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50% for Bumi, 30% for Chinese, 15% for Indians and 5 % for other races.

That's precisely the concept of 1Malaysia from UMNO's perspective.

It's just we being naive to think that 1Malaysia is 100% bumi, 100% Chinese, 10% Indians, 100% for other races.

How sad!

I really hope the government can do good with the money the rakyat entrusted to her..............you know,it is not that i am not a true malaysian,but sometimes it just makes me sick to the bones of the hypocrisy of the government.

They say we are all equal, then they say we dont understand what equality means in malaysia concept.

I love malaysia, somehow or rahter i just get sicker and sicker about the government,,,what happened to the VK lingam case, what happened to all thsoe big big corruption case, like that one MITI building, the MMR2 highway and so many more.......and one happen to one particular paper which keeps instigating racial hatred and go scot free?

so much for 1Malaysia

The prospectus of AS 1Malaysia says that "The price of AS 1Malaysia unit is fixed at RM1.00. However, AS
1Malaysia is not a capital guaranteed fund as defined under the
Guidelines."

Are these two sentences contradict to each other ?

What does that mean actually ?

Very contradicting indeed. If the price is fixed at RM1.00, then it would automatically meant the capital would be also guaranteed.

Unless, of course, there are 'microscopic prints' that we are not aware about in the prospectus, which could sound like, "Price fixed at RM1.00 means that the fund price will not appreciate above RM1.00 but this does not mean that the fund price will not depreciate below RM1.00."

I tried to look for the answers everywhere in the Internet (Malaysia context). Here are some related information concerning the words "Capital Guaranteed":

1) AS 1Malaysia is not a capital guaranteed fund as defined under the Guidelines, which means there is no guarantee that the underlying assets value will not drop below the RM1.00 value in the future
2) units of AS1M is fixed at RM1 at all times, it is not defined as a "capital guaranteed fund" because by definition of the Guidelines on Unit Trust Funds, a "capital guaranteed fund" would guarantee investors the capital invested only if units are held until maturity. Fixed price fund does not have a maturity date, and therefore its unit is fixed at RM1. With this statement, it seems explained what is the difference between the fixed price fund and the definition of the capital guaranteed fund.

By the way, anyone can confirm that ASW2020 and ASM, which are fixed-price funds, are indeed "Capital Guaranteed Funds" ? And where has this been stated officially and formally in the formal documents such as prospectus, the Deed, etc ?

Are we all have mistakenly thought that fixed-price fund is capital guaranteed, while the fact is under financial terms & conditions, they are actually different ?

It is much "widely-known" that PNB funds are "guaranteed" by Malaysian government, while they are guaranteed by the government, are they "Capital Guaranteed Funds" ?

Confuse --larr !!!!!!!!!

(BUSINESS TIMES, 8th August 2009) More than 1.4 billion units of the new unit trust fund Amanah Saham 1Malaysia (AS1M) were subscribed within two days of its launch.

Permodalan Nasional Bhd (PNB) president and group chief executive Tan Sri Hamad Kama Piah Che Othman said the take-up rate was within expectations, given the fund size and the minimum subscription limit of 50,000 for those below 55 years old and 100,000 units limit for those above 55.

AS1M is a 10 billion-unit fixed price fund of RM1 per unit, with features similar to that of Amanah Saham Wawasan 2020 (ASW 2020) and Amanah Saham Malaysia (ASM).

“We will be adopting similar strategies for AS1M as with ASW 2020 and ASM and we hope for AS1M to perform as well as the other two funds which have exceeded their benchmark,” Hamad Kama Piah said in a statement yesterday.

He said ASW 2020 had declared annual income distribution ranging from 6.6 per cent and 8.8 per cent, while ASM has consistently paid out income distribution ranging from 6.25 per cent and 7.8 per cent.

Both ASW 2020 and ASM are benchmarked against the three-month Klibor, which has been averaging at 3.07 per cent for the past 10 years.

AS1M, meanwhile, is benchmarked against the average five-year Malaysian Government Securities, which now yields about 3.72 per cent.

This year, PNB has opened for subscription an additional two billion units of ASW 2020, 3.33 billion units of ASM and 10 billion units of AS1M.

“We would like to ensure the success of all our existing funds before we decide on other funds’ expansion,” Hamad Kama Piah said.

When it is mentioned that "AS1M is benchmarked against the average five-year MGS of yields about 3.7-4.0 %", there are people saying that AS1M will eventually gives 4% dividend maximum !

That's the observation I saw among the housewives, uncles and aunties queueing up on the 1st day of AS1M. :LOL

Bolehland need big cash to cover the hole they dug if you all still remember how generous of our new PM in the beginning of the years.

So where to get the money? create more fund for ppl to dumb in their money.

What make worry was that equity fund would be really safe now and in the next 6 months? US start to shake with the Obama's stimulus package, would there be another new US stimulus package from Obama?

China already hint the large volume of fund hold in US.

fix price means RM 1 stays RM 1 at the fund level.
Capital guarantee means your RM 1,000 remains minimum RM 1,000 at personal level.

although intuitively they 'should' have the same effect but in pure finance terms, they don't "have to".

For example, if 3 years later BN lose the election to PR, you may not get your RM 1,000 back. But hey, you can get your dividends for the last 3 years :D

mtsen,

Is that so easily for the RM1,000 investment capital to "disappear" in a blink or overnight when BN lose to PR one day ?

I thought under the Unit Trust Law, the assets are under the trustee's custody ?