Investing in Amanah Saham Bumiputera (ASB) and Amanah Saham Malaysia (ASM) are popular options among Malaysians. Learn why you should invest in ASB and ASM.
When we talk about investments in Malaysia, Amanah Saham Bumiputera (ASB) and Amanah Saham Malaysia (ASM) are popular choices. Both are managed by Amanah Saham Nasional Berhad (ASNB), a wholly subsidiary under Permodalan Nasional Berhad (PNB).
One important difference between ASB and ASM:
- ASB is for Malaysian Bumiputera investors only.
- Since introduced in 1990, ASB has helped Malaysian Bumiputeras to invest in relatively low risk and long-term investment instrument.
- ASM is open to all Malaysians, regardless whether Bumiputera or not.
- ASM was launched on 20 April 2000 to offer long-term investment opportunities for Malaysians to generate competitive and prolonged returns through diverse portfolios.
There are also differences in historical returns and investment holdings between the different funds. You can choose to invest in one or more ASNB funds.
Contents
Pros and Cons of Investing in ASB and ASM
| Fund | Type of Fund | Category | Eligibilty | Financial Year End | Price/unit | Minimun initial investment | Maximum investment (units) | EPF Investment Scheme | Redemption | Sales Charge |
|---|---|---|---|---|---|---|---|---|---|---|
| ASB | Income | Mixed asset | Bumiputera | 2020-12-31 | 1 | 10 | 200000 | None | On-the-spot | None |
| ASB 2 | Income | Mixed asset | Bumiputera | 2020-03-31 | 1 | 10 | 200000 | Yes | On-the-spot | None |
| ASB 3 Didik | Growth | Mixed asset | Bumiputera | 2020-06-30 | 1 | 10 | Unlimited, subjected to availability units | Yes | On-the-spot | None |
| ASM | Income | Mixed asset | Malaysian | 2020-03-31 | 1 | 10 | Unlimited, subjected to availability units | None | On-the-spot | None |
| ASM 2 Wawasan | Income | Mixed asset | Malaysian | 2020-08-31 | 1 | 10 | Unlimited, subjected to availability units | Yes | On-the-spot | None |
| ASM 3 | Income | Mixed asset | Malaysian | 2020-09-30 | 1 | 10 | Unlimited, subjected to availability units | Yes | On-the-spot | None |
Source: ASNB official website
A significant advantage of investing in fixed price assets is that your investment’s net asset value (NAV) will remain fixed and you will get a healthy amount of exposure to equity markets.
For example, last year, PNB announced the dividend to be 5.5%, which is their lowest recorded return in 50 years. However, at that time the inflation rate in Malaysia was 1.1% as of October 2019. Therefore comparatively, a 5.5% return on your ASB investments is still a good thing.
As with any unit trust, the funds performance is greatly dependent on the performance of the companies that the fund invests in. If the companies reported a lower earning, it will affect the fund performance and thus a lower dividend.
Last March, ASNB announced an income distribution per unit of 4.75 sen to 439,543 unit holders for ASB 2, for the financial year ending March 31, 2020.
ASB also announced an income distribution of 4.25 sen per unit to 553,188 unit holders for Amanah Saham Malaysia (ASM).
Economic analyst, Dr Aimi Zulhazmi Abdul Rashid, told The Malaysian Reserve that PNB’s dividend for its funds would likely to be lower as the country’s equity market is affected by the pandemic.
“Dividends from shares or funds are mainly affected by GDP that grew only 3.6% due to falling crude palm oil prices, moderate oil prices and the ongoing trade war between the US and China,” – Dr Aimi Zulhazmi Abdul Rashid.
How to Invest in ASNB
Eligibility
As mentioned before, there is a key difference between ASB and ASN:
- ASB is for Malaysian Bumiputera investors only.
- ASM is open to all Malaysians, regardless whether Bumiputera or not.
Beginning from RM10, Malaysian citizens are eligible to apply to invest in ASNB.
Before You Invest
According to the ASNB official website, before you go and invest in respective funds, do read their latest prospectus which can be acquired:
- Online from the ASNB official website
- At any ASNB branch
- From any ASNB agents
Where to Invest
In order to begin investing, you will need to open an ASNB account.
You can open a new account at any ASNB branch, through ASNB agents, or even online with the following selected banks.
- Maybank2u
- CIMBClicks
- AffinOnline
- RHBNow
You will be required to submit supporting documentation with your application. More information on what is required can be found here.
Once your account is approved, you can select your funds (based on eligibility) to invest in at any ASNB branch or through ASNB agents.
Transfer & Switching
Introduced on 15 July 2018, these facility allowed unit holders to transfer and switch units immediately without redemption and subscriptions transactions. This process can be done at any ASNB branches and agents’ branches or my ASNB portal.
| Fund Type | Fees based on Channels | |
|---|---|---|
| ASNB branches & agents’ branches | Online | |
| Variable Price Funds | 15 | 5 |
| Fixed Price Funds | Nil | Nil |
| Switch From | Switch To | |
|---|---|---|
| Variable Price Funds | Fixed Price Funds | |
| Variable Priced Funds | The difference between sales charge of the Funds switch out, subject to the minimum charge of RM 25 per transaction. | Nil |
| Fixed Priced Funds | Nil |
Source: ASNB Official Website
Alternative Ways to Invest
- EPF Investment Scheme is for Employees Provident Fund (EPF) members to invest in ASNB’s unit trust. This is subjected to EPF’s terms and conditions and for registered unit holders aged 18 years and over (Akaun Dewasa).
- Salary Deduction Scheme. The SIP (Systematic Investment Plan) Salary Deduction Scheme is to facilitate ASNB unit holders to increase their investments without having to visit any ASNB branch or agent. The available trust funds for SIP are ASB and other fixed price funds (ASB 2, ASB 3 Didik, ASM 2 Wawasan & ASM 3). Only those unit holders who meet ASNB’s eligibility criteria can participate in the SIP scheme.
- Investment Through Financing .This investment facility is offered to two ASNB unit trust funds; ASB and ASB 2.
How to Withdraw from ASNB
Withdrawal must be done over the counter at selected bank counter, fully operational ASNB offices and at any ASNB agents. To withdraw, you will be asked to fill an ASNB JB Form (Jualan Balik), present your investment book and your identification card.
You can also perform an online withdrawal for selected unit trust funds through myASNB portal and mobile application. The money will then be transferred from their ASNB unit trust account to their registered bank account starting from April 27th, 2020 onwards.
Overall
It is important to understand your investment portfolio before you decided to invest in any ASNB funds. Do consult a licensed financial planner for a better outlook on your current financial standing before investing.
FAQ
Q: Is there a difference between invest or cashing out at ASNB branches vs through agents?
A: Account registration, investments and withdrawals can be done at either ASNB branches or agents with no difference in the fees or funds invested whether you go through the branch or agent.
Q: Is ASB investment halal or Shariah-compliant?
A: It is permissible for muslim.
Q: Can I obtained related ASNB units forms online?
A: Yes, you can download them here
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Do you invest in any ASNB’s fund? What do you think this year dividend’s turnout will be? Share with us in the comments section below.
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