It just shocks me how gullible people can be. If only these people understood how unit trust works and stop listening to rumours, they might be able to avoid making such stupid mistakes that some are making right now 

Mind to share yo concern?

If you've read the previous threads that you would know that this has been discussed before. It's the job of the fund manager to ensure enough liquidity to honour redemptions while at the same time ensure that funds are properly invested and well diversified to ensure that the NAV does not deviate too far from the RM1.00 while all at the same time hunting for yields.

This is the same challenge faced by fund managers such as EPF, KWAP, LTAT, TH and any other UTMC that practices the same model. To these organisations the true NAV fluctuates but for companies like ASNB who are registered UTMCs, since the trust deed and the fund characteristics are as such that the value of each unit is still RM1 regardless on the actual NAV so it is the responsibility of the UTMC to honour it.

Try recalling back to 1997/98, did EPF, TH or ASNB failed to honour the RM1 pledge? If you weren't born yet at that time, you may want to ask your parents about it. How much financially did it affect them? Who knows.

None of these organisations discloses the actual NAV as I believe that they're exempted under the rules applied MFRS so even if you read the annual report page by page you won't find the NAV. You can never ascertain the NAV because you wouldn't know at what entry point for a particular security from which the fund enter or exit from. The annual report wont tell you the cost of each and every single transaction that was made because NAV also takes into account those things.

You can glean a lot from the annual report but not everything. You want to know how well is AS1M being managed? Looked at the MER of the fund.

Investment of any form has risks. Even if you keep money under the pillow has risks.

The bolded part. so it's mean starting 2016, all Fixed price fund change into floating NAV just like ASG or any other UTs 

If they change to floating, the principal could be affected thus reducing the final value. So if its fixed, principal will not be affected . Dividend will be added to the principal. Hence at the end of the day, regardless what's the NAV, your prinicipal is not reduced. But you gained the dividend.

I will rather they hold it at RM1.00. At least my prinicipal will not be affected. At least you know at the end of the day, you will still get some profit rather than worry about the condition of the market. Small profit better than big profit with risk. Like dreamer said, China and Greece is not going to recover anytime soon. Some more got 2 years to go.  After that 2 years, I can assure you nothing will change.    So for the time being, in my opinion fixed price is the way to go.
Search the thread a few pages back (don't know how many)

Ok. We wait for 1st of January and see what's the condition.

ASNB has no authority to determine whether the fund should be fixed price or variable price, the authority lies with the SC.
I guess SC has to take a look at the ASX's latest NAV before permission is granted to extend the exemption. So the question now is how good is the ASX's NAV now? Is there a way to check fixed price ASX NAV? I've tried before, I couldn't find it.

I get what you meant. But this are the only fixed price fund in Malaysia if I am not mistaken. Correct me if I am wrong. Like I said before this, if they were to change it to floating, people will make a bank run for it including me.  Do they want to face the consequences of that? Better for them to play safe and maintain at fixed.

Second, if really change to floating, there are 2 more fixed price funds. I don't think they going to change all 3 to floating one shot. Just transfer there lo. Just need time to run to the bank and try for units again.

Third, by NOT changing to floating price, people giving them free money you tell me they don't want especially in this time? By changing to floating price, need to "sweet talk" people to buy floating funds.  Need to spend on advertisment. Need to work with bank to offer "promo". More expenses and headache for them. See how many ads they run in the newspaper and how many banks offer FD + Variable priced ASX? Either no one is picking up the funds or they cannot reach the target. People usually advertise if they cannot sell their product/just starting out.

Something just occered to me : I first bought these ASM and ASW2020 funds back in 2007 and as far as I can remember, the price has been stable and fixed at RM1.00 since then. Basng on the information abt 31 Dec 2012 till 31 Dec 2015, then can we say the fixed-price system of Rm1.00 per unit has been extended at least once, and that was around December 2012 ? Are we able to find the ann't ?

Bro, u shld refer to latest MP dated 30/6/2015 instead of 30/6/2013

Based on ASW 2014 AR, the estimated NAV is 1.0563 -v- buy n sell price @ RM1/unit

The 1% management fee for FP funds was calculated based on VOF instead of NAV, therefore it still does not reflect the actual NAV.
Whereas the management fee for VP funds is calculated based on NAV.

VOF: value of fund.

[attachmentid=4778354]

fixed price funds is just like your beloved EPF

I love to use examples and analogies...

U pass me RM100,000 to invest in a business

We have an agreement...
- Should u decide to cash out, u will only get back your capital of RM100,000
- But I also guarantee u that u won't lose your capital, if u cash out I will pay u back 100% of your capital
- It is up to my discretion to declare/pay out how much dividend to u, if at all

Scenario A
I managed to grow the business, a year later it is worth RM150,000, i.e. 50% return

But I think that I want to retain some profits for future growth, so I pay out 20% dividend i.e. RM20,000 to u, balance RM30,000 is retained.

Business value now: RM130,000
Scenario B
I made some profits for u, total profits from trading of goods were RM20,000

But I also trashed the office when I *ahem* with my secretary last night. We bought the office unit at RM50,000. If u were to sell it off now, can only fetch RM25,000. Now that's some heavy damages done

Realised profits: RM20,000
Unrealised loss: (-RM25,000)
Business value: (-RM5,000)

But I still can pay u RM20,000 as dividend

End up the business left value of RM75,000 only
That's fixed price fund for u, in a simplistic view.

What if market perform badly, and they made looses. They lower the interest rate. But you don't loose your money which is in asx.

If you were buying stocks in klse, you have the risk of loosing much more money if the market isn't good.

For fixed price funds, tt's a double edged sword, sort of.

In good years, the fund managers held back some. In a way he's "hiding" the profits for future
In bad years, u will thank him for what he did on those "good" years

But hor...

How many of us bother to do the calculation to see if the fund manager short-changed us? Say for example, the fund actually made RM100M over the years, but PERSISTENTLY paid grossly lesser, maybe only paid out RM30M to investors. During an extended good market performance, u would be better off with a Variable Price fund or even investing in stocks yourself, the cilaka punya fund manager took chunks away from u. Then when bear market comes, he will take your retained profits to rescue the latecomers' arses. Cilaka betul~  

Give and take lor...

To add...

In the long term, MOST IF NOT ALL markets will grow, on an uptrend...

I.e. if u have time on your side, u would be better off with VP funds or even investing in stocks than with a FP fund