I just recently invest in the counter.... Not in BIG SUM fortunately.

the value drop more than 8% . What should I do ?



http://www.fundsupermart.com.my/main/resea...?articleNo=1719

This post has been edited by Irresistible: Nov 5 2011, 08:46 AM

Going by that, if you can hold on, there is a chance the NAV may recover partially from this.

Note that another bond fund, non-Islamic RHB Bond Fund did something similar - ie recorded 2 sharp drops in the past few years.

Makes you wonder.

really ? u bought it too ?

wonder about what ?

Makes you wonder why when normally bond funds do not drop like that, but the RHB ones seems to do so.

It means that the bond fund is not as defensive as you might think, and is taking risk way beyond allowable limits. In the prospectus they are only allowed to purchase BBB and above rated bonds, which is suppose to be very financially strong. So how does a fund like that can end up owning Tracoma bonds which is rated D? Also >20% of their other assets are also rated below BBB. Looks like very bad risk management for a bond fund, which is directly flaunting the allowable limits listed in the prospectus.

So next time before you buy anything, READ THE PROSPECTUS & ANNUAL REPORT.

Anyway since you have a foot into it, keep until the company liquidation is complete which can take anywhere from 6 months to a few years to recover some little cash. Remember, debtors get paid first, then whatever remains only given bondholders.

Anyway quoted from wiki...

Rating BBB: An obligotions rated 'BBB' has adequate capacity to meet its financial commitments. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligations to meet its financial commitments.

Rating D: has defaulted on obligations and S&P believes that it will generally default on most or all obligations

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Added on November 5, 2011, 10:20 amBacause they are flaunting or exceed their investment mandate as per listed in their prospectus, thus their risk factor goes up exponentially. Play with fire and get burned.

Most other bond funds in Malaysia generally only hold A - AAA grade bonds, which is investment grade.

This post has been edited by gark: Nov 5 2011, 10:24 AM

Went beyond what the prospectus said?

Just noticed this:


This post has been edited by howszat: Nov 5 2011, 10:38 AM

This fund has exit fee of 1% if redeemed less a year.


Why you should be so nice to incompetant fund managers?

This is what happen when invest $5 millions in 7.2% Tracoma sukuk rated D and committed more 10% of capital


how much can expect to recover from Tracoma,
when it has 2 lawsuits from Lembaga Hasil Dalam Negeri claiming more than $2.6 millions for payment of tax and late payment penalty anf the company itself has huge losses and cash deficit?

Profit Sharing : 15/85
Any capital loss tanggung sendiri

Tailou hedge fund charge 20% but any capital it must recover it first before it can continue to charge management fees


What Gark pointed is informative, but how many really read thru and understand fund annual report, just check out the management fees one page said this amount another page later said another bigger amount which one is correct? 300K a year worth it?

its mean shariah is not that safe as claim

Look at previous record...by RHB bond, 70%-80% claim rate?

Write-down of RHB Islamic Bond Fund Holdings

Memory Tech Sdn Bhd Owes- 5,054,883 Recovered - 58,778
Ingress Sukuk Bhd Owes -212,767 Recovered - 212,767

The recovery from memory Tech is only about 10%. For Ingress, it is lucky as the company did not end up bankrupt.

RHB Islamic Bond bought the $5M nominal value 7.2% Tracoma Holdings Bhd at a discount for $4.38M

There is another $8M nominal value 9.30% Ample Zone Bhd in its portfolio bought at cost $8.17M facing a recent downgrade.

A few week back

MARC has lowered its ratings on Ample Zone Berhad's (Ample Zone) RM9.65 million Class B Sukuk Ijarah (sukuk) and RM75 million Class C sukuk to BB+IS and B-IS from A-IS and B+IS respectively. The outlook on the ratings remains negative. The downgrades reflect a heightened risk that upcoming payment obligations in January 2012 will be missed, based on the unsatisfactory progress to date in collateral disposal. The negative outlook incorporates substantial uncertainty over the marketability of the collateral properties and execution risks with regard to the disposal of the collateral properties, as well as the approaching payment date for the sukuk.

Ample Zone is dependent on the realisation of the transaction's collateral to meet its forthcoming January 2012 obligations on both classes of sukuk totalling RM88.5 million, of which RM84.6 million relates to principal repayments.

Well, due to invest too much on the bond which incurred credit crisis really impacts the fund..

I just pump in some money b4 u guys reply this ...

I thought BBB & above is strong .... (from its prospectus). How to I know it did not follow its rules ?

Somemore, it is in Supermart recommend list.

haiz....

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Added on November 5, 2011, 8:46 pmWhere u guys get this info ?

This post has been edited by Irresistible: Nov 5 2011, 08:46 PM

for now, just hold n hope for the best. i guess ppl won't be complaining if it was doing well ..

lol, i don't even notice till i saw this thread.

take this as a lesson that bond fund is not as safe as 'fund manager' claim...

u are the one that recommend me this fund ....

Frankly, if drop 0.8 % ,its acceptable .

Bond fund ,conservative. but, now is drop 8% in one day.

ya off course, it's always one's discretion to purchase it or not.

so if it's doing well, would you have praised me here?

not anyone to blame la....

No show angry face expression'

i ask u buy amdynamic u dont 1

Good lessons for everyone to know what are the risks associated with bond funds.

Seems like RHB doesnt have good management on selecting their bonds. PM bond funds and Amdynamic bond are quite ok i guess.

OMG, never thought bond fund can drop like that....