All the funds listed on FSM is approved by BNM. The holding of each funds in entrusted to their individual fund's trustee. In case of FSM being bankrupt or otherwise cease to do business, your holding in each fund will still remain with the fund houses. PIDM does not cover Unit Trust, only deposits.

Basically FSM is like your ordinary fund salesman/advisor, even if the salesman quit or die, your holdings will not be affected.

This post has been edited by gark: Jan 6 2012, 07:17 PM

PM Cwcheah.. he has account in FSMHK

The annual management fees charges by fund houses is not determined by the distributor (FSM & Bank) but by the fund company (AmBank), so from whichever distributor you get it from, it is the same.

Probably the difference of the charges you see is the 'real' charges and the 'expected' charges.

Example, from prospectus the fund Annual Management Charge is written as 1%, but there are other 'fees' such as audit, printing, trustees etc which will raise the annual expense ratio to 1.05%. The actual annual expense ratio (1.05%) is what the fund holders pays no matter if you buy from FSM or the bank.

Psst... already got competitor.. CIMB clicks is currently cheaper at 1.5%.

Not all broker good one, some of them only concern of their own earnings by asking people to buy buy buy...and end up the investor is the loser. I estimate of all the brokers maybe about 20% are truly professional...

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Added on February 24, 2012, 12:02 pmFSM have almost no agents.. they only operate online website. Their sales charges are much lower compared to purchasing from agents. They earn money by having lower overhead and no need to pay agents. The other management and trustee fess are all the same. Example below a equity UT from CIMB.

1. Buy from Agent
Sales Charge = 6.5%
Annual Management Fees = 1.5%

2. Buy from CIMB Clicks (DIY)
Sales Charges = 2.5%
Annual Management Fees = 1.5%

3. Buy from FSM (DIY)
Sales Charges = 2.0%
Annual Management Fees = 1.5%

Which one will you choose?

Seriously, sooner or later UT agents is a sunset industry... look at other countries where most UT is traded online and even then UT itself is threaten by ETF which is steadily eating into UT purchases. The only stalwart in malaysia in PM, others such as CIMB, OSK, AMBank, Pacific all have gone online. Sooner or later market forces will determine the move to full online for PM....the question is only when?

I for one has moved all my UT to online, and now exploring it to move to ETF... for even lower fees... about 0.3% management fees per annum.

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Added on February 24, 2012, 12:15 pmBalanced funds is not worth it.... better to buy equity and bond funds to mix your self.

Just calculate this.. average balanced funds have sales charge of 2% and management fees of 1.5%, holding 50% bond in FSM
If you buy 50% bond and 50% equity separately your charges is much much lower, and it is easy for you to rebalanced themselves. If you buy 50%/50% then your average charges is 1% sales charge and 1.25% management fees.

This post has been edited by gark: Feb 24 2012, 12:15 PM

No probelm mah.. if your kid save has 30% (equity portion)exposure to Asia ex. Japan.. then you can also formulate yourself.

50% Bond Fund
35% Equity - MY
15% Equity - Asia ex Japan

Then you can select the best fund in each category. I always see that those 'rojak' funds never perform good as they have too many things to focus at one time.

Balancing is easy mah.. only need to once every 6 months or so. Open account, if bond highr % then switch some to equity and if equity higher % switch to bond loh. 2 menit job only.. no need to pay ppl do?

Having separate equity/bond also have advantage, you think stock over value.. then you can put more into bond and get to KEEP the switching credit during under value to where you switch from bond to equity. Or it you don;t want think so much, just keep it 50%/50% all the time, even OSK does that.

I do not like most of Malaysia's Asia ex. Japan.. cause i think they have no experience managing outside of the country yet... as always my favourite asia ex japan will be Aberdeen Pacific Equity Fund .. really good performer year in year out.

Otherwise you might wan to consider CIMB Asean 40 ETF...

This post has been edited by gark: Feb 24 2012, 01:49 PM

Deleted.. wrong info...

This post has been edited by gark: Feb 24 2012, 01:53 PM

Yeah sorry, too used to Singapores FSM.. free switching... hehehe my bad.

Balanced fund is a waste of time and money. You do better having your own allocation. And I noticed you come from financial services.... i wonder.

This post has been edited by gark: Sep 22 2012, 02:43 PM

Interest rate will affect the REITs more than cooling measures for the property price. If Interest rate start going up, then there will be a sell down for REITs.

Most interest rate in developed countries is already near zero, there is no way to go but up. The only question is when?

If interest rate in developed countries goes up, it will have ripple effect and other countries will follow suit, if not the currency will devalue as people are chasing the higher yield.

For the past 2-3 years REIT and bond both had a spectacular run, the question is when will the music stop...

Interest rate goes up when deflation is replaced by inflation. Yes current economies in USA, Europe & Japan is now over the deflation stage and recovering. They are beginning to turn from deflation to inflation. Meanwhile the inflation in developing countries are moderating from property speculation 1-2 years ago. SO you are correct that interest might not go up anytime now.

Anyway bonds and average REIT yields are so compressed now, only yielding at 150-200 bps above government securities is the lowest ever. Even if there are any more yield compression, i for see only about 50 bps or more UNLESS interest rate falls.

My argument is that MY REIT and BOND does not have much further upside, and the past 10-15% p.a. returns are history. All the risk is there, but the gains are limited.

Another risk is with property price, most MY REIT is now re-valuated yearly. If property prices is cooling off and or deflation sets in, then some of the highly leveraged REIT might hit the 50% debt/asset ratio. If that happens, they either have to raise cash by issuing rights or sell off some of their property. Also this is currently not happening but another risk associated with REIT.

Looking at SG REITs is generally yielding 300-400 bps over SG govt securities, which might offer better future returns, but there are higher risk as SG REIT is very highly leveraged, and previous downturn hits it quite badly.

This post has been edited by gark: Jan 17 2013, 10:05 AM

Added more units today for Aberdeen Pacific Equity Fund at FSM...

Switch out all my under performing Lion Global Japan Growth fund to Aberdeen Pacific Equity as well.

Lucky escape, only breakeven after 1 year of purchase... stupid japan UT bought during the earthquake...

Next target to load more into DWS China Equity fund & Templeton Frontier Markets...

This post has been edited by gark: Feb 6 2013, 08:05 PM

Also FSM what...

Yes 80% of my UT is in emerging markets... only left about 20% in S&P 500.. Been switching out European and Japan UT...

This post has been edited by gark: Feb 6 2013, 08:08 PM

I newbie wor.. teach me sifu!!!!!

What is UT ah? How to construct portfolio? How often to balance portfolio?

This post has been edited by gark: Feb 19 2013, 07:49 PM

Wah pinky want to play stock already.. guess UT too boring for you ah?

Sifu!!!! Teach me play stock!!!!!

Stock more exiting than UT, but don't speculate.... always have margin of safety in mind.

You still have not teach me anything ah sifu?

Wooo not so simple... for stocks not only you see the dividend but dividend can be reduced or stock price fall due to business and market sentiment. Your 'stock' can pay 8% dividend but the value drop by 30%.. then how? If very simple everyone 'kaya' already ooh..

Picking stocks is 100x harder than picking UT...

This post has been edited by gark: Feb 20 2013, 10:11 AM