Hi Guys,

Need some guidance. Can anyone tell me what's "Available Credit(s)"?

I noticed there's an amount in there after doing intra fund switch.

Does the credit has any expiry date?

Thanks.

Many thanks.
So the credit can only be use for intra fund switch (same fund house) from bond to equity only?

Don't quite get understand why credit is given, i thought intra fund switch does not incur any sale charges , whether it's bond > equity or vise versa.

Hi Bros,

I've received a sms from Principle Asset Management that reads:

RM0 Principal: Refer http://coe3.us/PRSR2S for letter to default option members for Principal Islamic PRS Plus & Principal PRS Plus.

When I click on the link given, I don't quite understand what it means.
I'm investing in PRINCIPAL PRS PLUS ASIA PACIFIC EX JAPAN EQUITY - CLASS C via FSM since 2020, and I'm over 40 years old.

Does it mean that for my subsequent investment into this PRS fund that the investment would go into "Principal PRS Plus Moderate" instead of "PRINCIPAL PRS PLUS ASIA PACIFIC EX JAPAN EQUITY - CLASS C" unless I write in a letter?

This is the link to the FIRST SUPPLEMENTAL DISCLOSURE DOCUMENT:

https://www.principal.com.my/sites/default/...20-%20Final.pdf

Thanks.

For ETF RSP, the fee really USD1 only?
Any other hidden fees involved?

When I look at this site: https://www.fsmone.com.my/etfs/get-started/stock-fees

There are: processing fee, stamp duty, Exchange Trading Fees, SEC fees,etc.

So I'm confused what are the fees involved for ETF RSP.

Thanks.

Thanks. Still confused but I'll start with RM200 first, bi-monthly. Planning to change it to RM400 monthly if I'm not selected as one of the lucky 300. USD1 for RM200 is > 2% cost so bi-monthly may not be a good idea.

Thanks all.

This post has been edited by Sitting Duck: May 24 2022, 09:48 PM

Hi Brothers & Sisters,

I am trying to understand what is domestic ringgit borrowing and it's impact to investment?

I'm planning to take up 2nd car loan. As far as I know, one is consider to have no domestic ringgit borrowing with 1 house and 1 car loan.

With 2 car loans, one would be deem to have domestic ringgit borrowing. So what would be the impact on investing because I remember Fundsupermart ask for annual update on investor domestic ringgit borrowing status. I think banks also constantly asking for the same update yearly.

Does it mean that if an investor have domestic ringgit borrowing, one would not be able to invest in ETF or stock market abroad (US , China , Singapore)? Does it affect investments locally as well? Would my investment option be lesser/limited because of domestic ringgit borrowing status?

Hope someone can advice me. I tried to google but couldn't find much information.

Thank you.

This post has been edited by Sitting Duck: Jun 21 2022, 09:27 PM

Hi Sifu,

I was going through the semi/annual report for Principle Global Titan Fund - MYR, and notice the following section about Unit Holder Statistics.

For Class MYR, does it mean that as of 31 Mar 2022, there are only total of 8215 accounts/investor that holds this fund?

I was expecting more investors.

Thanks.

This post has been edited by Sitting Duck: Nov 15 2022, 10:23 PM


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I was doing RSP bi-weekly for US ETF for the past year due to free process fee during promotion and have now changed to monthly as well.

I am just wondering how much process fee going forward since i only invest small amount monthly. I hope the process fee wouldn't be too high. If it's more than 1% of my invested amount, I probably would change the RSP to Principle Global Titan fund.

Received an email from FSM on RSP promotion for ETF.

"Dear Valued Investor,

Great news!

We're thrilled to announce our latest ETF Regular Savings Plan enhancement and a 0% subscription fee promotional campaign from 28 July 2023 to 31 December 2024, making it more rewarding to invest with us."

I wonder what is 0% subscription fee? Isn't it always been 0% subscription fee for RSP.

I've been RSP'ing into VOO for the past year about RM1000/month. I only know there are these fees for RSP ETF:

1. Processing Fees (USD 1.00)
2. MY Stamp Duty (USD 0.22)

I don't think these are "subscription fee". Any idea?

Thanks. I tried to get in touch with their customer service but couldn't get through.

So this is only applicable for new subscription to ETF RSP and not existing one?

I'm thinking to stop RSP to VOO and start a new one to QQQ to take advantage of the promotion.

I recall QQQ and VOO are almost similar.

Just reached out to FSM CS and I was informed that existing ETF RSP would also enjoy this promo of 0% subscription fee.

I'll keep my RSP to VOO for time being and start RSP to QQQ once I have hit my target for VOO.

The 0.08% processing fee is also something wonderful as well. Based on my calculation, the overall cost for investing into ETF RSP would drop to about 0.25%, which is cheaper than UT.

However I'm doubtful it would really be 0.08% without any minimal amount. Maybe they just forgot to in that page.

This post has been edited by Sitting Duck: Jul 31 2023, 07:48 PM

Based on my latest RSP of RM1k / USD214.65, the only fee charge was MY Stamp Duty of USD0.22 (0.1x% fee) which is awesome.
Exchange rate was about ~4.65 on 15th of August.

On another side note, got an email from FSM about "AmAsia Pacific REITs".

"The purpose of the Unit Holders’ Meeting is to change the income distribution policy of the Fund to allow the Fund to declare distribution out of its capital and that FURTHER the Manager and/or the trustee of the Fund shall be authorised to do all such things necessary to give effect to the change of distribution policy of the Fund in accordance with the relevant laws, guidelines and the provisions of the Deed. "

Isn't this something that's bad for the fund that they are paying dividend even if the fund isn't performing?

I have 2 PRS with FSM.

Kenanga OnePRS Growth Fund - since 2016, 17.05% return, 2.36% annualized.

PRINCIPAL PRS PLUS ASIA PACIFIC EX JAPAN EQUITY - CLASS C - since 2020, -3.38% so far

I'm in for tax relief, any profit made is a plus.

PRS tax relief is until 2025. So 3 more years to go (hopefully gov extends it).

Eh? I thought processing fee would be 0% until end of the 2024 or all new and existing subscriptions. Based on the picture, seems like new subscriptions after 30th September would no longer enjoy the 0% processing fee

Edited: Just spoken to FSM customer service, and got this reply "The promotion will only applies to those ETFs that you have applied earlier. Those after the campaign will not eligible to the 0% processing fees".

So it applies to ETF RSP applied earlier, which is awesome

Anyone has any other good ETF under RSP list to recommend apart of VOO?
I was thinking to add SPY or QQQ but both are almost identical to VOO.

This post has been edited by Sitting Duck: Sep 1 2023, 02:58 PM

Thanks for the recommendation. SMH looks very interesting.

Thanks for the feedback. It looked pretty same from their top 25 holding. So I did a quick check in chatgpt and got the following answer. Pretty interesting.

==== CHATGPT ====

SPY, VOO, and QQQ are all exchange-traded funds (ETFs) that are traded on the stock market, but they track different indices and have distinct characteristics. Here are the key differences between them:

Underlying Indices:

SPY (SPDR S&P 500 ETF Trust): SPY tracks the S&P 500 index, which consists of 500 of the largest publicly traded companies in the United States, covering various sectors of the economy. It is designed to represent the performance of the overall U.S. stock market.

VOO (Vanguard S&P 500 ETF): VOO also tracks the S&P 500 index, so it provides similar exposure to large-cap U.S. stocks as SPY. The main difference between the two is the issuer and expense ratio, with VOO being offered by Vanguard, known for its low-cost ETFs.

QQQ (Invesco QQQ Trust): QQQ tracks the NASDAQ-100 index, which includes 100 of the largest non-financial companies listed on the NASDAQ stock exchange. These companies are often technology-focused, including major tech giants like Apple, Microsoft, Amazon, and Alphabet (Google).

Holdings:

SPY and VOO primarily consist of large-cap U.S. stocks, offering broad exposure to the U.S. equity market.

QQQ focuses on a narrower segment of the market, with an emphasis on technology and growth stocks. This makes it more tech-heavy compared to SPY and VOO, which have a more balanced sector allocation.

Performance and Risk:

The performance of these ETFs will vary based on the performance of their respective underlying indices. Historically, the NASDAQ-100 (tracked by QQQ) has shown more volatility and the potential for higher returns due to its tech-heavy composition, while the S&P 500 (tracked by SPY and VOO) is considered a broader representation of the overall U.S. market.

QQQ may be more volatile and may have higher potential for gains but also higher potential for losses compared to SPY and VOO.

Expense Ratios:

Expense ratios represent the annual fees charged by the ETF issuer to manage the fund. Generally, lower expense ratios are preferred by investors because they result in lower costs. VOO typically has a lower expense ratio compared to SPY, while QQQ's expense ratio is also competitive.
Dividend Yield:

SPY and VOO tend to have higher dividend yields compared to QQQ. This is because the S&P 500 index includes a broader range of companies, including those that pay dividends, while the NASDAQ-100 includes many growth-oriented companies that reinvest their profits rather than paying dividends.
In summary, the main differences between SPY, VOO, and QQQ lie in their underlying indices, sector exposures, risk profiles, and expense ratios. Your choice among these ETFs should align with your investment goals, risk tolerance, and preferences for sector exposure.

RM 200 with USD0.22 stamp duty / ~RM1 stamp duty is about 0.5% fee.

0.5% fee is a very reasonable seeing that UT charges more than 0.5%.

This post has been edited by Sitting Duck: Sep 4 2023, 12:46 PM

Sorry bro. I don't have IBKR and never done a comparison.
For me IBKR is complicated (opening IBKR account, foreign bank account , transfer money, lump sum investment). I did read up the guide given in another thread but it was still complicated for me.

When FSM introduced ETF RSP with 0 processing fee back in 2021, I jumped into it immediately since it was my first and only opportunity to invest in US ETF with limited amount of RM I have.

I've no plans nor much time to study market. Just planning to DCA monthly, like a force saving.
I'm hopeful the return would be better than FD by the time I retired.

Since I'm already DCA'ing into VOO, I'm planning to apply RSP for SMH.

This post has been edited by Sitting Duck: Sep 4 2023, 10:55 PM

No need to reapply to get the 0% processing fee.
The promotion is valid for existing and new RSP applied before 30-September.
I've checked this with FSM customer service.
My VOO RSP for month of August was 0% processing fee (RM1/USD0.22) only.

This post has been edited by Sitting Duck: Sep 5 2023, 12:16 PM

I'm happy with FSM and i feel that the fee is reasonable compared with UT (not IBKR).
I have no bad experience with FSM customer service nor ETF RSP.

Only thing to take note is probably there's a fix schedule monthly to sell partial unit (unit less than 1). and make sure you have sufficient fund in the cash account for the RSP.
I think the 0 processing fee is only applicable to buy orders and not sell order. Not sure anyone has any info about fees when selling.

Started RSP to VOO in May 2022 with RM200 then slowly increased to RM1000/month. So far the return is about 12% (note that the market was really good since June 2023).

Btw, this is my own experience and not financial advice to invest. I'm not an expert nor certified financial planner. Just a small duck trying to save as much as possible for golden years.

Thanks for advice. Probably I'm just lazy to go through the whole process. Now that there's FSM, I'm happy with FSM for now. Will explore IBKR in the future if FSM disappoints me. For now I don't want to deal with a foreign investment company and I feel safer with FSM since FSM is regulated in Malaysia.

This post has been edited by Sitting Duck: Sep 5 2023, 10:23 PM

Hi All,

I'm still confused what to answer in this question "Do you have Domestic Ringgit Borrowing".

In BNM website,

Domestic ringgit borrowing refers to any ringgit advance, loan, trade financing, hire purchase, factoring, leasing facilities, redeemable preference shares or similar facility in whatever name or form, except: •Trade credit terms extended by a supplier for all types of goods and services;
•Forward exchange contracts entered into with licensed onshore banks;
•One personal housing loan and one vehicle loan obtained from residents;
•Credit card and charge card facilities; and
•Inter-company borrowing within a corporate group in Malaysia.

whereas the definition of Residents:

Residents:
•Citizens of Malaysia (excluding persons who have obtained permanent resident status of a territory outside Malaysia and are residing abroad);
•Non-citizens who have obtained permanent resident status in Malaysia and are residing permanently in Malaysia; or
•Persons, whether body corporate or unincorporated, registered or approved by any authority in Malaysia.

So if I have 1 or more car loan/house loan from banks (not Resident), and I do invest ETF in overseas, does it mean I have choose Yes for "Domestic Ringgit Borrowing"?

The definition is confusing to me since I'm not financial background.

Anyone can help?

Thank you