http://www.marketwatch.com/story/dont-jump...k=home_carousel

Don’t jump back into stocks unless you plan to stay

Ok. Done already, u try see got problem or not?

Add: At 1st post of this thread

This post has been edited by Pink Spider: Mar 25 2013, 10:00 AM

For Southeast Asian markets, Hwang Asia Quantum is very good (small-mid cap Asia Ex-Japan equities, but quite heavy on SEA markets).

Look at these too:
OSK-UOB Equity Trust
Hwang Select Asia Ex-Japan Opportunity
Eastspring Investments Asia Pacific Shariah
CIMB-Principal Asia Pacific Dynamic income

This post has been edited by Pink Spider: Mar 25 2013, 12:14 PM

http://www.marketwatch.com/story/dont-jump...k=home_carousel

Don’t jump back into stocks unless you plan to stay

This is the mindset that investors should have

Just updated my portfolio worksheet with the distribution. My holdings of OUEMBF actually took quite a bad hit during the past 1 month

Yeah, my GEM equity even worse, from IRR of 6-7%, dropped to 2%+ in a matter of a week

Made some observation during the recent drop, Hwang Select Bond Fund is really a very good bond fund to include inside a portfolio; when (almost) all funds drop, it gains. Which means that it is negatively correlated to to equity performance. Whereas OSK-UOB Emerging Markets Bond Fund though performed commendably, it does not really serve the function of a bond fund in a well-balanced portfolio well, which is to even out the impact of market fluctuations on a portfolio.

In the long run, can safely answer "yes". But in a shorter timeframe of just a couple of years, bond fund can also deliver sub-par returns; a year's negative returns i.e. loss can drag down your annualised returns greatly.

E.g. Year 2010 -3%, Year 2011 +5%, Year 2012 +4%, that would give u a 3-year annualised returns of only 1.94%

See u scared or not...still dare say bond have "lower risks"?

apa tu, boss?

In my earlier example, 3 years is also considered "a few years"

My suggestion to u is, if u are quite certain that u would remain invested for quite some time, build a conservative portfolio of perhaps 66% to 75% bonds + 25% to 33% equities. The award-winning Hwang Select Income Fund which has consistently delivered above-EPF returns over the years is at 75/25 most of the times.

1. Hwang Select Income Fund is not available at FSM
2. Sales Charge if u buy thru banks or direct from HwangIM = 3%

But with IRR of 10.7% p.a. (that's what I'm getting, I'm invested since 2008 but have stopped topping up since 2010 when I started investing thru FSM), 3% is not really much, bagi dia lah!

If you're really interested, this is where you should go:
http://hwangim.com/investment-solutions/download-forms

Can set up Direct Debit Instruction (that's another name for Regular Savings Plan for u), every month HwangIM debit your bank account so that u don't need to worry about when to invest, how much to invest etc; just invest every month, and leave the rest to the professionals.

Dave, this statement of yours could start another round of misunderstanding on dividend/distribution

Allow me to elaborate on what does an "income fund" tag really mean...

Since we're talking about Hwang Select Income Fund, I'll just use it as a case study.
- the fund invests in high income-yielding instruments, and they are (1) high dividend yield equities, and (2) bonds
- (1) delivers the dividend income, whereas (2) delivers the interest income
- to an "income fund", income is of primary concern, capital gains are secondary

To an investor like me who elected to reinvest all distributions declared, all the incomes/gains of the fund whether
- dividends received,
- interest incomes,
- realised profit/(loss) on sale of investments, or
- paper gains/(loss) for investments held
are capital gains, for the value of my investment in the fund has grown, there is no cashflow involved.

To an investor who elected to receive distributions in cash, distributions declared are a form of income (cash inflow), gains in NAV price are capital gains. If u purchase Hwang Select Income Fund direct from HwangIM, you CAN elect for this.

This post has been edited by Pink Spider: Mar 25 2013, 10:36 PM

Aiyo cool it bro

However, the "commitment to make distributions" is very relevant especially to retiree investors who wants a source of income. For this type of investors, basically what they can do is to dump one lump sum into an "income fund" and expect the regular CASH income distribution to sustain their lifestyle.

E.g. upon retirement u have RM1mil, the fund u invested in made a gain of 10% and declares 8% as dividend, that's RM80,000 p.a. or RM6,667 per month! The 2% gains undistributed will be left with the fund for future growth.

This post has been edited by Pink Spider: Mar 25 2013, 10:48 PM

In such scenario, whether the fund makes distribution or not also u will gain!

To avoid confusion, DON'T THINK ABOUT NAV PRICE, think VALUE (no. of units held x NAV price).

E.g.

Got distribution
Before ex-date u hold RM1,000 (RM1.0000 x 1,000 units)
After ex-date AND distribution u also hold RM1,000 (RM0.9091 x 1,100 units), let's assume the distribution u get is 100 units
The fund's underlying investments gained 8% in the next 3 months
Your holdings now: (RM0.9091 + 8%) x 1,100 units = RM0.9818 x 1,100 units = RM1,080

No distribution
U hold RM1,000
The fund's underlying investments gained 8% in the next 3 months
Your holdings: RM1.080 x 1,000 units = RM1,080

Lu ada faham ar?

This post has been edited by Pink Spider: Mar 25 2013, 11:13 PM

Ok, another FAQ then

Go back to my post no. 482 (last paragraph) and 484

Shall I change this thread's name to "Dispelling myths about unit trusts"?

This post has been edited by Pink Spider: Mar 26 2013, 09:39 AM

Done last nite

Portfolio IRR dropped from 6.3% to 5.8%...thinking to top up, but this month topped up a lot already

This post has been edited by Pink Spider: Mar 26 2013, 10:12 AM

Ya, hence I invest in OSK-UOB Emerging Markets Bond with growth in mind, not as portfolio "balancer".

I take this as a compliment

This post has been edited by Pink Spider: Mar 26 2013, 02:47 PM

Agree partially with your idea.

Total switching is not recommended IMHO, unless u are a master market timer.

Switching to maintain portfolio asset allocation is another matter, e.g. 80/20 portfolio, if equities have rallied that it becomes 75/25, u switch out some from equity funds into bond funds to make it 80/20 again.

That's for OSK-UOB funds right? Eastspring Investments, HwangIM, AmInvestment and many others free switching from equity to bond. From bond to equity, bear the Sales Charge differential.

This post has been edited by Pink Spider: Mar 26 2013, 04:22 PM

Hello, that article was dated September 18, 2012