Historically always Feb, after CNY.

Xuzen

My HR and Accounts department opined to maintain status quo at 11% because:

I) They don't want the extra work to change this and that

II) They said is only a short term thing (21 mths).

III) 3% drop is actually not a lot for low salary. Most of the small wage owner will get less than RM 100 extra in their pocket. For larger wage owner, they don't f3cking care that extra 3% in their pocket.

Xuzen

NB: Point III) is my opinion.

Don't worry, your KWSP dividend is coming!

Nothing to worry at all....

Xuzen

I) Since I am not in HR or Finance dept; I only listen to their opinion aje. But I agree with you that the final say shall be that of the individual employee.

III) The jury is still out wrt this matter. We will know the truth when three months later KWSP / MTUC / FOMCA publish their statistic.

Xuzen

This post has been edited by xuzen: Feb 2 2016, 01:23 PM

This is my opinion between KWAP & KWSP:

I) KWAP is what we termed defined pay-out scheme. This means that come rain or shine, KWAP must pay out the a definitive cash flow to its beneficiaries. In this case it is usually a % of last drawn salary until the beneficiary attain mortality (sampai mati!)

II) KWSP is termed defined contribution scheme. This means that come rain or shine, KWSP members must contribute a definitive amount of cash-in to KWSP until a certain age. In this case it is (11% + 12% of last drawn salary) until age 60.

III) KWAP ROI is of no consequence to its beneficiaries; meaning, ROI good or bad... you still get the same fixed income. If KWAP get good return; to the beneficiaries... it is only a "syiok sendiri" news.

IV) KWSP ROI is slightly better news to its members because based on historical trend, when its ROI improves, the dividend declared trend higher despite members putting in the same amount of contribution.

Xuzen

p/s Perhaps it is coincidental, but I do notice that of the big govt investment arm.... two of them that has bad publicity are helmed by UMNO office bearers (case in point: FGV by Isa & LTH by Rezeez).

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This post has been edited by xuzen: Feb 22 2016, 03:02 PM

I guess is fair since Armed Forces face much higher occupational hazard than us normal salaried workers. To give better emolument / financial reward may be necessary to retain / attract talents.

Xuzen

For a financial product to be shariah compliance, there cannot be any element of RIBA i.e., ursury built into it.

If the product has a fixed guarantee return, it is considered a fixed interest aka riba element.

Xuzen

This post has been edited by xuzen: Apr 13 2016, 07:12 PM

Some salient points from the interview:

I) KWSP-MIS will be going online and to allow members to go direct UTF investment without agent. In future life is going to get more suckish for an agent, yes? @Sniperz!

II) KWSP-EFM management fee is around 0.25 to 0.30% p.a., versus 1.5% p.a., we retail investors are paying. But the KWSP CEO do not forsee a drop in annual management fee for KWSP-MIS for retail investors.

III) KWSP is sending a lot of their front line staff to get RFP qualification to provide quality professional advisory service FOC to members.

Xuzen

This post has been edited by xuzen: May 6 2016, 11:24 AM

CEO Sharhril says the fee drop is similar to how stock-broker experience. it was used to be 0.6% when using stock-broker, but nowadays online platform only charge 0.20 to 0.25% p.a. It is more than fifty percent drop.

Similarly, an agent fee will follow similar suit.

Xuzen

For the past three years, KWSP-MIS UTF(s) were doing double digit growth. If you have not participated in it, that is an opportunity cost loss.

Xuzen

2H Yr 2015 till now; a lot of hot funds are down....

But think of it this way; We all know that KWSP is heavily exposed to Malaysia large cap and Malaysia Gov Bonds. So, if you participated in KWSP-MIS program, it is wise to choose small cap and corporate bond exposure. This is what diversification is all about.

If you have bought into KWSP-MIS that are exposed to Asia-Pac ex-Jp, you will see significant loss, if you see it from a myopic point of view. But if you were to think along a bigger picture, it is not usual to have all the region down at the same time. And if it does, that position will change very quickly.

So, to change your view point a little, think along this way: You know that most Asia-Pac ex-Jp fund is down, but KWSP is not. That is the beauty of diversification. Imagine if your retirement fund is 100% in KWSP and for a certain reason M'sia economy were to tanked like Greece (unlikely to happen), your loss would really be disastrous.

That is why for long term retirement planning, having exposure to various asset class and geographical region is a good risk mitigating strategy.

Xuzen

When market is bullish, you simply throw a dart, most UTF's NAV will also be on the uptrend. When market is bearish... this is the time you will separate the wheat from the chaff.

Like now, it is the best to study the behavior of the UTFs. Which is able to mitigate risk better than the other.

Xuzen

Earlier this month (May 2016) during the interview with BFM radio station, KWSP CEO En Shahril said the target return of KWSP going forward is Inflation plus two. We know that the official Malaysia inflation rate is around 2.XX%, we should expect the coming year KWSP dividend to be around 4.XX and not more than 5.0%.

Don't just hope, get informed! Then plan ahead.

Xuzen

My first tranche from KWSP a/c 1 into Eastspring is mid 2013, up to now it is around 30 mths invested with Eastspring KWSP-MIS. This is my 3rd UTMC switched i.e., from Pub-Mut to Eastspring.

NB: I did not take into consideration the calculations from my previous (since 2006 - 2009) with OSK (now is called RBH) and Pub-Mut (2009 - 2013) times, simply because I did not keep good record. But if I remember they were in low teen range during investment with those previous UTMC.

For this Eastspring era I did not withdraw it in fix period, I take it as I suka-suka and I did not mark down the date exactly when I withdraw subsequently. Hence I am unable to calculate the IRR exactly.

In lieu of that I just use my present capital withdrawn divided by 30mths (i.e., the total length of time invested with Eastspring so far) = pmt, N = 30, PV = 0, FV = my current NAV. Now I need to calculate the I/Y x 12

The calculated I/Y x 12 = 9.XX% p.a.

Some story telling time:

I first started with KWSP-MIS way back in 2005 or 2006 with OSK (because OSK next door to my work place, very convenient and those days no internet, all must be submitted manually) because I gatal-gatal wanna oomph up my KWSP investment. At that time I do not know anything at all about investment. But somehow I by lucky chance know that if I put 50% in KL-Tracker and 50% in OSK Money Market, I can tolerate the swing in volatility. This was not even taught to me by the then agent.

Perhaps another reason why I chose KL-Tracker and OSK-MM is because their sales fee was 1% & 0% respectively. See! Even before all these low fee issue become a hot topic, somehow at the back of my unenlightened mind, I knew that low fees was the way to go!

Then I started asking a lot about investment to who else? My accountant lar! My accountant also don't how to answer me because traditional accountant do not know about investment. So that accountant introduce to me the course CFP™ by FPAM. And I went for it! And boy, I learn so much and gain a lot of investment knowledge from it. Hence that is I why I am a huge advocate of CFP course.

Some fellow student there then asked me to become agent so that I can save on fee. And I bodoh-bodoh become a Pub-Mut agent to save on fees. Those days seriously no FSM or any other DIY platform, you must go through agent, and the best agent for me is myself!

From 2009 - 2013 I become Pub-Mut agent and saved some fees because the fees were paid back to me. Some of the funds from Pub-Mut I remember participating are PSF, PRSF, PISEF, PIBond, PSBF etc.

Then in 2013, I switched to DIY platform because they became more widely available.

End of my story.

This post has been edited by xuzen: May 30 2016, 12:44 PM

Sorry typo: should be RHB as in Rashid Hussein Bank, not RBH ( Royal Bank of Hollan)

I am just an employee of a business. I am not a business owner. I do not hang leg, I work a regular 9 to 5 job. Because I am not a business owner and I am a 9 to 5 salaryman, I have to create additional income by investing in a passive manner that is within an acceptable / tolerable risk to reward ratio. Passive as in I cannot be in:

I) MLM, UT or Insurance chasing after people to buy those stuff,

2) I don't have the luxury to sit in front of my computer monitor to look at Forex, Stock Market, futures, options or binary trading etc.

I say, you don't have to be in an extraordinary position to do extraordinary things. I am your template of an everyday regular Joe doing regular things to achieve extraordinary result. What I am doing is be mindful of the types of investment in the market (its risk, its cost) and the tax implication of each of them.

Xuzen

This post has been edited by xuzen: Jun 1 2016, 12:24 PM

Lu manyak kacau lah! Kasi olang manyak kerja only!

Measurement of performance = one year later Abang Shahril will announce to the media and trumpet the performance of the Shariah component. If you don't hear anything, means the performance is lau-sai wan!

Diversify? Shariah component will still invest in KLSE lar... what sort of diversification are you talking about? You want diversify? Participate in KWSP-MIS and buy foreign exposed UTF. That will be diversity.

Xuzen

For those who will opt for I-KWSP, it is my opinion they are not doing it for the ROI, but rather for their religious belief.

A slight drop of 1 or 2 percent is peanuts to them, for they belief the real reward, the one that is permanent is to begotten not in this world but the here after.

So arguing it from the perspective of ROI is a moot point for them.

Xuzen

This post has been edited by xuzen: Aug 11 2016, 01:47 PM