I came across this after a friend introduced it to me.

The so called CNB Amanah Secure Trust offered 8% p.a. return and paid out on semi-annual basis. I am not able to find out more about the trust, can't find the annual reports and where they invest. However, my friend who invested a year ago are getting the payout banked in directly to their bank account. Despite that, I am still skeptical on how they generate that handsome payout. On top of that 8%, the company also payout a few % (more than 2%) of commission to the agent who can recruit a new customer. So the cost of the fund is more than 10% - that is very high cost compared to any other form of passive investment. How can the company sustain it?

The only article I found about their 8% guaranteed return secured trust - https://www.prnewswire.com/apac/news-releas...-302034701.html

Company website: https://www.cnbamanah.com
The company is linked to Dato Lee Lin Fong and his company Lee & Partners

The 8% return is attractive, but I am having trust issue with the company. Comments and your opinions are welcome.

Trust Companies are not under the purview of BNM or SC.
If got disputes, where do seek assistance to help resolve issues?

I didn't know that. Maybe that's why can't find the information in BNM website.

high risk high reward la bro

you want to find higher return, but you are afraid of the risk?

DYOR, no such thing as free lunch in the world

High risk but return just okay level only..

8% is quite lower side for this kind of risk.... 15% then we talk...

Do read the fine prints, ...
Some may contains T&C including things like these.

These trust companies may be esrablished under trust act.
But where or who to seek assistance when the stated terms are not followed?
SSM? PBT?


Attached thumbnail(s)

https://forum.lowyat.net/topic/4801818/+340

read this thread. it's helpful.

This post has been edited by Kelapa Sawit: Sep 4 2024, 05:42 PM

With all investment opportunities, ask yourself these questions:

- Is it regulated by Securities Commission or Bank Negara
- Any 3rd party trustee/custodian
- What are the underlying assets?
- Any leverage/margin used?
- Are the risk/return moderate?
- Are the product provider regulated by Securities Commission or Bank Negara?

why do people like to risk their hard-earned savings for that additional 1-2% compared to other safer, highly guaranteed scheme, it's not even attractive.

Some updates. So I was curious about how and what they invest to generate the 8% return. Here is what I found.

Apparently, they do not make the investment themselves. They engage this company named Alevate Capital Sdn BHD (AC thereafter) to take care of the investment. Based on their information, this company, AC is a KPKT certified company that provides online loan to the customer. According to the agent, AC is running the effective lending model to its customer that racking more than 18% interest rate which justify their 8% return to the trust.

https://alevatecapital.com.my

I am sure this is a high risk business model while they seems to run everything within the law and regulations.

This post has been edited by engineer: Sep 13 2024, 09:55 AM

Huuumph.
If shits happens, I wonder should we go after CNB Amanah or this AC?
Who should we go to get advise or assistance to seek resolution to disputes?

You sign the agreement with CNB, I guess you need to deal with CNB lo.

Is there any penalty for premature termination?
Did you also asked if there is any annual mgmt fees or subscription fees ?
The said guaranteed returns is net of all fees?

This post has been edited by MUM: Sep 13 2024, 10:17 AM

Yes, net of all the fees. It works like a FD from the outside. Your money is locked within that period of time. There is penalty if you withdraw pre mature, I forgot how much is it now.

This post has been edited by engineer: Sep 13 2024, 10:19 AM