That's why I posted here, after heard some rumour out there. All bullsh#tting along this fund, pay 4% blar blar (no offence ), without knowing the actual fact of the fund.

We have similar sister/brother fund ( ) ASM, ASW which people mostly understood one, why this one people cannot understand on it?

later if it pays like 10% those idiots will be the one crying fault for not snapping it up....my fren sibeh kiasu last night asked me no need buy say he also not interested but this morning already buy 50k

i don't know...
someone out there is trying to create a perception that this AS1M is unlike ASW2020 and ASM.

So actually i'm still trying to find out if there's any difference indeed... the first 'rumours' i heard was that this fund is not a fixed fund...

then i heard this is not capital guaranteed...

then i heard that the fund will not give a guaranteed return... but then again...did PNB mention that we will get above 6% return for sure for both ASW2020 and ASM???

PNB did mention 5% at least for ASW if not mistaken.....Cant be sure where I read it

He scared you buy also and your buying will grab his opp of not able to buy it.. So he kiasu lo.....

BTW, he is kaya also lo.. 50k.... if 50k, I prefer to dump in stock market by opting those high-yield dividend counters which are more than 6% annually excluded capital gain.

just brought it~ no much pll like when they launch ASN wawasan last few month~ manage to open acc within 1 hour! fast eh~ hahaha

4% is the projected return of this fund per annum. I think someone quoted this from newspaper 1 or 2 days ago.


Some do indeed yield very good return. Such as HSBC structured investments. The start up capital for certain HSBC structured investments is a bit too high though. For example, the minimum investment for a recently launched China fund is RM250,000 with a lock-in period of 4 years

I wondered how is Public Mutual capital protected funds performing ... Any idea ?


To be fair, this fund is still very new. Hence many are skeptical about it. ASW2020 and ASM weren't that popular either when they were first launched.


For the first year ? Yes. It could be. But then you will see the dividend continue to drop year after year. Just like ASW2020 and ASM. But i doubt it can yield 10%. Don't think it will give a better return compared to ASB


Those are very risky. But this one ? Not so much.

This post has been edited by MilesAndMore: Aug 5 2009, 07:31 PM

See this for Amanah Saham 1Malaysia vs ASM/ASW2020
http://innit.nuffnang.com/redirect.php?id=115549

Actually it is not a rumour, it is only an estimation as indicated by PNB's chairman

"According to PNB president and group chief executive officer Tan Sri Hamad Kamarul Piah Che Othman, AS1M will be benchmarked against the Malaysian Government Securities average 5-year yield which is currently between 3.7 and 4 per cent.

"Of course we target to do better," he told reporters this morning"

the above is in The Malaysia Insider Link, u can also check the link as follows:

http://www.themalaysianinsider.com/index.p...able-from-aug-5

4% is the current return of the benchmark which are Malaysian Govt Securities (MGS) not the return of the fund. ASM is bench mark against KLIBOR which yields 2% but ASM still pays out around 6-7%.

I think investor in both ASM and AS1M should be more curious about how they keep the fund as a fixed price fund even though they invested heavily in equities. If equities dropped 30%, the Net Asset Value(NAV) of the fund should decrease as well. So, how they keep it at RM1?

It is ok i guess if not much people redeem their investment. It would also be ok if they are people redeem and at the same time others are buying. The people who are buying is replenishing the money of those who pull out. But, what if, Malaysia suffer huge recession and equities dropped by 50%, so the fund NAV must also fall around 50%,and a lot of people who are jobless started to pull out their money? Some may say govt can repay back the money, but how the govt can get the money? Petronas paid RM 70 billion of to the govt this year. That is only 7 times the fund size of the AS1M and we haven't consider other fund yet which surely suffer the same problem of investor redemption. Govt can raise taxes to plug the hole, but in recession, the raising taxes will only makes the economy worse, so, it is an unlikely option for the govt to take. Do you think the govt will repay the investor first instead of using the money to stimulate the economy in a severe recession?

Anyway, this is the perfect storm or worst case scenario I am talking about la. The probability of that happening is low but it is possible. Think 1997.

I think part of the objective this huge fund launch this few months is to soak up some huge MGS that are being issued by the govt to fund the budget deficit. It is to make sure the govt borrowing cost remains low.

But that is my views la..Enlighten me if I am wrong..I am just a student

His ASM 1 year get 50k dividend leh you say rich bo? Those high-yield counters he also have quite a lot and other units trust as well

bro, can i know how long is the promotional period? thanks

from 5 Aug to 3 Sept

thank you bro, will get it next week then, btw, this afternoon, maybank at my area not really packed like the ASM last round, i think most ppl wana see how ppl response first after haering the 4% rumor

Because of this statement, people knowingly or unknowingly twisted and summarized the said statement to simply laymen term "AS1M gives 4%". The key words "bench marked against" got dropped out as words spreading out.

at present equity price, late comers sure get expensive stock..ASM n wawasan has come earlier to buy it than 1Msia

If you look the historical payouts of the AS* funds, they are a "smoothed-curve" type of distribution. When the sharemarkets were up significantly in the recent few years eg 2006/2007 giving returns of 20-40% for equities-based funds, the AS* were still giving out something like 6-8% pa.

Where's the difference gone? Well, they must have kept the profits from the good years so they can continue to give payouts during the bad/negative years.

As long as the funds can withstand the bad years by 1) Being big enough, which they are, and 2) Reputable enough so they don't get panic withdrawals, and which they also are.

Yup, there are as big as you can get in Malaysia. But, does their profit they make is reinvested into equities or they are able to hold on to it in cash? Or do they have a minimum portion of their portfolio to be in equities as per prospectus? It would be better if they can hold on to cash because during the falling market, in order to pay the dividend and to cope with the increase in redemption ( it is unavoidable during recession), they need to sell, but due to their huge size, if they sell, they have a huge effect on the market which in turn lose money on their remaining investment in equities. It is like a catch-22 situation..

Benchmark is benchmark, they are not guaranteed or expected to do it. It is just like a hurdle you aim to cross (in high jump), but whether you can jump over it or even higher, it is another story.

Yup, if treat it differently, one can treat ASM/ASB/ASW is just like gov investment arm borrow money from you (at 6-7%) so that they can invest.

The ability of giving stream of return which is higher than FD rate can come from MGS, previous decade of profit of equities etc.
Eg. they have made a lot of profit from previously year of investing, let say 50%, so now it is spreaded out to 5-6% pa which is not a burden for them. The fund is not aiming or like to be a UT (for fixed price at RM1 one), the aim is to let ordinary people to have alternative way to invest or just like what saving bond purposes.
That's why they have limitation of max amount on individual. As if no limit, those millionaire or billionaire will pour their fund into it instead putting FD in banks, which by then PNB will not able to pay out the yield already. That's why they need to control the amount of go in. As if it is too much, they won't able to pay the yield already.

Malaysia gov secruties/bonds are carring yield around 3.5%-4.0%, so if they solely invested in those area, they still achieve some rate which is better than FD rate, which is also a selling point already. As long as those ASx continue to pay some rate much better than FD, it won't have massive redeemption.

Yup, if equities continue to be poor over the next 10 years ro 20 years or something happen like 1997, which they can't generate any income, then yes, it is not sustainable to see them paying like previously.
Actually for the invested equities part, if those company still giving ok dividend, they PNB can pay the ASx holder already each year, if there is no redeemtion. Redeemption rate is very low in ASx fund, so it is not a problem for PNB to have a fixed price at Rm1.00 even though equities plunging.

If there is massive redeemption in poor equities market, then, yes just like what you had mentioned in the earlier post could be happening, but it is unlikely although not impossible, mainly due to the fact, equities price (for fundamental sounds company) always tend to go up over the long term.

They might not enter the market now. During promotional period most funds only go into bond market or money market