AS 1Malaysia fund may not meet tar­get

The Star Malaysia - - NEWS - By LEE KIAN SEONG

PETALING JAYA: Amanah Sa­ham 1Malaysia (AS 1Malaysia) fund, which was launched by Per­modalan Na­sional Bhd (PNB), may not hit its 10 bil­lion units tar­get be­fore the Sept 30 dead­line due to its low re­turn, say mar­ket ob­servers.

More than two bil­lion units had been sub­scribed by 148,830 in­vestors as at Aug 25.

UOB KayHian re­search head Vin­cent Khoo said 10 bil­lion units was a dif­fi­cult tar­get to meet given the low re­turn for such an eq­uity in­come fund.

As stated in AS 1Malaysia’s prospec­tus, it is noted that the fund’s re­turns will be bench­marked against the five-year Malaysian Gov­ern­ment Se­cu­ri­ties (MGS). The cur­rent yield of five-year MGS is about 3.7%.

Khoo said the re­turn was slightly higher than bank in­ter­est rates but it was not as at­trac­tive as pre­vi­ous Amanah Sa­ham funds.

“Some in­vestors might be in­ter­ested in this fund but the gen­eral pub­lic would look for higher-re­turn funds,” he added.

Asked on whether the bu­mipu­tra al­lo­ca­tion should be opened to oth­ers, Khoo said it could be a way to push up the take-up rate if the non­bu­mipu­tra units had been fully taken up.

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

A fund man­ager from a lo­cal house also said that the 10 bil­lion tar­get was hard to meet as the re­turn was rel­a­tively low.

“The risk is higher for an eq­uity in­come fund while the re­turn is lower. Hence, the risk re­ward does not swing to its favour. It is not re­ally at­trac­tive,” he added.

Kumpu­lan Sen­ti­asa Ce­mer­lang Sdn Bhd di­rec­tor of re­search Choong Khuat Hock said the fund was not per­ceived as “at­tractvie” due to its lower re­turn.

“There will still be some de­mand for the fund but the 10 bil­lion tar­get is re­ally tough,” he said.

AS 1Malaysia is the fifth fixed price unit trust fund launched by PNB af­ter Amanah Sa­ham Bu­mipu­tra, Amanah Sa­ham Malaysia, Amanah Sa­ham Didik and Amanah Sa­ham Wawasan 2020.

The eq­uity in­come fund is sim­i­lar to Amanah Sa­ham Malaysia and Amanah Sa­ham Wawasan 2020 and be­ing highly liq­uid, there is no sales charge and is trans­acted at a fixed price of RM1 per unit.

Last week, PNB had an­nounced the ex­ten­sion of the AS 1Malaysia sub­scrip­tion al­lo­ca­tion dead­line to Sept 30.

How­ever, the max­i­mum in­vest­ment limit for sub­scrip­tion of the new units will be abol­ished af­ter the 30-day of­fer ends to­day.

The orig­i­nal max­i­mum in­vest­ment limit of 50,000 units was im­posed for in­vestors aged 18 to 55 years and 100,000 for those 55 and above.

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.