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 ?

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

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.

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

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.

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 !!!!!!!!!