Amanah Saham Malaysia Berhad has declared a dividend of 6.35 cents per unit for Amanah Saham Wawasan 2020 (ASW 2020) for the current financial year. The income distribution will be reinvested in the form of new units and will automatically be credited into the unitholders' accounts on September 1.
As a comparison, last year's dividend declared was 6.3 cents.
July 21, 2010
First Foray into Stock Investment
Recently, I've made some investments into stock market, in particular Sunway REIT (SUNREIT) and Capitamalls Malaysia Trust (CMMT). SUNREIT IPO-ed at RM0.88 for retail investors while CMMT IPO-ed at RM0.98.
While the price movement has been very mild since the IPO, I do not expect such stocks to have high appreciation as these stocks are mainly dividend stocks.
Why do i invest in REITs:
While the price movement has been very mild since the IPO, I do not expect such stocks to have high appreciation as these stocks are mainly dividend stocks.
Why do i invest in REITs:
- Exposure to REIT sector, apart from existing investments in equity and bond unit trust funds.
- High Yield: the expected dividend from these stocks of around 7% is much higher than prevailing annual fixed deposit rates.
- Low volatility: Since i do not have much time to monitor the stock movements, these stocks are suitable for me due to its lower volatility.
June 24, 2010
Five common investing mistakes to avoid
Russell Investments recently posted a list of companies joining and leaving the Russell 3000 index on June 25. In anticipation of this event, many investors have either bought the stocks of companies being added to the index or sold those being deleted from it. Big mistake.
In fact, it might be better to do the exact opposite, because stocks deleted from an index tend to have significantly higher factor-adjusted returns than index additions, and stocks added to an index have "poor long-term returns," according to a study published in the Financial Analysts Journal in 2008 by Jie Cai, an assistant professor of finance at Drexel University, and Todd Houge, a chartered financial analyst and professor of finance at the University of Iowa.
That fact alone shouldn't prompt investors to make buy or sell decisions, said David Zuckerman, a certified investment management analyst and chief investment officer of Zuckerman Capital Management LLC.
"For investors who own stocks that will be deleted from an index, the empirical data indicates that they should not sell their holdings," he said.
"Buying stocks that will be added to an index ahead of reconstitution is not a viable investment strategy, and the data suggest that returns may suffer if such a strategy is followed," he said. "Ultimately, decisions to buy and sell stock should be based on fundamentals and not on index reconstitution."
Buying companies based on an index's reconstitution is just one of four common mistakes investors make.
In fact, it might be better to do the exact opposite, because stocks deleted from an index tend to have significantly higher factor-adjusted returns than index additions, and stocks added to an index have "poor long-term returns," according to a study published in the Financial Analysts Journal in 2008 by Jie Cai, an assistant professor of finance at Drexel University, and Todd Houge, a chartered financial analyst and professor of finance at the University of Iowa.
1. Don't sell stocks deleted from an index, or buy stocks added to an index
The Russell 3000 index represents about 98% of the investable U.S. equity universe, and on June 25 about 261 companies will be added to the index and about 205 companies will be deleted from it.That fact alone shouldn't prompt investors to make buy or sell decisions, said David Zuckerman, a certified investment management analyst and chief investment officer of Zuckerman Capital Management LLC.
"For investors who own stocks that will be deleted from an index, the empirical data indicates that they should not sell their holdings," he said.
"Buying stocks that will be added to an index ahead of reconstitution is not a viable investment strategy, and the data suggest that returns may suffer if such a strategy is followed," he said. "Ultimately, decisions to buy and sell stock should be based on fundamentals and not on index reconstitution."
Buying companies based on an index's reconstitution is just one of four common mistakes investors make.
May 28, 2010
Five-star mutual funds don't live up to their past
Tim Courtney decided he'd had enough. In meeting after meeting earlier this year, he and his colleagues at Burns Advisory Group had recommended mutual funds to prospective clients, only to be hit with the same response almost every time: Why are you telling me to invest in a three-star rated fund?
That sums up the way many investors allocate money to funds -- look at products that have four- or five-star ratings from investment researcher Morningstar Inc., take that as a seal of quality, and hope for the best. Such decisions are perhaps even more common in volatile markets, when anxious investors view top-ranked funds as somehow better-equipped to handle adversity.
The trouble is that investors seem to forget that star ratings are backward-looking, based on a fund's past performance, and studies have shown the ratings have no predictive value.
"Having to get over that hurdle [of explaining that star-ratings shouldn't influence choices], every time we recommended a fund that wasn't five-star, is something we have to do time and time again," said Courtney, chief investment officer of Burns Advisory, which manages about $300 million and advises about $150 million of 401(k) assets.
That sums up the way many investors allocate money to funds -- look at products that have four- or five-star ratings from investment researcher Morningstar Inc., take that as a seal of quality, and hope for the best. Such decisions are perhaps even more common in volatile markets, when anxious investors view top-ranked funds as somehow better-equipped to handle adversity.
The trouble is that investors seem to forget that star ratings are backward-looking, based on a fund's past performance, and studies have shown the ratings have no predictive value.
"Having to get over that hurdle [of explaining that star-ratings shouldn't influence choices], every time we recommended a fund that wasn't five-star, is something we have to do time and time again," said Courtney, chief investment officer of Burns Advisory, which manages about $300 million and advises about $150 million of 401(k) assets.
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