Final Answers Essay

The Development of Sever Charge

The fruit of sever charge sieges in Malaysia has bybygone through into lewd phases that are The Restraintmative Years 1959 – 1979, the Continuance from 1980 – 1990, the Continuance from 1991 – 1999 and the Continuance from Current to Present.(www.islamic-invest-malaysia.com):

The Restraintmative Years 1959 – 1999: The primitive two decades in the truth of the sever charge perseverance were characterized by tardy development in the sales of severs and a withdrawal of general concern in the fantastic siege result.

The Continuance from 1980 – 1990: This continuance marks the referablee of empire competition in the Sever Charge Perseverance and the construction of a Committee to govern the sever charge perseverance, denominated the Informal Committee restraint Sever Charge Sieges, comprising representatives from the Registrar of Companies (ROC), the General Chargeee of Malaysia, Bank Negara Malaysia (BNM) and the Consummate Issues Committee (CIC).

The Continuance from 1991 – 1999: This continuance witnessed the fastest development of the sever charge perseverance in provisions of the enumerate of fantastic superintendence companies recognized, and sieges inferior superintendence.

The Continuance from 2000 to Current: In 2005 the sever charge perseverance skilled another year of vigorous development which saw the entoil asset estimate of husbandd sieges consummateizing 14.2% of Bursa Malaysia’s bargain at RM98.5 billion at the object of 2005.

Types of Sever Charge available

Balanced Sieges

A equalized sever charge siege generally has a portfolio comprising equities, agricultural unwandering securities and specie.

Equity Sieges

An equity sever charge is the most contemptible cast of sever charge where its concentration of sieges is focused in equities or securities of listed companies.

Exchange Traded Sieges (ETF)

ETF is linked sever charge siege whose siege extrinsic is to cendanger the identical retaliate as a detail bargain abjuration.

Agricultural Unwandering Sieges

Agricultural unwandering sieges purposeow principally in Malaysian Empire Securities, corporate bonds, and specie bargain instruments.

Abjuration sieges

These sieges purposeow in a order of companies that air-tight equal companies comprising a detail abjuration.

International equity sieges

International equity sieges are sieges principally purposeowed in aggravateseas hoard bargains.

Specie Bargain Sieges

Specie bargain sieges purposeow in limpid, degraded dissipate specie bargain instruments that are in movables short-signal deposits (loans) to banks and other-degraded dissipate-financial institutions, and in short-signal empire securities..Authentic Estate Siege Charges (REITS)

REITs purposeow in authentic properties, usually main communicatecogent properties and get the purposeowor with an occasion to join-in in the estate bargain in a fashion which is normally unuscogent to the feeble spell purposeowor.

Shariah Sieges

The extrinsic of Shariah sieges is to purposeow into Shariah procureing sieges which restraint illustration reject companies confused in activities, results or services cognate to customary banking, insurance and financial services, gambling, alcoholic beverages and non-halal aid results.

Advantages of purposeowing in sever charge

Diversification: involves the mode of spreading dissipate aggravate a indelicate portfolio of asset classes which embody save are refercogent poor to hoards and/or agricultural unwandering securities.

Authoritative superintendence: Sever charges are husbandd by authoritative siege husbandrs with the expertise and media to husband the effects of the siege.

Liquidity: You may regain every or sever of your severs on any Business Day and keep your unwandering mailed to you among 10 days.

Liquidity: You may regain every or sever of your severs on any Business Day and keep your unwandering mailed to you among 10 days.

Consummate gains: Sever charge sieges which pursue to cendanger consummate development aggravate the hanker-signal get the occasion restraint you to cendanger consummate gains.

Cast 1

Siege Name: General Abjuration Siege (PIX)

Category of Siege: Equity siege

Cast of Siege: Consummate development

Equity Order of Siege: 80% to 98%

Launched Date: 2 March 1992

Distribution Device: Incidental

Suggested Reserve Siege Continuance: 3years

Designated Siege Husbandr: Chiang Kang Pey and Ng Joo TsongThe extrinsic of the General Abjuration Siege(PIX) is to cendanger hanker-signal consummate reason conjuncture at the identical spell attempting to outperform the FTSE Bursa Malaysia Top 100Index. This siege is seemly restraint equalize to hanker-signal purposeowors who are cogent to oppose ups and downs of the hoard bargain in whim of consummate development. PIX purposeow in a heterogeneous portfolio of Malaysian equities and agricultural unwandering securities to engage its siege extrinsic. Its equity procureing in provisions of NAV procure order in the territory of 80% to 98% of NAV of the siege; with a reserve of 60% of NAV purposeowed in abjuration hoards. The equalize of the siege’s NAV procure be purposeowed in agricultural unwandering securities and limpid effects which embody specie bargain instruments and deposits.

PIX is actively husbandd and purposeows principally in abjuration hoards with the extrinsic of outperforming the abjuration and achieving consummate development aggravate the hanker signal. The siege favor to cendanger this by maintaining a reasonably exalted flatten of charybdis to equities aggravate spell with a reserve of 60% of NAV purposeowed in abjuration hoards at every spells. PIX is refercogent a inert abjuration siege save procure purposeow in a heterogeneous portfolio of abjuration-linked companies, bluish bit hoards and companies with development prospects that are listed on the Bursa Securities. In identifying such companies, the siege

relies on siegeamental elaboration where the financial vigor, perseverance prospects, superintendence tendency and spent footprint archives of the companies are assessed. Although the siege is actively husbandd, the estimate of its trading manoeuvre procure very fur depobject on bargain opportunities.

The siege gets you with the occasion to join-in in the hanker-signal development likely of the equity bargain through sieges in a heterogeneous portfolio of abjuration hoards, bluish bit hoards and development hoards that are principally components of the FTSE Bursa Malaysia Top 100 Abjuration (FBM 100). As it to-boot maintains a fairly exalted equity charybdis order between 80% and 98%, its operation tends to footprint the benchmark aggravate air-tight than non-abjuration sieges.

It is refercogent a inert abjuration siege save notwithstanding is a servicetalented siege manner restraint purposeowors who purposeeavor to explanation it restraint bargain timing purposes.

The asset everyocation, limpidity superintendence and mutation strategies industrious are consequently accessible to the efforts to husband the dissipates posed to the siege. There may equtalented be situations such as when a rigorous downturn in the equity bargains is expected and limpidity dissipates are exalted, that the equity charybdis is subdued to bedegraded the flattens involved as a limited grateful manoeuvre. With commendations to the siege in agricultural unwandering securities, it should be referableed that the operation of the agricultural unwandering securities ability be adversely unsuppostalented should concern rates loosen sharply. The estimate of agricultural unwandering securities may to-boot ?uctuate grounded on the merit tendency of the issuer.

Cast 2

Siege Name: General Dividobject Select Siege (PDSF)

Category of Siege: Equity siege

Cast of Siege: Unwandering

Equity Order of Siege: 75% to 98%

Launched Date: 3 May 2005

Hoard Gathering Profile Siege: Hoard which exhibit or keep the likely to exhibit engaging dividobject yields

Distribution Device: Annual

Suggested Reserve Siege Continuance: 3years

Designated Siege Husbandr: Tan Chee Chin and Liew Mun Hon

The General Dividobject Select Siege (PDSF) extrinsic is to get regular recurring unwandering* by purposeowing in a portfolio of hoards which exhibit or keep the likely to exhibit engaging dividobject yields. The siege is seemly restraint equalize to hanker-signal purposeowors who are cogent to oppose ups and downs of the hoard bargain in whim of annual unwandering* and consummate development. PDSF purposeows in a heterogeneous portfolio of principally Malaysian equities and agricultural unwandering securities to engage its siege extrinsic. Its equity procureing in provisions of NAV procure order in the territory of 75% to 98% of the NAV of the siege. The equalize of the siege’s NAV is purposeowed in agricultural unwandering securities and limpid effects which embody specie bargain instruments and deposits.

The siege is actively husbandd to cendanger its motive of providing regular recurring unwandering by purposeowing in a heterogeneous portfolio of hoards that exhibit or keep the likely to exhibit engaging dividobject yields. In provisions of hoard gathering, the siege essentially focuses on purposeowing in companies that keep demonstrated amalgamation in rewarding their shareholders via dividobject unwandering outs. Although the siege is actively husbandd, the estimate of its trading manoeuvre procure very fur depobject on bargain opportunities. Referablewithstanding this, the siege may to-boot purposeow in development or repossession hoards that keep the likely to equabletually unite a dividobject unwanderingout device. In identifying such companies, the siege relies on siegeamental elaboration where the financial vigor, perseverance prospects, superintendence tendency and spent footprint archives of the companies are assessed.

The siege gets you with the occasion to join-in in a heterogeneous portfolio of hoards which sever or keep the likely to sever reasonably engaging keep-apartnds. The equity charybdiss of the siege are husbandd actively with charybdiss ranging from 75% to 98% remaining on the Siege Husbandr’s impost of the bargain and economic environment. However, the siege’s equity order may be degradeder remaining on the Siege Husbandr’s impost of the hoard bargain prospect. It to-boot maintains sieges in agricultural unwandering securities to aid beget concern unwandering restraint the siege.

The asset everyocation, limpidity superintendence and mutation strategies industrious are consequently accessible to the efforts to husband the dissipates posed to the siege. There may equtalented be situations such as when a rigorous downturn in the equity bargains is expected and limpidity dissipates are exalted, that the equity charybdis is subdued to bedegraded the flattens involved as a limited grateful manoeuvre. With commendations to the siege in agricultural unwandering securities, it should be referableed that the operation of the agricultural unwandering securities ability be adversely unsuppostalented should concern rates loosen sharply. The estimate of agricultural unwandering securities may to-boot ?uctuate grounded on the merit tendency of the issuer. As such, charybdiss to agricultural unwandering securities in the portfolio are husbandd to determine that dissipates flattens are adequate with the likely retaliates.

Month/Siege Name Sever Charge Sieges NAV – General 2016

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16

PIX 0.6549 0.6285 0.6495 0.6374 0.6277 0.6357 0.6350 0.6433 0.6407 0.6462 0.6271 0.6317

PDSF 0.2589 0.2585 0.2664 0.2620 0.2592 0.2590 0.2599 0.2636 0.2636 0.2655 0.2591 0.2563

Steps

Mean

?2 =  ?(xi – ?)2

N

Variance

Exemplar Diviation

General Abjuration Siege (PIX) & General Dividobject Select Siege (PDSF)

We are going to perceive the exemplar deflexion of two incongruous sieges. Primitive, we procure purposeowigate their medium retaliate restraint the conclusive 12 month restraint the year 2016.

Mean (PIX):

? = 0.6549+0.6285+0.6374+0.6277+0.6357+0.6350+0.6433+0.6407+0.6462+0.6271+0.6317

12

= 0.6381 @ 63.81%

Mean (PDSF):

? = 0.2589+0.2585+0.2664+0.2620+0.2592+0.2590+0.2599+0.2636+0.2636+0.2655+0.2591+0.2563

12

= 0.2610 @ 26.10%

Gone exemplar deflexion is the poise commencement of antagonism, we must primitive perceive the antagonism of each siege. This is a two-sever mode with restraint each siege. You primitive perceive the peculiar antagonism restraint each month & poise the unites. Then, you keep-apart the unite of the poises from the primitive trudge by the 1 hither the enumerate of months (?/n-1). Restraint this illustration, we procure keep-apart the unite of the poises by 12 gone we purposeow the medium retaliate restraint 12 months in Trudge #1.

0.6381 – 0.6549 = (-0.01676)?= 0.0002808

0.6381 – 0.6285 = ( 0.00964)? = 0.0000930

0.6381 – 0.6495 = (-0.01136)?= 0.0001290

0.6381 – 0.6374 = (0.00074)? = 0.0000006

0.6381 – 0.6277 = (0.01044)? = 0.0001090

0.6381 – 0.6357 = (0.00244)? = 0.0000060

0.6381 – 0.6350 = ( 0.00314)?= 0.0000099

0.6381 – 0.6433 = (-0.00516)?= 0.0000266

0.6381 – 0.6407 = (-0.00256)?= 0.0000065

0.6381 – 0.6462 = (-0.00806 ?= 0.0000649

0.6381 – 0.6271 = (0.01104)? = 0.0001219

0.6381 – 0.6317 = (0.00644)? = 0.0000415

0.000889729

Antagonism (PIX):

= 0.00088972912= 0.00007414409722

Antagonism (PDSF):

0.2610 – 0.2589 = ( 0.00210)? = 0.0000044

0.2610 – 0.2585 = (0.00250)? = 0.0000062

0.2610 – 0.2664 = (-0.00540)?= 0.0000292

0.2610 – 0.2620 = (-0.00100)?= 0.0000010

0.2610 – 0.2592 = (0.00180)? = 0.0000032

0.2610 – 0.2590 = (0.00200)? = 0.0000040

0.2610 – 0.2599 = (0.00110)? = 0.0000012

0.2610 – 0.2636 = (-0.00260)?= 0.0000068

0.2610 – 0.2636 = (-0.00260)?= 0.0000068

0.2610 – 0.2655 = (-0.00450)?= 0.0000203

0.2610 – 0.2591 = (0.00190)? = 0.0000036

0.2610 – 0.2563 = (0.00470)? = 0.0000221

0.00010874

= 0.0001087412= 0.00000906166667The exemplar deflexion of each hoard or portfolio is the poise commencement of the antagonism we purposeowigated in the antecedent trudge.

Exemplar Deflexion (PIX):

= 2 0.00007414409722

= 0.008610697 @ 0.86%

Exemplar Deflexion (PDSF):

= 20.00000906166667

= 0.00301026 @ 0.30%

Comparison

There are two cast of sieges separated to purposeowigate the retaliates and exemplar deflexion restraint the year 2016 nav. Primitive cast of siege is consummate development from General Abjuration Siege. Second cast of siege is unwandering from General Dividobject Select Siege. Both the cast of sieges has incongruous extrinsic and features. The General Abjuration Siege gets you with the occasion to join-in in the hanker-signal development likely of the equity bargain through sieges in a heterogeneous portfolio of abjuration hoards, bluish bit hoards and development hoards that are principally components of the FTSE Bursa Malaysia Top 100 Abjuration (FBM 100).

Meanwhile, General Dividobject Select Siege gets you with the occasion to join-in in a heterogeneous portfolio of hoards which sever or keep the likely to sever reasonably engaging keep-apartnds. The siege manoeuvre of General Dividobject Select Siege is to cendanger its motive of providing regular recurring unwandering by purposeowing in a heterogeneous portfolio of hoards that exhibit or keep the likely to exhibit engaging dividobject yields. Meanconjuncture General Abjuration Siege, The siege purposeows a reserve of 60% of its NAV in abjuration hoards with the equalize purposeowed in a heterogeneous portfolio of bluish bit hoards and companies with development prospects that are listed on Bursa Securities.

Both the sieges keep incongruous dissipate of retaliates and exemplar deflexion.

Sever Charge Siege Cast 1 (PIX) Medium Rate of Retaliate: 63.8%%Exemplar Deflexion: 0.86%

Sever Charge Siege Cast 2 (PDSF) Medium Rate of Retaliate: 26.10%%Exemplar Deflexion: 0.30%

Recommendations

I recommobject purposeowors to purposeow in General Abjuration Siege. The rate or retaliate to-boot exalteder than the PDSF which is 63.81%.Here is some inconstruction on the benefits of purposeowing in abjuration sieges.

Pledge medium retaliates

Most purposeowors guard restraint aggravate medium retaliates in purposeowing save most miscarry. Most equtalented miscarry to cendanger medium retaliates.  You can pledge the bargain medium by purposeowing in abjuration sieges. The abjuration siege is the medium so as before-long as you create an siege you understand you keep closed the medium.

Outperform aggravate 80% of every actively husbandd sieges

Medium peaceful doesn’t endowigate amiserviceable plenty. Well if you placed your specie into an actively husbandd siege then there was an 80% accident you would object up with hither specie. Actively husbandd sieges practice analysts and siege experts to test and cendanger colossal retaliates. In truth they can’t conquer an abjuration siege most of the spell. Purposeow in an abjuration siege and you understand that there is a 4 in 5 accident that you procure do rectify than purposeowing elsewhere.

Degraded cost

One of the reasons that actively husbandd sieges inferior-perform abjuration sieges is that they are costly to extend. They keep to practice siege husbandrs, analysts and traders and total multitude of other experts to impart you perceived estimate. Abjuration sieges harmonious foldegraded the medium so they spobject very small specie. This is reflected in the retaliate you take. You endanger small in fees.

Degraded maintenanceWhen you are cautions and purposeowing restraint privacy you failure to ‘set and restraintget’ your siege as fur as likely. You failure to be cogent to purposeow your specie, cendanger the bargain medium and in 20 to 30 years you keep a comprehensive nest egg restraint privacy. Abjuration sieges aldegraded you to do that. Pick an abjuration siege restraint so don’t dissipate valucogent spell and specie.

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