Stay cool, that's for worse case scenario (which I don't think would happen anytime soon)

ASNB got "very good" investment managers   

I don't think you can be lucky for more than 3 decades and 2 major economic crisis yet still be consistently providing returns that beat most estimates and/or benchmarks

Hold and ride it out. Unit trusts are long term investment which averages out the ups and downs over time. Besides, the value of your investment is still the same, RM1. So you just lose out dividends for a year or so but your value is still the same. Which other unit trust product gives you that? Heck as I've mentioned earlier, some UT products had negative returns during the 2008 financial crash.

If you're afraid if a catastrophic market crash than run towards FD or MGS but neither give you returns that come close to even 4% that you're so worried about

There's always possibilities in both good and bad times in the economy. We should by now realize that economics up an downs are just cycles which can trigger due to many factors that are beyond our control.

If an when the next economic downturn comes, the warning signs have come early enough for us to make preparations. As the Oracle from Omaha says, maybe it's time for us to be greedy when everyone is fearful?

Case in point: if anyone bought MAS shares after it did its stock split exercise or even you bought it less than 3 weeks ago, you could have made 9 cents profit just last week

Or a more relevant example regarding this thread; if those ppl ignored the early sentiment regarding as1m, they would be very happy now because they were greedy when so many were fearful

I like the quote.  Those invested "big amount" would be laughing all the way to the bank 

my prediction will be 6.30 - 6.50

Any non-bumi here managed to get some AS1M or ASW2020 units through the investment through the EPF?

I am planning to try to use my KWSP to buy some AS1M units through EPF..

For ASW2020, really not so applicable for me because i do not have the account for ASW2020...

as long as it is above BLR rate - 1.65%, i'd be safe 

i'm leveraging my ASB units

transferrinf my ASB units to AS1M to offset the ASB financing interest charges and still can leverage an additional 1.6 - 1.9%

Personally I doubt that they'll do that. Unlike PNB's variable priced funds, its fixed priced funds do not charge any sales charges which means that the management fees are its only income. Nothing is free in this world unfortunately hehehe

Hopefully new fixed price unit trust to be launched..haha....

Come out with the Amanah Saham 1Mission also never mind.. 

There are over 8 billion units and is this "buffer" enough. Maybe just enough to extract the last mile.

I'm not one to bursts everyone hopes but I kinda have a rough idea as to why SC would shoot down the idea. It is safe to say that all of PNB's fixed priced funds easily accounts for a large majority of the local stock market. If one is to assume that these funds make up say 1/4 of the entire market capitalization, any "run" on PNB where its investors decide to redeem their units would be catastrophic to the stock market.

Remember that these fixed priced funds are pegged at RM1 regardless of its actual NAV. Even if the NAV for these funds are MYR0.70, PNB still has to honor the RM0.30 difference by whatever means necessary, including liquidating its equity securities at fire-sale prices. This has to be done as PNB honors redemption transactions on the spot or issues a cheque for large transactions pretty much on the same day of the transaction.

If you put yourself in the SC's shoes, you can see the systemic risks that these fixed priced fund can cause in the event of a severe economic slowdown and a run on PNB. Having ASB+AS1M+ASW+ASD+ASM wipe out a large chunk of market capitalization is not only bad for the stock market but creates after-effect shocks that can shake the entire economy. Panic is not good for anyone.

My assessment that PNB's fixed priced fund make up 1/4 of the entire market capitalization maybe on the low side. Judging how large ASB alone is, one could speculate that PNB's exposure to the local equity market might be higher especially since its true equal is only EPF because Khazanah is allowed to diversify its investment overseas and you can't do a "run" on Khazanah . One can't simply withdraw from their EPF or LTAT or KWAP but one can easliy do so from PNB.

That's how I come to the conclusion that SC will not sanction future fixed priced funds but....

There's nothing stopping anyone from hoping and wishing there is

in 2010 PNB's fund size was rm150bil and TabungHaji -rm28bil while in 2012 EPF was rm527bil. Total KLSE size I think is rm1000bil. Not all these funds are invested in KLSE, alot of them are in Govt bonds which is why the yearly dividend is quite low but consistent. Many investors take these funds as safe-haven and only cash out when necessary cos it is easy to sell but hard to buy (esp for the non-bumi).

Most of the fixed priced funds are classified (by PNB at least) as equity funds and judging from their respective annual reports, their exposure to equity is between 70% to 80% of the entire portfolio. Since PNB is not allowed to invest in overseas equities so pretty much their entire equity exposure is to the local market.

I know I'm being pessimistic but I can see the reasoning for why the SC frowns upon new fixed priced funds. The potential systemic risk of a "run" on PNB and its resulting effects on the stock market is just too large. Except for LTH, no other GLIC is as liquid and fixes its price like PNB. As you rightly pointed out, LTH represents a small footprint compared to PNB.

Mind you, even though the size of KLCI maybe a trillion ringgit, but remember that PNB invests the billions it has mostly in blue-chip stocks.

I'm no math guru but I assume that if you take out PNB's fixed priced funds out of the KLCI, you could just easily wipe out a couple of hundred points. Imagine the effects to the sentiment of the markets if that happens

If can, i also want..

Also been a few times i write to ASNB to suggest to launch new fixed price unit trust..

Well, nothing much i can do, just try only.. Even if nothing happen, at least they know about this suggestion.. 

Well, said...

With the uncertainty outlooks in the current economy and the equity market, the demand for fixed price unit trusts are getting higher.. 

I think ASM and ASM2020 dividends are more stable.

I hope the AS1M dividend matches the other funds as the initial response was pathetic.

Yape, i am dying to even open an account for the ASW2020, and it seems impossible already..

Should have woke up early and set up a ''camp'' for early queuing in front of the ASNB agents during the previous additional units for subscription openings..

Too late to regret..