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.

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that ASNB's entire fixed priced funds translate to a couple of hundred points of the KLCI if everything were to be withdrawn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

Many will be hoping that SC shares that view

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.

Don't forget ASG too. Bz times coming up for ASNB

True, when it comes to unit trust there's so many guidelines by so many different bodies. SC, BNM, etc2...

In fact ASNB seems to buck the norm by disclosing their top 20 holdings in each annual report when most of their peers only declare top 5.

I'd be worried if money were invested in the likes of EPF, Khazanah, KWAP, LTH and the likes who do not disclose anything/everything because they're not under direct purview of the regulators.

Ohh ok. Didn't know that. Last I checked with a public mutual agent who approached me during lunch (she didn't even have a FIMM license) who happened to have an annual report showed only top 5 holdings

I guess you maybe right. Since the person who approached me didn't have a FIMM license, I wouldn't be surprised if she couldn't tell the difference between FFS and AR

If ASNB could give 7 cents per unit would be quite an achievement to be honest. When the fund was launched back in April 2014, KLCI was at 1847++ points while we're no where near that today. It would take the fund manager some clever buying/selling during that period (highest 1890++ while lowest 1673++) to garner 7%.

Good point. I guess that's why they've always preached consistent and competitive returns

I wouldn't touch anything that is associated with 1MDB with a 10 foot pole and I hope that those in power at EPF and ASNB where we save for our future has the same mentality

Well so far PNB has stayed away from anything like 1MDB or EKUINAS or whatever else that our dear Najib has come up with during he tenure. Hopefully it stays that way

Was at the ASNB KL main branch today to deposit some cash into ASG before GST comes into force. Saw a Chinese investor withdraw from AS1M (based on the yellow book). Heard that she's worried about 1MDB (I was laughing inside) when queried by the teller. I could see the teller was trying hard to keep a straight face.

No sooner that she left the next Chinese guy who came to the teller tried to deposit into ASM but failed. I guess he saw the lady before him close her account he tried asking if AS1M was available.

Lo and behold there where units available and then he proceeded to just put stacks upon stacks of RM100 bills while filling up the account opening form. My rough calculations based on what I can see, he managed to get at least RM10k in AS1M.

Moral of the story: Your best bet to get fixed price looks to be AS1M. Take advantage of people who listen to rumors rather than doing proper research (like reading the annual report). Some people never learned the lesson of those who listen to rumors when AS1M was first launched and are regretting their choice.

ps: I took a long time because I had to change passbook and also empty my piggy bank which was already full

GST would be levied on the 5% initial sales charge that is applicable for ASNB's variable priced funds such as ASG, ASN, ASN2 and ASN3. It would be 6% ON the 5% sales charge and NOT the entire value of investment.

Don't assume that it's 11% (5%+6%) because it's the wrong assumption although many would believe blindly if someone said the wrong thing

I believe there's a lot of "stalkers" in this thread, they may have beaten you to the queue for the units

You're more likely to be more successful trying at ASNB branches rather than banks. That's my view at least

With that I guess the "sale" of AS1M units is now over

I'm sure approval is given if not than how can it was announced yesterday that all income distribution is automatically credited into investors account. Besides, I'm sure SC prefers ASNB's variable price products to grow as compared to the fixed priced, it's SC's mantra lately...

I'm guessing it's going to be around 6.85 and not higher. If I were the fund manager I'd carry as much income to the next year as possible since those who opened ASB2 were rewarded with a bonus of 10 units regardless of investment made as long as before 31/12/2014.

To think that they have reached more than RM2billion in 1 year still amazes me. Imagine if say they decide to give 7 sen this year and banks start offering loans for ASB2, I think the entire RM10 billion fund size would be taken up pretty quickly. As compared to its variable priced products, I doubt that SC would allow for it to expand its fund size given how ASB2 was "bull-dozed" through all regulators "ikut suka hati bapak dia saja"

Even if there's no ASB2 loan, I know of many who already have plans depending on ASB2's dividend. Most are hoping for 7 sen before they would empty their ASB into the ASB2 and take a loan for ASB max 200k since ASB has an established track record.

Personally I think it's more for PR/corporate comms sake than anything else. ASB2 is "the" product now that they're advertising (it's the banner design for all of their social media) so that's all. Personally, I'm looking at between 6.85 to 7 for dividend when it comes to ASB2