Amanah Saham 1 Malaysia (AS1M) - Higher Declared Dividend in 2011

The last dividend declaration for PNB's Unit Trusts  for 2011 is AS1M. This is the second year the fund has come into existence since its launching in August 2009 by our Prime Minister. The first year's (2010) dividend was nothing to shout about at 6.38 sen per unit. Many investors were kind of disappointed as they thought being the latest, it would give a 7 sen per unit or more like the previous funds such as ASM. The Sime Darby's cost overruns and a negative hit on its shares in middle of last year was blamed for the lacklustre performance of the fund.

The Chairman (L) and CEO (R) of PNB at AS1M's 2011 dividend declaration on 22 Sept 2011

This year, the second dividend has been declared at 6.50sen per unit , an increase of 0.12. A slight increase given the current market turmoil. Well, it is more than three times the bank rate so it is no wonder that the fund has been fully subscribed by the non-Bumiputra (Chinese).  Allocation for other ethnic groups are still available.  According to PNB, as at 20 September 2011, 5.49bilion units of the fund are being held by  270,598 investors.

AS1M transactions are currently suspended from 21 September to 2 October and you can update your book on 3 October 2011 as the dividend is automatically credited there.

It is comforting to get the dividend during this current market's poorest performance, reminiscent of the 2008 financial meltdown.  I was thinking of parking my AS1M's dividend in another unit trust which is variably-priced and that is set for a better dividend yield but am worried that after its dividend, to be declared in January 2012, the unit price would plunge as to wipe off all of my gain ! So I had better be on the defensive by keeping it in AS1M till such a time when the market  returns on the road to recovery.

It is wise to stick to capital preservation during stock market's unusual down-trend.

The fun has virtually gone out of the equity market right now and I have stopped looking at my portfolios' dwindling values. Let me just be happy with my AS1M dividend for the time being and dream a little......

Diamond-studded Kitty ring  at USD4,250.... for decor only :)