More reasons to invest in Unit trust???
PETALING JAYA: Several banks have slashed interest rates imposed on loans and more are expected to join in the fray.
Four banks - RHB Banking Group, Public Bank Group, United Overseas Bank Bhd (UOB) and Malayan Banking Bhd (Maybank) - have cut their respective base lending rates (BLR) from 5.95% to 5.55%.
RHB Bank and Public Bank will also be reducing each of its Islamic bank’s base financing rate (BFR) by the same quantum.
This follows the move by Bank Negara Malaysia to bring down the Overnight Policy Rate (OPR) from 2.5% to 2% on Tuesday.
RHB Banking Group managing director Michael J. Barrett said customers will be able to pay less to service their existing loans with floating rates while individuals and businesses will enjoy lower borrowing costs.
“We want to be able to help borrowers during these challenging times and provide our customers with more financial support,” he said in a statement on Thursday.
Public Bank Group chairman Tan Sri Dr Teh Hong Piow said the bank’s new rates will take effect on Tuesday.
“The reduction of BLR and BFR is part of the group’s on-going commitment towards the creation of a more supportive monetary environment which will help to sustain economic growth in the country,” he said.
A UOB Bank spokesperson said the bank would reduce its BLR on March 6.
Maybank said on Wednesday that it would begin implementing its new rates on Monday.
It is learnt that other banks are currently taking initiatives to restructure their rates and will be announcing lower BLR soon.
The Association of Banks said in a statement that the downward revision of monthly loan repayment instalments was expected to be completed around the end of the first quarter of this year.
“Banks will be officially notifying their customers on the quantum of reduction of the loan repayment instalments and the effective date directly,” it said.
Source from The Star, Malaysia dated Thursday February 26, 2009
Thursday, February 26, 2009
Tuesday, February 17, 2009
Public Mutual declares distributions
Public Bank’s wholly-owned subsidiary, Public Mutual declares distributions for four of its funds. The total gross distributions declared are for financial year ended 31 January 2009:
Fund
Gross Distribution / Unit
Public Index Fund 5.00 sen
Public Islamic Optimal Growth Fund 0.30 sen
Public Enhanced Bond Fund 2.00 sen
Public Money Market Fund 3.00 sen
Public Mutual’s Chairman Tan Sri Dato’ Sri Dr. Teh Hong Piow commented that despite challenging market conditions, Public Mutual is pleased to be able to declare distributions on these four funds.
Public Mutual is Malaysia’s largest private unit trust company with 67 funds under management. It has over 2,000,000 accountholders serviced by over 40,000 unit trust consultants. As at 31 December 2008, the total net asset value of the funds managed by the company was RM23.3 billion.
Fund
Gross Distribution / Unit
Public Index Fund 5.00 sen
Public Islamic Optimal Growth Fund 0.30 sen
Public Enhanced Bond Fund 2.00 sen
Public Money Market Fund 3.00 sen
Public Mutual’s Chairman Tan Sri Dato’ Sri Dr. Teh Hong Piow commented that despite challenging market conditions, Public Mutual is pleased to be able to declare distributions on these four funds.
Public Mutual is Malaysia’s largest private unit trust company with 67 funds under management. It has over 2,000,000 accountholders serviced by over 40,000 unit trust consultants. As at 31 December 2008, the total net asset value of the funds managed by the company was RM23.3 billion.
Unit Trust Price as at 15 February 2009
Public Savings Fund** 0.5038
Public Growth Fund** 0.3637
Public Index Fund 0.4896
Public Industry Fund** 0.4080
Public Aggressive Growth Fund** 0.5184
Public Regular Savings Fund 0.4309
Public Balanced Fund** 0.6207
Public Bond Fund 0.9513
Public Ittikal Fund** 0.6882
Public Smallcap Fund** 0.5795
Public Islamic Bond Fund 1.0049*
Public Equity Fund** 0.2123
Public Institutional Bond Fund 1.0070
Public Islamic Equity Fund 0.2509
Public Money Market Fund 0.9919
Public Focus Select Fund** 0.1599
Public Enhanced Bond Fund** 0.9435
Public Dividend Select Fund 0.2189
Public Islamic Opportunities Fund** 0.2228
Public Islamic Balanced Fund 0.2152
Public Far-east Select Fund** 0.1883
Public Select Bond Fund 1.0039
Public Islamic Dividend Fund 0.2443
Public Regional Sector Fund** 0.1666
Public Asia Ittikal Fund** 0.1888
Public Global Select Fund** 0.1573
Public Far-east Dividend Fund** 0.1725
Public Islamic Enhanced Bond Fund** 0.9666
Public Far-east Balanced Fund** 0.1715
Public Global Balanced Fund** 0.1790
Public Islamic Asia Dividend Fund** 0.1580
Public China Select Fund** 0.1314
Public Islamic Money Market Fund 1.0268
Public Far East Property & Resorts Fund** 0.1147
Public Islamic Select Bond Fund 1.0304
Public Islamic Asia Balanced Fund** 0.1783
Public South-east Asia Select Fund** 0.1441
Public Sector Select Fund 0.1721
Public Islamic Sector Select Fund 0.1745
Public China Ittikal Fund** 0.1438
Public Far-east Consumer Themes Fund** 0.1901
Public Islamic Select Treasures Fund 0.2062
Public China Titans Fund** 0.1807
Public Islamic Optimal Growth Fund 0.1908
Public Far-east Telco & Infrastructure Fund ** 0.2425
Public Capital Protected Select Portfolio Fund ** 1.0255
Public Islamic Select Enterprises Fund 0.2434
Public Islamic Income Fund 1.0138
Pb Balanced Fund** 0.7253
Pb Growth Fund** 0.6262
Pb Fixed Income Fund 1.0172
Pb Islamic Equity Fund 0.1797
Pb Islamic Bond Fund 1.0317
Pb Asia Equity Fund** 0.1869
Pb Islamic Asia Equity Fund** 0.1590
Pb Cash Management Fund 1.0223
Pb Cash Plus Fund 1.0014
Pb Asean Dividend Fund** 0.1512
Pb Islamic Cash Management Fund 1.0176
Pb Euro Pacific Equity Fund** 0.1339
Pb Islamic Asia Strategic Sector Fund** 0.1327
Pb China Pacific Equity Fund** 0.1212
Pb Asia Real Estate Income Fund** 0.1592
Pb Islamic Cash Plus Fund 1.0023
Pb China Asean Equity Fund** 0.2084
Pb Capital Protected Dragon Fund** 0.9786
Pb Capital Protected Resources Fund** 1.0066
Public Growth Fund** 0.3637
Public Index Fund 0.4896
Public Industry Fund** 0.4080
Public Aggressive Growth Fund** 0.5184
Public Regular Savings Fund 0.4309
Public Balanced Fund** 0.6207
Public Bond Fund 0.9513
Public Ittikal Fund** 0.6882
Public Smallcap Fund** 0.5795
Public Islamic Bond Fund 1.0049*
Public Equity Fund** 0.2123
Public Institutional Bond Fund 1.0070
Public Islamic Equity Fund 0.2509
Public Money Market Fund 0.9919
Public Focus Select Fund** 0.1599
Public Enhanced Bond Fund** 0.9435
Public Dividend Select Fund 0.2189
Public Islamic Opportunities Fund** 0.2228
Public Islamic Balanced Fund 0.2152
Public Far-east Select Fund** 0.1883
Public Select Bond Fund 1.0039
Public Islamic Dividend Fund 0.2443
Public Regional Sector Fund** 0.1666
Public Asia Ittikal Fund** 0.1888
Public Global Select Fund** 0.1573
Public Far-east Dividend Fund** 0.1725
Public Islamic Enhanced Bond Fund** 0.9666
Public Far-east Balanced Fund** 0.1715
Public Global Balanced Fund** 0.1790
Public Islamic Asia Dividend Fund** 0.1580
Public China Select Fund** 0.1314
Public Islamic Money Market Fund 1.0268
Public Far East Property & Resorts Fund** 0.1147
Public Islamic Select Bond Fund 1.0304
Public Islamic Asia Balanced Fund** 0.1783
Public South-east Asia Select Fund** 0.1441
Public Sector Select Fund 0.1721
Public Islamic Sector Select Fund 0.1745
Public China Ittikal Fund** 0.1438
Public Far-east Consumer Themes Fund** 0.1901
Public Islamic Select Treasures Fund 0.2062
Public China Titans Fund** 0.1807
Public Islamic Optimal Growth Fund 0.1908
Public Far-east Telco & Infrastructure Fund ** 0.2425
Public Capital Protected Select Portfolio Fund ** 1.0255
Public Islamic Select Enterprises Fund 0.2434
Public Islamic Income Fund 1.0138
Pb Balanced Fund** 0.7253
Pb Growth Fund** 0.6262
Pb Fixed Income Fund 1.0172
Pb Islamic Equity Fund 0.1797
Pb Islamic Bond Fund 1.0317
Pb Asia Equity Fund** 0.1869
Pb Islamic Asia Equity Fund** 0.1590
Pb Cash Management Fund 1.0223
Pb Cash Plus Fund 1.0014
Pb Asean Dividend Fund** 0.1512
Pb Islamic Cash Management Fund 1.0176
Pb Euro Pacific Equity Fund** 0.1339
Pb Islamic Asia Strategic Sector Fund** 0.1327
Pb China Pacific Equity Fund** 0.1212
Pb Asia Real Estate Income Fund** 0.1592
Pb Islamic Cash Plus Fund 1.0023
Pb China Asean Equity Fund** 0.2084
Pb Capital Protected Dragon Fund** 0.9786
Pb Capital Protected Resources Fund** 1.0066
Sunday, February 8, 2009
We all need to become millionaires
One must have cash reserves of about RM1mil to be able to maintain one’s current lifestyle 20 years after retirement
Ooi Kok Hwa: The key principle here is we need to have cash reserves of more than RM1mil to be able to maintain our current lifestyle 20 years after retirement.
WE need to become millionaires when we retire! A lot of people have misconceptions about being millionaires. To them, being a millionaire means they should own total assets – by adding up their total cash, house, Employees’ Provident Fund (EPF) contribution and car – that are worth RM1mil and above.
They believe that once they achieve one million cash, they should enjoy themselves by driving big luxury cars and staying in bungalows.
In reality, all of us need to become millionaires when we retire at age 55. Based on our computation, we need to own total cash, including all money in savings, fixed deposits and EPF, which have total value of more than RM1mil.
The key principle here is we need to have cash reserves of more than RM1mil to be able to maintain our current lifestyle 20 years after retirement from age 55 to age 75. This is on the assumption that we can live up to 75 (the average lifespan of Malaysians).
Based on our computation (see table), if you are now 35 years old and your current monthly expenses are RM3,000 per month, assuming you are only able to generate a return of 3% (the return from fixed deposits) on all of your savings and the RM3,000 will grow by the average historical inflation rate of 3.5% per annum, you would need RM1.6mil when you retire at age 55.
This amount will be enough to maintain your current lifestyle for the next 20 years after your retirement at 55.
However, if you need to spend RM5,000, RM7,000 or RM10,000 per month, then you need RM2.6mil, RM3.7mil and RM5.3mil respectively at your retirement age of 55.
In short, you need to become a millionaire when you retire even if you only maintain a simple lifestyle after your retirement. You will not be able to use this money to buy a big luxury car or a bungalow, as you really need the money for the next 20 years.
Thomas J. Stanley and William D. Danko have conducted research on the reasons why some Americans become wealthy. They discovered that a lot of them live well below their means.
Unfortunately, we notice that some Malaysians do not have enough money when they retire. Some of them may not be aware that they really need to accumulate that amount of money when they retire. Some may be aware, but they may have used up all their savings to support their children’s education. As a result, they need to find a job after retirement.
Some may have difficulties finding a job. A lot of companies may prefer to employ a young graduate rather than a retiree unless the latter is willing to accept a lower pay.
We also believe that a lot of investors are quite worried about having enough money for retirement. They are also concerned that their money may not be enough to protect them against inflation. Hence, besides controlling our expenses, we also need to know how to grow our money.
Looking at the table, different minimum achievable annual target returns can provide different required amounts for retirement.
For the current monthly expenses of RM3,000, if you are only able to generate a 3% return per annum, then you need to have RM1.6mil for retirement whereas you only need about RM900,000 if you are able to generate a return of 10%.
However, higher returns come with higher risks. We need to understand our risk tolerance level. We need to equip ourselves with adequate investing knowledge if we intend to generate higher returns.
source by By OOI KOK HWA
The Star, Wednesday January 28, 2009
Ooi Kok Hwa: The key principle here is we need to have cash reserves of more than RM1mil to be able to maintain our current lifestyle 20 years after retirement.
WE need to become millionaires when we retire! A lot of people have misconceptions about being millionaires. To them, being a millionaire means they should own total assets – by adding up their total cash, house, Employees’ Provident Fund (EPF) contribution and car – that are worth RM1mil and above.
They believe that once they achieve one million cash, they should enjoy themselves by driving big luxury cars and staying in bungalows.
In reality, all of us need to become millionaires when we retire at age 55. Based on our computation, we need to own total cash, including all money in savings, fixed deposits and EPF, which have total value of more than RM1mil.
The key principle here is we need to have cash reserves of more than RM1mil to be able to maintain our current lifestyle 20 years after retirement from age 55 to age 75. This is on the assumption that we can live up to 75 (the average lifespan of Malaysians).
Based on our computation (see table), if you are now 35 years old and your current monthly expenses are RM3,000 per month, assuming you are only able to generate a return of 3% (the return from fixed deposits) on all of your savings and the RM3,000 will grow by the average historical inflation rate of 3.5% per annum, you would need RM1.6mil when you retire at age 55.
This amount will be enough to maintain your current lifestyle for the next 20 years after your retirement at 55.
However, if you need to spend RM5,000, RM7,000 or RM10,000 per month, then you need RM2.6mil, RM3.7mil and RM5.3mil respectively at your retirement age of 55.
In short, you need to become a millionaire when you retire even if you only maintain a simple lifestyle after your retirement. You will not be able to use this money to buy a big luxury car or a bungalow, as you really need the money for the next 20 years.
Thomas J. Stanley and William D. Danko have conducted research on the reasons why some Americans become wealthy. They discovered that a lot of them live well below their means.
Unfortunately, we notice that some Malaysians do not have enough money when they retire. Some of them may not be aware that they really need to accumulate that amount of money when they retire. Some may be aware, but they may have used up all their savings to support their children’s education. As a result, they need to find a job after retirement.
Some may have difficulties finding a job. A lot of companies may prefer to employ a young graduate rather than a retiree unless the latter is willing to accept a lower pay.
We also believe that a lot of investors are quite worried about having enough money for retirement. They are also concerned that their money may not be enough to protect them against inflation. Hence, besides controlling our expenses, we also need to know how to grow our money.
Looking at the table, different minimum achievable annual target returns can provide different required amounts for retirement.
For the current monthly expenses of RM3,000, if you are only able to generate a 3% return per annum, then you need to have RM1.6mil for retirement whereas you only need about RM900,000 if you are able to generate a return of 10%.
However, higher returns come with higher risks. We need to understand our risk tolerance level. We need to equip ourselves with adequate investing knowledge if we intend to generate higher returns.
source by By OOI KOK HWA
The Star, Wednesday January 28, 2009
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