Tq, Ancient,...

-marked-

Effect of change in mkt emotions for a particular instrument.

Yeah,... I just saw it too. For ASB and AS1M, and need to invest in at least RM100 to qualify for the lucky draw. Is it really that easy to get the units now... since they said need to invest in RM100 'just like that',....

Look at this part of the disclaimer section :-

Before investing, please read and understand the content of the prospectuses. Total return on the investments may go down as well as up. Investments in the funds are exposed to fund management risk, inflation risk and purchasing power risk.

This post has been edited by Hansel: Sep 17 2015, 02:27 PM

However, this time round, these clauses have become very relevant, which,... in the earlier days, were always ignored due to the great returns offered.

Liquidity at RM1 per unit is, by no doubt,....a great characteristic of the ASX funds.

Offhand, I can't think of any. Let me digest your question further, and will reply with something closer to the FP funds...

If you have a will drawn-up by Amanahraya Bhd (ARB), you can specify in the will if you want to transfer the units to your beneficiary, or to transfer cash out and transfer the money to your bene.

If you selected transfer of units to your bene, only the units will be transferred, but the dividend earned during the process will be given out to the bene in the form of money.

If no will or any bene documents, then need to follow the Distributuin Act.

Wow, if at one go,........

Whatever it is, it's beyond our control. We just wait to reap whatever we can....

Surprised here too - to me, it looks like they can't decide how much to give out...

I am wondering why she said the following:-

Citing an example, Zeti said during the 2008/2009 global financial crisis, there were huge outflows which were much more significant than what the country is seeing now. - See more at: http://www.themalaysianinsider.com/malaysi...h.KtYBSmif.dpuf

In 2008/09, it was the US subprime crisis, and the US Government had to act first to help the USA. I believed Asia was not affected much, even if it was, it would be due to contagion of the fall of the economic situation in the USA. I don't think there were foreign fund companies pulling their funds back to the US, unlike now.

You are right - the dividend given out this time will reflect on future dividends payouts.

I don't think capital flight was an issue back then. Capital flight was an issue in 1997/8, but not in 2008/9.The KLSE and the SGX slid was because of sentiments, and interest rate rises (for the SGX), which hit a lot of REITs. And yes,.. the subprime crisis hit the Sgp banks because of toxic assets that were detrimental to investors - that's right, that was the problem.

No ann't yet till now ?

I dubt so. Traditionally, ASM has always had a lower payout than ASW2020. If ASW2020 managed to get 6.40% for 2014/2015, with the ongoing probs in the country, the KLSE and in the loaning of funds to help out in the MGS and for Valuecap, the dividend for ASM for the 2015/2016 period should be, at most, 6.20%.

Yeah,.. am aware of that. That's because the results back then have not reflected in totally the slump that we experienced in the last few months. That's why we still got 6.60% for ASM in April 2015. Then when the time came for ASW2020 to report, quite a huge effect of the slump has been taken into account, hence the lower dividend compared to ASM.

Yeah,... just OT a bit,... if I converted the principle into the SGD and bought Keppel Corp today with the funds, I'll be getting 7.08% annual dividend, paid to me two times per year. Even if this dividend drops to 6.50% due to lower DPU because of earnings problems, I'll still equal the ASM yield which pays out only once per year.

Just food for thought, since I've been following and comparing with the SG stocks recently.

I agree with that. The lowest that Keppel Corp ever dropped to was back in 2008 when it hit 3.29. Will it ever drop back to $3.29 ? Nobody can tell for sure.

But what I can tell for sure is in 2008, it gave a total DPU of SGD0.69 which was the highest DPU given ever. Subsequently, year-after-year, the dividend payout has been quite consistent, even through the Euro crisis. I think I can live with the highest dividend for that year when the stock price hits its lowest level, and subsequently recovered.

Coming back to our PNB funds, even though the chance is quite remote that the FP funds will be converted to VP, there is still a possibility since the terms are in the Master Prospectus. Secondly, what about the tax exemption clause by end-2016 ?

Added : the question then becomes are we willing to take a risk for a big drop in capital appreciation back to the subprime crisis level of $3.29 for an additional 0.5% dividend yield, paid twice a year, in a currency that has a higher chance of winning in the long run against the RM and with its origin based in a better country with less of the problems that we are facing in this country ?

Will Keppel Corp drop back to so low as $3.29 ? Don't forget that it is a strong company with a big mkt cap, and a dividend payout that will support the price.

This post has been edited by Hansel: Sep 30 2015, 07:39 PM

I see,... okay, I misunderstood then if he was talking about the dividend for 2014/2015. Yes, for period 2014/2015, the dividend payout was 6.60%.

But I believed we are more concerned with what sort of dividend payout will we enjoy for period 2015/2016, to be announced at end-April, 2016.

I have gotten used to the idea that their c/f dividend is always >RM1.50. This time, it's 50Sen only, then out theory is true that over the last few months after the ASM dividend has been paid out, the turmoil has really been damaging to our PNB funds. I can safely assume that the ASB payout at the end of this year will be affected too.

If thing continue as thay are now, bad KLSE performance, giving out loans to support multiple Govern't initiatives which do not yield results, and possibily later on, helped to service coupon payments for 1MDB loans too, ASM payout next year is really going to get hit badly.

Addedd : I think funds need to be set aside too to cushion the RM1.00 fixed price if any investor sells, if the nav has dropped below RM1.00 per unit for that unit being sold. This can be avoided if the fund reverts back to VP fund, will help to reduce the overhead expense needed to cushion for the RM1.00 committed nav till the end of this year.

This post has been edited by Hansel: Oct 1 2015, 07:43 AM

THe more people take-up the units, the higher the VOA will rise, reducing the expense needed to cushion the committed RM1 per unit. The more people dispose, the reverse will happen, making less total fund size to cater for all of the issued units. I don't think PNB will perform unit buyback.