Well, if you look closely, the benchmark return for all other PNB fixed price funds (ASW,ASM) is KLIBOR which is way below MGS rate that AS1M uses. So, what is the issue? The reason your banks, you sales advisers, your fund managers create rumours about 4% return, 1% sales charge is to discourage you from withdraw your money from their funds, FDs etc. It's as simple as that, outflow of RM10 billion will hurt them the most hence the origin of the rumour.

Remember, this is long term fund... like somebody said earlier, the objectives is to try smoother the return i.e. 6-7% in terms of dividend each year. Just take a look at last few years KLCI performance:

2007 : 31.8%
2008 : -39.3%
2009 : 34.0% (as at July 31, 2009)

Tell me whether its logic or not to get 6-7%. Whatever profit PNB makes in 2007 was saved for the rainy days (we get 6-7%), it happens that the particular rainy day was year 2008. Now, probably there's a small hint of sunshine in 2009.

This post has been edited by Psyker: Aug 6 2009, 05:06 PM