Liquidated 75% of REITs yesterday, profit taking. I entered the market in Qtr3/Qtr4 2011; made some 15% profit inc distribution.

Will pick them up post PRU-13 i.e. somewhere in June/July-2012.

Xuzen

This post has been edited by xuzen: Mar 16 2012, 07:46 PM

AMFIRST: 1.12/1.19
TWREIT: 1.20/1.36
STAREIT: 0.88/0.925

Xuzen

Let's revisit the CAPM model shall we.

The beta of KLSE is taken as one and her annualised return is 20.39%

REITS beta vis-a-vis KLSE is approx 0.32, sourced from bloomberg finance website.

So using the CAPM mode, I calculated that for the risk I am exposed to my reward should be 8.9%.

[Rj = Rf + beta x (Rm - Rf)]

Since my reward now is more than 8.9%, I should sell if not, eventually the price will go back to its steady state.

Xuzen

This post has been edited by xuzen: Mar 18 2012, 07:27 AM

Not a good idea as you are buying into the same asset class, hence not consider diversification.

Xuzen

AMFIRST is by e-div.

Xuzen

I wish to answer your question mathematically:

I'll select Treynor ratio as the basis of comparison.

Treynor ration = (Fund rtn - risk free rate)/Beta of the fund vs its benchmark

For PFEPRF = (27.69 - 3)/1.15 = 21.46

For Sunreit = (28.56 - 3)/0.864 = 29.58

The above value is taken for 3 years ex-post.

I can't use Pavreit as comparison because it is too new hence do not have statistical data to back up. I'll use a similar reit aka Sunreit as a proxy.

Treynor ratio measures the risk adjusted performance of the investment vehicle relative to their benchmark and Sunreit wins over PFEPRF.

So WMK, quickly quickly switch your PFEPRF to Sunreit lor....

Xuzen

This post has been edited by xuzen: May 8 2012, 03:21 PM