Invest Made Easy
Amanah Saham Bumiputera, Taking Loans to Pay Dividend?
Shane My
Publish date: Thu, 07 Feb 2013, 10:00 PM
Shane My
0 271
Like many of us, we seek for financial security and ultimately financial freedom. This blog is intended to act as a journal of investment as I journey towards that dream. At the same time, I hope that the articles written here would also benefit many others who share the same vision as me.
I've heard many questions on how does Amanah Saham Nasional Berhad (ASNB) provide positive dividend returns plus bonuses to their investors consistently on a year to year basis. Even during the 2008 economy downturn where the KLSE crashed to a low of 876.75 points, ASNB were able to declare positive dividend returns for all their funds!
The oldest fund from ASNB, which is Amanah Saham Bumiputera (ASB) has been declaring the highest dividend returns on a year to year basis among all ASNB funds. Furthermore, ASB is the only fund from ASNB that provides additional bonuses to their investors. That has raised quite a number of speculation with regards to the capability and sustainability of ASB. Is it even possible for any fund to provide returns even in the harshest of economy situation?
These speculations sparked my interested in trying to determine whether ASNB (specifically ASB) is really able to provide sustainable returns. Before I go into details, I wish to declare that all information are obtained from the internet, annual reports, websites, etc and opinions made are based on my understanding and perception.
Background About Amanah Saham Bumiputera (ASB)
Amanah Saham Bumiputera (ASB) holds the title of being the first fund launched by ASNB on January 2, 1990. ASB was first introduced to help Malaysian Bumiputera to build up an alternate savings nest for retirement instead of depending entirely on EPF.
Bumiputera investors can purchase ASB units for a RM1.00 per unit and can continue to do so until a maximum of 200,000 units for adults and 50,000 units for teenagers. The price per unit of ASB is fixed at RM1.00 per unit regardless of the Net Asset Value (NAV) of the fund. In addition, there are no sales charge fee and redemption of units is also free.
ASB Dividend and Bonus for the past 6 Years
ASB's investment nature is mainly into Equities. By investing into equities, ASB is able to provide higher returns upon investment. Investors over the years have benefited greatly from ASB dividend returns as shown below:
|
|
2012
|
2011
|
2010
|
2009
|
2008
|
2007
|
|
Dividend
|
7.75
|
7.65
|
7.50
|
7.30
|
7.00
|
8.00
|
|
Bonus
|
1.15
|
1.15
|
1.25
|
1.25
|
1.75
|
1.00
|
|
Total
|
8.90
sen/unit
|
8.80
sen/unit
|
8.75
sen/unit
|
8.55
sen/unit
|
8.75
sen/unit
|
9.00
sen/unit
|
On the average, ASB has given average returns of 8.79 sen/unit over the span of 6 years!
In money terms, say I have invested RM100,000 into ASB on the 1st of January 2007, my value of investment at the end of 2012 is RM160,579.50. Basically I will be earning an additional RM60,579.50 in a matter of 6 years time.
So what is the speculation all about?
Many have questioned on how ASB, who is invested into the Equity market is able to provide positive dividend and bonus during the World Financial Crisis in 2008?
During that crisis, our Kuala Lumpur Composite Index (KLCI) fell from 1393.25 points on January 2, 2008 to 876.75 points on 31 Dec 2008.
Yet ASB who's invested into the KLCI declares a dividend distribution of 7.00 cents/unit plus a bonus of 1.75cents/unit. How is it possible when other equity based unit trust funds were recording massive losses on their NAVs?
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Created by Shane My | Dec 06, 2020
Discussions
1 person likes this. Showing 10 of 10 comments
thats why it price fix at RM1,imagine stock like BAT,DIGI,PUBLIC BANK,MAYBANK,KPJ whereby ASB invest long time ago price at RM.50 and PUBLIC BANK at RM2 when 2004 if asb not fix d price?how many value asb worth now?...
The best case scenario is DIGI that worth RM2.20 when 2008 at 2011 the price rocket to?.. i think u noe d answer,then 10 for 1 split,imagine u invest in 1k DIGI share which RM2200 then its value now RM50K not including dividen...
Asb although look as bumis tools to achieve financial freedom are not well used by bumis plus not forget other race GOT AMANAH SAHAM 3IMBANG,1MALAYSIA,WAWASAN 2020 which i5s dividen return as same like asb
I want to share one fund that outperform ASB which is AMANAH MUTUAL BERHAD its give 9cents dividen last year per unit,try check it price today!
among its stock is Gamuda,igbreit,gasMY,PBBANK,MAYBANK,CIMB..ETC
U can buy this fund when ge as its holding is in cyclical sector i mention above...
Im not pros to gov just share my experience investing in UNIT TRUST...
=)
2013-02-07 23:31
pros and cons in either asb or unit trust. at the end of the day, it is up to the investor to decide what is best for themselves.
2013-02-08 00:26
Taking into example Public Ittikal fund from Public Mutual give a cumulative return of 190% in 10 years which resulting into 19% annual simle average return.
From this figure of 19% average return, i think it would be very simple for ASB to give out a silly 7% or 8% return annually which is about 50% of possible return from equity market.
2013-02-08 00:59
In the long term, there is no way a unit trust, any unit trust, can beat ASB.
2013-02-08 12:51
They never publish their NAV (Net Asset Value) & they give only share dividend – no cash involved, hence can’t blame others from suspecting whether they have enough NAV to support the RM1 fixed price.
The worst case scenario that I can think of:
One day in the future, there is a news leak that they only have NAV of RM0.80 per unit & this cause panic selling or redemption of the fund. Quickly they stop the redemption & ask the government to bail out. However, government also broke due to many year of budget deficit & high debt & cannot help. So they have to liquidate the fund & pay the investor the real NAV rather than the RM1 fixed price!
This is my imaginary worst case scenario, lets hope it will not happen!
2013-02-08 16:46
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Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
kcchongnz
A ponzi scheme. But don't worry. Invest more. It won't collapse as it has EPF, Petronas etc to support it.
2013-02-07 22:58