ASNB and ASB – The Full Guide to Skim Amanah Saham Bumiputera in Malaysia

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There are many ways that you can choose to increase your return on your savings, and investing your money is one of them. Although a good investment can give a handsome return to the investor, investing in any kind of portfolio holds risks (among them, the main risk is that your investment could go down as well as up, unlike deposit accounts where there is no uncertainty of capital or interest).

There are a few types of investments out there, and while SaveMoney.my does not recommend any in particular, investing in a unit trust is one of your options.

Only because it’s a popular requested topic, we will cover the basics (and not whether you should or should not invest into it) of investing with ASNB, a government supported unit trust management company. Remember, ASNB is the company, and ASB, ASN, ASW2020 etc are the unit trusts (more on this later).

If you’re planning on investing through ASNB, make sure you know all the necessary information before making your move!

*Before we start, we repeat again that SaveMoney.my does not give tips, recommendations nor advice on any specific investment strategies, we are merely presenting facts here.

Amanah Saham Nasional Berhad (ASNB)

Amanah Saham Nasional Berhad or ASNB (Fun fact : Amanah saham is the translation of unit trust in Malay) was established on May 1979 and have been managing unit trust funds for ~25 years. So what is ASNB and who is eligible to open these funds? They are a wholly-owned subsidiary company of Permodalan Nasional Berhad (PNB) and has 9 funds under its management.

These funds are :

  • Skim Amanah Saham Bumiputera (ASB)
  • Amanah Saham Nasional 2 (ASN 2)
  • Amanah Saham Nasional 3 Imbang (ASN 3)
  • Amanah Saham Gemilang (ASG)
  • Sekim Amanah Saham Nasional (ASN)
  • Amanah Saham Wawasan 2020 (ASW 2020)
  • Amanah Saham Malaysia (ASM)
  • Amanah Saham Didik (ASD)
  • Amanah Saham 1Malaysia (AS 1MALAYSIA)

What is a Unit Trust or Amanah Saham?

A unit trust is a collective investment scheme that pools the savings of a large number of investors, of which the fund manager will select and make investments on behalf of those investors in the fund. For more on unit trusts, you can check out our Guide to Unit Trusts in Malaysia (but remember we offer no investment advice).

The money collected is invested by the selected fund manager in different types of stocks, bonds, or other securities in various proportions depending upon the objective of the fund. In ASNB, each fund has its own specifications. For a summary, just go through the table below!

Fund Name
Sekim Amanah Saham Nasional (ASN)
Amanah Saham Nasional 2 (ASN 2)
Amanah Saham Nasional 3 Imbang (ASN 3)
Amanah Saham Gemilang (ASG)
TypeGrowthGrowthBalancedGrowth & Income
CategoryEquityEquityEquity and other capital market instrumentsASG Education - Fixed income securities and other capital market instruments

ASG Health - Equity

ASG Retirement - Fixed income securities and other capital market instruments
Launch DateApril 20, 1981June 9, 1999October 16, 2001March 17, 2003
EligibilityMalaysian Bumiputera :
1. Adult Account
2. Teenage Account (under 18 years old)
Malaysian Bumiputera 18 years old and aboveMalaysian 18 years and aboveMalaysian :
1. Adult Account (18 years and above)
2. Bijak Account (under 18 years old)
Investment ManagerPermodalan Nasional BerhadPermodalan Nasional BerhadPermodalan Nasional BerhadPermodalan Nasional Berhad
Price per UnitSelling and buying of unit is at NAV per unitSelling and buying of unit is at NAV per unitSelling and buying of unit is at NAV per unitSelling and buying of unit is at NAV per unit
Form of InvestmentInvestment book

Certificate
Investment book

Member's Investment Scheme (EPF)
Investment book

Member's Investment Scheme (EPF)
Investment book

Member's Investment Scheme (EPF)
Minimum Initial InvestmentInvestment book - 10 unitsInvestment book - 100 unitsInvestment book - 100 unitsInvestment book - 100 units
Minimum Additional InvestmentInvestment book - 1 unit

Certificate - Multiples of 1,000 units
Investment book - 100 unit

EPF - RM1,000
Investment book - 100 unit

EPF - RM1,000
Investment book - 100 unit

EPF - RM1,000
Maximum InvestmentUnlimitedUnlimitedUnlimitedUnlimited
Approved Fund Size2.5 billion units.2.5 billion units.1.0 billion units1.0 billion units
Sales Charge5% of the NAV per unit.1. 5% of the NAV per unit. (Non EPF)
2. 3% of the NAV per unit. (EPF)
1. 5% of the NAV per unit. (Non EPF)
2. 3% of the NAV per unit. (EPF)
1. 5% of the NAV per unit. (Non EPF)
2. 3% of the NAV per unit. (EPF)
Redemption ChargeNoneNoneNoneNone
Payment of RedemptionOn-the-spot1. Non EPF - on the spot
2. EPF - Redemption amount is payable to EPF only
1. Non EPF - on the spot
2. EPF - Redemption amount is payable to EPF only
1. Non EPF - on the spot
2. EPF - Redemption amount is payable to EPF only
Account Closure and
Income Distribution Entitlement
ASNB is allowed to close the account should the balance in the account fall below the minimum investment balanceASNB is allowed to close the account should the balance in the account fall below the minimum investment balanceASNB is allowed to close the account should the balance in the account fall below the minimum investment balanceASNB is allowed to close the account should the balance in the account fall below the minimum investment balance
Fund Name
Skim Amanah Saham Bumiputera (ASB)
Amanah Saham Wawasan 2020 (ASW 2020)
Amanah Saham Malaysia (ASM)
Amanah Saham Didik (ASD)
Amanah Saham 1Malaysia (AS 1 MALAYSIA)
TypeIncomeIncomeIncomeGrowthIncome
CategoryEquityEquityEquityEquityEquity
Launch DateJanuary 2, 1990August 28, 1996April 20, 2000April 20, 20015 August 2009
EligibilityMalaysian Bumiputera :
1. Adult Account
2. Teenage Account (under 18 years old)
Malaysian :
1. Adult Account (18 years and above)
2. Teenage Account (under 18 years old)
Malaysian :
1. Adult Account (18 years and above)
2. Bijak Account (under 18 years old)
Malaysian :
1. Adult Account (18 years and above)
2. Bijak Account (under 18 years old)
Malaysian :
1. Adult Account (18 years and above)
2. Teenage Account (under 18 years old)
Investment ManagerPermodalan Nasional BerhadPermodalan Nasional BerhadPermodalan Nasional BerhadPermodalan Nasional BerhadPermodalan Nasional Berhad
Price per UnitRM1.00RM1.00RM1.00RM1.00RM1.00
Form of InvestmentInvestment book

Certificate
Investment book

Member's Investment Scheme (EPF)
Investment bookInvestment book

Member's Investment Scheme (EPF)
Investment book

Member's Investment Scheme (EPF)
Minimum Initial InvestmentInvestment book - 10 unitsInvestment book - 100 unitsInvestment book - 100 unitsInvestment book - 100 unitsInvestment book - 100 units
Minimum Additional InvestmentInvestment book - 1 unit

Certificate - Multiples of 1,000 units
Investment book - 1 unit

EPF - RM1,000
Investment book - 1 unitInvestment book - 1 unit

EPF - RM1,000
Investment book - 1 unit

EPF - RM1,000
Maximum Investment1. Akaun Dewasa - 200,000 units
2. Akaun Remaja - 50,000 units
UnlimitedUnlimitedUnlimitedUnlimited
Approved Fund SizeUnlimited16.615 billion units.13.91 billion units5.0151 billion units14.0 billion units
Sales ChargeNoneNoneNoneNoneNone. However, the Manager has the discretion to charge up to 1% of the amount invested after the initial offer period.
Redemption ChargeNoneNoneNoneNoneNone
Payment of RedemptionOn-the-spot1. Non EPF - on the spot
2. EPF - Redemption amount is payable to EPF only
On-the-spot1. Non EPF - on the spot
2. EPF - Redemption amount is payable to EPF only
On-the-spot
Account Closure and
Income Distribution Entitlement
ASNB is allowed to close the account should the balance in the account fall below the minimum investment balanceASNB is allowed to close the account should the balance in the account fall below the minimum investment balanceASNB is allowed to close the account should the balance in the account fall below the minimum investment balanceASNB is allowed to close the account should the balance in the account fall below the minimum investment balanceASNB is allowed to close the account should the balance in the account fall below the minimum investment balance

ASNB: Performance

To find out more on each funds’ performance, just check ASNB’s Master Prospectus page right here!

ASNB Agents

There are several banks that ASNB has entrusted as agents, these banks are :

These agents provide many ASNB services, ranging from the registration, loan financing (except POS Malaysia), to internet banking facility (click here to get the steps and links to the ASNB internet banking facility). As agents, they are not responsible to manage your selected funds, that responsibility lies solely with ASNB.

Skim Amanah Saham Bumiputera (ASB)

One of the most well known funds in ASNB is definitely the Skim Amanah Saham Bumiputera (ASB). Unfortunately, only Malaysian Bumiputeras are eligible to make an investment with this particular unit trust.

Amanah Saham Bumiputera (ASB) holds the title of being the first fund launched by ASNB on January 2, 1990. ASB was first introduced to help Malaysian Bumiputeras build up an alternate savings nest for retirement instead of depending entirely on their EPF contributions.

Bumiputera investors can purchase ASB units for RM1.00 per unit and can continue to do so until a maximum of 200,000 units for adults and 50,000 units for teenagers. The price per unit of ASB is fixed at RM1.00 per unit regardless of the Net Asset Value (NAV) of the fund (ie whether the fund goes up or down, this essentially minimises capital risk, leaving the investor with only dividend risk). In addition, there are no sales charge fee and redemption of units is also free.

So why is this particular investment so popular? Mostly due to the minimisation of capital risk through the fixed NAV at RM1.00 and the positive dividends throughout the years (but again, past performance is not an indicator of future success):

Year : 201220112010200920082007
Dividend7.757.657.507.307.008.00
Bonus1.151.151.251.251.751.00
Total8.90 sen / unit8.80 sen / unit8.75 sen / unit8.55 sen / unit8.75 sen / unit9.00 sen / unit

How To Invest in ASB

There are two ways for you to invest in the ASB scheme: The first one is by depositing your own savings over time, and the other is by taking up an ASB loan from the bank and invest a large sum at the start.

As of now, three banks provide ASB loans to those bumiputras who wish to invest in ASB. These three banks are Maybank, RHB Bank, and CIMB Bank :

Bank
Eligibility
Minimum Financing AmountMaximum Financing Amount
Loan Tenure
BLR Rate
MaybankBumiputera from 18 to 60 years oldRM10,000RM400,000Up to 25 / 60 years< RM30,000 : BLR -1.35% (First 3 years) , BLR -1.30% (Thereafter)

> RM30,000 : BLR -1.65%
CIMB BankBumiputera aged 18 and aboveRM10,000RM200,000Up to 25 yearsBLR -1.65%
RHB BanksBumiputera aged 18 and aboveRM10,000Up to individual's ASB investment limitUp to 25 / 60 years < RM80,000 : BLR -1.55%

> RM80,001 : BLR -1.65%

ASB Loan vs. Traditional Deposit

Is it worth it to take up an ASB loan as your source of funds? The short answer here is that it depends. Unfortunately, as both ASB dividends (which are generally reinvested to get you more ASB units) and ASB loan interest rates can vary over time and are not fixed, there are circumstances where the answer can be yes and no.

Let’s do a comparison of outcomes using the two different methods:

  • Investment using an ASB Loan to invest a large sum at the start
  • Investment using traditional regular deposits.

We’ll use three scenarios to highlight our example – we’ll just call it:

  1. 8.5% Base Dividend 5% Base Loan Interest Scenario
  2. 5% Low Dividend 5% Base Loan Interest Scenario
  3. 8.5% Base Dividend 8.5% High LoanInterest Scenario
Scenario 1 -> 8.5% Base Dividend and 5% Base Interest Scenario

While we make no prediction about the yearly dividend rates staying at 8.5% or more, as well as loan interest rates staying at 5% for the tenure, we will use these numbers as basis for our calculation. We will use Maybank’s ASB loan rates for this example (not taking into account a small fee paid for takaful insurance, for ease of calculation) :

Loan Amount : RM50,000
Loan Tenure : 25 Years
Interest Rate : 5% p.a. (Variable rate, tied to BLR, for more information on the types of interest rates, click here)
Monthly Installment : RM292
ASB Dividend : Assume 8.5% p.a.

Method 1 : ASB Loan for Initial Investment -> Paid off monthly over 25 years

For the first method, the RM50,000 is deposited into your ASB account and will not be disturbed until the 25th year. At the end of the tenure, your total ASB value at 8.5% p.a. compound growth will be at RM385,000, with your loan fully repaid by your RM292 monthly installments after 25 years.

RM50,000 x (1 + 8.5%) ^ 25 ~ RM385,000.

Method 2 : Traditional Deposit (say monthly)

Let’s say that your discipline level is off the charts and you have no problem depositing RM292 monthly into your ASB account for 25 years, this number chosen to give you the same monthly outgoings as the ASB Loan installments. At the end of the tenure, using 8.5% p.a. as our dividend rate, you will have about RM285,000.

Summary

In this scenario, the ASB loan method (RM385,000) rather than the traditional deposit method (RM285,000) would be the way to get a higher return on your RM292 monthly outgoings. This is because the dividend rate is higher than the loan interest rate.

Scenario 2 -> 5% Low Dividend and 5% Base Loan Interest Scenario

Now lets look at the case where ASB dividends declared are much lower than expected over the 25 years, say at around 5% p.a.

Method 1 : ASB Loan for Initial Investment -> Paid off monthly over 25 years

For the first method, the RM50,000 is deposited into your ASB account and will not be disturbed until the 25th year. At the end of the tenure, your total ASB value at 5% p.a. compound growth will be at RM170,000, with your loan fully repaid by the same RM292 monthly installments after 25 years.

RM50,000 x (1 + 5%) ^ 25 ~ RM170,000.

Method 2 : Traditional Deposit

Again, let’s say that your discipline level is off the charts and you have no problem depositing RM292 monthly into your ASB account for 25 years, this number chosen to give you the same monthly outgoings as the ASB Loan installments. At the end of the tenure, using 5% p.a. as our dividend rate, you will have about RM170,000.

Summary

In this scenario, both methods give you the same result after 25 years with your RM292 monthly outgoings. This is because the dividend rate is the same as the loan interest rate.

Scenario 3 -> 8.5% Base Dividend and 8.5% High Loan Interest Scenario

What happens if ASB dividends remain the same, ie. at 8.5% p.a., but the interest rates (controlled by Bank Negara) get raised and go to 8.5% p.a. over the 25 years?

At 8.5% p.a. variable rate (but lets assume fixed at 8.5% over the 25 years), you will be paying RM402 per month on a RM50,000 initial loan, rather than the RM292 earlier.

Method 1 : ASB Loan for Initial Investment -> Paid off monthly over 25 years

For the first method, the RM50,000 is deposited into your ASB account and will not be disturbed until the 25th year. At the end of the tenure, your total ASB value at 8.5% p.a. compound growth will be at RM385,000 as in Scenario 1, with your loan fully repaid by the higher RM402 monthly installments after 25 years.

Method 2 : Traditional Deposit

Again, let’s say that your discipline level is off the charts and you have no problem depositing the now higher RM402 monthly into your ASB account for 25 years, this higher number chosen to give you the same monthly outgoings as the ASB Loan installments. At the end of the tenure, using 8.5% p.a. as our dividend rate, you will have about RM393,000.

Summary

In this scenario, both methods give you almost same result (actually, traditional deposits is a little higher here) after 25 years with your RM402 monthly outgoings.

 

Conclusion

As you can see from our examples, taking up an ASB loan is only great if ASB gives you a higher dividend every year than the loan interest rate (but of course, the choice is up to you!). Unfortunately, no one can predict how dividends and loan interest rates will change, but at the moment, there is about a 3.5% difference (dividend higher than loan interest), and that’s probably why more and more people are taking up ASB loans to invest the maximum amount upfront.

Also, it is worth to mention that unlike missing your monthly deposit in your ASB account, failure to settle your monthly ASB loan repayment can affect your future loan (house, car, etc) approval due to blacklisting, bad credit ratings etc. so its not just about the numbers.

Of course, these figures are just for example purposes only. Before you rush off to open up any of the ASNB unit trust account, take a step back and review the risks as well as financial losses that you might incur on your quest to wealth!

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