U must be looking at FSM SG

Looking at the fact sheet of their so-called "short duration FI fund", it looks just like our normal bond fund to me.

To me, an example of long duration bond fund would be AmDynamic Bond, underlying bondholding portfolio of which has average maturity of 6-7 years. "Normal" duration would be like 3-5 years (tips - see AmBond's fact sheet and compare to AmDynamic Bond's). A perfect example of short duration bond fund would be AmIncome Plus (my favourite for parking excess cash which I don't foresee to be needed for at least 3 months ), which has average duration of 2 years or less i.e. its portfolio of bonds is maturing in 2016 or earlier.

Longer duration portfolio would be more vulnerable to interest rate changes.

actualy which one better, CMF or MBB FD?
coz MBB at least can get 3%p.a

CMF i get the concept, is just like having bank acount with higer interest rate and u can use anytime for topup ur UT.
but how hight is the interst rate?
bcoz if its lower than 3%p.a like MBB FD..i pretty reluctant to use that service

i see FSM MY and SG,
looks like MY has better choices for low risk UT, performance oso not bad moreover can start from 500,1000rm.
but for high risk SG has much better performance, but of course starting from 1000sgd.
which is at the end, again, higher capital higher risk vice versa.
CMIIW..

classic question: when is the right time to enter market?
this is how my mind twisted..nd help to clarify...

e.g. i see 2-10 years past performance is roughly 10%
then the past few month- 1 year is 30%.
if I buy now, is that mean i buy in high market price?
is waiting for few days and weeks may help (have big difference thus worth to wait)
...as noob, i asume the way it works is like buying USD. today USD strong, so i only get 3USD for every 10rm. but a week later I might get 3.5USD for every 10rm i change.

this is how i think CMF will give you flexibility to go in once u see good price, unlike bank transfer which possibly hv one week fluctuation while u waiting for ur fund inside account

but sifu..where/how to find the current price ya?
coz if i click the fund, i only see the launch price and NAV price (pure-noob mode On) 

Its time-weighted, e.g. RM100 contributed in December will get 6.15% x 1/12

Interest=dividend=interest

If they call it "interest", Muslims gonna rage

@ben3003 from the proposal, looks like you're going to be a Hwang supporter.

Just kidding!

If u are worried about macroeconomic issues impact on equities, I've got something else to worry u

Look at the bond yields...Australian government 10-year bond yield is rising...Brazilian 10-year bond yield is also rising. I'd say that yields are "normalising", they have been hovering at multi-year lows for some time already...still wanna go overweight on bonds?

That's just about Asian and EM bonds. Asia Pac ex-Japan and EM economic growth is pretty decent, thus these regions may adjust interest rates (upward) sooner than u expect. On the contrary, Japan has just started with expansionary policies, and US have expressed commitment to keep rates low for some time. Americans will look for yield away from Treasurys...where to look for other than dividend-yielding stocks? With that, the Dow and S&P 500 uptrend might have further legs to go.

On the "global" portion of your equity portfolio, may I comment that both Pacific GS and Hwang AQ has one similarity? They are relatively "trading-happy" funds. U may want to consider a more "buy-and-hold" equity fund to balance things off. Alliance Global Equities and OSK-UOB Global Equity Yield merits your consideration. And do bear in mind, as at September 2012 report, Pacific GS is overweight Asia Ex-Japan, it only has 20% in US+Europe.

Let me use a simple example to illustrate, then u pakai your own imagination to put into perspective...

Today I lend RM100,000 to Ah Jeep at interest rate of 9% p.a. Bank 1-month FD rate is now 3%. In simplistic language, I perceive Ah Jeep's credit risk to warrant 3x of bank FD rate.

Not long after, bank 1-month FD rate rose to 5% due to Bank Negara adjusting interest rates. If Ah Jeep were to come to me for a fresh loan now, I'd only lend to him at 15% p.a.

Let's say I need cash now, the simplest way would be to "sell" Ah Jeep's debt to a third party ("hey, who wants to take over this loan?") But do u think I still can sell this 9% RM100,000 for RM100,000? Hell no! Here's the math (assuming it's an annuity i.e. no maturity date, cos the math is simpler ):

Annual interest payment for Ah Jeep's loan:
RM100,000 x 9% = RM9,000

How much can I get by selling Ah Jeep's loan to a third party?
RM9,000 x 100/15 = RM60,000
RM9,000 is 15% of RM60,000

Understand the illustration?

When rates rise, existing bonds will experience paper loss. So, don't buy too much into bond funds now...take it slow and easy.

The point is to have a well-diversified portfolio to reduce portfolio volatility and enhance risk-weighted returns. I know OUGEYF's past performance isn't really inspiring, but its investing mandate is what keeping me interested - dividend-yielding global equities with more emphasis on developed markets. I allocate 2/3 of my global equity to OUGEYF, 1/3 to Pacific GS. Will monitor how well this allocation works, I might even rebalance to 50/50 in the future. I've just started in Pacific GS this month, but have been holding OUGEYF for some time already, yea its IRR is just a puny 2.7%

If this month you are unable to top-up, then RSP instructions will be put on hold until next month's contribution date.

Yeah, switching is not possible between RSP plans.

What is RSP contract?

Come on guys, pakai a bit of naughty imagination...

There is no lock-in period for RSP contracts with FSM.

Start RSP for Fund ABC now e.g. for RM100
15-Mar-2013 will buy in RM100 (date for all RSPs is 15th)
Immediately after that, terminate the RSP
Voila, u have made an Initial Investment for only RM100

Don't tell FSM people about this

All HwangIM funds not available for RSP Special, u can buy the HwangIM funds u want this month, leave the other funds for Ninja RSP next month

RSP is fixed...u let it auto deduct RM100 every 15th...then say u got extra cash in March, u manually do a purchase for RM400 lo...

Oh sorry ignore the two that are not in FSM. What I meant to say was I am now going to invest in funds that are on the FSM platform and through FSM Much cheaper!

So now that I have the below:

Hwang Select Income Fund
OSK-UOB Asian Income Fund
Templeton Global Total Return Fund (Global Bond)
Local MYR bond funds from Public Mutual

What should I add to diversify my portfolio until it is of the right balance?

Is adding Hwang AQF and Pacific GSF and perhaps AmAsia Pacific REITs (unsure about this one) enough?

Thanks

Just glanced thru January 2013 fact sheets for the HwangIM funds I'm holding - Global Financial Institutions, Asia Quantum and Select Income...

- ALL THREE FUNDS HAVE RAISED CASH LEVELS SIGNIFICANTLY (between 18% to 30%)
- ALL THREE FUNDS HAVE TRIMMED HOLDINGS OF MALAYSIAN EQUITIES

U sendiri fikir la