if those non-bumi lose their money, they deserve it. I am biased. I believe people should vote with their money along with their belief. They CANNOT say they do not support the government but still give the government more money.

3) If you go back long enough, you will find that in every Malaysia recession over the past 30 years, the same thing like (1) happened.

Dreamer


This post has been edited by dreamer101: Aug 6 2009, 07:13 PM

Public Mutual Fund == PNB Fund = RETARD?

Capital guaranteed funds will guarantee that you get back ur money after a certain period of time say maybe 3 or 5 years. If you redeem earlier there might be a penalty for it. Most are structured products

You will get back RM1.00 per unit when you redeem. The problem is you will never know the performance of the fund. After 3 years, the fund per unit true value might be RM1.15, PNB will buy back your unit for RM1.00, the 15 cents retain by PNB. Of course you won't know since Buy/Sell price always Rm1.00

thats means we just earn the 3 years dividen only if after 3 years when we redeem it?

Not quite. ASx funds have their dvidends announce on a reqular yearly schedule. For fixed price funds, they're paid out to you in the form of additional units. ie, you have 1000 AS1M units, after 1 year they announce returns of 5%, which is given to you in the form of 50 additonal units.

Yup, this is true.

Fixed price doesn't mean surely good as well, got pros and cons.

Pros, investors don't need to scare of losing money.

Cons, there is no transparency like UT (which they reported their NAV daily). So if PNB actually make 50% from the fund money, and now you redeem back, you still get back the same Rm1.00 and never will be Rm1.50.

The extra profit made is channelled into smoothing the return rate will be given down to few years time.

1. It is a benchmark means the fund is aim to meet or exceed the benchmark figure. Just like you take money out of FD, your benchmark return rate from the investment should be more than FD rate is giving which is the most basic logical sense.

In my definition/view, the benchmark carries no credibility nor it signals anything. More like paper work and tellling only. Just like you sit on exam, you aim/benchmark to beat your friend or score 70 points. Whether it achieves afterwards or not, it doesn't relate at all. In other word, it is just a target set by you.

2. Although it is still the same for most people, they can't use the word guarantee.

If said fixed price, means they will fix the price at Rm1.00 as long as they could <-- but this doesn't mean guarantee as if something really bad happening, (which is unlikely but not guarantee), as if it did it could shatter investors confidence across, which gov won't let it happening, unless gov goes under as well. But think deeper, if gov goes under, your/our Rm in bank also won't spare from it.

As it is an equities fund, they cannot guarantee your capital. They also can make loss in equities market, once they loss money and no longer have Rm1.00 as same as initial capital, they cannot guarantee your capital.
Just they will maintain the RM1 fixed price as much as they could. If their portfolio loss 50%, while every unit holder made redeemption at fixed price at RM1, then it is not sustainable for them to do it anymore.

On equities part, over long term, it tends to rise, so chance of fund losing big over the long term is low as long as fund managers are doing an ok job. PNB fund managers also not stupid, they are investing in good dividend stock across as well. Although they might invest in some part on GLCs which has no good track record, but a lot of investment are on Sime, Maybank etc those big blue chips which paying good dividend one. Those corporate are money making machine for them. Even one might say Maybank might not as good as other better well run one (which I also view the same), still it is a money making machine for them. As long as they are making money for PNB enable them to pay 5-6% which is much higher than FD rate, little people will redeem their unit.
So RM1.00 fixed price is intact.
Also bare in mind, they are controlling how much money can be into those AS1M, ASM, so basically, they have lot of control on the fund running ability to pay annually.

The fund risk or only can collapse, if everyone invested Rm1.00 initially, and PNB use the money invested in equities and equities value drop let say 50%, then everyone redeem back at RM1.00 at the same time, then they will have some trouble already in this scenario, which is unlikely to happen.

Unlike capital guaranteed fund, the 90% of the fund money is parked at gov highly secured bonds or AAA rating bonds etc, which you can get back the capital after maturity. <-- that's where they can use the word capital guarantee because it is expected to be happening, unless those bonds also being defaulted, which is another different story.

3) Gov is running on budget deficit, funding need to come from some source, either raise borrowing, issue debt to foreign investors or source it from domestic. Actually it is not that bad for gov to source the funding locally. As instead paying 4-5% interest to foreigner by issuing foreign debt, why not pay to your citizen that eager to look for some return rate that higher than FD one? A win-win situation. Also locally our financial market got lot of liquidity which people save a lot in bank, which the money could be doing nothing actually.

I don't mean gov budget deficit is a good thing, too high deficit indeed a worry. Just instead getting money from overseas and paying interest to foreigner, it is better to fund it locally and keep the money flow within the country.

One of reason of budget deficit is due to stimulus plan.

replies in red

This post has been edited by soul2soul: Aug 7 2009, 09:21 AM

That's why I'm regretting over getting into MBB's HDBS Greater China Fund Almost 3 years now and I'll prob. get back my capital. Minus the interest

<< soul2soul,

1) Are you OLD enough to know UEM reverse take over of Renong in 97/98?? If not, do a google and find out. Yes, securities commission suspended their rule to let it happened. And, the majority shareholders of UEM are the GLIC like EPF, PNB and so on.

I invested in UEM. I lost my money in UEM. From then on, I promised myself not to invest on ANY GLC or GLIC.

You made bad calls in the stocks during the 1997 crisis. As a result, you lost some money, and you blamed the government for this mess.>>

soul2soul,

It is OBVIOUS that you have NO IDEA what the UEM incident is. So, I wish you best of lucks.....

Dreamer

This post has been edited by dreamer101: Aug 7 2009, 09:36 AM

Thank you. I wish you well and happy, and that you will find a safe haven for your investments oversea.

I think you ought to realize , not many people are as rich as you in Malaysia, and their hands are tied, options limited, and Government is their best hope. Take my uncle for example who only managed to save 8k through his 30 years of hard life, if not the government, who else can he trust? you?

bye

This post has been edited by soul2soul: Aug 7 2009, 09:54 AM

if not mistaken, that time Renong later they rename it to UEM something something and later...

consolidate the shares from 20 to 1...., if not mistaken...

---

Added on August 7, 2009, 10:05 am



may be a lot of people forgot that all these whatever funds need to invest into share market (DEPEND TYPE OF FUNDS, IF EQUITY WILL BE PUT A BIG PROPORTION INTO SHARE MARKET) ...and mostly if the fund managers choose wrong counters in their portfoloio, then that would be the lost for them........

from the PNB report for previous year, see some of counters they invested are tenaga, maybank, bat, public bank, etc etc....

so it is matter of you let ur fund mgr manage ur funds or u do your homework and try to invest ... like a pro or amataur.....

This post has been edited by Kamen Rider: Aug 7 2009, 10:10 AM

Anyone knows how many units for chinese are left now?

Seems a lot of people are questioning why the gov is seeking so much money from the public. I thought all these was already explained in the budget before when Najib said he would start a RM60 bil stimulus. And that RM60 bil is coming from bonds, sukuk and these PNB funds to try to draw out the RM350 bil worth of FD currently saved by Malaysians.

It's the same like the US saying they have a USD 800 billion dollar stimulus, you think their reserve got so much? They are running at a deficit and are just giving those banks like a paper saying they now have USD xx billion in credit with the government. At the same time the government sells their bonds at record pace to raise actual cash from the public.


But I think this AS1M will share the same fate as the recent ASM. The Bumi units will be unsold and the balance will be open to all races in Sept. Meaning if really ends up like ASM where almost the entire 50% units reserve for Bumi is unsold and AS1M being a new fund with no previous buyers, then almost the entire fund will be basically bought by non-bumis.




This post has been edited by skiddtrader: Aug 7 2009, 10:25 AM

ya lar. But do you know how PNB operates or not? They do get preferential treatment when it comes to IPO for all the bigshots, like the upcoming Maxis USD 2 billion IPO. They just need to hold the 30% of Maxis IPO and they don't even need to sell them at KLSE. Maxis will be paying PNB dividends.

That's why all the foreign stockbrokers and investors have been complaining about malaysian stock market - they are too illiquid.

You look at public bank counter, how much volume ? Not much right? Too little sellers in the market for quality stocks because GLCs and PNB are all holding these stocks for dividend purpose.

This is the reason why PNB can still pay out good dividends during bad times.

It all comes down to this:

Do you trust the government?

The people who don't like Dreamer01, refrains from PNB funds. I trust the government, so I buy PNB funds. It all comes down to your personal perception.