Wednesday, December 31, 2008
When will our stock market recover?
THE world’s stock markets, including Malaysia’s, have recovered lately.
Some analysts have viewed this recovery as window dressing activities while others have called it bear market rallies.
And there are those who wonder whether we have seen the worst. They are eager to know whether the current stock market level has reflected all the negative news, like the sharp drop in consumer spending, higher unemployment rates or lower sales and lower profits for most of the listed companies in the coming corporate result announcements.
Every investor wants to know when will the market recover. Some investors may be excited about the current stock market level as a lot of good quality stocks have been hammered down to attractive levels, and are keen to start accumulating them.
However, if the stock market continues to dip for long periods, certain investors may run out of “bullets” to average down their purchasing prices. Then, they will start losing interest in the stock market as they do not have cash to purchase further and their earlier purchases also start to show losses.
We need to prepare ourselves for the market turnaround. However, we need to be patient and wait for the right time to invest. In this article, we will look into the past two major downcycles: the 1998 crash and 2000 crash versus the current 2008 crash.
From the table, it can be seen that the Kuala Lumpur Composite Index (KLCI) tumbled by almost 80% in a period of 18 months during the 1998 crash versus a drop of 45% in a period of 13 months during the 2000 crash.
The percentage drop and duration of the 2000 crash were much less severe and shorter compared to the 1998 crash. For the current 2008 crash, our KLCI has plunged by 47% to its lowest level of 801 points on Oct 28.
If investors believe that the current crash is quite similar to the 2000 crash, then we may have seen the worst as the current percentage drop of 47% is near the 2000 crash of 45%.
However, if the 2008 crash mirrors the 1998 crash, then we may have to wait until the KLCI touches about the 300-point level (assuming the same 79.4% drop in the 1998 crash) before we can see any real recovery.
Hence, we may have to wait for another nine months or until September 2009 (assuming the same duration of 18 months). We do not think the 2008 crash is similar to the 1998 crash.
Our current economic situation, like central bank reserves, the health of the banking sector as well as economic fundamentals, are much better compared to 1998. However, as mentioned earlier, we need to prepare ourselves for the worst. What to expect from here on?
Our market will try to absorb all the negative news. As long as the market continues to drop as a result of negative news, we know we have not seen the bottom yet. We have to wait for the day when the stock market refuses to come down even when it is loaded with massive negative news; that should be the right time to buy.
Unfortunately, based on our past observations, by then most investors may not have any more cash to purchase or they will still worry about the economic situation.
Investors need to understand that stock market cycles are always ahead of economic cycles.
Normally, when the stock market hits the bottom, the economic situation is uncertain or is still getting worse.
Source : The Star Business, By OOI KOK HWA
Ooi Kok Hwa is an investment adviser licensed by the Securities Commission and managing partner of MRR Consulting.
Some analysts have viewed this recovery as window dressing activities while others have called it bear market rallies.
And there are those who wonder whether we have seen the worst. They are eager to know whether the current stock market level has reflected all the negative news, like the sharp drop in consumer spending, higher unemployment rates or lower sales and lower profits for most of the listed companies in the coming corporate result announcements.
Every investor wants to know when will the market recover. Some investors may be excited about the current stock market level as a lot of good quality stocks have been hammered down to attractive levels, and are keen to start accumulating them.
However, if the stock market continues to dip for long periods, certain investors may run out of “bullets” to average down their purchasing prices. Then, they will start losing interest in the stock market as they do not have cash to purchase further and their earlier purchases also start to show losses.
We need to prepare ourselves for the market turnaround. However, we need to be patient and wait for the right time to invest. In this article, we will look into the past two major downcycles: the 1998 crash and 2000 crash versus the current 2008 crash.
From the table, it can be seen that the Kuala Lumpur Composite Index (KLCI) tumbled by almost 80% in a period of 18 months during the 1998 crash versus a drop of 45% in a period of 13 months during the 2000 crash.
The percentage drop and duration of the 2000 crash were much less severe and shorter compared to the 1998 crash. For the current 2008 crash, our KLCI has plunged by 47% to its lowest level of 801 points on Oct 28.
If investors believe that the current crash is quite similar to the 2000 crash, then we may have seen the worst as the current percentage drop of 47% is near the 2000 crash of 45%.
However, if the 2008 crash mirrors the 1998 crash, then we may have to wait until the KLCI touches about the 300-point level (assuming the same 79.4% drop in the 1998 crash) before we can see any real recovery.
Hence, we may have to wait for another nine months or until September 2009 (assuming the same duration of 18 months). We do not think the 2008 crash is similar to the 1998 crash.
Our current economic situation, like central bank reserves, the health of the banking sector as well as economic fundamentals, are much better compared to 1998. However, as mentioned earlier, we need to prepare ourselves for the worst. What to expect from here on?
Our market will try to absorb all the negative news. As long as the market continues to drop as a result of negative news, we know we have not seen the bottom yet. We have to wait for the day when the stock market refuses to come down even when it is loaded with massive negative news; that should be the right time to buy.
Unfortunately, based on our past observations, by then most investors may not have any more cash to purchase or they will still worry about the economic situation.
Investors need to understand that stock market cycles are always ahead of economic cycles.
Normally, when the stock market hits the bottom, the economic situation is uncertain or is still getting worse.
Source : The Star Business, By OOI KOK HWA
Ooi Kok Hwa is an investment adviser licensed by the Securities Commission and managing partner of MRR Consulting.
Friday, December 26, 2008
Unit Trust Price as of 26 December 2008
Public Savings Fund** 0.5630
Public Growth Fund** 0.3579
Public Index Fund 0.5144
Public Industry Fund** 0.4046
Public Aggressive Growth Fund** 0.5216
Public Regular Savings Fund 0.4191
Public Balanced Fund** 0.6147
Public Bond Fund 0.9356
Public Ittikal Fund** 0.6865
Public Smallcap Fund** 0.5771
Public Islamic Bond Fund 0.9881
Public Equity Fund** 0.2090
Public Institutional Bond Fund 1.0064
Public Islamic Equity Fund 0.2426
Public Money Market Fund 1.0176
Public Focus Select Fund** 0.1683
Public Enhanced Bond Fund** 0.9457
Public Dividend Select Fund 0.2151
Public Islamic Opportunities Fund** 0.2175
Public Islamic Balanced Fund 0.2104
Public Far-east Select Fund** 0.1874
Public Select Bond Fund 0.9985
Public Islamic Dividend Fund 0.2358
Public Regional Sector Fund** 0.1656
Public Asia Ittikal Fund** 0.1859
Public Global Select Fund** 0.1572
Public Far-east Dividend Fund** 0.1693
Public Islamic Enhanced Bond Fund** 0.9667
Public Far-east Balanced Fund** 0.1691
Public Global Balanced Fund** 0.1772
Public Islamic Asia Dividend Fund** 0.1557
Public China Select Fund** 0.1324
Public Islamic Money Market Fund 1.0228
Public Far East Property & Resorts Fund** 0.1170
Public Islamic Select Bond Fund 1.0197
Public Islamic Asia Balanced Fund** 0.1763
Public South-east Asia Select Fund** 0.1448
Public Sector Select Fund 0.1689
Public Islamic Sector Select Fund 0.1715
Public China Ittikal Fund** 0.1429
Public Far-east Consumer Themes Fund** 0.1892
Public Islamic Select Treasures Fund 0.2018
Public China Titans Fund** 0.1836
Public Islamic Optimal Growth Fund 0.1889
Public Far-east Telco & Infrastructure Fund ** 0.2391
Public Capital Protected Select Portfolio Fund ** 1.0107
Public Islamic Select Enterprises Fund 0.2420
Public Islamic Income Fund 1.0075
Pb Balanced Fund** 0.7168
Pb Growth Fund** 0.6185
Pb Fixed Income Fund 1.0031
Pb Islamic Equity Fund 0.1763
Pb Islamic Bond Fund 1.0196
Pb Asia Equity Fund** 0.1840
Pb Islamic Asia Equity Fund** 0.1571
Pb Cash Management Fund 1.0183
Pb Cash Plus Fund 1.0022
Pb Asean Dividend Fund** 0.1521
Pb Islamic Cash Management Fund 1.0139
Pb Euro Pacific Equity Fund** 0.1337
Pb Islamic Asia Strategic Sector Fund** 0.1315
Pb China Pacific Equity Fund** 0.1230
Pb Asia Real Estate Income Fund** 0.1604
Pb Islamic Cash Plus Fund 1.0026
Pb China Asean Equity Fund** 0.2016
Pb Capital Protected Dragon Fund** 0.9734
Pb Capital Protected Resources Fund** 0.9987
Public Growth Fund** 0.3579
Public Index Fund 0.5144
Public Industry Fund** 0.4046
Public Aggressive Growth Fund** 0.5216
Public Regular Savings Fund 0.4191
Public Balanced Fund** 0.6147
Public Bond Fund 0.9356
Public Ittikal Fund** 0.6865
Public Smallcap Fund** 0.5771
Public Islamic Bond Fund 0.9881
Public Equity Fund** 0.2090
Public Institutional Bond Fund 1.0064
Public Islamic Equity Fund 0.2426
Public Money Market Fund 1.0176
Public Focus Select Fund** 0.1683
Public Enhanced Bond Fund** 0.9457
Public Dividend Select Fund 0.2151
Public Islamic Opportunities Fund** 0.2175
Public Islamic Balanced Fund 0.2104
Public Far-east Select Fund** 0.1874
Public Select Bond Fund 0.9985
Public Islamic Dividend Fund 0.2358
Public Regional Sector Fund** 0.1656
Public Asia Ittikal Fund** 0.1859
Public Global Select Fund** 0.1572
Public Far-east Dividend Fund** 0.1693
Public Islamic Enhanced Bond Fund** 0.9667
Public Far-east Balanced Fund** 0.1691
Public Global Balanced Fund** 0.1772
Public Islamic Asia Dividend Fund** 0.1557
Public China Select Fund** 0.1324
Public Islamic Money Market Fund 1.0228
Public Far East Property & Resorts Fund** 0.1170
Public Islamic Select Bond Fund 1.0197
Public Islamic Asia Balanced Fund** 0.1763
Public South-east Asia Select Fund** 0.1448
Public Sector Select Fund 0.1689
Public Islamic Sector Select Fund 0.1715
Public China Ittikal Fund** 0.1429
Public Far-east Consumer Themes Fund** 0.1892
Public Islamic Select Treasures Fund 0.2018
Public China Titans Fund** 0.1836
Public Islamic Optimal Growth Fund 0.1889
Public Far-east Telco & Infrastructure Fund ** 0.2391
Public Capital Protected Select Portfolio Fund ** 1.0107
Public Islamic Select Enterprises Fund 0.2420
Public Islamic Income Fund 1.0075
Pb Balanced Fund** 0.7168
Pb Growth Fund** 0.6185
Pb Fixed Income Fund 1.0031
Pb Islamic Equity Fund 0.1763
Pb Islamic Bond Fund 1.0196
Pb Asia Equity Fund** 0.1840
Pb Islamic Asia Equity Fund** 0.1571
Pb Cash Management Fund 1.0183
Pb Cash Plus Fund 1.0022
Pb Asean Dividend Fund** 0.1521
Pb Islamic Cash Management Fund 1.0139
Pb Euro Pacific Equity Fund** 0.1337
Pb Islamic Asia Strategic Sector Fund** 0.1315
Pb China Pacific Equity Fund** 0.1230
Pb Asia Real Estate Income Fund** 0.1604
Pb Islamic Cash Plus Fund 1.0026
Pb China Asean Equity Fund** 0.2016
Pb Capital Protected Dragon Fund** 0.9734
Pb Capital Protected Resources Fund** 0.9987
Tuesday, December 23, 2008
Consumers to tighten belts: Survey
PETALING JAYA: Consumers are likely to cut down on discretionary spending and tighten their belts while retailers are bracing for the worst slowdown since the SARS epidemic in 2003, findings from OSK Research Sdn Bhd’s first Consumer Survey Investigation showed.
A team headed by OSK Research’s Eing Kar Mei found that consumers “are by and large pessimistic on the economic outlook” with 59% of 224 respondents over a period of four days believing that the country’s economic fundamentals would deteriorate further next year and another 40% believing that the economy would improve.
The survey found that 77% of respondents would be cutting down on spending with 90% of those earning RM7,000 and above saying that the current economic conditions would affect their lifestyles and spending habits versus 65% of those earning below RM7,000.
“This indicates that the affluent segment is generally more cautious on spending compared with the low-mid income earners whose marginal propensity to consume is higher,” Eing said, adding that luxury-brand retailers are at higher risk compared to non-luxury retailers.
The survey found that 55% of respondents would cut down on shopping, reduce fuel consumption (41%), taking on part-time work (39%), taking fewer holidays (37%) and down-trading to cheaper brands (23%).
Eing said consumers were also less likely to cut spending on inelastic items such as cigarettes, alcohol and lottery tickets.
She added that more than half of respondents have a formal savings plan, of which 44% have set aside 10% to 30% of total personal income for rainy days.
“We see the low-income segment being the worst hit during an economic downturn by virtue of their low savings rate while cutbacks on discretionary spending and downtrading are the likely outcomes among the mid-income segment,” Eing said.
She said for the more affluent, there would likely be major cutbacks on big-ticket items and higher savings.
Eing said of the 50 retailers and shopkeepers surveyed, 42% claimed sales had slowed significantly after the fuel and electricity tariff hikes while another 50% claimed that their businesses were only slightly affected.
“The majority of businesses have reported a drop in sales year-on-year. Some 52% and 21% of respondents revealed that their businesses have fallen 11% to 30% and 31% to 50% respectively,” she said.
Eing said lower fuel price would have a limited impact with a 10sen reduction in the pump price only releasing an additional 03% to 0.9% in disposable income depending on income level.
She said the Hari Raya festivities helped boost sales with 20% of the retailers posting consecutive month-on-month growth in the September to October period.
Eing said food retailers, as expected, showed the most tenacity with 75% in this group recording a less than 10% drop year-on-year followed by non-fashion retailers and fashion retailers.
“Although business conditions have generally improved on lower crude oil prices, retailers are generally still bearish on their business prospects going forward,” she said.
Eing said 87% of retailers said that their businesses would continue to be affected by the global economic meltdown with 58% of retailers believing that economic conditions in 2009 are headed for the worst.
By FINTAN NG, The Star 23th Dec 2008
A team headed by OSK Research’s Eing Kar Mei found that consumers “are by and large pessimistic on the economic outlook” with 59% of 224 respondents over a period of four days believing that the country’s economic fundamentals would deteriorate further next year and another 40% believing that the economy would improve.
The survey found that 77% of respondents would be cutting down on spending with 90% of those earning RM7,000 and above saying that the current economic conditions would affect their lifestyles and spending habits versus 65% of those earning below RM7,000.
“This indicates that the affluent segment is generally more cautious on spending compared with the low-mid income earners whose marginal propensity to consume is higher,” Eing said, adding that luxury-brand retailers are at higher risk compared to non-luxury retailers.
The survey found that 55% of respondents would cut down on shopping, reduce fuel consumption (41%), taking on part-time work (39%), taking fewer holidays (37%) and down-trading to cheaper brands (23%).
Eing said consumers were also less likely to cut spending on inelastic items such as cigarettes, alcohol and lottery tickets.
She added that more than half of respondents have a formal savings plan, of which 44% have set aside 10% to 30% of total personal income for rainy days.
“We see the low-income segment being the worst hit during an economic downturn by virtue of their low savings rate while cutbacks on discretionary spending and downtrading are the likely outcomes among the mid-income segment,” Eing said.
She said for the more affluent, there would likely be major cutbacks on big-ticket items and higher savings.
Eing said of the 50 retailers and shopkeepers surveyed, 42% claimed sales had slowed significantly after the fuel and electricity tariff hikes while another 50% claimed that their businesses were only slightly affected.
“The majority of businesses have reported a drop in sales year-on-year. Some 52% and 21% of respondents revealed that their businesses have fallen 11% to 30% and 31% to 50% respectively,” she said.
Eing said lower fuel price would have a limited impact with a 10sen reduction in the pump price only releasing an additional 03% to 0.9% in disposable income depending on income level.
She said the Hari Raya festivities helped boost sales with 20% of the retailers posting consecutive month-on-month growth in the September to October period.
Eing said food retailers, as expected, showed the most tenacity with 75% in this group recording a less than 10% drop year-on-year followed by non-fashion retailers and fashion retailers.
“Although business conditions have generally improved on lower crude oil prices, retailers are generally still bearish on their business prospects going forward,” she said.
Eing said 87% of retailers said that their businesses would continue to be affected by the global economic meltdown with 58% of retailers believing that economic conditions in 2009 are headed for the worst.
By FINTAN NG, The Star 23th Dec 2008
Friday, December 19, 2008
Methods to minimize the service charge
Saving at the upfront means you had successfully make the better first step compared to the others. Adding the compounding interest effect, the investment cost you save will snowball into a big chunk later. Here are five strategies:
- Construct your own balance portfolio instead of buying Balanced Funds
- Become a unit trust agent (required to pass an exam and maintain your account active with the minimum business brought in every year)
- buy new fund which offer lower service charges during offer period
- lock in the low service charges offer with auto debit standing instruction
- buy funds from the same companies which only charge low switching fees whenever you need to do switching or portfolio rebalancing. If you buy different funds from different fund house, you would have to redeem the unit and purchase again when you are switching from Fund House A to Fund House B.
Unit Trust Price as of 19 December 2008
Public Savings Fund** 0.5566
Public Growth Fund** 0.3578
Public Index Fund 0.5106
Public Industry Fund** 0.4064
Public Aggressive Growth Fund** 0.5223
Public Regular Savings Fund 0.4136
Public Balanced Fund** 0.6168
Public Bond Fund 0.9342
Public Ittikal Fund** 0.6881
Public Smallcap Fund** 0.5677
Public Islamic Bond Fund 0.9865
Public Equity Fund** 0.2088
Public Institutional Bond Fund 1.0044
Public Islamic Equity Fund 0.2405
Public Money Market Fund 1.0170
Public Focus Select Fund** 0.1654
Public Enhanced Bond Fund** 0.9393
Public Dividend Select Fund 0.2123
Public Islamic Opportunities Fund** 0.2160
Public Islamic Balanced Fund 0.2106
Public Far-east Select Fund** 0.1901
Public Select Bond Fund 0.9977
Public Islamic Dividend Fund 0.2345
Public Regional Sector Fund** 0.1672
Public Asia Ittikal Fund** 0.1895
Public Global Select Fund** 0.1605
Public Far-east Dividend Fund** 0.1734
Public Islamic Enhanced Bond Fund** 0.9633
Public Far-east Balanced Fund** 0.1719
Public Global Balanced Fund** 0.1791
Public Islamic Asia Dividend Fund** 0.1583
Public China Select Fund** 0.1394
Public Islamic Money Market Fund 1.0223
Public Far East Property & Resorts Fund** 0.1157
Public Islamic Select Bond Fund 1.0181
Public Islamic Asia Balanced Fund** 0.1791
Public South-east Asia Select Fund** 0.1476
Public Sector Select Fund 0.1666
Public Islamic Sector Select Fund 0.1696
Public China Ittikal Fund** 0.1480
Public Far-east Consumer Themes Fund** 0.1944
Public Islamic Select Treasures Fund 0.2001
Public China Titans Fund** 0.1909
Public Islamic Optimal Growth Fund 0.1879
Public Far-east Telco & Infrastructure Fund ** 0.2407
Public Capital Protected Select Portfolio Fund ** 1.0056
Public Islamic Select Enterprises Fund 0.2414
Public Islamic Income Fund 1.0068
Pb Balanced Fund** 0.7159
Pb Growth Fund** 0.6212
Pb Fixed Income Fund 1.0019
Pb Islamic Equity Fund 0.1753
Pb Islamic Bond Fund 1.0192
Pb Asia Equity Fund** 0.1869
Pb Islamic Asia Equity Fund** 0.1600
Pb Cash Management Fund 1.0178
Pb Cash Plus Fund 1.0016
Pb Asean Dividend Fund** 0.1545
Pb Islamic Cash Management Fund 1.0133
Pb Euro Pacific Equity Fund** 0.1379
Pb Islamic Asia Strategic Sector Fund** 0.1363
Pb China Pacific Equity Fund** 0.1297
Pb Asia Real Estate Income Fund** 0.1585
Pb Islamic Cash Plus Fund 1.0021
Pb China Asean Equity Fund** 0.2039
Pb Capital Protected Dragon Fund** 0.9722
Pb Capital Protected Resources Fund** 0.9991
Public Growth Fund** 0.3578
Public Index Fund 0.5106
Public Industry Fund** 0.4064
Public Aggressive Growth Fund** 0.5223
Public Regular Savings Fund 0.4136
Public Balanced Fund** 0.6168
Public Bond Fund 0.9342
Public Ittikal Fund** 0.6881
Public Smallcap Fund** 0.5677
Public Islamic Bond Fund 0.9865
Public Equity Fund** 0.2088
Public Institutional Bond Fund 1.0044
Public Islamic Equity Fund 0.2405
Public Money Market Fund 1.0170
Public Focus Select Fund** 0.1654
Public Enhanced Bond Fund** 0.9393
Public Dividend Select Fund 0.2123
Public Islamic Opportunities Fund** 0.2160
Public Islamic Balanced Fund 0.2106
Public Far-east Select Fund** 0.1901
Public Select Bond Fund 0.9977
Public Islamic Dividend Fund 0.2345
Public Regional Sector Fund** 0.1672
Public Asia Ittikal Fund** 0.1895
Public Global Select Fund** 0.1605
Public Far-east Dividend Fund** 0.1734
Public Islamic Enhanced Bond Fund** 0.9633
Public Far-east Balanced Fund** 0.1719
Public Global Balanced Fund** 0.1791
Public Islamic Asia Dividend Fund** 0.1583
Public China Select Fund** 0.1394
Public Islamic Money Market Fund 1.0223
Public Far East Property & Resorts Fund** 0.1157
Public Islamic Select Bond Fund 1.0181
Public Islamic Asia Balanced Fund** 0.1791
Public South-east Asia Select Fund** 0.1476
Public Sector Select Fund 0.1666
Public Islamic Sector Select Fund 0.1696
Public China Ittikal Fund** 0.1480
Public Far-east Consumer Themes Fund** 0.1944
Public Islamic Select Treasures Fund 0.2001
Public China Titans Fund** 0.1909
Public Islamic Optimal Growth Fund 0.1879
Public Far-east Telco & Infrastructure Fund ** 0.2407
Public Capital Protected Select Portfolio Fund ** 1.0056
Public Islamic Select Enterprises Fund 0.2414
Public Islamic Income Fund 1.0068
Pb Balanced Fund** 0.7159
Pb Growth Fund** 0.6212
Pb Fixed Income Fund 1.0019
Pb Islamic Equity Fund 0.1753
Pb Islamic Bond Fund 1.0192
Pb Asia Equity Fund** 0.1869
Pb Islamic Asia Equity Fund** 0.1600
Pb Cash Management Fund 1.0178
Pb Cash Plus Fund 1.0016
Pb Asean Dividend Fund** 0.1545
Pb Islamic Cash Management Fund 1.0133
Pb Euro Pacific Equity Fund** 0.1379
Pb Islamic Asia Strategic Sector Fund** 0.1363
Pb China Pacific Equity Fund** 0.1297
Pb Asia Real Estate Income Fund** 0.1585
Pb Islamic Cash Plus Fund 1.0021
Pb China Asean Equity Fund** 0.2039
Pb Capital Protected Dragon Fund** 0.9722
Pb Capital Protected Resources Fund** 0.9991
Saturday, December 13, 2008
EPF scheme to help members save more for retirement
KUALA LUMPUR: All Employees Provident Fund contributors will, from Feb 1, be able to withdraw part of their funds and channel them to approved investment programmes.
Under the new scheme, contributors, irrespective of age, will be able to withdraw from Account One what is in excess of a “required amount” of savings as determined by the EPF and invest the money in unit trusts.
Currently, contributors can only do so if they have in excess of RM50,000.
This is one among a range of changes that the EPF is implementing in stages to make it easier for contributors to exercise the option to augment their savings for their retirement.
Using the tagline “Beyond Savings”, the EPF also hopes the changes will ensure that contributors have enough money for retirement.
Other changes include:
· MORE flexible withdrawals for contributors at age 55;
· ALLOWING withdrawal of any amount irrespective of age for savings in excess of RM1mil;
· ALLOWING withdrawals from Account Two for critical illness insurance; and
· WITHDRAWALS for housing loan instalments.
For those who have reached 55, Azlan said that from Nov 1 they would have several options: withdraw everything they have, go for monthly withdrawals of at least RM250 for at least one year, or withdraw at least RM2,000 at any one time.
Currently, members aged 55 can only choose to withdraw the entire sum, withdraw only annual dividends, or take out monthly amounts but for at least five years.
Azlan said there would also be changes to the procedures for age 50 withdrawals.
From Jan 1, 2013, those who reach 50 would only be able to withdraw any amount from Account Two if their Account One has at least RM90,000, the required amount for that age.
On using EPF withdrawals to pay housing loan instalments, Azlan said that although the money would be banked straight into the contributors' accounts, it would be liasing with the banks to ensure that the loans are properly serviced.
“If they fail to pay their instalments for three months, the bank will inform us and we will stop payment to the contributors,” he said, adding that this scheme would start from Jan 1.
Azlan said that from Nov 1, those who had more than RM1mil in their savings could withdraw and invest the excess amount anytime. He said there were about 4,700 contributors who had more than RM1mil in their accounts.
By PAUL CHOO
paulchoo@thestar.com.my
Under the new scheme, contributors, irrespective of age, will be able to withdraw from Account One what is in excess of a “required amount” of savings as determined by the EPF and invest the money in unit trusts.
Currently, contributors can only do so if they have in excess of RM50,000.
This is one among a range of changes that the EPF is implementing in stages to make it easier for contributors to exercise the option to augment their savings for their retirement.
Using the tagline “Beyond Savings”, the EPF also hopes the changes will ensure that contributors have enough money for retirement.
Other changes include:
· MORE flexible withdrawals for contributors at age 55;
· ALLOWING withdrawal of any amount irrespective of age for savings in excess of RM1mil;
· ALLOWING withdrawals from Account Two for critical illness insurance; and
· WITHDRAWALS for housing loan instalments.
The amounts are based on the assumption that a person would need at least RM120,000 – or RM500 a month – from retirement at 55 to age 75.
He said a contributor could withdraw 20% of the amount in excess of the required amount for investments in unit trusts.
For those who have reached 55, Azlan said that from Nov 1 they would have several options: withdraw everything they have, go for monthly withdrawals of at least RM250 for at least one year, or withdraw at least RM2,000 at any one time.
Currently, members aged 55 can only choose to withdraw the entire sum, withdraw only annual dividends, or take out monthly amounts but for at least five years.
Azlan said there would also be changes to the procedures for age 50 withdrawals.
From Jan 1, 2013, those who reach 50 would only be able to withdraw any amount from Account Two if their Account One has at least RM90,000, the required amount for that age.
On using EPF withdrawals to pay housing loan instalments, Azlan said that although the money would be banked straight into the contributors' accounts, it would be liasing with the banks to ensure that the loans are properly serviced.
“If they fail to pay their instalments for three months, the bank will inform us and we will stop payment to the contributors,” he said, adding that this scheme would start from Jan 1.
Azlan said that from Nov 1, those who had more than RM1mil in their savings could withdraw and invest the excess amount anytime. He said there were about 4,700 contributors who had more than RM1mil in their accounts.
By PAUL CHOO
paulchoo@thestar.com.my
Unit Trust Price as of 13 December 2008
Public Savings Fund ** 0.5567
Public Growth Fund ** 0.3577
Public Index Fund 0.5051
Public Industry Fund ** 0.4056
Public Aggressive Growth Fund ** 0.5207
Public Regular Savings Fund 0.4109
Public Balanced Fund ** 0.6161
Public Bond Fund 0.9351
Public Ittikal Fund ** 0.6878
Public Smallcap Fund ** 0.5684
Public Islamic Bond Fund 0.9829*
Public Equity Fund ** 0.2091
Public Institutional Bond Fund 1.0020
Public Islamic Equity Fund 0.2383
Public Money Market Fund 1.0166
Public Focus Select Fund ** 0.1654
Public Enhanced Bond Fund ** 0.9373
Public Dividend Select Fund 0.2104
Public Islamic Opportunities Fund ** 0.2162
Public Islamic Balanced Fund 0.2087
Public Far-east Select Fund ** 0.1891
Public Select Bond Fund 0.9970
Public Islamic Dividend Fund 0.2314
Public Regional Sector Fund ** 0.1665
Public Asia Ittikal Fund ** 0.1904
Public Global Select Fund ** 0.1601
Public Far-east Dividend Fund ** 0.1745
Public Islamic Enhanced Bond Fund ** 0.9638
Public Far-east Balanced Fund ** 0.1727
Public Global Balanced Fund ** 0.1785
Public Islamic Asia Dividend Fund ** 0.1590
Public China Select Fund ** 0.1431
Public Islamic Money Market Fund 1.0219
Public Far East Property & Resorts Fund ** 0.1166
Public Islamic Select Bond Fund 1.0164
Public Islamic Asia Balanced Fund ** 0.1797
Public South-east Asia Select Fund ** 0.1453
Public Sector Select Fund 0.1654
Public Islamic Sector Select Fund 0.1689
Public China Ittikal Fund ** 0.1502
Public Far-east Consumer Themes Fund ** 0.1947
Public Islamic Select Treasures Fund 0.1990
Public China Titans Fund ** 0.1943
Public Islamic Optimal Growth Fund 0.1857
Public Far-east Telco & Infrastructure Fund ** 0.2394
Public Capital Protected Select Portfolio Fund ** 1.0029
Public Islamic Select Enterprises Fund 0.2404
Public Islamic Income Fund 1.0062
PB Balanced Fund ** 0.7085
PB Growth Fund ** 0.6121
PB Fixed Income Fund 1.0022
PB Islamic Equity Fund 0.1727
PB Islamic Bond Fund 1.0166
PB Asia Equity Fund ** 0.1862
PB Islamic Asia Equity Fund ** 0.1610
PB Cash Management Fund 1.0174
PB Cash Plus Fund 1.0012
PB Asean Dividend Fund ** 0.1524
PB Islamic Cash Management Fund 1.0129
Public Growth Fund ** 0.3577
Public Index Fund 0.5051
Public Industry Fund ** 0.4056
Public Aggressive Growth Fund ** 0.5207
Public Regular Savings Fund 0.4109
Public Balanced Fund ** 0.6161
Public Bond Fund 0.9351
Public Ittikal Fund ** 0.6878
Public Smallcap Fund ** 0.5684
Public Islamic Bond Fund 0.9829*
Public Equity Fund ** 0.2091
Public Institutional Bond Fund 1.0020
Public Islamic Equity Fund 0.2383
Public Money Market Fund 1.0166
Public Focus Select Fund ** 0.1654
Public Enhanced Bond Fund ** 0.9373
Public Dividend Select Fund 0.2104
Public Islamic Opportunities Fund ** 0.2162
Public Islamic Balanced Fund 0.2087
Public Far-east Select Fund ** 0.1891
Public Select Bond Fund 0.9970
Public Islamic Dividend Fund 0.2314
Public Regional Sector Fund ** 0.1665
Public Asia Ittikal Fund ** 0.1904
Public Global Select Fund ** 0.1601
Public Far-east Dividend Fund ** 0.1745
Public Islamic Enhanced Bond Fund ** 0.9638
Public Far-east Balanced Fund ** 0.1727
Public Global Balanced Fund ** 0.1785
Public Islamic Asia Dividend Fund ** 0.1590
Public China Select Fund ** 0.1431
Public Islamic Money Market Fund 1.0219
Public Far East Property & Resorts Fund ** 0.1166
Public Islamic Select Bond Fund 1.0164
Public Islamic Asia Balanced Fund ** 0.1797
Public South-east Asia Select Fund ** 0.1453
Public Sector Select Fund 0.1654
Public Islamic Sector Select Fund 0.1689
Public China Ittikal Fund ** 0.1502
Public Far-east Consumer Themes Fund ** 0.1947
Public Islamic Select Treasures Fund 0.1990
Public China Titans Fund ** 0.1943
Public Islamic Optimal Growth Fund 0.1857
Public Far-east Telco & Infrastructure Fund ** 0.2394
Public Capital Protected Select Portfolio Fund ** 1.0029
Public Islamic Select Enterprises Fund 0.2404
Public Islamic Income Fund 1.0062
PB Balanced Fund ** 0.7085
PB Growth Fund ** 0.6121
PB Fixed Income Fund 1.0022
PB Islamic Equity Fund 0.1727
PB Islamic Bond Fund 1.0166
PB Asia Equity Fund ** 0.1862
PB Islamic Asia Equity Fund ** 0.1610
PB Cash Management Fund 1.0174
PB Cash Plus Fund 1.0012
PB Asean Dividend Fund ** 0.1524
PB Islamic Cash Management Fund 1.0129
Sunday, December 7, 2008
Lower BLR bad news for some
GEORGE TOWN: While housebuyers welcome a lower base lending rate (BLR), senior citizens and welfare homes are concerned over their dipping income in the wake of higher living expenses.
Colleagues Lulu Goh and Carene Tang, who are in their 20s, said a lower BLR meant they could spend the extra cash for other purposes.
“It is good news for those with housing loans but I am quite cautious with my daily expenses now.
“I do not intend to keep my money in fixed deposits because the returns are very low,” Goh said.
Factory facility manager T. Pani said the anticipated reduction in BLR was good as it would help alleviate loan commitments but getting less returns from fixed deposits would discourage people from saving more.
“Those in the private sector put in their money as a long-term plan and the interest is their only income after retirement.
“The Government should not zoom in on the people to spend their money to stimulate economic growth. We have to be cautious with our expenses especially during this period of uncertainty,” he said.
Society of Active Generation of Elders (SAGE) president Chin Sek Ham said although the reduction in BLR was aimed at stimulating the country’s economy, the income of senior citizens dropped each time the BLR went down.
“The Government should come up with a formula to help senior citizens and welfare organisations who are affected by the current low rates in fixed deposits,” he said.
“With the minimum 3.5% per annum interest set for fixed deposits, a retiree will earn less than RM150 monthly if he saves about RM50,000 in the bank. As it is, we are stretching the ringgit because prices of goods are going up,” Chin said.
“Since we are in our sunset years, medical expenses are also increasing. Many of us rely on government hospitals but the queue is so long you could end up blind even before you are treated for cataract,” he said.
Chin said the low interest rate would also affect the operations of many non-governmental organisations like SAGE as public donations also dwindled.
An official of a welfare home here said the home’s monthly operational costs had increased from RM80,000 last year to RM100,000 this year and the low interest rate from fixed deposit could not help support the expenses.
“We have to buy our own sugar, cooking oil and rice supplies now because public donations are getting less. People are thinking twice before making donations,” he said.
By ZARINAH DAUD, The Star
Colleagues Lulu Goh and Carene Tang, who are in their 20s, said a lower BLR meant they could spend the extra cash for other purposes.
“It is good news for those with housing loans but I am quite cautious with my daily expenses now.
“I do not intend to keep my money in fixed deposits because the returns are very low,” Goh said.
Factory facility manager T. Pani said the anticipated reduction in BLR was good as it would help alleviate loan commitments but getting less returns from fixed deposits would discourage people from saving more.
“Those in the private sector put in their money as a long-term plan and the interest is their only income after retirement.
“The Government should not zoom in on the people to spend their money to stimulate economic growth. We have to be cautious with our expenses especially during this period of uncertainty,” he said.
Society of Active Generation of Elders (SAGE) president Chin Sek Ham said although the reduction in BLR was aimed at stimulating the country’s economy, the income of senior citizens dropped each time the BLR went down.
“The Government should come up with a formula to help senior citizens and welfare organisations who are affected by the current low rates in fixed deposits,” he said.
“With the minimum 3.5% per annum interest set for fixed deposits, a retiree will earn less than RM150 monthly if he saves about RM50,000 in the bank. As it is, we are stretching the ringgit because prices of goods are going up,” Chin said.
“Since we are in our sunset years, medical expenses are also increasing. Many of us rely on government hospitals but the queue is so long you could end up blind even before you are treated for cataract,” he said.
Chin said the low interest rate would also affect the operations of many non-governmental organisations like SAGE as public donations also dwindled.
An official of a welfare home here said the home’s monthly operational costs had increased from RM80,000 last year to RM100,000 this year and the low interest rate from fixed deposit could not help support the expenses.
“We have to buy our own sugar, cooking oil and rice supplies now because public donations are getting less. People are thinking twice before making donations,” he said.
By ZARINAH DAUD, The Star
Friday, December 5, 2008
How to utilize Lipperweb?
You can visit Lipper web to search for a fund rating.
Go to http://www.lipperweb.com/ . Click at fund screener.
Next, the following screen will appear. Select Malaysia from the radio button.
Then, you will see the best rating of unit trust in Malaysia.
You may explore other features as historical performance, narrow your search to specific fund or country.
Go to http://www.lipperweb.com/ . Click at fund screener.
Next, the following screen will appear. Select Malaysia from the radio button.
Then, you will see the best rating of unit trust in Malaysia.
You may explore other features as historical performance, narrow your search to specific fund or country.
Morningstar 2007 Fund Awards (Malaysia)
Winning 4 out of 6 awards at the Morningstar 2007 Fund Awards (Malaysia) ensures Public Mutual remains the most awarded unit trust fund manager in Malaysia with 120 accolades received since 1999.
1 Equity
Islamic Syariah Equity
Public Ittikal Fund
2 Equity
Malaysia Equity
Public Growth Fund
3 Fixed Income
Malaysian Ringgit Bond
Public Bond Fund
4 Balanced
Malaysian Ringgit Balanced
PB Balanced Fund
You are advised to read and understand the contents of the Master Prospectus of Public Series of Funds, Master Prospectus of Public Series of Shariah-Based Funds and Master Prospectus of PB Series of Funds dated 30 April 2008 before investing. These prospectuses have been registered with the Securities Commission who takes no responsibility for their contents, and neither should their registration be interpreted to mean that the Commission recommends the investment.
You should take note that there are fees and charges involved; and that the prices of units and distribution payable, if any, may go down as well as up. Past performance of a fund is not an indication of its future performance. Applications to purchase units must come in the form of a duly completed application form referred to in and accompanying the prospectuses. A copy of the Master Prospectus of Public Series of Funds and Master Prospectus of Public Series of Shariah-Based Funds can be obtained from your attending unit trust consultant or nearest Public Mutual branch; whilst a copy of Master Prospectus of PB Series of Funds can be obtained from your nearest Public Bank branch.
1 EquityIslamic Syariah Equity
Public Ittikal Fund
2 Equity
Malaysia Equity
Public Growth Fund
3 Fixed Income
Malaysian Ringgit Bond
Public Bond Fund
4 Balanced
Malaysian Ringgit Balanced
PB Balanced Fund
You are advised to read and understand the contents of the Master Prospectus of Public Series of Funds, Master Prospectus of Public Series of Shariah-Based Funds and Master Prospectus of PB Series of Funds dated 30 April 2008 before investing. These prospectuses have been registered with the Securities Commission who takes no responsibility for their contents, and neither should their registration be interpreted to mean that the Commission recommends the investment.
You should take note that there are fees and charges involved; and that the prices of units and distribution payable, if any, may go down as well as up. Past performance of a fund is not an indication of its future performance. Applications to purchase units must come in the form of a duly completed application form referred to in and accompanying the prospectuses. A copy of the Master Prospectus of Public Series of Funds and Master Prospectus of Public Series of Shariah-Based Funds can be obtained from your attending unit trust consultant or nearest Public Mutual branch; whilst a copy of Master Prospectus of PB Series of Funds can be obtained from your nearest Public Bank branch.
Unit Trust Price as of 5 December 2008
PUBLIC SAVINGS FUND** 0.5535
PUBLIC GROWTH FUND** 0.3460
PUBLIC INDEX FUND 0.5034
PUBLIC INDUSTRY FUND** 0.4013
PUBLIC AGGRESSIVE GROWTH FUND** 0.5034
PUBLIC REGULAR SAVINGS FUND 0.4068
PUBLIC BALANCED FUND** 0.6027
PUBLIC BOND FUND 0.9333
PUBLIC ITTIKAL FUND** 0.6709
PUBLIC SMALLCAP FUND** 0.5678
PUBLIC ISLAMIC BOND FUND 0.9808
PUBLIC EQUITY FUND** 0.2027
PUBLIC INSTITUTIONAL BOND FUND 1.0011
PUBLIC ISLAMIC EQUITY FUND 0.2371
PUBLIC MONEY MARKET FUND 1.0159
PUBLIC FOCUS SELECT FUND** 0.1638
PUBLIC ENHANCED BOND FUND** 0.9354
PUBLIC DIVIDEND SELECT FUND 0.2103
PUBLIC ISLAMIC OPPORTUNITIES FUND** 0.2171
PUBLIC ISLAMIC BALANCED FUND 0.2080
PUBLIC FAR-EAST SELECT FUND** 0.1802
PUBLIC SELECT BOND FUND 0.9955
PUBLIC ISLAMIC DIVIDEND FUND 0.2310
PUBLIC REGIONAL SECTOR FUND** 0.1568
PUBLIC ASIA ITTIKAL FUND** 0.1802
PUBLIC GLOBAL SELECT FUND** 0.1554
PUBLIC FAR-EAST DIVIDEND FUND** 0.1658
PUBLIC ISLAMIC ENHANCED BOND FUND** 0.9639
PUBLIC FAR-EAST BALANCED FUND** 0.1671
PUBLIC GLOBAL BALANCED FUND** 0.1749
PUBLIC ISLAMIC ASIA DIVIDEND FUND** 0.1519
PUBLIC CHINA SELECT FUND** 0.1309
PUBLIC ISLAMIC MONEY MARKET FUND 1.0212
PUBLIC FAR EAST PROPERTY & RESORTS FUND** 0.1100
PUBLIC ISLAMIC SELECT BOND FUND 1.0150
PUBLIC ISLAMIC ASIA BALANCED FUND** 0.1719
PUBLIC SOUTH-EAST ASIA SELECT FUND** 0.1389
PUBLIC SECTOR SELECT FUND 0.1634
PUBLIC ISLAMIC SECTOR SELECT FUND 0.1683
PUBLIC CHINA ITTIKAL FUND** 0.1403
PUBLIC FAR-EAST CONSUMER THEMES FUND** 0.1889
PUBLIC ISLAMIC SELECT TREASURES FUND 0.1982
PUBLIC CHINA TITANS FUND** 0.1848
PUBLIC ISLAMIC OPTIMAL GROWTH FUND 0.1853
PUBLIC FAR-EAST TELCO & INFRASTRUCTURE FUND ** 0.2310
PUBLIC CAPITAL PROTECTED SELECT PORTFOLIO FUND ** 1.0036
PUBLIC ISLAMIC SELECT ENTERPRISES FUND 0.2399
PUBLIC ISLAMIC INCOME FUND 1.0054
Source : PUBLIC MUTUAL BERHAD
**Price Of 2 preceding business days
PUBLIC GROWTH FUND** 0.3460
PUBLIC INDEX FUND 0.5034
PUBLIC INDUSTRY FUND** 0.4013
PUBLIC AGGRESSIVE GROWTH FUND** 0.5034
PUBLIC REGULAR SAVINGS FUND 0.4068
PUBLIC BALANCED FUND** 0.6027
PUBLIC BOND FUND 0.9333
PUBLIC ITTIKAL FUND** 0.6709
PUBLIC SMALLCAP FUND** 0.5678
PUBLIC ISLAMIC BOND FUND 0.9808
PUBLIC EQUITY FUND** 0.2027
PUBLIC INSTITUTIONAL BOND FUND 1.0011
PUBLIC ISLAMIC EQUITY FUND 0.2371
PUBLIC MONEY MARKET FUND 1.0159
PUBLIC FOCUS SELECT FUND** 0.1638
PUBLIC ENHANCED BOND FUND** 0.9354
PUBLIC DIVIDEND SELECT FUND 0.2103
PUBLIC ISLAMIC OPPORTUNITIES FUND** 0.2171
PUBLIC ISLAMIC BALANCED FUND 0.2080
PUBLIC FAR-EAST SELECT FUND** 0.1802
PUBLIC SELECT BOND FUND 0.9955
PUBLIC ISLAMIC DIVIDEND FUND 0.2310
PUBLIC REGIONAL SECTOR FUND** 0.1568
PUBLIC ASIA ITTIKAL FUND** 0.1802
PUBLIC GLOBAL SELECT FUND** 0.1554
PUBLIC FAR-EAST DIVIDEND FUND** 0.1658
PUBLIC ISLAMIC ENHANCED BOND FUND** 0.9639
PUBLIC FAR-EAST BALANCED FUND** 0.1671
PUBLIC GLOBAL BALANCED FUND** 0.1749
PUBLIC ISLAMIC ASIA DIVIDEND FUND** 0.1519
PUBLIC CHINA SELECT FUND** 0.1309
PUBLIC ISLAMIC MONEY MARKET FUND 1.0212
PUBLIC FAR EAST PROPERTY & RESORTS FUND** 0.1100
PUBLIC ISLAMIC SELECT BOND FUND 1.0150
PUBLIC ISLAMIC ASIA BALANCED FUND** 0.1719
PUBLIC SOUTH-EAST ASIA SELECT FUND** 0.1389
PUBLIC SECTOR SELECT FUND 0.1634
PUBLIC ISLAMIC SECTOR SELECT FUND 0.1683
PUBLIC CHINA ITTIKAL FUND** 0.1403
PUBLIC FAR-EAST CONSUMER THEMES FUND** 0.1889
PUBLIC ISLAMIC SELECT TREASURES FUND 0.1982
PUBLIC CHINA TITANS FUND** 0.1848
PUBLIC ISLAMIC OPTIMAL GROWTH FUND 0.1853
PUBLIC FAR-EAST TELCO & INFRASTRUCTURE FUND ** 0.2310
PUBLIC CAPITAL PROTECTED SELECT PORTFOLIO FUND ** 1.0036
PUBLIC ISLAMIC SELECT ENTERPRISES FUND 0.2399
PUBLIC ISLAMIC INCOME FUND 1.0054
Source : PUBLIC MUTUAL BERHAD
**Price Of 2 preceding business days
Fixed deposit interest cut - More reason to invest in Unit Trust!!
PETALING JAYA: Ten banks have reduced their fixed deposit (FD) rates following Bank Negara’s recent cut in the key interest rate.
More are expected to follow suit over the next few weeks, an official from the Association of Banks said.
The central bank had on Nov 24 lowered the key interest rate known as the overnight policy rate (OPR) by 25 basis points to 3.25% to further support economic activities.
> From Nov 25, the minimum rate set by Bank Negara for 12 months fixed deposit is 3.5% per annum. The minimum rate set for a one-month fixed deposit remains at 3% per annum.
> Several banks have not cut their base lending rate (BLR), which is calculated based on the OPR, but are expected to do so next week.
> Interest rates for consumer loans, which are pegged against the BLR, will be reduced accordingly.
> With the reduction in FD rates, some banks are planning to run promotions to attract depositors.
Source : The Star, 5th December 2008
More are expected to follow suit over the next few weeks, an official from the Association of Banks said.
The central bank had on Nov 24 lowered the key interest rate known as the overnight policy rate (OPR) by 25 basis points to 3.25% to further support economic activities.
> From Nov 25, the minimum rate set by Bank Negara for 12 months fixed deposit is 3.5% per annum. The minimum rate set for a one-month fixed deposit remains at 3% per annum.
> Several banks have not cut their base lending rate (BLR), which is calculated based on the OPR, but are expected to do so next week.
> Interest rates for consumer loans, which are pegged against the BLR, will be reduced accordingly.
> With the reduction in FD rates, some banks are planning to run promotions to attract depositors.
Source : The Star, 5th December 2008
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