A lots of people just can't stop questioning the sustainability of the "superior return?" of PNB funds.
When people ask me this question, I really don't know how to answer it. They start a question from a wrong point -- It's like asking why a man can always walk faster than a car.
How can you call that 7~8% p.a. of those PNB's fixed-priced funds a superior return?
Come on.... those funds (ASB, ASW, ASM, ASD) are invested mostly in equities, not bonds. Go ahead and compare their performance with some equity-based mutual funds out there.
(PNB's set the KLIBOR as the benchmarks for these fund, it doesn't mean that their performance should be compared to those money-market funds or bond funds.The benchmark itself is not a correct indicator to gauge the fund's performance. )
Know what I'm thinking?
These fixed-priced-funds of PNB have lower annual-management-fees and trustee fees compared to those private equity funds. So, their long-term average return (after cost) should be a bit higher than those private funds out there, provided that PNB's fund managers post at least an average investment skills. But, guest what, historical data shows that these PNB funds' performance are actually below average!
Thanks to our BN government, it had successfully made the people sooooooo hate about him, that they will always critic on whatever he did without any further judgement.
People look at our EPF, which is mostly invested in government securities and bonds (equity accounted for < 30% of EPF investments), they critic that the 5% dividends are too low and ask for a higher return. Now we have funds that are mostly invested in equity, and people start questioning the sustainability of its unbelievable high 7% return....
Hey, what do you expect?.... A fund that mostly invested in government securities can generate 7%, and the equity-based funds generate only 5% return instead?
Malaysian... use your brain please! Do your homework and think independently, Don't just follow what other people's saying!
.
3 comments:
PNB fund manager have nothing special skill to get that 6-8% return pa, neither in stock picking or strategy than private mutuasl fund. The only edge PNB possess may be it is government link agence, which in turn have upper hand/insider new on M&A, IPO, right issue etc...
Take example, there are huge wealth creation on recently Maybank and Axiata right issue, in which PNB fund are their major shareholder.
Most people call that 7~8% p.a. of those PNB's fixed-priced funds a superior return because they are comparing these funds against the F.D. which are almost of risk-free nature.
I have done some research on two property counter. Any idea or comment are most welcome.
(1) Kumpulan Fima
Apart form upcoming dividend of 3sen, Kfima is alernative to fimacorp (60% subsidary proeprty counter) to indirectly expose to concessionaire secruity printing business, which is solid cash cow.
With gradually mature palm oil plantation in indonesia, fiamcorp has make turnaround and report huge profit jump in plantation division.
Recently, Kfima also increase its property portfolio by exchange 4 parcel of leaseland to 14 office units at Tower B, PJ Trade Centre.
Hence, current earning driver for KFima are Manufacture secruity priniting, plantation (both through Fimacorp), bulking and property investment income.
In turn of valuation, Kfima is one of the still undervalue stock in the market now.
EPS 2008: 17.7sen, NTA: 1.27, nearing zero gearing; dividend: 3sen. If based of historical PE:5x, Kfima potential subject to re-rating up to 88sen.
(2) Oriental Interest (OIB)
OIB is property counter mainly develop property in Kedah and manufacure rubber wood product, but through associate company, it also derive profit from palm oil plantation.
OIB is cash rich company (net cash per share : 75sen/share) and high dividend: 10sen (9.1% yield). Expect to propose its dividend together its Q4 result by this month. OIB may rich in valaution in turn of PE, but its NTA is at RM3 and almost 70% current share price is consist of cash value.
Post a Comment