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Federation of Malaysian Unit Trust Managers president Tunku Datuk Ya’acob
Tunku Abdullah said that while there were investors who had lost money, the
80% figure quoted was unsubstantiated.
<p>“The difference of RM600mil might not have taken into consideration factors
which may have an impact in calculating returns. </p>
<p>“(These include) members redemption upon realisation of profits, switching-in
with profits into other funds, conversion to ordinary accounts after reaching
the age of retirement, death or other incapacitation,” he said in a statement.
</p>
<p>He was responding to recent press reports that EPF contributors had suffered
losses of RM600mil after investing in unit trusts. </p>
<p>Under the EPF’s investment scheme, the amount of savings that can be withdrawn
should not be less than RM1,000 and not more than 20% of the amount exceeding
RM50,000 in Account 1. </p>
<p>Tunku Ya’acob said based on international research agency Standard and Poor’s
(S&P) report, the average returns from Malaysian equity funds was 24% over
seven years, 56% over five years and 26% over three years. </p>
<p>He said the hallmark of unit trusts was its mid- and long-term investment strategies
for investors. </p>
<p>The S&P report indicated that the investments did deliver respectable returns
over time, he said. </p>
<p>He said this was why the federation had always stressed on the importance of
investors’ education and their understanding that investments in unit trusts
were for the medium to long term and not for quick gains. </p>
<p>Tunku Ya’acob said unit trusts, though well regulated, do carry a certain amount
of risk. </p>
<p>He said the equity market was rather flat last year and investors had probably
not timed their investments correctly to boost returns. </p>
<p>He said to maximise returns investors were advised to practise dollar cost
averaging in a consistent manner over the long term. </p>
<p>They also had to be savvy in recognising when to buy into suitable funds and
perform switching in response to market conditions and personal circumstances.
</p>
<p>Tunku Ya’acob said the current procedures relating to investments under
the EPF’s Members Investment Scheme would remain unchanged pending any
directive from the EPF. </p>
<p>Unit trust managers are concerned over the effects the claims of the losses
would have on their business. </p>
<p>Avenue Invest Bhd executive director Danny Wong said it was too soon to see
any impact, but if the figures were not clarified soon the industry could be
affected. </p>
<p>He said he did not believe that the losses suffered were as high as had been
claimed as Avenue Invest’s long-term investment clients, including those investing
with EPF funds, had been registering good returns. </p>
<p>He said, however, that only 1% of his client base consisted of those who withdrew
money from the EPF for investing. </p>
<p>Prudential Unit Trusts Bhd chief executive officer Mark Toh said he, too, felt
that those who invested via the EPF Investment Scheme would not have made losses
over the long term (three to five years). </p>
<p>He said the 80% figure in the report about the EPF members’ losses should
be verified.
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