KWAP flying into MAS bond

[zinglicious]

MAS announced yesterday the pension fund KWAP had taken up the entire first tranche of RM1 billion of its perpetual sukuk, which does not carry a government guarantee, and will pay a 6.9 per cent coupon in perpetuity.

Perpetual bonds, also known as perps, are considered higher risk bonds as there is no guarantee of repayment and the issuer does not have to redeem them.

KWAP is civil service retirement fund and hopefully it would not sink into the airlines which have had reported losses after losses.

[Rhiga]

I hope the investment and KWAP sink, and sink kau-kau..

Only when the civil servants lost their benefits/privileges, only when their gifts and goodies burnt…

then they will shift boat..

[zinglicious]

If MAS kenot fly high and sink with the KWAP funding, guess what would happen? KWSP or GOMEN bailouts would emerged!!

[cml]

Even if is not guaranteed it is as good as a government guarantee cos the gomen cannot afford to lose the vote bank.

[zinglicious]

Govt guarantee? Look at Greece with all those excessive spendings until they need bailouts from foreign govt.

[cml]

By that time all the chosen ones would be living in their castles in uk or ranches in australia . They wont give us the time of day even if we beg them to.

[burntan]

Obviously misused. KWSP fund is not a national reserve fund, the purpose is not to be use to boost national economy nor helping dying corporate. KWSP fund should be like any private business which focusing on maximize return of their investment.

[Challenger]

Say, for instance EPF makes RM10 billion net profit (i.e. after accounting for all expenses) in 2011. EPF then declares x% dividend amounting to RM8 billion to all its contributors. That means there's excess of RM2 billion retained by EPF. Contributors get x% dividend + whatever they contributed. Now, we all know EPF's money (to fund managers, they will call it net assets value) belongs to all contributors. Also, EPF will not declare dividend in excess of its net profit, so a deficit will not arise.
Over the years, the excess of net profit over dividends declared (in this example RM2 billion a year, for 2011) might have been accumulated to a very significant amount.

Assuming today EPF is liquidated, I am sure the excess of liquidated amount over the amount payable to all contributors would be very very significant. Here's my Q - where has all the accumulated excess gone to and ultimately who will get this accumulated excess of net profits over dividend declared? Anyone has any clue and can share some thoughts?

[cml]

The answer is very obvious. It would not accrue to the epf holders for sure and btw this is not kwsp but kwap which is the civil servants pension fund. Well if they have a lot of excess funds then they should subscribe for even more since they have so much faith in the bee end gomen. In fact they should lend all their money to MAS, Perwaja, Proton and Lotus.

[zinglicious]

oHoH, KWSP members might not be able to withdraw thier monies unitl they are 60 year old. http://thestar.com.my/news/story.asp...825&sec=nation

[jordan]

when you keep on losing money (except for certain financial year where you actually sold off your assets and proudly announced that you made $$$) you might as well "tutup kedai".

[zinglicious]

That's where you find can find Boleh akautan who can do Cepat dimasak, Sedap dimakan, Yang can cook.

[cml]

they did try to pull a fast one hoping that people will not object to their scheme to delay payment to those who reach by putting all their money into a retirement schme so that they would get a pension instead of a one off payment. now donald says that they might consider allowing those who are 53/54 to take out their money. Sh!t I am 52 so does that mean that I miss the boat?? I am screwed big time this time.

[Rhiga]

So far, I have not heard a word from the Bar Council..

It seems like the gomen has absolute discretion in changing the terms and conditions on withdrawal limits and age..

[cml]

those asses think they are very smart. They pass this bill first to extend the retirement age. One this is law no one can challenge it and with this law they go to epf and change the rules whereby you cannot withdraw at age 55 because the retirement age has already been gazetted as law and they will then say their hands are tied because that is the law. !!! As a concession then may 'allow' those who have just reached 55 to withdraw to avoid the heat but for the rest they are all screwed.