Posted by: mylittlesnow | December 1, 2008

ASW and ASM on sale, but something’s fishy going on?

To all you ASx freaks out there (yes, me included), i’m sure you know that ASW2020 as well as ASM trust fund were both open up for sale last week. In fact, as i am writing this now, ASM is currently on sale and it’s a no brainer to guess that this fund is selling out fast! One thing good about this round of sales is that each person to limited to RM10k of purchase only. So if you really try hard this time, you have a high chance in getting urself a small slice of this cake. When i say try hard, it means waking up early and reaching the bank to queue before 8am and then wait a few hours to buy the fund.

But i don’t know why, this time i’m just not getting all too excited over this. In fact, i have a weird feeling that something fishy is going on. You see, for the past 1-2 years, i can see it is getting more often that the two funds were being opened up for sale. And coupled with the worldwide economy slump on-going currently, with our KLCI being battered to around 800 points, i started to wonder what this ‘coincidence’ is all about. I am not sure how the two funds were managed and if they are suffering from big losses now, yet if you look at the two funds past records, they gave pretty good returns consistently. But then, are we digging the hole deeper and deeper, with the high return rates given used as a decoy to mask out all the losses? Is this another ‘bubble’ in the making and it’s a matter of time before it burst? How can the two funds consistently giving out good returns when other good funds out there such as Public Mutual is giving bad or not so good returns? It doesn’t make sense in this case.

The only thing that eases my mind is the fact that these ASW and ASM funds are both ‘supposedly’ backed by government and it’s a fixed price fund, which means you don’t see the unit price fluctuate like those other funds out there. So what’s the conclusion? i don’t know. I just feel that something is not right and i am not sure if we were to put all our money in those funds, and if something goes ‘kaboom’ later on, are we able to get our money back or will our money get burnt? Is this another Valuecap in disguise? Hmmm….

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