I actually consider to buy amdynamic initially per ur advice, & ask advice from Kucingfight.

He said amdynamic is expensive.

Then, end up with RHB islamic bond.

bro, for bond funds, the NAV is just a number. bond is like buy and keep. Not really for trade.

If value drop & drop, u still hold meh ?

I mean, for bond fund, I don't expect a drop more than 3%.

8% is not easy to recover....

bro, please don put words in my mouth. u asked for advice/recommendation n i was merely sharing my thoughts.

i didn't mention amdynamic is expensive, i said there was a 1% exit fee. So, if u were ok with it, go on, no one's stopping u from investing.

again,coincidentally that this happened n u come crying out over spilt milk. so, IF amdynamic suffered the same thing, u would come blaming Mnet too?

just too bad it happened, n it's up to u to cut lost/keep it. i myself hold on to it, n yeah not all decisions are always rite.

If invest initial not big sum, maybe you can consider to top up..

Seems Public mutual is better in picking up the bond funds.

I never blame u la....

Its myself wan the cheaper alternative.

U just provide me info, I m the one that make the choice !

since it has dropped more than 8%, can we buy now?

It is not like the price dropped becos of market trend but bad investment decision on the fund manager's part. It is about doubtful bond. So would you invest on this fund base on the fund manager's ability?

possible make investment and then when they recover the debts, new holders will get the piece of cake too?

The person buying the bond fund should take responsibilty after all Supermart website was mentioned, failing to do own research

Dividend History

2001 7.0sen
2002 7.5sen

13 Jun 2008 2.14sen
26 Sep 2008 3.2sen

30 Apr 2009 2.5sen
30 Sep 2009 3.0sen

30 Oct 2010 1.5sen

30 Sep 2011 2.5sen

Just look at last two years distribution payout, isn't it clear that keep all your money in Maybank 1 year FD get better returns and never have to worry about your deposit capital getting less?


Pls take note most of the time "high post count" == mou lou, tarak otak advise/comments

This kind of ppl no matter how clever/good also very very limited lah

Yes bond fund have risk, but this RHB management is directly flaunting the mandate given by it's unit holders. By holding >20% in BB or less bonds, the fund manager is taking a higher risk bet than he is allowed to. If it pans out, then the fund will reap high rewards, if not then they suffer. Than is the meaning of risk/reward, it can cut both ways.

Ahem, although AmDynamic bond is doing well, about a year ago it too went beyond it's prospectus, it was also holding BBB and BB bonds in 2008-2010, but the bet paid off, that's why you see such big performance jump then. If the bet failed, you all will be cursing AmDynamic now...

Now they have reduced the risk substantially by holding A and AA bonds. Anyway the management is 'smart' to reduce the risk when the opportunities arrive. But RHB did not...

Before you buy bond funds there are several items you need to consider.

1. Rating from AAA to D, which signify the risk factor
2. Bond Duration, the longer the duration, the higher risk it takes.
3. Interest Rate, bond prices are generally inverse with Interest rate

Don't be mistaken, bond fund can be managed to be 'safe' or more 'risky' than the equity market.

Big multi billion companies that has bankrupt because of badly managed bonds holdings includes. LTCM (Russian bonds) and MF Global (Italian Bonds). Ever heard of company bankrupt because of investing in share market?

If you all want 'safe' but reasonable performance bonds look for the following criteria.

1. Bond Grade - A to AAA only
2. Duration - 3 to 5 years
3. Buy when interest rate is high....

This post has been edited by gark: Nov 7 2011, 10:52 AM

Not sure if anyone read it, but in the Interim Report dated 24 May 2011 on FSM, RHB Islamic Bond had 7.5mil and 4.6mil in B+ and BB & below grade investments.

Out of that, the 4.6mil is solely related to Tracoma Holdings Bhd, rated D (along with accompanying notes). That by itself should be a flag already.

This post has been edited by Dias: Nov 7 2011, 10:49 AM

1st - You are not sure of the recoverable amount and the asset write down. Some assets can only be sold as junk...

2nd - The liquidation can take from 6 months to >5 years depending on the 'saleability' of the asset and completion of ALL the court cases which is associated with bankruptcy. All the bank creditors, suppliers, LHDN, former employees will start suing if they are owed money.

Can wait so long?

This post has been edited by gark: Nov 7 2011, 10:51 AM

The remaining of 92% is B+ and above ..

Should be safe to invest lo... I think.

haiz, I just look at the top 5 holdings previously. Never look into its report.

Now, learn a lesson.

You should be asking why Ample Zone Bhd is rated B+ (non-investment grade). 7.5 mil is not a small amount to be sneezed at, considering the impact of the 4.6 mil Tracoma investment on the fund's NAV. The picture ain't pretty based on MARC's Oct'11 report.

http://www.marc.com.my/ratbase/pub.report....oid%3DAMPLEZONE

http://www.marc.com.my/home/userfiles/file...Definitions.pdf

Now maybe so.. but looking at the track record of the manager, if in the future he decide to gamble again by buying junk bonds then how?

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Added on November 7, 2011, 2:41 pmNegative outlook, have been downgraded 3 times and "heightened risk that upcoming payment obligations in January 2012 cannot be met", means might not have enough money to pay debt in Jan 2012.

It remains a time bomb at RHB Islamic Bond fund...

This post has been edited by gark: Nov 7 2011, 02:53 PM

What's the advice , switch ? Cash out ?

Even if it can't repay on January Repayment, it won't written it off , so fast, right ?

This post has been edited by Irresistible: Nov 7 2011, 10:49 PM

switch to equity

Why I can 't more info about Ample ZOne bhd.

Is it listed ?

What is its STOCK name is bursa Malaysia ?