August 27, 2012

UPDATES: Comparison of historical dividends between Amanah Saham Wawasan 2020, Amanah Saham Malaysia and Amanah Saham 1 Malaysia

Updates (as of 20 March, 2014): ASM FY 2013 dividend of 6.6 cents per unit.

Amanah Saham Wawasan 2020 (ASW 2020), Amanah Saham Malaysia (ASM) and Amanah Saham 1 Malaysia (AS1M) are three of the most popular unit trusts funds from Perbadanan Nasional Berhad that are available for non-bumiputra. All these unit trust funds are fixed price funds at the price of RM 1.00. This means that you buy and sell at RM 1.00 irregardless of share market fluctuations.

ASW 2020 which was launched in 1996 is an equity income fund that is benchmarked against 3-months KLIBOR rate. Based on year 2011 annual report, ASW 2020 invested 74.7% of its fund size of RM13.9b in equities and the remaining portion in money market and liquid instruments. MER ratio is 0.93 and PTR ratio is 0.25 as of year 2011.

ASM which was launched in year 2000 is an equity income fund that is benchmarked against 3-months KLIBOR rate. Based on year 2012 annual report, ASM invested 69.27% of its fund size of RM12.6b in equities and the remaining portion in money market and liquid instruments. MER ratio is 1.04 and PTR ratio is 0.28 as of year 2012.

AS1M which was launched in year 2009 is an equity income fund that is benchmarked against average rate of 5-years government MGS bond. Based on year 2011 annual report, AS1M invested 83.35% of its fund size of RM5.5b in equities and the remaining portion in money market and liquid instruments. MER ratio is 1.03 and PTR ratio is 0.59 as of year 2011.
If you compare the performance of these three funds in year 2011, I would say ASW 2020 performed the best even though its return of 6.5% is equivalent to AS1M return, despite its lower equity portion of 74.7%. Also, ASW 2020 has lower expenses than AS1M, as demonstrated by its lower MER of 0.93 and PTR of 0.25.

Over the long term, if you compare the performance of ASW 2020 and ASM especially the years that both funds co-exist (year 2001 - 2011), the average performance of ASW 2020 (6.92%) very marginally edge the average performance of ASM (6.89%) by a mere 0.04%. This means nothing really separates between these two funds. Apart from that, MER ratio for ASW 2020 is historically lower than ASM as well. AS1M is excluded from the comparison since it has only 2 years performance.

In summary, all these funds are behaving more like bonds with average returns of approximately 6% despite them being equity income funds. These funds will be suitable for those looking for stable and predictable returns over the long term that are far superior than the returns of fixed deposit rates and most of the bond funds.


Comparison of dividends between ASW 2020, ASM and AS1M






2 comments:

SWW said...

You should smell Madoff right here. 10% right off the bat then steadily drop over the years to 6+ %. Look, no fund in the history can steadily withdraw more than 5% from the invested capital and continuing growing and pay 6+% the next year - only pyramid scheme. How many Malaysia company can pay 6+ % dividend if you buy today? Unless they bought all their stocks in 1996 that are paying 6% dividend and then hold the stock till today with the underlying companies increase the dividend above 6% every year, (like the stock selling for 100/shr and pay $6 a year, and next year pay out $6.36...) And this is not including the 'superman' fund manager salary and expenses, the perks... Its just impossible or else the name of the manager should be known world wide like Warren Buffet.

Roscha said...

sww, I agree with you. I may not be a financial guru... but I have ears, eyes and some brain matter. That is why I call ASB a high quality ponzi scheme..LOL.. it's got some pretty strong backers. I have some money in ASB but I'm diversifying now. By the way, I'm not basing my conclusion on printed data or theory or insider knowledge. I just base it on common sense.

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