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Thread: United Emerging Markets Bond Fund

  1. #1
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    Default United Emerging Markets Bond Fund

    Did anybody heard about this fund? It is given at 5% dividend at the present moment and on top of that, the bank is going to declare a special dividend of 2% but non-guaranteed for the period from Sep 2012 to Aug 2013.

    What does it mean by : "paying of dividends may have the effect of lowering the NAV of the fund."

  2. #2
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    Quote Originally Posted by irisng
    Did anybody heard about this fund? It is given at 5% dividend at the present moment and on top of that, the bank is going to declare a special dividend of 2% but non-guaranteed for the period from Sep 2012 to Aug 2013.

    What does it mean by : "paying of dividends may have the effect of lowering the NAV of the fund."
    Believe it means buy at your own risk as though they may give dividend(high now or low later), the price of fund may drop. Be very very very careful.

    Do not be greedy...
    If it sounds too good, it means buyer beware....
    You may loose more than you gain.....

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    Quote Originally Posted by Pikachu1245
    Believe it means buy at your own risk as though they may give dividend(high now or low later), the price of fund may drop. Be very very very careful.

    Do not be greedy...
    If it sounds too good, it means buyer beware....
    You may loose more than you gain.....
    The banker shows me the historical dividend allocation. The dividend pay out is about 5% pa, it is paid out monthly. Last yr the payout was 7% pa.

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    Quote Originally Posted by irisng
    The banker shows me the historical dividend allocation. The dividend pay out is about 5% pa, it is paid out monthly. Last yr the payout was 7% pa.
    In investment, calculate the downside first. Once the downside is known and can stomach it, only then consider the upside, does it meet your requirement.

    Downside is you lose all the money.

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    Quote Originally Posted by irisng
    The banker shows me the historical dividend allocation. The dividend pay out is about 5% pa, it is paid out monthly. Last yr the payout was 7% pa.
    From my experience, past history is no guarantee of future performance lor...

    I have lost money from UT/land sales etc. before ,so I share with you now.

    Do not be greedy, if it is too good to be true, be very very very careful...

    Unless you can stomach any loss,or else my advice is do not touch it....
    Last edited by Pikachu1245; 13-10-12 at 14:43.

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    Quote Originally Posted by Secretariat
    In investment, calculate the downside first. Once the downside is known and can stomach it, only then consider the upside, does it meet your requirement.

    Downside is you lose all the money.
    Well said, Secretariat. You seems wise, I must say.

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    Quote Originally Posted by Pikachu1245
    Well said, Secretariat. You seems wise, I must say.
    Hehe...kena burnt before mah.

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    Quote Originally Posted by Secretariat
    Hehe...kena burnt before mah.
    Same Same here...

    No pain, no gain....

    Wisdom i means....lol

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    Quote Originally Posted by irisng
    What does it mean by : "paying of dividends may have the effect of lowering the NAV of the fund."
    No one gave u a straight answer on this ?
    It simply means it is possible they are simply paying you using your own money.

    E.g. Fund nav 100, pay u a dividend 5, after that nav becomes 95.

  10. #10
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    the purchase of bond fund is not as simple as one tot.
    U must look into the following:

    1. the track record of the bond manager and all the funds under their charge
    2. the sale charge, which is usually 3%
    3. the hidded management charge, varies from 1-1.5%
    4. most important, the make up and the quality of the bonds bot under the bond fund.
    5. the size of the bond fund and how active is this bond fund in the OTC market.
    6. the currency risk
    7. and most important, interest movement

    The yield of bond fund has dropped quite a bit lately due to the price has gone up.

    perhaps there are some more..but I think these are enough for the time being.

    Lazy to think hard on such a cosy Saturday afternoon....planning for a F&E holiday...

    work harder, I read the factsheet. The info given is very lacking, no credit grading, and the % of bond as others is 52%

    Me : Avoid
    Last edited by Laguna; 13-10-12 at 15:48.

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    Quote Originally Posted by amk
    No one gave u a straight answer on this ?
    It simply means it is possible they are simply paying you using your own money.

    E.g. Fund nav 100, pay u a dividend 5, after that nav becomes 95.
    Lets say the fund NAV is 100, and it makes 10 over a period, total NAV is 110.

    So when it pays a dividend amounting to 10, then the NAV remains at 100. No reduction.

    Another scenario. NAV is 100 and it disposed 10 of its sub-funds over a period. Total NAV is still 100.

    So when it pays a dividend amounting to 10, then the NAV goes to 90.

    Bottom line the fund is saying, it can lose money.

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    5% yield over something u have no control over is in my opinion not a gd deal.
    also ask how much is the annual mgmt fees and upfront sales charges.

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    I have not much idea about investment or bonds , so I need the banker to help me. The sales charge is 3.5% for one time only. No other charges when sold. About 1 yr back, I bought Pru Monthly Income Plan, dividend is 4% pa, the banker advises me to let go (since I have recovered my initial sales charge + extra profit) and convert to this bond which he said has a lesser risk.

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    United's Sing $ Money Market Fund is also not bad. Has been returning around 5%.

    Could be even less risky than the Emerging Markets bonds? Have had some of my CPF funds parked in that one (previously had made some capital gains from global balanced funds but my FA switched out into that fund due to the global volatility and Euro crisis). Still gives me better returns than cash in my CPF-SA.

    You should check which funds are in the Pru Income. I am not sure that yr FA can justify why the Emerging Market bonds are "safer". Ask him/her on what basis?

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    Quote Originally Posted by irisng
    I have not much idea about investment or bonds , so I need the banker to help me. The sales charge is 3.5% for one time only. No other charges when sold. About 1 yr back, I bought Pru Monthly Income Plan, dividend is 4% pa, the banker advises me to let go (since I have recovered my initial sales charge + extra profit) and convert to this bond which he said has a lesser risk.
    3.5% sales charge is imo too high.
    after recovering your sales charge+profit, what does the yield work out to?

    note that these bankers or relationship managers are basically salesman. They earn more by u switching in and out of products all the time. Just my opinion.

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    Quote Originally Posted by august
    3.5% sales charge is imo too high.
    after recovering your sales charge+profit, what does the yield work out to?

    note that these bankers or relationship managers are basically salesman. They earn more by u switching in and out of products all the time. Just my opinion.
    Its called churning. If you dont switch, they dont make money (commission).

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    I generally avoid house fund as recommendation could be bias.
    There are so many international bond fund managers around, and they always can get much better deals in bond purchase.

    Agreed that 3.5% of sale charge is above market.

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    Quote Originally Posted by chestnut
    Its called churning. If you dont switch, they dont make money (commission).
    Fire this banker la...

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    Quote Originally Posted by chestnut
    Its called churning. If you dont switch, they dont make money (commission).
    That's what I think also, but I don't care how much commission they make, I'm more concern about my returns. I'm only a small fly, so only invest a bit, maybe that's why my sales commission is high.

  20. #20
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    Quote Originally Posted by irisng
    I have not much idea about investment or bonds , so I need the banker to help me. The sales charge is 3.5% for one time only. No other charges when sold. About 1 yr back, I bought Pru Monthly Income Plan, dividend is 4% pa, the banker advises me to let go (since I have recovered my initial sales charge + extra profit) and convert to this bond which he said has a lesser risk.
    Then you never ask him why he asked you to buy the "higher" risk Pru Monthly Income Plan in the first place ? Churning the account is it?

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    Quote Originally Posted by focus
    Then you never ask him why he asked you to buy the "higher" risk Pru Monthly Income Plan in the first place ? Churning the account is it?
    You have articulated what I wanted to ask.

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    Quote Originally Posted by focus
    Then you never ask him why he asked you to buy the "higher" risk Pru Monthly Income Plan in the first place ? Churning the account is it?
    Never leh, but I have approx 5% return when I sold my Pru Monthly Income Plan within 1 yr after the initial sales commission of 4%. There is no charges when I sell it.

    Just check with another banker yesterday about the United Emerging Markets Bond Fund. He too said that this fund has moderate risk than Pru Monthly Income Plan because the UEMBF is investing in commodity in different countries and higher %age to the govt bonds while PMIP is investing in higher yield bonds. My banker charged me only 3.5% for UEMBF because he said I'm his old customer.
    Last edited by irisng; 16-10-12 at 09:30.

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