Trying to brag about UTF return at cocktail party is like going to a black tie event to show of your dad's 20 year old Mercedes Benz 200E. Yeah, Benz 200E, those iconic classic automobile that some old Ah Pek still use as taxi in Yong Peng or Menglembu.

UTF is akin to those Merz 200E for they are darn durable, does not break down easily, is a dependable workhorse unlike the Stallion Marque (Ferrari), breaks down easily, all show but no go. Sometimes can catch fire somemore!

Xuzen

Footnote:

I) Stallion Marque refers to some exotic derivative or commodity trading type scheme such as gold or oil.
II) Breaks down easily means they can give negative return by a lot; in another word, extremely volatile.
III) Catch fire means these schemes can just go bust and worse of all, they do not have regulator oversight to provide recourse!

This post has been edited by xuzen: Sep 12 2016, 10:01 AM

FA firm can only take in Licensed Financial Planner with Sec-Com's CMSRL license holder, not FIMM's UTC licence. Cannot simply-simply join punya.

Hard or not is individual, cannot comment on generalization.

It may be easy for some, it can be super hard for some.

Why do I say It may be easy for some, it can be super hard for some?

Consider this:

One need to have the academic qualification namely either CFP or RFP which generally take 18 to 24 mths to complete.

Then should one passes that exam, he / she must be working in the Unit Trust Industry for a minimum of 3 years as a UTC.

Then he apply to the Sec-Com to take the CMSRL provided he is a good standing citizen, that is, no criminal case pending or bankruptcy case against him / her.

So far so good, can you follow? The above is the easy part. Now comes the hard part:

Consider this, many who joined first as UTC and has an active career would have built up a significant Asset under Advisory. With this he / she is receiving monthly recurring income. If he / she needs to convert to CMSRL, he / she needs to resign from the current UTMC and start fresh with an FA firm. Currently, there is no mechanism to transfer the AUA to another company.

That is why I say it may be easy for some, it can be super hard for some. Suppose aUTC has a small AUA and not receiving substantial income, then he may consider to switch over to FA firm with no significant pain of loss of income. Suppose a UTC has a large AUA, then he suffers greater loss of income.

Xuzen

This post has been edited by xuzen: Sep 13 2016, 12:30 PM

25 basis points discount..... darn a lot hor!

Xuzen

If the UTC has been doing his job, this UTF participant would not have required to come to a forum and ask what fund to keep and what fund to sell.....

What diff is this compared to a DIY method?

Oh wait... there is the difference in sales charge.

Xuzen

RM 24.5k grown to RM 31k in 30mths period (two and half year) is 9.45% p.a. CAGR.

Congratulations! You have beaten KWSP & ASX!

Let me quote Wise Master Oogway from Kung Fu Panda 1, "Yesterday is history, tomorrow is a mystery, but today is a gift. That is why it is called the present"

Friend, live in the moment, do not dwell or be obsessed with the past. Change what can be changed, do not worry about that which cannot be changed.

Xuzen

This post has been edited by xuzen: Sep 24 2016, 02:09 PM

Transacting UTF through Public Mutual Berhad (Pub-Mut) is like buying a smartphone device from Machines, that is, you can only buy Apple brand IPhone and nothing else. No other brand is available there-in.

Transacting UTF through Fundsupermart (FSM) is like buying a smartphone device from SenQ or Harvey Norman, that is, you can buy Apple brand IPhone 7, Oppo R7 Plus, Huawei P9, Samsung Note 7, etc... macam-macam ada.

Xuzen

Franky gave me RM 1,000 to buy into stock market. In exchange I gave him 1,000 units. After one year, that sum grew to RM 1,100.00. His NAV will become RM 1,100 divided by 1,000 units equals RM 1.10 per unit.

I decide to distribute RM 150.00 back to him. RM 1,100 less 150 equals RM 950.00. Hence his latest NAV is now RM 0.95 per unit after receiving that RM 150.00.

But he gave me back that RM 150.00 and Franky told me to reinvest that amount into that same fund.

Hence I use that RM 150.00 and convert it back into units at MYR 150.00 divided by 0.95 (NAV) equals = 157.89 units.

Now, Franky has 1,000 units from his original investment plus another new 157.89 units; his new total units equals to 1,157.89 units.

This 1,157.89 units multiply with RM 0.95 NAV equals RM 1,100.00 in total.

So Franky realised that before distribution, his total unit trust is valued at RM 1,100.00 and total units held is 1,000 units.

After distribution, his total unit trust value is also valued at RM 1,100.00 and total units held has become 1,157.89 units.

To put it plainly, even his units has increased which gives him a "shiok sendiri" feeling.... his total value is still the same before and after distribution. Hence Franky should realise by now distribution does Jack Sh1t.

Xuzen

This post has been edited by xuzen: Jan 1 2017, 05:47 PM

Let's take a simple case:

Consider thus Unit Trust Fund A has MYR 100K in its trust account. The fund manager then instruct the Trustee company to buy on behalf of the unit - holders MYR 50K into BAT and another MYR 50K into Nestle.

After say one year has passed Nestle has gone up to MYR 60K and BAT has dropped to RM 45K. Let us assume this gain or lost are inclusive of whatever dividend that have been declared and the fund manager has decided to use those dividend to buy back the same counter in the same proportion for ease of explanation.

Total fund nett asset value (for ease of explanation let us assume the fund manager & trustee all work for charity and there is zero management charge) then becomes MYR 45K plus MYR 60K equals to MYR 105K.

Hence assuming there are 100K units outstanding, the latest NAV then becomes MYR 105K divided by total outstanding units = 105,000 / 100,000 = MYR 1.05 per unit.

So, you will see that one year ago, a unit - holder purchase the units are MYR 1.00 per unit and one year later his unit is now priced at MYR 1.05. ( a simple 5% gain) If he decides to redeem, the fund manager will then instruct the trustee to pay you MYR 1.05 x whatever units you wish to redeem.

Xuzen

That's the best way forward. I was my best agent for many years.....

Xuzen

OMG! because of you Pub-Mut NAV dropped like h3ll

Free unlimited switching? Used to be MYR 25.00 per switch... or MYR 75.00 if less than 90days.

They relax their rule already ar?

Xuzen

Public who? Never heard before... is it a new guy?

No.

Monthly investment, PMT = RM 500.00

Time invested, N = 35 mths

Future Value, FV = RM 18,100.00

Mode = Begin

Find ROI, I = 2.24% p.a. This is the return when taken into account the 5.5% sales charge.

If we do not take into account the sales charge of 5.5%, the fund return is 5.54% p.a. Which also SUXS!

Conclusion: Public Equity Fund SUXS! It is made worse with the 5.5% sales charge

Xuzen

P/s Srlys, WTF is wrong with the Pub - Mut fund manager? Is Pub - Mut hiring monkeys and paying them peanuts?

This post has been edited by xuzen: Aug 26 2017, 11:34 PM

J.passing.by,

I am writing to you simply because you are an advocate of Pub - Mut here at LYN forum.

Seriously WTF is wrong with Pub - Mut, giving such lousy return to her unit holders despite talking a lion's share in terms of sales charge (fee).

It is wasn't Pub - Mut is the face of the industry I would not be bother to commnt, however, since unfortunately, Pub - Mut is the unofficial brand ambassador for the UT industry as a whole, she is giving the industry a very bad name / image.

This is why also you get naive people says things like, "UT investment is tipu orang punya... etc"

Xuzen

Which fund house are you using for your KWSP - MIS?

I am using Eastspring Inv , getting 8% annualized (4 years old port).

Xuzen

Great minds think a like. Was riding on ESISC last two years, now have switched to Dinasti. From riding the Crouching Tiger, now move to riding the Hidden Dragon !

This post has been edited by xuzen: Aug 28 2017, 12:50 PM

To each his / her own.

but numbers don't lie , and numbers don't have an opinion.