I remember this casewell and it was after the ASJ was launched in 1992.
The MB of Johor was quoted in the press that the unit would go up to a few ringgit; thereby influencing many to buy especially those who do not understand the concept of unit trusts.
Today the unit is around RM0.50 about half of the launch price. It looks as if this fund manager is a really poor one and unit holders should at least try and recover their costs.
Of course if they had just kept their monies in the bank over 15 years, they could have at least doubled their money. No wonder people are upset at being taken in by influential sweet-talking salemen.
With such high losses, there are calls for the ACA to probe the unit trust company.
People in high positions should not make such statements especially about price matters unless they want to give a guarantee.
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Almost all state governments launched such funds - with the usual expensive ceremonies that would have immediately drained the funds itself. Sadly, many Malaysians were conned into buying the units instead of the established ASN. Now, I don’t think that there is even one such state fund that is NOT below par.
However, some organizations, with well-connected individuals, seem to be able to amass quite a lot of funds. Now, the bees are trying to move the honey. See http://www.nst.com.my/Current_News/NST/Friday/National/2223283/Article/index_html
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