Hi neocapuccino,

I'm basing the FD on annual compounding interest, instead of taking it out and investing in others with varies ROI, which will complicate the assumption-calculation further. 

i.e. the interest earned, is top-up into existing FD.

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Added on February 20, 2008, 6:02 pm

Hi michael,

Thanks for correcting. I'm new in this CHGS and learning more 

I've modified the calculation, to assume the annual rm440 dividend, put into FD with annual compounding rate @3% also. Don't want to further complicate it, if invest in other things, etc.

Bank FD @3% annual compounding
Yr. Int. Cumm.
1 165.00 5,665.00
2 169.95 5,834.95
3 175.05 6,010.00
4 180.30 6,190.30
5 185.71 6,376.01
6 191.28 6,567.29
7 197.02 6,764.31
8 202.93 6,967.24
9 209.02 7,176.25
10 215.29 7,391.54
11 221.75 7,613.29
12 228.40 7,841.68
13 235.25 8,076.94
14 242.31 8,319.24
15 249.58 8,568.82
16 257.06 8,825.89
17 264.78 9,090.66
18 272.72 9,363.38
19 280.90 9,644.28
20 289.33 9,933.61
21 298.01 10,231.62
22 306.95 10,538.57
23 316.16 10,854.73
Assume CHGS 8% annual dividend and put in FD @3% annual compounding
Yr. Div. Total Int. Cumm.
1 440 440.00 13.20 453.20
2 440 893.20 26.80 920.00
3 440 1,360.00 40.80 1,400.80
4 440 1,840.80 55.22 1,896.02
5 440 2,336.02 70.08 2,406.10
6 440 2,846.10 85.38 2,931.48
7 440 3,371.48 101.14 3,472.63
8 440 3,912.63 117.38 4,030.01
9 440 4,470.01 134.10 4,604.11
10 440 5,044.11 151.32 5,195.43
11 440 5,635.43 169.06 5,804.49
12 440 6,244.49 187.33 6,431.83
13 440 6,871.83 206.15 7,077.98
14 440 7,517.98 225.54 7,743.52
15 440 8,183.52 245.51 8,429.03
16 440 8,869.03 266.07 9,135.10
17 440 9,575.10 287.25 9,862.35
18 440 10,302.35 309.07 10,611.42
19 440 11,051.42 331.54 11,382.96
20 440 11,822.96 354.69 12,177.65
21 440 12,617.65 378.53 12,996.18
22 440 13,436.18 403.09 13,839.27
23 440 14,279.27 428.38 14,707.65

FD = 10,854.73
CHGS = 14,707.65

Difference = CHGS returns is 3,852.92 more if 8% ROI or more EACH YR. Please correct me if I'm wrong again, or the calculation is not fair to both FD & CHGS 

Note: If CHGS returns 10% (rm550), then yr 23 = 18,384.56
12% max = 22,061.47

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Added on February 20, 2008, 6:07 pmYes, I'm also interested to know also, if I understand correctly, our profit is capped at 12% maximum ROI.

What is the minimum return we can expect ? 0% ? Negative ? Any annual admin fees/charges ?

I'm impressed you could reply to almost every post, but it's just too bad you did not answer my question as complete as I'm hoping for
I understand when you said the CPO price and FFB yield, but I asked what if the price goes below RM2,100? How much return am I expecting? Anything is possible, so I expect some answers for my question.

Hi cute boboi

Your calculation for CHGS scheme has error!  You have simplified assumption the annual ROI paid yearly cannot earn interests external of the CHGS.  The fact is that this average payment of your figure of RM440 will be make EVERY year AND which can also earn interest too in other saving opportunities.  This will then compare very favourably against FD of 3% annually of only RM165.

Yes, i agreed with you that there is no "capital protection" here for our initial investment.  It will very much depend on how well the appointed Trustee will perform their duties to ensure the land assets are kept fully planted and developed.

michael

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Added on February 20, 2008, 2:28 am
Many thanks Andrew for reply here above.

However, i am very unhappy   with the reply that 1st planting year of 8% return has gone and remaining about two planting years where returns are guaranteed 8%.  This somewhat contradict what is stated for the answer to CHGS website FAQ No.11 :
CHGS eleaflet page 2 Income Distribution :
Hence, the CHGS Agreement position is that only Growers who signed-up on the Launch Date will get full 8% times 3 planting years.  Later joiners will get prorated "1st planting year" returns or even NONE of this 1st year 8% guaranteed return if you join now   .

Anyhow, this 1st year 8% is part of the 29% Reserve Fund with the Trustee.  According to page 30 of CHGS Prospectus , it shall be released to the Management Company(MC) on the 1st Anniversary from the Planting Date.  Hence, if Planting Date means the Launch Date which Andrew said is 5 March 2007, Trustee will pay this 1st year 8% of the Reserve Fund on 5 March 2008 to MC.  But depending on how early the individual grower signed-up, MC gets to keep a large portion of it!

Anyway, all Growers can only look forward for better returns from 4th planting year onwards to be higher than 8% guaranteed in the initial 3 Planting years.
michael

Thank you bro, finally my question is answered
Well, it does look attractive still above RM1,500.
I am considering to try out 1 acre first, and if it's good I might get more.
Neocappucino, do you service in Klang?
Any freebies for cash?

i am very interested with this
but unlucky i from taiping, hard to find ppl to explain to me clearly
can direct pay cash with FOC 2d1n hotel izzit?

Curious to know too, will the 8% based on the going price or previous price? anyone have the confirmed answer from Andrew?

To avoid confusion, I have bold this part.
It is not 8% for 23 years, but rather 8% until 2010 I pressume
Please contact me as soon as possible because I do not like wasting too much time.
I have other plans for my money if it's not going into this, and I would definitely not wait until the price is raised to RM6000. Please take note

Hi all

These are my summary of this CHGS which i hope others may find useful.

Based on the Grower's Management Agreement :

Launch Date = 6March2007 - date my own, to be confirmed by CHGS management

Planting Phase = 3 years (6March2007 to 5March2010 - dates my own)
Nett Yield shall be 8% of the Grower's Fee paid.

Harvest Phase = 20 years (6March2010 to 5March2030 - dates my own)
Nett Yield % of Grower's Fee paid = % based on average annual CPO price per MT + bonus % based on output per hectare.

Annual Management Fee
Harvest Phase only = 0.1% of the Grower's Fee paid

Yearly Income Payout Date = by 14 February

Maturity Date or Expiry of CHGS = 5March2030 - date my own
Refund on Maturity per Grower's Plot = Net proceeds from Plantation disposal / No. of Grower's Plots
Hence, a conclusion here is that Nett Yield for the next two years will still be 8% of Grower's Fee based on the actual amount paid.  The only different is it cost later joiners higher per Grower Plot for a share of the net disposal proceed on Maturity Date.
8% is forecasted as the most likely returns for all the subsequent years in the Harvest Phase to simplify evaluating this CHGS viability.  Also there is about 22 years left in this CHGS to go before the Maturity Date.

The current CHGS Prospectus expires on 11March2008.  Hence current Grower's Fee of RM5500 per plot will hold until then.

cheers,
michael