PM launched ASB 2

Prime Minister Datuk Seri Mohd Najib Abdul Razak launched Amanah Saham Bumiputera 2 (ASB2) with a fund size of 10 billion yesterday at Stadium Merdeka.

Managed by Permodalan Nasional Berhad (PNB), ASB2 is a fixed price fund of RM1.00 per unit, and it targets Bumiputera, especially between 19 to 34 years of age (Gen-Y).

The financial year end for this fund is March 31, while minimum and subsequent additional investment is 10 units. There is currently no sales charge imposed on unit holder; however PNB said that it may at its discretion impose up to 1% of sales charge of the invested amount.

During the launch, Najib also said that PNB has allocated RM10 million as incentives to woo the public to invest in the fund. The incentives are packaged into two deals, he said in his opening speech.

“Those who register between today until Dec 31, 2014 will receive 10 free units which will be credited to their account, while those who register and open their account today at Stadium Merdeka will receive a voucher worth RM50 for the purpose of purchasing the ASB 2 units,” said Najib.

To encourage bumiputera participation, particularly Gen-Y, the national fund manager capped a maximum number of subscriptions to 50,000 units for junior subscribers (between the age of 6-month to 18 years old) and 200,000 units for adult subscribers (18 years old and above).

PNB chairman Tun Ahmad Sarji said that so far, PNB has managed to attract Gen-Y to participate in unit trust scheme.

“To date, 28.1% or 3.3 million of our account holders are Gen-Y. PNB has also distributed competitive dividend ranging from 6.4% to 7.7%, and as of now, the total dividend and bonus distributed amounts to RM116 billion ,” said Ahmad Sarji.

Najib also said that the launch of this fund is part of the second strategy of Bumiputera economic empowerment agenda as announced in September last year.

Citing statistics from the insolvency department, he added that equity ownership in trust fund can provide financial security particularly to the Gen-Y, as well as weathering economic changes.

ASB2 is PNB’s second trust fund after Amanah Saham Bumiputera (ASB) and it is also the tenth product among its wide product offerings.

Last year, PNB declared a dividend of 7.7 sen per unit and a bonus of 1.0 sen per unit totaling RM9.38 billion for its ASB funds.

Among those seen during the launch were PNB chief executive officer Tan Sri Hamad Kama Piah Che Othman, minister of international trade and industry Datuk Seri Mustapha Mohamed, minister in the prime minister’s department Datuk Seri Abdul Wahid Omar, Ekuinas CEO Datuk Abdul Rahman Ahmad, Perodua CEO Datuk Aminar Rashid Salleh and Sime Darby CEO Tan Sri Mohd Bakke Salleh.