Taken from ASNB's latest posting on their FB page ( https://www.facebook.com/413717745430066/ph...pe=1&permPage=1 ). I've heard rumors that SC may not allow for ASNB funds to grow anymore via dividend (I guess they finally realized the loophole) so future income distribution (to use the correct term ) will be paid via cash.

Don't know how true the rumor but for as long as ASNB's fixed priced funds continue to represent a large chunk of the entire local stock market, it poses a systemic risk to the local bourse which is why I guess the rumors continue to spread.

Let us move to LTAT for the 2-3 times higher return! 15% for 2014! Dapat kah? Guess not.

AA
LTAT investment gurus are some of the best in the world with such consistent high returns over the last 42 years! True kah? These guys will be filthy rich if they worked in the private companies! Just curious, any one here knows what do they invest in? Shares, special deals with the you-know-who, etc?


BB
My gut feel says some hidden fat hands in there to achieve the high returns. I guess that is one way to please the armed forces and to secure their unquestioned services. Same thing in armed forces in other countries?

CC
Suppose I started with RM100,000 in LTAT 42 years ago, by now it will be about RM9 million now! 90 times increase!

Sorry for this off topic thread.

Cheerio.

If no compound, people will withdraw.

+1
If repeated, zerorise the post count

First and foremost, is this fund open for public? Or only for its members?

It is a wise move if expansion of fund is disallowed due to the dividend declaration. So that the investors won't have the feel "Ponzi scheme" as highlighted by few forumers earlier.
So if this happen, ASNB can only raise fund by launching new funds but not via the increase fund size due to dividend

Only for those who have grey IC. If not mistaken

Discontinue of re-investment for all Fixed price Funds?

For members ony

There's been persistent rumors that ASNB would no longer be allowed to reinvest income distribution of unit holders to cap the growth of fixed priced funds. As we all know, SC has not allowed for any new fixed priced funds to be launched by ASNB (ASB2 was an exception) thus dividend reinvestment is a loophole that allows the funds to continue to grow.

For now it's still rumors and nothing concrete. What is confirmed however the total fund sized combined of all of ASNB's fixed priced funds contribute to a huge chunk of the local stock market thus the persistent talk of systemic risks.

I don't have the exact figures but I've heard that ASNB's entire fixed priced funds translate to a couple of hundred points of the KLCI if everything were to be withdrawn

With regards to the comment on the ponzi scheme, I personally beg to differ. The funds have grown so large that no amount of "new money" can ever be enough to cover the income distribution to be paid for each fixed priced funds. ASB paid over RM10 billion in dividends the last financial year, I doubt "new money" into ASB even comes into half that total

I hope this is another one of the recent rumours (upon death of EPF unitholder, death of one of EPF's beneficiaries will result in the EPF money being transferred to a govt body XYZ and difficult to get the money out. This rumour is not true as EPF has explained in the news recently).

KLSE companies are worth a few trillion RM. ASNB has a few billions RM. But ASNB is not investing 100% of its money in KLCI. So looking from that angle, KLCI is not running out of room with this player, big yes but not over-stretching KLCI in my view.

Cheerio.

Many will be hoping that SC shares that view

hahaha now it's ASD unitholders turn to change their passbook


Next Waiting in line is ASW2020 & AS1M

This post has been edited by nexona88: Feb 23 2015, 03:12 PM

that's why when change passbook, don't give banks account number. tell them "suda lupa la"

p/s: agents didn't ask me anything about banks account number when I changed my ASM passbook

I come across that asnb do invest in local stable market but not foreign market. If yes, that will be huge impact on bursa. Even few hundred point. We now already struggle to be in 1800 zone, is struggling, not comfort...

If I'm not mistaken, only ASB2 is allowed to invest in overseas instruments. I remember reading it during its initial launch (up to 20% VOF) though I'm a tad bit too lazy to read the master prospectus to confirm this.

I do not believe that all the other products have such a clause that certain VOF of a ASNB fund can be invested overseas.

I hope that it would not be discontinued.. It is so difficult to bank in with the limited chinese quota.. Hope that this is just rumor

Actually it's not the 1st time ASNB pay dividend in cash / cheque.. I remember getting cheque payment for ASM years ago & also have tax unlike now

then it is not a fair comparison as it is not within our reach

Well. Any fund which particular for any members only often higher in return but its not come into comparison because it is out of reach for some of the people.