Hi everybody,

Have some questions here :-

1) If I am holding 400K worth of ASM in-hand, and an announcement comes saying there are additional units available for subscription and each individual can only purchase, say, maximum 50K units; am I still eligible to purchase the maximum 50K units ?

2) If I should purchase for my children, what sort of scheme would it be ? If I should need funds for them later, how do I sell-off since the funds are under their names ?

Would appreciate some kind advice. Thank you.

The dividend also goes back to the EPF, because when it was first given, it's added up into the funds in hand.

Vargas, thank you. After waiting for so long, I'm glad to see your response,......

YOu are right, non-Bumis can buy ASM and ASW for the fixed-price ones.

If there are additional units up for sale, they will announce it in the newpapers.

Exactly, likewise, if you have a few hundred K of, say, ASW2020, it's also around 20K to 30K of free money. But then if we apportion out over 12 months, it's not really much, say-lah, if we want to go on retirement and just use this money to maintain our lifestyle.

So, let's not be over-confident, unless, of course, if you have RM 1Mil in ASW2020, then can-lah,......

This post has been edited by Lawyer1: May 29 2008, 01:38 PM

So you mean no matter how much we have above 200K in our ASB, we will still get the dividend based on the announced percentage on a maximum of 200K ONLY ?

This is not compounding then. Then this is not really good anymore.

I believed for ASM and ASW2020, the dividend is based on the available amount inside the account every month, thus, no maximum cap. This would be based on compounding effect.

Then I think the compounding effect acts on the total amount, and NOT only on 200K. It's just you are not allowed to put in more than 200K. But whatever you earned from the compounding after putting in a max of 200K is allowed and shall be compounded year after year.

Using the Rule of 72, if you have put in the max of 200K in the ASB Account, and you are earning an interest rate of 10%, it will take approximately 7.2 Years for this 200K to double into 400K.

I believed the RM 1 Fixed Price is in the original prospectus, therefore, I wouldn't think any party will have a right to change this, unless, of course they close off this fund altogether and return the money to the unit-holders.

As for the dividend rate, then yes - this can be affected by the new government.

Looks like this is the dangerous part.

Better stop queueing anymore to buy new units for the non-Bumis. Don't know the future risk,..........

YES, certainly there will be this possibility, and yes, this is certainly quite a big risk. The new Government will want their funds to be in place instead of the former government's funds.

Certainly past performance should not be used as future possibilities. However, I believed this company has a majority of the Bumis invested inside, and chances are, to fail, will be low, though not impossible.

Other instruments are not safe too, nothing is safe,........ Thus, we only look at which one has the least danger....

Darkknight, thank you,...... Yes, I am aware of the Sabah fund, and I believed there was an issue with the Johor UMNO fund too.

However, PNB is a totally different type of entity,.... it is a national entity, and not totally controlled by one state government or political party.

We must compare apple to apple,......Time will tell,......

I think what we are concerned with here is catastrophic failures. The sad thing is such failures have a higher chance of happening in Malaysia than anywhere else in the world because the regulators are, sorry to say this,... not smart enough, or easily persuaded to 'go along'.

Diversify some of your assets out of malaysia, that is the only way to go..........

Yeah,......... I thought of the same thing.

But based on yesterday's news, I heard the dividend for the ASN3 still remained at 7%. Many companies have already lowered their dividend, but it looks like PNB is still holding at 7% at this moment.

It will be good to observe next year on how resilient is PNB's dividend policy !

My friends, if you already have a certain amount parked with PNB (be it with ASB, or ASM, or ASW2020, etc,....), do be satisfied. Remember, do not put everything into only one basket.

Just a reminder here !!!

Looks like quite good demand, but if still available this morning,... then more people have chance to buy !

I am a non-bumi, I hold a few hundred thousand units of ASMs. All my dividends were reinvested into my principal sum in the last few years.

A few hundred units of which PNB fund please ? Didn't know there was new launching ?

Should put some money into the PNB Trusts. This should be one of the areas in our asset allocation model.

ASM Dividend Ann't coming this end-month,.... it's around that time of the year again.....

Don't know how much this time !

ASM Dividend going in these few days,.... 6.25% ONLY. Are the div units automatically added into the principal, or to be given out in the form of a cheque ? Any knows ?

Thanks....