Prestasi Terkini

Prestasi Dana-dana under Public Mutual...Tunggu lagi good news minggu depan...

p/s:
1. PIDF 2 minggu lepas price 0.31++..hari ni naik 0.33...

2. PIADF 2 minggu lepas price 0.24++..hari ni dah naik 0.2680..minggu depan insya Allah boleh cecah 0.27...

simple calculation Untuk PIADF:
jumlah pelaburan= RM2500jumlah unit= 2500/0.25 (harga beli)= 10,000 unit (untuk RM2500)harga semasa= 0.27
untung= 10,000 x (0.27-0.25)= 10,000x 0.02= RM200
peratus untung= (RM200/ RM2500)x100= 8%
so..dari bulan April sampai skang ni..dah untung dalam 8% dalam masa 5 bulan... (sama dengan dividend ASB untuk setahun.. )

Sepuluh Tabiat Mudah Menabung

Sepuluh Tabiat Mudah Menabung

Oleh Orang Ringgit Apakah sukar untuk mengamalkan tabiat baik menabung? Sebenarnya tidaklah terlalu susah, malah amat mudah! Orang Ringgit kami menemu bual beberapa orang untuk mendapatkan panduan yang baik mengenai tabiat menabung dan panduan itu ingin dikongsi bersama di sini.

#1: Berhenti merokok "Saya berhenti merokok sejak pengumuman harga baru rokok. Saya berjaya menjimatkan RM20 seminggu." --Mohammed, Pengawal Kredit. Umur: 28 Orang Ringgit: Usia lebih panjang dan dapat menjimatkan RM1,040 setahun!

#2: Bawa bekalan ke tempat kerja "Biasanya saya bawa bekalan makan tengah hari ke tempat kerja tiga kali seminggu. Saya dapat berjimat kira-kira RM30 seminggu."--Soh Guat Ha, Akauntan. Umur: 36 Orang Ringgit: Bawa bekalan makan tengah hari dari rumah dan anda boleh menyimpan RM1,560 di bank tahun depan!

#3: Cuci kereta sendiri "Mengapa hantar kereta untuk dicuci jika anda ada masa untuk melakukannya sendiri pada hujung minggu? Pengusaha tempat cuci kereta mengenakan bayaran RM9 sekali cuci – ini bermakna anda boleh menjimatkan RM36 sebulan dengan mencuci sendiri kereta anda. Kerja mencuci itu pun satu riadah juga dan untuk senaman yang lebih baik lagi, cubalah kilatkan sendiri kereta." --Khairi, Eksekutif Pembangunan Perniagaan. Umur: 26 Orang Ringgit: Mencuci dan mengilatkan sendiri kereta anda membolehkan anda menabung RM1,872 setahun yang lama kelamaan menjadi lebih banyak.

#4: Beriadah di rumah "Saya telah membatalkan keahlian saya di sebuah kelab kesihatan. Saya jarang pergi ke sana untuk beriadah. Saya sudah mula bersenam di rumah. Sebagai sebahagian daripada kegiatan riadah, saya berjalan di sekitar kawasan perumahan saya selama 30 minit sehari. Jumlah yang dapat dijimatkan? RM180 sebulan."--Mahinder Kaur, Juruteknik IT. Umur: 25 Orang Ringgit: RM180 sebulan selama 12 bulan – akaun simpanan anda bertambah kukuh dalam masa setahun. Anda akan ada RM2,160 dalam akaun itu.

#5: Bayar bil kredit kad pada masanya "Sentiasa bayar kad kredit anda pada masanya untuk mengelakkan membayar denda RM5 kerana pembayaran lewat. Kalau boleh, selesaikan baki kad kredit secepat mungkin untuk mengelakkan caj faedah yang tinggi."--Ahmad Kamal, Pengatur cara. Umur: 23 Orang Ringgit: Siapa cepat dia dapat. Membayar bil pada masanya dapat menjimatkan RM60 setahun.

#6: Ajar anak anda sendiri "Saya mempunyai tiga orang anak yang sedang bersekolah, berusia antara tujuh hingga 11 tahun. Saya ajar mereka sendiri daripada menghantar mereka ke pusat tuisyen. Saya dapat jimatkan kira-kira RM360 sebulan."--Puan Kannan, penulis bebas. Umur: 42 Orang Ringgit: Sambil menyelam minum air. Ajar anak anda sambil habiskan masa berkualiti bersama mereka dan anda dapat menabung RM4,320 setahun untuk perbelanjaan mereka di kolej nanti.

#7: Lepak di gerai "teh tarik" daripada di restoran yang mahal "Dulu saya dan kawan-kawan saya suka melepak di restoran yang trendy pada hujung minggu dan kami menghabiskan hampir RM50 setiap minggu. Sekarang, kami lepak di gerai teh tarik dan membelanjakan hanya RM10 seminggu. --Sofiana, pelajar. Umur: 18 Orang Ringgit: Belilah barangan tempatan dan jimatkan RM2,080 setahun.

#8: Kurangkan penggunaan elektrik "Keluarga saya sentiasa cuba mengurangkan penggunaan elektrik di rumah kami. Kami gunakan jangka masa untuk alat hawa dingin dan matikan lampu dan barangan elektrik jika tidak digunakan. Kami berjaya mengurangkan bil elektrik daripada RM230 kepada RM120 sebulan."--Puan Cheah, suri rumah. Umur: 47 Orang Ringgit: Gunakan bahan tenaga dengan lebih cekap dan tambah simpanan anda kepada RM1,320 setahun.

#9: Rancang pembelian barangan dapur "Apabila saya membeli barangan dapur, saya sentiasa berbelanja melebihi jumlah yang diperuntukkan dengan membeli keropok, minuman dalam tin dan gula-gula. Tahun ini, saya berusaha untuk mengikut senarai yang saya buat dan berjaya menjimatkan RM80 sebulan."--Dina, penjual bunga. Umur: 33 Orang Ringgit: Ikut senarai beli-belah yang anda buat dan jimatkan RM960 setahun.

#10: Jelaskan bil anda menggunakan kemudahan dalam talian "Saya bayar hampir kesemua bil saya menggunakan kemudahan Internet. Saya dapat menjimatkan RM5 duit pos, RM65 bayaran letak kereta dan minyak sebulan."--Rajesh Nair, Jurutera Perisian. Umur: 28 Orang Ringgit: Gunakan kemudahan membayar bil dalam talian dan jimatkan RM840 setahun. Tetapi berhati-hati ketika menggunakan Internet.

Mengurangkan perbelanjaan boleh membantu meningkatkan tabungan anda. Mulakan berdikit-dikit dan bersabarlah. Berikan masa selama 12 bulan dan lihatlah hasilnya. Ketika itu nanti, anda akan memiliki simpanan yang cukup untuk melabur di pasaran modal!

Balanced Funds: A Safer Approach To Investing In Volatile Markets

In times of volatile market movements, it is a challenge for some investors to keep their emotions in check. When markets are in a strong rally, our herd instinct compels us to join the crowd and ride with the upside. But when markets correct, we are prone to sell out in panic.

Yet, the wisest thing for investors to do at such times may be to remain calm and maintain a focused approach for their investments. Keeping an investment portfolio that is invested across different asset classes is a sound and effective strategy to ride through periods of adverse market movements.

Stock markets are volatile by nature and as illustrated in recent weeks, extended periods of rising share prices can often be interrupted by sudden bouts of consolidation. In such times, investors with moderate risk profiles should consider holding a balanced fund which is invested in both equities and bonds in near equal proportions. Balanced funds aim to provide income and capital growth over the medium to long term period by adopting a balanced asset allocation approach - 40% to 60% of the fund's Net Asset Value (NAV) is invested in equities while the balance is invested in debt securities and liquid assets. In comparison, equity funds generally have asset allocations of 85% or more in equities and the balance in fixed income securities and liquid assets.

The main benefits of investing in balanced funds are:
1. More Stable Returns: The overall portfolio risk of a balanced fund is reduced because the returns of equity and bond investments are generally not positively correlated. The potentially higher but more volatile returns from equity investments are moderated by the fund's investment in bonds. As a result, the returns of a balanced fund should be less volatile than a conventional equity fund.
2. Rebalancing: Another benefit of balanced funds is that in times of rising markets these funds "automatically" rebalance the portfolio by taking profits on equity investments which have appreciated and rebalancing the portfolio to its original equity: bond asset allocation of 60:40. Thanks to this rebalancing process, the unit trust investor need not worry about when to take profits on their investment.
3. Capital growth: A balanced fund will allow the investor to participate in the long term capital growth of equity markets because a sizable portion of up to 60% of the fund is invested in equities.

In conclusion, balanced funds are suitable for medium to long term investors with conservative to moderate risk reward temperament with a preference for receiving income and a respectable measure of capital growth. Investing in a balanced fund helps unit trust investors stay focused on achieving their long term investment goals without requiring them to evaluate the prevailing market cycle. Once they have selected a well-managed balanced fund in line with their risk profiles and investment objectives, they can be assured that the managers of the fund will take the necessary steps to rebalance the fund on a regular basis.

Are You Well Prepared for your Retirement?

ONLY 5% of Malaysians are prepared for retirement. Despite a growing awareness for the need to prepare for one’s retirement, many do not translate their plans into action.
Those in their 20s think they are too young to think about retirement, while those in their 30s and 40s tend to believe they are doing enough because they have their EPF savings. By the time they are 55, it is just too late.
The sad truth is that at 55, most people cannot retire with financial security.
Based on EPF’s 2005 annual report, about 90% of EPF contributors have less than RM100,000 in their accounts – not enough to see them through 20 years past retirement.

Melabur Dalam Amanah Saham : Wajarkah Meminjam?

Salam sejahtera.

Pagi tadi saya menerima ‘brochure’ dari sebuah bank terkemuka tempatan yang menawarkan skim pembiayaan bagi melabur dalam sebuah dana amanah saham berharga tetap.

Tambah menarik, skim pembiayaan tersebut menawarkan perlindungan insurans bagi baki pinjaman yang belum dijelaskan. Mereka mengatakannya sebagai ‘sambil menyelam minum air’. Nampak bagus!.

Bagaimana pun saya ingin bertanya, dalam air yang bagaimanakah kita menyelam dan apakah jenis air yang kita diberi minum? Kalau air Zam-Zam teringin juga!!

Berbalik kepada pembiayaan tersebut. Pembayaran balik bulanan berdasarkan KPA -0.10% ( 6.65% dengan KPA semasa 6.75%).

Adakah KPA -0.10% berterusan sehingga tempoh (tahun) pembiayaan tamat ? Berdasarkan pengamatan saya terhadap pakej sebelum ini, bank yang sama mengenakan KPA +0.1% pada setiap tahun sehingga tamat tempoh pembayaran balik.

Wajarkah kita meminjam bagi tujuan melabur dalam amanah saham? Tiada jawapan yang tepat. Ianya bergantung kepada diri sendiri. Apakah yang kita mahu? Apakah objektif kita melabur? Siapakah kita sebagai pelabur?

Minima pembiayaan yang ditawarkan ialah RM 30,000 dan maksima RM 200,000.00. Tempoh bayaran balik ialah dari 5 tahun hingga ke 20 tahun.

Saya ingin mengambil contoh pembiayaan berjumlah RM 50,000.00 dan bayaran balik selama 20 tahun:

Jumlah pinjaman : RM 50,000.00

Tempoh bayaran balik : 20 tahun (240 bulan)

Bayaran balik sebulan : RM 377.22

Jumlah bayaran balik : RM 90532.80
(240 bulan)

Berapakah nilai pelaburan anda pada tahun ke 20?

Saya mengandaikan dana amanah saham tersebut memberikan purata pulangan sebanyak 10% (compounded interest) :

Maka nilai pelaburan RM 50,000.00 : RM 336,375.00
( 10 % setahun )

Bayaran balik (RM 377.22 @240 bulan) : RM 90,532.80

Keuntungan bersih : RM 245,842.20


Berapakah keuntungannya jika kita melabur dalam amanah saham tanpa meminjam?

Berdasarkan kepada bayaran balik di atas iaitu RM 377.22 dan purata pulangan 10% setahun;

Jumlah pelaburan setiap bulan : RM 377.22

Tempoh pelaburan : 20 tahun (240 bulan)

Jumlah pelaburan (pokok) : RM 90,532.20
(240 bulan)

Nilai pelaburan pada tahun ke 20: RM 273,102.27
( purata 10% setahun )

Perbezaan:

Nilai pelaburan bulanan : RM 273,102.27
(RM 377.22 sebulan/240 bulan)

Nilai pelaburan RM 50,000 : RM 245,842.20
(tolak bayaran balik pinjaman)

beza : RM 27,260.07


Mana satukah untung? Melabur melalui pinjaman atau melabur secara tetap setiap bulan?

Lihat kepada diri kita. Kemampuan kita. Disiplin diri kita.

Jika kita boleh membuat bayaran balik RM 377.22 setiap bulan selama 240 kali ke dalam akaun bayaran balik pinjaman bank tidakkah lebih baik kita masukkan terus
RM 377.22 ke dalam akaun pelaburan amanah saham kita?

Tidak perlu bersusah payah.

Masih bank yang sama.

Masih kaunter bank yang sama.

Tetap 240 kali kita pergi ke bank yang sama.

CUMA: masukkan dalam akaun amanah saham BUKAN akaun bayaran balik pinjaman

Tidakkah anda mahu untung RM 27,260.07 hanya dengan menyimpan duit melalui penggunaan slip yang berlainan? Daripada slip bayaran pinjaman kepada slip pelaburan tambahan. Kedua-dua slip ini ada didepan anda bila anda berada di bank. Pilihlah!!

Tiada modal diperlukan. Slip bayaran pinjaman disediakan. Slip penambahan pelaburan pun disediakan. Malah pen pun disediakan oleh pihak bank !!

CUMA: Gunakan kebijaksanaan anda!!!. Berfikir tidak dikenakan bayaran. Percuma.

UNTUNG: RM 27,260.07 !!!

Bagaimana pula dengan perlindungan insuran bagi baki pinjaman tidak berbayar?


*dipetik dari blog Pelaburan Amanah Saham

Strong Demand for Public Bank’s First Euro Pacific Fund

KUALA LUMPUR 17 July 2007 – Public Bank’s wholly-owned subsidiary, Public Mutual announced that to date, more than RM311 million (or more than 1.24 billion units) worth of units of its recently launched PB Euro Pacific Equity Fund (PBEPEF) were sold. PBEPEF was launched on 8 June 2007. Chief Executive Officer Yeoh Kim Hong said the demand for PBEPEF has been good and the initial approved fund size of 1.5 billion units is almost fully subscribed. “The increase of fund size to 2.25 billion units will allow us to cater to the high demand of this fund since its launch,” she added. PBEPEF is an aggressive equity fund that seeks long-term capital appreciation by investing in equities and collective investment schemes in domestic and foreign markets. “Up to 98% of the fund’s net asset value (NAV) will be invested in foreign markets which include Europe, Japan, Korea, Taiwan, China, Hong Kong, Singapore, Thailand, Philippines, Indonesia and other approved markets. The equity exposure of PBEPEF will generally range from 75% to 90% of its NAV,” she continued. PBEPEF is suitable for investors with aggressive risk-reward temperament. The fund is distributed by Public Bank branches nationwide. Public Mutual is the largest private unit trust company in Malaysia, and it manages 47 funds for more than 1,000,000 accountholders. As at 29 June 2007, the total NAV of the funds managed by the company was RM22 billion.

Perancangan Dalam Pelaburan dan Simpanan Masa Tua

Berapakah Jangkaan Simpanan Kita Menjelang Tua?

Jom kita lihat :

Dengan permulaan dengan menyimpan sebanyak RM2000 dalam mana2 Unit Amanah, diikuti dengan menyimpan sebanyak RM100 tiap2 bulan selama 10 tahun (120 bulan):

Pelaburan Mula: RM2000
Simpanan Tiap2 Bulan: RM100
Tempoh: 10 Tahun @ 120 bulan
Anggaran Minima Pulangan Setahun: 10%

Jumlah simpanan= RM 2000 + RM12,000= RM14,000

Jumlah Pulangan selama 10 tahun= RM 26,224.89


dan berapa pula anggaran pulangan untuk 20 tahun?
mari kita lihat:

Pelaburan Mula: RM2000
Simpanan Tiap2 Bulan: RM100
Tempoh: 20 Tahun @ 240 bulan
Anggaran Minima Pulangan Setahun: 10%

Jumlah simpanan= RM 2000 + RM24,000= RM26,000

Jumlah Pulangan selama 20 tahun= RM 89,058.00

Ya...RM 89,058.00 dengan hanya menyimpan secara berdisiplin sebanyak RM100 tiap2 bulan selama 20 tahun
dalam pelaburan yang memberikan purata pulangan sebanyak 10% setahun...
kalau lebih..do your math!

Itulah "power of compounding"

Kelebihan Pelaburan Syariah Unit Amanah

KEWUJUDAN dana unit amanah berasaskan Syariah menambah satu lagi bentuk pelaburan kepada masyarakat untuk membuat tabungan dan pelaburan sekali gus memberikan pendedahan dan peluang berkecimpung dalam pasaran modal Islam dan pasaran kewangan Islam.

Alasan ketiadaan pengetahuan dan pengalaman, kekurangan modal serta masa bukan lagi kekangan dan penghalang. Terdapat pelbagai manfaat dan kebaikan yang bakal dinikmati oleh para pelabur atau pemegang unit apabila melabur dalam dana unit amanah berasaskan Syariah berbanding bentuk-bentuk pelaburan yang lain.

Antara kelebihan melabur dalam unit amanah berasaskan Syariah ialah dana diuruskan secara professional dan sistematik oleh pengurus yang berdaftar dengan Suruhanjaya Sekuriti. Mereka ini berupaya membuat analisis pasaran serta mahir memilih komponen portfolio yang terbaik.

Ini mencerahkan peluang para pelabur untuk memperolehi hasil pelaburan yang baik kelak. Dengan adanya pengurus dana yang mempunyai kemahiran dan sumber bagi menguruskan dana, para pemegang unit tidak perlu begitu bersusah payah mengikuti perkembangan pasaran secara terperinci kerana kepentingan mereka diuruskan dengan baik oleh mereka yang berkebolehan dan berkelayakan.

Pelaburan dalam dana unit amanah berasaskan Syariah terbuka kepada semua peringkat pelabur sama ada individu mahupun institusi, pelabur berskala kecil atau besar. Pelabur kecil yang tidak mampu melanggan sekuriti seperti bon yang mencecah jutaan ringgit harganya, boleh memiliki pelbagai portfolio pelaburan yang ditawarkan melalui pelaburan dalam dana unit amanah. Dana ini mampu dimiliki kerana dipecahkan mengikut unit dan mampu dibeli dengan pelaburan awal serendah RM100 dan pelaburan tambahan serendah RM10.

Selain itu, pelaburan di dalam dana unit amanah adalah mudah tunai. Pelabur boleh menjual sebahagian atau kesemua unit milik mereka pada sebarang hari urus niaga. Ini berbeza dengan pelaburan hartanah di mana kebiasaannya pemilik terpaksa mengambil masa yang lama untuk mendapatkan pembeli walaupun cuba melupuskan hartanah tersebut pada harga yang rendah di pasaran.

Pelabur yang menitik-beratkan portfolio pelaburan yang mematuhi Syariah kini boleh melabur dalam dana unit amanah berasaskan Syariah tanpa rasa was-was. Ini kerana setiap pelaburan dan aktiviti dana diawasi oleh penasihat Syariah yang berdaftar dengan Suruhanjaya Sekuriti. Kewujudan penasihat Syariah ini bertujuan untuk memastikan segala perjalanan dan pengurusan dana adalah selari dengan kehendak Syariah.

Selain manfaat yang diperolehi apabila melabur di dalam unit amanah, pemegang unit amanah harus mengetahui dengan jelas yuran dan caj yang dikenakan oleh syarikat pengurusan. Antaranya ialah caj perkhidmatan permulaan, caj belian semula, yuran penukaran, yuran pemindahan dan bayaran pengurusan.

Dengan peningkatan jumlah dana unit amanah berasaskan Syariah yang telah diluluskan oleh Suruhanjaya Sekuriti, para pelabur perlulah bijak untuk membuat pilihan dengan meneliti profail dana yang biasanya mengandungi objektif pelaburan, dasar, strategi dan ciri-ciri utama dana sebelum membuat keputusan untuk melabur. Walaupun di bawah Akta Suruhanjaya Sekuriti 1993 telah dinyatakan bahawa kepentingan pelabur akan dilindungi, namun para pelabur sendirilah yang bertanggungjawab untuk memilih dana unit am

Winning Award for Islamic Funds

Public Mutual Declares Distributions for 6 Funds

Public Bank’s wholly-owned subsidiary, Public Mutual declares gross distributions for six of its funds. The gross distributions declared are for financial year / period ended 30 June 2007:

PB Growth Fund - Gross distribution of 9.00 sen per unit
PB Balanced Fund - Gross distribution of 9.00 sen per unit
PB Asia Equity Fund - Gross distribution of 3.25 sen per unit
PB Fixed Income Fund - Gross distribution of 5.75 sen per unit
PB Islamic Bond Fund - Gross distribution of 4.25 sen per unit
PB Cash Management Fund - Gross distribution of 0.90 sen per unit

Public Mutual’s Chairman Tan Sri Dato’ Sri Dr. Teh Hong Piow said PB Growth Fund and PB Balanced Fund have delivered an impressive one year return of 63.86% and 43.66% respectively for the period ended 15 June 2007, while PB Fixed Income Fund and PB Islamic Bond Fund have registered a one year return of 10.84% and 5.78% respectively for the same period, according to The Edge-Lipper Fund Table dated 25 June 2007. “These funds have outperformed their respective benchmarks,” he continued.

Meanwhile, PB Asia Equity Fund has generated a six-month return of 23.56% for the period ended 15 June 2007. The fund has outperformed its benchmark of 13.17% for the same period.
As for PB Cash Management Fund, it has generated a three-month return of 0.77% for the period ended 15 June 2007, according to the same The Edge-Lipper Fund Table.

Public Mutual is the largest private unit trust company in Malaysia and it currently manages 45 funds for more than 1,000,000 accountholders. As at 19 June 2007, the total net asset value of the funds managed by the company was RM21.4 billion.

Public Ittikal Fund

Public Ittikal Fund Return for past 5 years:

Total return: 138.26%
Average Return per Year: 27.65%

Public Islamic Dividend Fund Performance

Public Islamic Dividend Fund since Feb'06 until June'07 (1year 4 month)

Total return: 47.45%

Do's and Don'ts of Choosing a Unit Trust Fund

Do

• Decide which type of unit trust fund meets your saving needs.
• Shop around for a reliable unit trust company
• Check whether investment limits, frequency of income payments, etc, are suitable
• Check past performance records

Don't

· Don't choose any unit trust fund just because its performance has been good, make sure it is the right fund for you.

• Don't pay too much attention to short term performance, good consistent performance over all periods is the best lead.
• Don't decide on a unit trust fund just because it has low charges, good performance is far more important
• Don't borrow to invest in unit trust unless you are absolutely aware of the risk involved.

Why Choose Unit Trust?

With the proliferation of various types of investment products in recent years, people often look for a straight forward, professionally managed investment opportunity that caters for basic investment needs. Public Mutual Berhad has succeeded in meeting those needs with its unit trust funds.

Children's Education

Unit trust can help you to cover the spiralling cost of education for your children or grandchildren. The sooner you start your plan, the lesser will be the burden. Time can be your greatest ally. Go to Education Planning for more details.

Home Ownership

Unit trust can help you to pay off your mortgage earlier, purchase a bigger house or upgrade your existing house. As with any plan, start early. Many bricks build a castle. Go to Home Ownership Planning for more details.

Retirement

Growing old and retiring is inevitable. It is never too early to plan for retirement even though you have the comfort of the Employees' Provident Fund (EPF). You have the right and choice to retire in dignity. Retire comfortably. Plan a nest for your retirement home, orchard and the likes. Unit trust can help do the job. Go to Retirement Planning for more details.

Cash Reserves

The only certainty in life is the uncertainty or unexpected emergencies. Unit trust can help you to set aside some cash for rainy days.

Regardless of your own needs and wants, unit trust makes sense, for potential return and security.

Investment In Unit Trust

The Role of Regulator

The Securities Commission Act 1993 provides that the Securities Commission (SC) is responsible for regulating all matters relating to unit trust schemes.

The SC has drawn up a set of Guidelines on Unit Trust Funds (Guidelines) to ensure a fair and consistent application of policies in considering proposals by management companies of unit trust funds.

The Guidelines are formulated with the objective of providing a regulatory framework that would protect the interests of the investing public and facilitate an orderly development of the unit trust industry. The requirements of the Guidelines are to be complied with by all parties involved in a unit trust scheme.

In addition to the above Act and Guidelines, all unit trust management companies must comply with the Companies (Amendments) Act 1997, the Securities Industry Act 1983 and Trustee Act 1949.

The Role Of The Trustee

Whatever may happen to their performance over time, unit trust managers have a reputation for the stability of their funds that is second to none. Much of this is due the legal framework in which they operate. The government lays down strict rules that unit trusts have to follow and the machinery for ensuring that this is done.

Every individual fund has its own independent trustee, although for administrative simplicity, it is not unusual for unit trust management companies to engage one trustee for all funds. The trustee can be the Public Trustee of Malaysia or any independent trustee of Malaysia or any independent trustee companies.

The trustee's primary role is to see that the terms of the fund's deed are adhered to. The deed is a set of rules under which the trust is run, setting out such things as the investment scope of the fund.

The funds' assets are always in the custody of the trustee. Although the manager makes the decisions about the management of those assets, when to buy and sell, he cannot get his hands on them directly. This system ensures that the funds will not be used for fraudulent purposes. The manager has to deal via the trustee who will ensure that the day-to-day work of running the trust, the funds' accounts, valuations and calculations of unit prices are carried out properly and in accordance with both the deed and the rules laid down by the SC.

The trustee is also responsible for seeing that all the relevant paperwork is carried out. The trustee takes responsibility for overseeing the creation and cancellation (release) of units in the fund. The Guidelines also stipulate that unit trust managers have to produce semi annual and annual reports to its unitholders.

Where Would The Trust In Units Be Without The Trustee ?

Guidelines On Unit Trust Funds

In addition to the regulatory and safeguarding roles of the Regulator and Trustee respectively, the Guidelines provide additional safety features to protect the interest of the investing public. The Guidelines describe the characteristics of the investments permitted as opposed to prescribing the investments (which was previously investment in authorised Malaysian assets only) Furthermore, the Guidelines also reinforce the safety net by ensuring the funds are not overly exposed to high risk stocks and any single group of companies.

The Guidelines are subject to review by the Securities Commission as and when it deems fit and necessary to protect and ensure the growth of the industry.

The Federation of Malaysian Unit Trust Managers (FMUTM)

The first unit trust fund in Malaysia was launched in 1959. Who would then have imagined that years later there would be billions of ringgit in funds under management?

The rapid growth of the industry in recent years has led to the formation of the Federation of Malaysian Unit Trust Managers on 7 August 1993.

The Federation was set up with four objectives :

a. To promote the industry

b. To agree on standards of practice for the protection of the interests of unitholders.

c. To maintain the good name of the industry

d. To improve regulations, tax and other rules affecting the sales of unit trusts.

The Federation is represented by most of the unit trust managers in the Industry.

Your Benefits With Unit Trusts

Professional Investment Management

A unit trust combines the capital of many investors to employ experienced management in purchasing securities of many companies. The management of a unit trust provides diversification of investments and supervision which few investors could individually afford. Investment management is a full time job requiring specialised knowledge and training. It involves the study of a variety of factors.

Some of the factors which have to be examined are,

1. Comparisons of all industries in the economy
2. Relative studies of companies within a promising industry
3. Personal contact with management of promising corporations
4. Evaluating the effect of international events, both monetary and political
5. Determining the results of government policies on each industry

Professional management is also interested in studying less obvious factors such as wage rates, which might affect the economy or the profitability of certain companies or corporations. It requires careful study of individual companies within the industry to determine which of the many companies offer the best prospects for the investors. It requires comparing this company with the best companies in other promising industries. Since all this factors are constantly changing, re-evaluation and study have to be continuous.

Diversification

Diversification means spreading one's investments among many securities. It is an important method of reducing risk. It decreases the danger of damaging losses, which can occur through having all of one's eggs in one basket.

Diversification is difficult and expensive for a small investor because the cost of purchasing numbers of shares in many companies at the same time is disproportionately high.

Unit trusts with their resources are able to make widely diversified investments available to even the smallest investor. Diversification involves the ownership of many different securities. All the securities owned by an individual investor or unit trust fund are referred to as an investment portfolio.

Liquidity

An investor can sell his units, wholly or partially, at the following trading day's unit buying price. Units have a high liquidity, that is, they can be readily converted into cash.

It has to be remembered, however, that unit trust’s units will be redeemed at the prevailing buying price on the following day after receipt of the repurchase form. The unit price may be higher or lower than the price at which the investor started the plan. Unit trusts should be regarded as a long term, rather than short term investment.

Advantages of Compounding

Many unit trust funds provide facilities for investors to reinvest their distributions. For those who opted for distribution reinvestment, the fund will automatically credit the distributions into the account, rather than sending distribution warrants.

This process of reinvesting the income from the original investment and also of reinvesting the return on the total accumulating investments is called compounding.

As an illustration, if at 25, you invested RM100 at the beginning of every month at an interest growth of 10% per annum until age 65, your investment would have grown to RM638,000 ! The key element to compounding is time. The longer the period of time, the greater the growth.

Regularity of Investing

Many people do not have substantial sums of cash available to invest, but they can develop an investment account, investing smaller sums regularly in a unit trust.

Most unit trust funds have plans available to make it possible for smaller investors to invest relatively small amounts monthly. It is easy and inexpensive for an individual to acquire units through deposits of RM100 or more a month in a unit trust fund.

Fund Administration - The Convenient Factor

Few people have the experience, time or facility to properly set up an investment programme, much less to supervise it constantly. Unit trust managers have emerged as professional organisation devoted to solving the investment problems of people from all walks of life.

Unit trusts relieve their investors of the need to handle their own securities transactions. Investors in unit trust funds are not obliged to concern themselves with matters such as,

1. Obtaining quotations on securities being bought and sold
2. Delivery and payment for the securities involved in each transaction
3. Safekeeping of cash and securities
4. Accounting and bookkeeping procedures, etc

Investors of unit trust funds will receive semi annual and annual reports which describe

a. The portfolio of the funds

b. Investment changes made in the period

c. Distributions paid, if any

d. Fund manager's opinion on the economic and market outlook

WHAT IS A UNIT TRUST ?

A unit trust is a financial vehicle through which individuals may invest their money. The idea behind unit trust is better investment through collective investing. That is to say pooling the investments of many investors, individuals and institutions.

Investing in a unit trust offers investors numerous advantages, including :

a. Professional management at a low cost

b. Safety through the spreading of risk (diversification)

c. Liquidity

d. Ease of transaction

e. Capital appreciation/income stream

Many individuals deposit money in the banks, for which they receive interest. These individuals expect complete liquidity where they must be able to withdraw their deposits in cash at any time. The banks employ professional managers to look after the deposits. The deposits are invested. These managers lend the deposits to other individuals requiring funds and a host of other profit generating facilities of the banks.

Similarly, unit trust holders wish to put their money to generate higher returns. The goal of all investments is to make money more productive, either through producing income or growth. Unit trust holders have liquidity because their units can be readily converted into cash at any time. By investing in unit trusts, it allows them to engage professional fund managers at a low cost to the individual investors. These managers diversifies the investible funds in many different securities and other approved channels to spread the risk.

Particular advantages of unit trusts over the pooled investments include :

· The provision of an independent trustee to hold the trust's assets on behalf of unitholders and to watch over their interests on an on-going basis.

· The deed and prospectus are scrutinised by government authorities, prior to an offer of units being made to the general public. The managers and trustee are themselves approved by the regulators.

· A buy back provision or covenant in each deed which requires the manager to redeem an investor's units within specified time limits at a price determined in accordance with the deed.

• Provisions in the deed under which the manager and trustee are in a fiduciary position in relation to the trust (i.e. they can only profit in ways laid down under the deed). The investor can determine in advance what costs and charges they will be required to pay to join and stay in the trust.