RHB fund managers are well known for this. Couple of times it has happened, taking risk on riskier bonds. Iianm, 2017 or so. Well could be opportunity for some

high risk high returns... your choice

nobody forced you...

Actually SCB is just the seller. All banks practice this. They want to make money off you especially in your case priority banking. Then RHB here is like the farmer.

That's why don't buy anything from banks. Dont accept any priority banking BS. You want to be priority banking, be prepare to buy stuff from them or park your money with them or take huge amount of loan from them.

This post has been edited by Ramjade: Sep 22 2023, 08:23 AM

This is true but when we dig deeper into the fund's profile like RHB Income Fund 2, the following is noted:



What we can deduce from RHB Income Fund 2, it's for "conservative" investors and the fund need only to outperform the benchmark, which is RHB's 12 months FD rate.

When Bonds go bad, its pointed out, hey tough luck, high risk, high return.

Investors invest using unit trust vehicle because (reasons) and these funds are in turn actively managed by fund managers in line with the objective, strategy, limits and restrictions. So the question begs:

1. was the fund manager and credit analyst asleep at the wheel?
2. was the write-up in the prospectus just for show?; or
3. other reasons?

Had a quick look at the interim report for RHB Income Fund 2 -FYE 30/9/22 (https://rhbassetmanagement.rhbgroup.com/myinvest/client/funds/fund-info?ipdFundCode=INCOME), it is noted that 2 bonds rating were deteriorating. Prior to the deterioration, the bonds may have an acceptable rating. However, once the adverse news appeared in the market, those bonds were essentially as good as waste paper and it was not possible to dispose.

There are also other vitiating factors as well, sweetheart concession deals that were made with the previous government and subsequently taken away by a succeeding government or covid19 had reduced the traffic flow of certain highway that it has caused cashflow issues for certain companies to service their bonds.

There are bonds that are plague by issues that are beyond their contemplation/control and there are others that are downright illegal... the "S" company.

No doubt it is the job of the fund manager is to take reasonable risk to get the desired return but there are just circumstances beyond their control. In any case, I would reckon that fund managers and credit analyst should run a more rigid screening and due diligence process to ensure defaults are mitigated. As managing funds is not a short term sprint but a marathon.

VERY GOOD POINTS

question then as you have pointed out... when did they know... what did they do...

this like the kweb saga all over again...

Way different from KWEB saga 🤦‍♀️ as the KWEB is totally out of the fund manager hands unlike these which are still in their palm

I'm truly amazed that a fucking foreign worker visa renewal company managed to get loans worth hundreds of millions with literally no collateral.

Seriously, I don't feel that our local investment banks fund managers are that great.

kweb - stashaway fund managers sucks... keep buying when kweb is dying... finally sold at bottom...

rhbxxx - rhb fund managers sucks... dunno what they are doing... finally write off...

to me same... managers all sucks...

I had a look at the semi annual report for FYE 30 Sep 22, page 40 "Trustee's Report".

I believe the fund was managed in accordance with the limits and restrictions but the fund had to sell holdings to meet redemption. The result is eventually an over-concentration of junk assets because they are not able to dispose of it because either they have no value.

Sharp observation there.

Sohai managers. Keep DCA without looking at the facts of what's going on. Like that also can become fund managers, any Tom, Dick and Harry also can.

With priority banking is Ok but lesson learned for buying UT and structured investment.

I wish there is space to highlight this and provide information before they buy any.

This post has been edited by Sunshape: Sep 22 2023, 10:02 PM

agreee just look at PRs funds

You mind sharing the product that you purchased?

I think it is unfair to other good fund managers just because this fund did badly, it is like ask others not to invest in stock just because serba did badly

there are many other funds that outperformed benchmark, and it is easier to invest in some markets through funds such as ASEAN and Japan.

I invested in a Japan fund that gave me more than 50% in 1+ year.

Eastspring Investments Japan Dynamic MY Fund - MYR Hedged

https://www.fsmone.com.my/funds/tools/facts...t?fund=MYESJDMY

Actually they do. All the documents they give you to read. Not sure if you read all of them.

Anyway majority of unit trust in Malaysia is losing money over time. That's why I don't bother about unit trust at all.

Overseas unit trust yes some are making money over time.

This post has been edited by Ramjade: Sep 22 2023, 11:00 PM

I’m talking from the context of local fund managers.

principal heritage income fund

they have monthly dividend payout policy but such payout is not from profit but from capital fund.

that is why their NAV keeps on dropping and hence, value of investment if sell off, 36% is gone.

you can see such loophole

then they use monthly payout policy to pancing new investors to masuk, then masuk liao baru tahu sudah jatuh longkang


maybe Bro Raj can open a new thread about products n services from banks so next person wont fall on all.

This post has been edited by Sunshape: Sep 23 2023, 10:49 AM

almost ALL funds will make money...

they also benchmark against own sector... usually show you how well it is doing...

some funds will have golden year 30-50% growth... some continues growing albeit slower, some just die down...

what they all don't tell you... majority CANNOT BEAT EPF over long run... a lot cannot even beat FD...

i was big ut investor >20 yrs... i did have some nice smallcaps, local and regional funds... but overall, i looked back and feel so stupid investing in ut... lol...

problem with local ut... they take big cut... you already lost before getting started...

Got Helang involved, what shit also can be done just to get fund

Yeah. The cut, or kickback together with their annual fund manager fees is for the managers to enjoy themselves in 5 star hotel overseas, with the rest pocket into their own account.

Have to be very selective in investing mutual funds