Don't forget need to get approval from board of trustees too. Board of trustee's approval for any income distribution is also needed on top of the board of director's approval if I'm not mistaken.

woah so many things needed to be done

I maybe wrong but another reason for the fund suspension is also because the calculation for dividend is done before the financial year actually ends. I'm no accountant but that can't be easy. Other UTMC calculate dividend after the financial year ends and does not pay out dividends on the 1st day of the new financial year.

Last month they intro me uob target income fund

Actually its United Target Income Bond Fund 2

Offer period is from 1 July 2015 to 14 August 2015

Yes , so have u bought this ?

Since dividend is calculated based on min bal in the mth, they need to impose 'cut-off' date to calculate the dividend amt

Nope

Most likely on Sept 30th

When my friend came across The Star article on the following article:-

The Star 1 USD = RM4.33

He told me that he will liquidate all his positions in ASNB fixed price fund if the reserves falls below 3 months because based on the article, Bank Negara mentioned that the country's reserve position was sufficient to finance 7.4 months of retained imports..

What do you guys think about his action and opinion?

Not quite sure the relation between ASNB products and the central bank reserves/currency. Unlike other UTMCs, ASNB's products only invest in local securities only with no exposure to foreign markets and/or foreign currency. Most of ASNB's products are also equity-heavy funds with minimal/limited exposure to MGS except in very2 few products.

The country's reserves are not just used for defending the local currency but also other factors of the economy. If you're to change your investment portfolio than you're better doing it by monitoring money supply/broad money indicators such as M1, M2, etc rather than central bank reserves. These indicators provide a better "pulse" of the economy as it determines the amount of liquidity available and also potential movements in rates by the central bank.

This post has been edited by hyelbaine: Sep 8 2015, 09:57 AM

Actually i think he has his points too. But i have mine and I will just share my views below:-

As you can see, the health of the country also depends on the central bank reserves. And it also stood as one of the key information for foreign investors to invest in our local securities.. Meanwhile, the total household debt and the low central bank reserves right now is not convincing enough..

Adding to the problems, politic instability and the transparencies of the nation are in doubt in the faces of the world. Foreign investment is the local securities are quite high..

I think the weakness in our local market now is the high ratio of foreign investments against local investments.

an interesting observation.

saw an old lady probably 60s topping up 5k for her ASW while another makcik in her 40s was planning to topup her ASD.

meanwhile a young man probably in his 30s withdrew 2k from his AS1M

This post has been edited by alexanderclz: Sep 8 2015, 10:48 AM

I believe this condition will proceed..

For us, its only a matter of not having enough bullets to deposit.. ^^

I've always struggled with that justification in the first para I quoted above. To me, it's just your BNP Paribas, Morgan Stanley and Goldman Sachs IB talk and rating agencies (those very same companies that rated investment grade investments on junk sub-prime mortgages) trying to justify their actions in the market. Personally, the current sell-off is more to do with the carry-trade or flight to safety due to the Fed's possible rate hike expected this month.

I agree that our local bourse has high exposure to foreign funds but that's always been KLCI's characteristics as a defensive market. When the world was in turmoil after the 2008 GFC, money flooded into our markets because of the same characteristics of our local securities markets.

Will we see funds coming back to EMs if the fed does not hike interest rates? Probably yes because EMs still provide more growth potential than the western economies can. Will China than roil the entire world with its PBOC propping up its stock market? Who knows as nothing is beyond them. They devalued their currency by almost 4% in just 2 trading days.

ps>> OK... cukup OT already

Just my opinions : I think his concern is if the reserves drop too low, the country may not have sufficient to fund the rtained imports. Since the transparencies of the country is not that good, the gov't might find ways to 'extract' funds out from whatever GLCs, incl PNB in order to stay afloat without depending on external help or issuing bonds for which there are coupons to be serviced. This can be done without us knowing or with minimal ann'ts.

With the dropping equities index, it is right and legal for the SC and PNB to 'convert' whichever FP fund to VP fund and realize the value of each FP unit, because this has already been declared in the MP. Upon realizing the value, whatever retained profit that has been accumulated in the past can be channelled to 'other uses', and need not be held-up in the PNB coffers to maintain good dividend payouts in future.

Having said the above, of course PNB must give out notice before they do the coversion.

Yes.. I also believed that there was his concerns at the first place..

well I guess the old lady & makcik give importance to savings & also don't know anything about the upcoming changes in FP ASx.

as for the young man, he could be using the $$ to sustain his expensive lifestyle or paying for something (maybe buying new Iphone )

Yape, talking about this..

Everytime when i go to Post Office, during the peak hours, there would be many youngster withdrawing money from ASB..

for them, ASB is like a savings account. the rest, investment.