I think PBB earn a lot from PM also, so supporting PM also means supporting PBB? I will get PBB in the future when the price is right for me. Furthermore, not much capital now.

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Added on July 28, 2007, 2:56 amTherefore, I just put all my hope for my PM UTs to perform and sell off at the right time.

This post has been edited by shih: Jul 28 2007, 02:56 AM

Some of the fund have offer which lower chargers, Islamic fund don't have chargers

Here's an article on unit trust at Yahoo! A basic idea for begineers:

http://uk.biz.yahoo.com/24102006/389/fund-basics.html

THe scope doesn't apply to local context. Just for reading purpose.

There's one islamic fund with 0 upfront charges but profit sharing basis.

15:85 means if the fund made 100% return in 5 years period, the manager would take 15% and 85% belong to you.

Performance based.....

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Added on July 28, 2007, 9:03 amHmm. can't compare a stock with a property like that... for people who doesnt wish to participate in stock market, it is not an option already..

I realized the tax around with REITS... a stock or mutual fund declared dividend will be taxed too, could be lower of course depends on the person tax bracket. I think even with the REITs 15% tax, its still profitable. Huge redemption occurs in every UT, not just REITs. There are some precautions taken by the management companies for example for public mtuual, one needs direct approval from the fund manager if he plans to invest over x mil. (2 mil if the figure if my memory doesnt fail me) amount into 1 fund.

10% return minus the 1.5% to tax = 8.5% return

not bad at all for people who do not take stock market risk.

This post has been edited by ejleemy: Jul 28 2007, 09:03 AM

ejleemy,

You do UNDERSTAND that REIT is some kind of stock too. And, the MAIN attraction of REIT is HIGH DIVIDEND YIELD. Most of the income/return from REIT is because of the dividend. There is LESS possibility of return of appreciation from the property.

From this standpoint, you can compare REIT with high dividend yield stock. REIT yield at this moment is around 5% or less. PBB dividend yield is around 6%. And, PBB's profit is growing at around 20% per year. REIT has lower dividend yield than PBB plus the capital appreciation is lower. So, why buy REIT??

Dreamer

Its true that REITs trade on exchange, but it's not a stock. It's a real estate investment trust. It invests in property. The real property like KLCC, starhill, UOA etc. A good stock or a good stock portfolio certainly give higher yield than a property investment in long run. But a stock and a real estate are 2 different things you see ?

yup, a stock is a stock and REITs are real estate investment trust, just that both are traded in stock exchange but they are different from each other all together. please don't confuse yourself.


a stock = you invest in the company and it's potential that runs the properties under it's care launching REIT.

REIT = you invest in the property and it's potential without any interest in the company.


i heard that REIT tax is the final tax, means if you have no tax to pay, you can't claim this back from IRB. anyone has come across this statement?


personally i think reit in malaysia is not attractive at all. i'll go for PBB if to choose between PBB and REITs.

This post has been edited by 1stLaksamana: Jul 29 2007, 12:13 AM

<<A good stock or a good stock portfolio certainly give higher yield than a property investment in long run.>>

ejleemy,

Not true in general. Usually, REIT has higher yield than stock. It has to because it has less likelihood of appreciation than dividend yielding stock. The reason is it has to pay out 90+% of its profit. This is one of the reason why Malaysian REIT is not attractive as an investment at this moment. Malaysian REIT is overpriced now.

For example, in developed market like USA, a typical blue chip stock yield around 3%. A typical REIT yield around 4.5% to 5%.

In Malaysia REIT market, I believe the yield has to be around 7% to 8% before you can start considering REIT as possible investment for the risk that you are taking.

Dreamer

Reit tax is called withholding tax not income tax as in normal dividend payout.

Yup, Dreamer is right, if local reit is more than 7-8% then only it will outshine the yield of some good stocks. There are a few reit currently that are carrying 7.5% yield but the problem is the tax, 7.5 x 0.85 = 6.3% only, almost same with stock yield already.T
That's why I said it is the main problem of local reit. If tax free like Singapore, probably will attract some investors into it and reit market will have better chance of booming. Currently, the sector is submitting propasal to gov to reduce or remove the tax, whether gov agree or not, only when the budget will know.

There are some reit problems that I posted in the Reit thread

This post has been edited by cherroy: Jul 29 2007, 04:17 PM

Public Mutual Declares Distributions for 3 Funds

Public Bank's wholly-owned subsidiary, Public Mutual declares gross distributions for three of its funds. The gross distributions declared are for financial year ending 31 July 2007:

Public Growth Fund - Gross distribution of 9.00 sen per unit

Public Islamic Opportunities Fund - Gross distribution of 4.00 sen per unit

Public Bond Fund - Gross distribution of 4.50 sen per unit

Public Mutual's Chairman Tan Sri Dato' Sri Dr. Teh Hong Piow said Public Growth Fund, which is an equity fund, has delivered an impressive one-year return of 54.01% for the period ended 13 July 2007 according to The Edge-Lipper Fund Table dated 23 July 2007. "This fund has outperformed its benchmark of 49.45% for the same period," he continued.

As for Public Islamic Opportunities Fund, it is an Islamic small cap fund which has generated a one-year return of 67.48% for the period ended 13 July 2007. This fund has also outperformed its benchmark of 54.34%.

Public Bond Fund, on the other hand, is a bond fund that has generated a one-year return of 8.88% for the period ended 13 July 2007, according to the same The Edge-Lipper Fund Table. The fund has outperformed its benchmark of 3.76% for the same period.

Public Mutual is the largest private unit trust company in Malaysia and it currently manages 47 funds for more than 1,000,000 accountholders. As at 20 July 2007, the total net asset value of the funds managed by the company was RM23 billion.

URL: http://www.publicmutual.com.my/article.aspx?id=6201

that explains the huge drop of the PBOND today

Wah!! This PM UT drop so much ah??
PGF 0.6118 -0.1043

Wonder if it will be a good buy... seems like the market gona be going down more

If I'm not mistaken. The unit price is being adjusted after distribution payout. Distribution is declared on 31st July and price is adjusted on 1st Aug. Today's PM website is showing unit price for 1st Aug after distribution.

Correctly if I'm wrong.

This post has been edited by David83: Aug 2 2007, 07:49 PM

oh.. no wonder there was such a large change.

Anyways, kinda new to this whole UT thing. Just curious, distribution payout = you get some more units and then the NAV will drop? Is this done so as to keep the NAV low?

When there's a distribition, you could opt for getting the money or reinvest your distribution.

After a distribution or unit split, the unit price will be adjusted. I don't know about the purpose since I'm not from Accounting or Finance background. Perhaps to balance the accounting sheets.

Managed to topup PRSF (0.6998) at lower price today

If tomorrow market still red, topup some more before 4pm

ya it should be correct if not sure got ppl go jump already

hehe.. jump into buying it or jump off a building coz lost too much??

hmmm.. Whats your prediction for this month? Where do you predict the markets gona go?

i think the second 1 will happen more lol
hehe no predictions those are confidential

It is ex-dividend.