Are you referring to either AER/APR for the interest rates? I'm a bit confused with your query but will try to help where I can

Means no obligation

But what if we are really talking about compounded dividend for long term? Of course, we must have the ability to pay the installment for maximum of 25 years?

I think so

Now they doing 'social service" by giving Bonus

Wish they xtend d Bonus to other fixed pricing products

If not mistaken, they gave "one off" Bonus to ASW2020 & ASM sometime back

If they extend to others, Everyone would be

The 1 off pymt to ASW2020 n ASM comes from its own retained earnings
M refer to PNB

Really?

I tot PNB gave the money, not from the Funds retained earnings. When announce bonus for asw2020, all the newspaper praising PNB saying they use their earnings to pay it, "social obligation" crap thing. Now only I know they cheat me

Yes
Read ASM annual report for yr 2013

Do you have ASW2020 year 2007 Annual Report? I want to see what they said about the Bonus thing? Is that also "pendapatan Khas" or Bonus dari PNB?

Yes
No special dividend/bonus in yr 2007

I see

Thanks for the info

This post has been edited by davinz18: Oct 10 2013, 11:26 PM

Interesting exchanges on the dividend/bonus/retained earning.

I have been wondering what are their payout ratios (dividend/earning). On the high end?

Saw a few threads saying the dividends could be higher but they reserved some $ for the just-in-case future bad years. Is that true?

Can tell from the payout ratio or retained earning.

Cheerio

Hypothetically one could speculate that when times are bad, PNB dips into this "retained earnings" pool to ensure consistent dividend returns. Say economic cycles come in 10 year intervals, judging that some unit trust funds had negative returns during the last economic crisis (I only know of PM funds that suffered from this), if each "good" year PNB carries 1 sen into retained earnings when the time comes, they could easily still pay 6 or 7 sen dividends when others are suffering negative returns during the bad years.

I guess that's the benefit of being conservative in one's dividend payments. Yes other unit trust may look spectacular when dividends are declared showing high yields but at least with PNB, you know that you'll still get above average returns all the time.

Hopefully this will continue for a long, long time

From the past, they will pay dividend from the current year earnings
They will c/f a small % of current year earnings to retained earnings
The retained earnings will act as buffer in case of rainy days ahead

Thanks.

Roughly, how much do they keep aside? If it is a small amount, 0.1, 0.5%, I don't mind. If it is 2% or more, I would prefer to get the $ now rather than they keep it for rainy years. Looks nice on paper with steady dividends but I still think I will gain more without this artificial cap.

E.g. dividends for 5 yrs

case 1
1 billion keeping 0.2 billion as retained earning
1 billion keeping 0.2 billion as retained earning
1 billion keeping 0.2 billion as retained earning
1 billion keeping 0.2 billion as retained earning
bad year 0.5 billion plus special 0.8 billion dividend (from past retained earning)

case 2
1.2 billion
1.2 billion
1.2 billion
1.2 billion
0.5 billion

In absolute term, the amounts are the same in the 2 cases. But I prefer to get the $$ earlier on compound interest perspective.

We don't get compounded interest on retained earning in EPF, right?

Cheerio.

found this site...seems like related to what you sifus are discussing...

ASB is the only fund from ASNB that provides additional bonuses to their investors. That has raised quite a number of speculation with regards to the capability and sustainability of ASB. Is it even possible for any fund to provide returns even in the harshest of economy situation?
http://invest-made-easy.blogspot.com/2013/...g-loans-to.html

Agreed with yo comments
ASNB want to present consistent annual return to holders instead of 'Yo-Yo' trend
M not sure whether EPF have any retained earnings

Thanks for sharing the site.

The website got a lot of useful information & can clear some of the doubt

I've read the links on front page and I still don't 100% get how to get involved in investing the ASNB unit trust (through maybank2u). What I need to is register for an ASNB account at a Maybank branch and then link it to my maybank2u account through the website before I can start investing, is that correct?