Ok here is a summary of ASM2020 for 2009, ASM1M report not out yet.

Holdings - 60% equity, 40% Fixed Deposits Equities is overweight in Financial and Service counters

Shareholder's capital - RM 11,015,100,000
Earnings - RM 689.44 million
Management fees - RM 122.25 million or 1.02%
Net earnings - 567.21 million
Net earnings margin - 5.15%

Dividend - 587.7 million with 20 million of retained earnings from last year
Dividend - 6.3 sen per share net
Dividend payout = 103.61%

If you invest in unit trust with 60%:40% ratio you will be paying approx = (0% x 0.4)+(1.7% x 0.6) = 1.02%
The is no cost advantage vs. investing in unit trust which is negligible for earning of 5.15%. Also you might save 1%-2% for a one time transaction costs only.

The only advantage it the fund is tax free until 2016. Bumi lots remains largely unsubscribed. For ASM, the holdings are almost the same except that they have slightly higher equity holdings at 67%, management fees and dividend also similar.

For me the fund is not worth it to me to line up and beg for it, have a quota basis and have maximum investment value for a paltry 5.15% earnings. I always wonder why the uncles and aunties all rushing to buy it? Hysteria or mass media? The only good fund is ASB, with very very low cost and lots of government help. If you are not entitled for ASB, then might as well go for other fund houses. Or even buying REITS on the share market nets you higher dividend than ASM or ASW2020.

This post has been edited by gark: Feb 24 2010, 01:02 PM

A common misconception on the investment portfolio of Unit Trust vs. ASM (or similar). Unit trust and ASN both take management fees. You can read up on the comparison a while back. For unit trust you are investing all your money in risky ventures, while ASN usually invests only 60% of the money in equities, while 40% of the money is in NIDs. If you do a proper asset allocation you also are able to manage your own money effectively. People lose money in unit trust because they are too greedy. In fact some people make returns of 40%-50% during the 2008 financial crisis.

This post has been edited by gark: Feb 27 2010, 09:07 AM

'Bumi' is not reluctant to invest in AS1M, they just have a much much better opportunity which is ASB. Whey put your fund elsewhere, when you are virtually assured of getting much better returns at ASB? AS1M will not collapse cause the chinese/indian have no where else to put their money in a semi-risk free investment. PNB knows this and so do our government.

Can you think of any reason, why they might want to share the cake? Me neither, so I do not think it will happen anytime soon.

Anyway those who invest in AS1M are mostly people who have their entire life savings in FD, hence they are looking for semi-guaranteed investment funds which pays a couple percent more over FD rates. Most of the money invested in AS1M used to be sitting for ages in the fixed deposit rate earning a small interest, yet they are content. If they know or dared to enter other investment, they would have invested their money that long ago. I am sure they are content even if AS1M announce 5-6 cents dividend 'as long' as it is higher than FD and EPF. Most of the people that I know who invested their max amount in AS1M have 100's of K in 60 months FD.

You have misunderstood, PNB is not set up to make money, in fact they have other motives. They wouldn't care less if the fund is not filled or they do not make money. Think about it.

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Added on March 28, 2010, 9:54 pmOn the side note, anyone noticed that 50% of ASB's holding is concentrated in two companies, which is Malayan Banking and Sime Darby? If either one of these company run into financial trouble, we would have a riot on our hands.

This post has been edited by gark: Mar 28 2010, 09:55 PM

Unfortunately the chinese quota is already 95% full, so your theory does not hold water.

Waiting to be given handouts...... Not my cup of tea even if it have 30% returns......

This post has been edited by gark: Apr 9 2010, 09:28 PM

It's a matter of principal that I will not invest in 'such' funds...

This post has been edited by gark: Apr 11 2010, 10:22 PM

Why are you so sure of that? Even ASM also have not banished the quota entirely. We will always have to wait for crumbs from the govt.

Is it? Well thanks for updating me. My mistake then.

Then you have to think and work hard for yourself, as of now, there is nothing good left for you that is offered by ASNB. Good luck and welcome to reality.

This post has been edited by gark: Jun 14 2010, 03:17 PM

wrong post

This post has been edited by gark: Jun 14 2010, 03:10 PM

Welcome to Malaysia! Now you know the real situation.

This post has been edited by gark: Sep 28 2010, 09:23 AM

Hmm the annual report for AS1M is still not out yet? I can't seem to find it anywhere is the ASNB website. I am interested to know their actual performance for 2010, see if they can beat the benchmark. The financial statements would be nice to read to, to check how are they deploying the funds.

A little bit of google can get you answers already. Don't be so lazy.

1. Income - Equity = Invest in the income (dividend) generating stocks in the market. Usually slower but stable growth.
2. Growth - Equity = Invest in growth stocks for capital gain in the market. Usually higher but riskier gains.
3. Balanced - Equity & fixed income = Means will invest in both growth stocks and market instruments, at roughly 1/2 of each to both generate capital gain & get interests from bonds, deposits etc. A balanced risk and growth.

There are many ways to transact stock exchange. There is the dark pools, married deals or off the books deals. These deals do not follow the market price, so some stocks can be bought cheaper than what is available on the market. All these transaction will be reported to the bursa, but not to the public. Also these transaction is legal, so the auditors will not have a problem with them. I am not implying anything, but this is another way to look at it, why the returns are not similar.

Or they buy at below market price via non-exchange deals.

Do you even know how funds work and calculate their earnings? The size of the fund does not matter when calculating earning. What matters is the fund weighting in the fund in terms of percentage. If the weighting (%) holdings is the same, it does not matter if the fund is small or big, they both give up the same % earnings.

Example:

You have 100,000 shares in company A worth RM 1 each = 100,000 x 1,00 = RM 100,000
Each Share gives you RM 0.10 dividend = 100,000 x 0.10 = RM 10,000
Dividend earnings = 10,000/100,000 = 10%

Next, comes fund with 100x less assets....

You have 1000 shares in company A worth RM 1 each = 1000 x 1,00 = RM 1000
Each Share gives you RM 0.10 dividend = 1000 x 0.10 = RM 100
Dividend earnings = 100/1000 = 10%

See both comes to the same value.

This post has been edited by gark: Dec 30 2010, 02:39 PM

I know how to read the financial report, even if the income is from trading or capital gain, if the same counters are held & traded similarly no matter the fund is small or big, the % returns should be the same. The dividend calculation is an example of a % gain is similar no matter the fund is big or small.

This post has been edited by gark: Dec 30 2010, 05:45 PM

Very hard to talk to you, since you do not believe that % matter, so I won't bother explaining anymore to you. Anyway if ASB formula is so successful, then why can't other PNB funds copy the exact same % and get the same returns?

The discussion here has nothing to do with racism, in fact I have advocate many times that ASB is one of the best risk adjusted investment out there to forumers. The questions started on why other ASN funds do not copy ASB's formula if it is so good?

This post has been edited by gark: Dec 31 2010, 09:12 AM

Not all bond funds are the same. There are different type of risk in bond funds depending on the holdings, rating and the bond holding period. For PM bond funds I would rate it as short-intermediate term, AAA bond fund. These are the funds which are not likely to lose during economic downturn and will usually gain the most during market crashes and/or when the government lowers the interest rate. However for the protection you would expect lower earnings of about 5-6% per year (does it not look like ASW2020? )

You have to know what you are holding to determine the risk. Investing in UT does not means you do not need to know anything also can gain money, it takes research as well, albeit less than equity. For me I am have higher risk appetite and prefer intermediate/long BBB rated sovereign bond funds.

This post has been edited by gark: Feb 18 2011, 04:32 PM