What happen?? So far only RM2.5b of the RM10b subscribed after much hyped about the fund at the beginning. LOL

KUALA LUMPUR: Permodalan Nasional Bhd (PNB) has extended the Amanah Saham 1Malaysia (AS1M) subscription allocation to ethnic groups to Dec 31, 2009.

PNB president and group chief executive Tan Sri Hamad Kama Piah Che Othman said the decision to extend the allocation ratio was to provide extra time for people from all ethnic groups to invest in the fund.

The investors of AS1M came from various economic backgrounds including medium and low-income earners, he said in a statement on Oct 1.

“I hope everyone would take this opportunity to participate in this AS1M fund by opening a new investment or making an additional investment,” he added.

AS1M, a fixed price fund with a size of 10 billion units, was launched on July 31, 2009 by Prime Minister Datuk Seri Najib Tun Razak.

It is open to all Malaysians with an allocation of 50% for bumiputeras, 30% for Chinese, 15% for Indians and 5% for other ethnic groups.

As of Sept 27, more than 2.5 billion units had been subscribed by 165,661 investors.

Hamad Kama Piah also said Amanah Saham Nasional Bhd (ASNB) would be conducting investment seminars, focusing on AS1M in selected locations nationwide beginning this month. — Bernama (Read more inside ..)

Schemes according to Maturity Period:
A mutual fund scheme can be classified into open-ended scheme or close-ended scheme depending on its maturity period.

    Open-ended Fund/ Scheme
An open-ended fund or scheme is one that is available for subscription and repurchase on a continuous basis. These schemes do not have a fixed maturity period. Investors can conveniently buy and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis. The key feature of open-end schemes is liquidity.

    Close-ended Fund/ Scheme
A close-ended fund or scheme has a stipulated maturity period e.g. 5-7 years. The fund is open for subscription only during a specified period at the time of launch of the scheme. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where the units are listed. In order to provide an exit route to the investors, some close-ended funds give an option of selling back the units to the mutual fund through periodic repurchase at NAV related prices.

Schemes according to Investment Objective:
A scheme can also be classified as growth scheme, income scheme, or balanced scheme considering its investment objective. Such schemes may be open-ended or close-ended schemes as described earlier. Such schemes may be classified mainly as follows:

    Growth / Equity Oriented Scheme
The aim of growth funds is to provide capital appreciation over the medium to long- term. Such schemes normally invest a major part of their corpus in equities. Such funds have comparatively high risks. These schemes provide different options to the investors like dividend option, capital appreciation, etc. and the investors may choose an option depending on their preferences. The investors must indicate the option in the application form. The mutual funds also allow the investors to change the options at a later date. Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time.

    Income / Debt Oriented Scheme
The aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures, Government securities and money market instruments. Such funds are less risky compared to equity schemes. These funds are not affected because of fluctuations in equity markets. However, opportunities of capital appreciation are also limited in such funds. The NAVs of such funds are affected because of change in interest rates in the country. If the interest rates fall, NAVs of such funds are likely to increase in the short run and vice versa. However, long term investors may not bother about these fluctuations.

    Balanced Fund
The aim of balanced funds is to provide both growth and regular income as such schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents. These are appropriate for investors looking for moderate growth. They generally invest 40-60% in equity and debt instruments. These funds are also affected because of fluctuations in share prices in the stock markets. However, NAVs of such funds are likely to be less volatile compared to pure equity funds.

    Money Market or Liquid Fund
These funds are also income funds and their aim is to provide easy liquidity, preservation of capital and moderate income. These schemes invest exclusively in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money, government securities, etc. Returns on these schemes fluctuate much less compared to other funds. These funds are appropriate for corporate and individual investors as a means to park their surplus funds for short periods.

    Gilt Fund
These funds invest exclusively in government securities. Government securities have no default risk. NAVs of these schemes also fluctuate due to change in interest rates and other economic factors as is the case with income or debt oriented schemes.

    Index Funds
Index Funds replicate the portfolio of a particular index such as the BSE Sensitive index, S&P NSE 50 index (Nifty), etc These schemes invest in the securities in the same weight-age comprising of an index. NAVs of such schemes would rise or fall in accordance with the rise or fall in the index, though not exactly by the same percentage due to some factors known as "tracking error" in technical terms. Necessary disclosures in this regard are made in the offer document of the mutual fund scheme.
There are also exchange traded index funds launched by the mutual funds which are traded on the stock exchanges.

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We cannot view a mutual fund unit like a share. There is no 'saturation point' as far as the growth of the Net Asset Value of a fund is concerned. An individual stock may get over valued if its price shoots up, but that is not the case with a unit trust.

Now, let's look at the NAV. 

Basically, it is irrelevant how high or low the NAV of a fund is.Let's say you want to invest RM 5,000. Irrespective of which fund you invest in, this amount stays constant. Now let's say that your choice is restricted between two funds with identical portfolios. Since they both have identical portfolios, their value will increase in the same proportion. You may buy the units of one fund at a higher price than the other. But, the percentage increase would be the same. Hence, your investment of RM 5,000 will increase by the same percentage, irrespective of the fund you invest in. So the number of units you get as well as a high or low NAV are irrelevant. Thus, it is the stocks in a portfolio that determine the returns from a fund, the value of the NAV being immaterial.

You should be making your selection of mutual funds based on past performance, risk and other such factors.

The only instance where a higher NAV will get you fewer units that may affect you is where a dividend has to be received. 

Dividend is given per unit. So the fewer the units you get, the lesser the dividend.

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                           Amanah Saham Nasional

                          Amanah SahamNasional 2

                          Amanah Saham Nasional 3

                          Amanah Saham Bumiputera

                          AmanahSaham Malaysia

                         Amanah Saham Wawasan 2020

                                Amanah Saham Didik

Source taken from WWW.ASNB.COM.MY. Is seems like ASN3 is the best performing product since establishment of the fund so far with the currently highest NAV and also net distribution perunit. (Read more inside ..)

In measuring a Fund's performance, an investor should understand the basic definitions of Fund returns.

Total Returns

The change in a Fund’s Net Asset Value (NAV) over time, assuming that income distribution are reinvested and that there are no purchases or redemptions made during the period.

Average Annual Total Return

The Total Return for the period divided by the number of years under review.

Distribution Yield (for fixed-price Funds)

The income distribution divided by the Fund’s price, which is fixed at RM1.00 per unit.

Performance Benchmark

Although the past performance of a fund is not indicative of its future performance, it is useful to compare the fund’s performance to its benchmark and other funds with similar investment objectives. The use of an appropriate benchmark that fits a Fund’s investment objectives or asset classes can be extremely useful. This is because different asset classes perform differently following changing market conditions.

For instance, an equity fund which primarily invests in Malaysian equities would be appropriately benchmarked against the Kuala Lumpur Composite Index (KLCI) or any Bursa Malaysia indices, while a balanced fund would be appropriately benchmarked against a composition of asset classes, for example, 50:50 between KLCI and 3-month Kuala Lumpur Interbank Offered Rate. When selecting a Fund, an investor should be looking for a fund which have consistently outperformed its benchmark or competitors.

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By SIRA HABIBU

KUALA LUMPUR: Amanah Saham shares worth RM100mil will be given to the hardcore poor in urban areas to help them make ends meet, said Datuk Seri Najib Tun Razak.

The Prime Minister said the Government was compiling a list of those eligible for the shares.

“Poverty is not restricted to rural areas only. The poor in urban areas also need assistance,” Najib said before breaking fast with the people at the Al-Bukhary Mosque here yesterday.

The event sponsored by the Al-Bukhary Foundation attracted about 4,000 people from all walks of life.

Najib also called on government agencies, the private sector and philanthropists to help the poor in urban as well as rural areas.

He also said there was a need to redefine hardcore poverty in urban areas.

“Those earning RM2,000 may live comfortably in rural areas, but not in urban areas.”

Najib also acknowledged that poverty was one of the main issues affecting Muslims.

The Government had also started a public housing project called Projek Perumahan Rakyat for the urban poor, he said.

The first phase of the units would be sold on Oct 10 in the Federal Territory.

“This is something that people have been waiting for. Efforts to address poverty in urban as well as rural areas will be ongoing.”

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PERMODALAN Nasional Bhd (PNB) yesterday extended the subscription allocation of Amanah Saham 1Malaysia to the different ethnic groups to September 30.

The fund manager however said the maximum investment limit for the new units will be abolished after the 30-day offer period from September 4.

The fund, with a size of 10 billion units, is open to all Malaysians with a temporary allocation of 50 per cent to Bumiputeras, 30 per cent to the Chinese, 15 per cent to Indians and the remaining 5 per cent to other ethnic groups.

As at August 25, more than 2 billion units had been subscribed by 148,830 investors.

Amanah Saham 1Malaysia was launched on July 31.
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The unit trust scheme known as Amanah Saham Nasional (ASN) is a scheme for mobilising Malay savings for equity investment. It was launched in 1981 as a major vehicle for implementing the transfer of corporate assets held under trusteeship to the Bumiputera. Unlike BIMB and TH, ASN is aimed mainly at improving the economic conditions of the Bumiputera, especially the Malays and therefore, the ethnic aspects overshadow the religious ones. Nevertheless, as the relationship between Islam and Malayness are so intertwined, ASN has also been associated with the Islamisation package of Dr. Mahathir.

As discussed in the previous chapters, the government adopted the NEP to restructure society so that the economically backward Malays would be able to own at least 30 per cent equity in the corporate sector. Previous experience shows that the Malays were more interested in capital appreciation than in equity ownership. In other words, the shares allocated to the Malays were sold when the price went up, thus defeating the objective of the NEP. Research also indicated that when Malay shareholders sold their shares, the proceeds were used for consumption and not for investment purposes.

In order to find a more effective way of achieving the aims and aspirations of the NEP, the Government established a Working Committee in 1977 under the chairmanship of Tun Ismail Mohamed Ali. The committee drew up policies for the establishment of a Bumiputera Investment Fund. Among these were:

a) The information of a fund as a business entity with the authority to invest in all forms of investment and the authority to obtain loans;

b) The establishment of a unit trust fund to distribute these investment to the Bumiputera community

As a result, the Bumiputera Investment Foundation (BIF), or Yayasan Pelaburan Bumiputera (YPB) was set up on 9 January 1978 under the Companies Act, 1965, as a company limited by guarantee. The YPB provides funds for the purpose of subscribing to shares in companies which wish to issue their shares to the Bumiputera community in compliance with the NEP. It also formulates policies and guidelines for Bumiputera equity investment participation. It has acted as a catalyst in encouraging the savings habit, developing entrepreneurship and investment skills among the Bumiputera community.

To further the YPB's objectives, in March 1978, the National Equity Corporation (NEC) or Permodalan Nasional Berhad (PNB) was incorporated as a wholly owned subsidiary of the foundation. PNB is a commercial organisation, managed by professionals who are responsible for selecting and operating the portfolio of shares of limited companies in Malaysia to be held in trust for subsequent sale to individual Bumiputera investors. In May 1979, National Unit Trust Limited also known as Amanah Saham Nasional Berhad (ASNB) was then incorporated as a wholly owned subsidiary of PNB to establish and manage a National Unit Trust (NUT) or Amanah Saham Nasional (ASN) scheme as an intermediary for the channeling of shares to the Bumiputera community .


More info can be found in http://www.islamic-world.net (Read more inside ..)