Interest=dividend=interest

If they call it "interest", Muslims gonna rage

This post has been edited by Pink Spider: Feb 17 2013, 07:00 PM

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.

This post has been edited by Pink Spider: Feb 17 2013, 09:32 PM

I believe the reason why Kenanga Bond is quite popular is because of Kenanga Growth Fund, investors want the flexibility of intra-switching. Other than that, there are many other strong bond funds out there.

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.

This post has been edited by Pink Spider: Feb 17 2013, 09:52 PM

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%

This post has been edited by Pink Spider: Feb 17 2013, 10:05 PM

*rotan*

U have not explored FSM website thoroughly (AGAIN)
https://www.fundsupermart.com.my/main/buyse...pecialList.svdo?

Sadly, ALL HwangIM funds are not available for RSP Special

Alliance Global Equities also not bad. In summary this is how its like:
- 1/3 in G5 (US, UK, France, Germany, Japan), managed rather passively i.e. buy-and-hold, just aiming to mimic benchmark returns
- 2/3 in Asia Pacific Ex-Japan, managed more actively compared to its investments in G5 markets
- During market upswing it performs great, but during a crash it really crashes (ouch!)

This post has been edited by Pink Spider: Feb 17 2013, 10:19 PM

Well, discipline is the key to investing...

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

This post has been edited by Pink Spider: Feb 18 2013, 11:43 AM

After that u can just do like normal. Yeah it works, I did that.

This post has been edited by Pink Spider: Feb 18 2013, 11:49 AM

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

Lipper classifies HSIF as MYR MIXED ASSETS CONSERVATIVE (max 30% in equities), whereas OUAIF as ASIA EX JAPAN BALANCED

Got e-mail invitation for "Lou Sang" dinner for Silver/Gold investors

Wong Seafood!!! U goin?

This post has been edited by Pink Spider: Feb 18 2013, 07:36 PM

But...but...I'm your wittle pinky spidey

Who else got the invite?

Yea I know there's this min. holding requirement, but I managed to pull it off last time

Sorry to say that I dunno much about funds not available on FSM platform

U won't go wrong with Hwang AQF and Pacific GSF

FSM ClientHelp girls

I see last year dinner photos, mostly are aunties and uncles

I'm gonna be an odd one out Ah Boy among them

Had thought of CIMB China ETF.

Upfront fee expensive? Try Jupiter Securities, higher of 0.1% or RM10 only

Vanguard ETFs? Mana boleh beli?

Wong Seafood,

I thinking wanna diversify 1/4 of my portfolio for direct purchases of dividend stocks...u think now can buy? I'm buying to hold for dividends, not for trading.

Big caps like BAT and Guinness only yielding 4%+...my UT portfolio is giving IRR of 6.1%...macamlah tak worth it