Pakcik, I allocated an amount equal to 1/3 of my UT portfolio for Malaysiam equities,

e.g.
10K equities
10K equity funds
20k bond funds
= Balanced investment portfolio

This post has been edited by Pink Spider: Apr 6 2013, 10:48 PM

Even 50 % bond is too high for young chap like you. At young age can take some risk mah, somore you have time on your side.

Btw, i am not pakcik lah, not that old yet.

Gonna go 55/45 soon

rarely see ppl talk about kenanga growth fund? was browsing through fsm's recommended balanced portfolio and saw this..

have jus submitted application forms, will build up my portfolio in the coming weeks!

Kenanga growth has a very good track record. Pass 10 yrs annualise having double digits..

I thought I'm the only one having sleepless nite

Kenanga is 100% Malaysian equity...bcos of GE factor + limited upside potential, everyone moving toward Asia Ex-Japan funds. And not to forget, the main man at Kenanga, Chen Fan Fai, just moved to Eastspring Investments

yea i thought so too

i see.. thank for the info~

Bond return 7%
Equity reuturn 14%

Period?

Simple returns or annualised?

Hi Pinky, Nice & informative chart.
Bond about 50%. This allocation based on your personal risk profile guide?
Like Gark's comment, probably you can also revise bond allocation lower.
55/45, 60/40, 65/35 and so on. Good move as you know your risk profile better and where you're heading.

This post has been edited by wwl86: Apr 7 2013, 05:40 PM

It helps me to monitor my investment exposure

I read a research article on FSM magazine, they did a research (but based on US markets data) on portfolio allocation. Basically the finding is, a 50/50 balanced portfolio gives the best risk-adjusted returns. Applying the same here, I've studied the past returns and volatility of 3 HwangIM funds - Hwang Select Income Fund (max 30% equity exposure, global mandate), Hwang Select Balanced Fund (40-60% equity, 100% Malaysia) and Hwang Select Opportunity Fund (100% equity, up to 30% foreign exposure), and the result is also similar, the balanced fund gives the best risk-adjusted returns.

There's also this well-known formula of substracting your age from 100, to determine your equity exposure. E.g. I'm 29, I should have 100 - 29 = 71% in equity. But being the conservative accountant I am, I went for the balanced route.

Calling wongmunkeong Seafood and pakcik gark,

My non-current assets made up of:
(1) FDs equivalent to 12 months expenses
(2) Bond UT fund to park my excess funds
(3) UT funds as long-term investment (got bond funds, got equity funds)
(4) Malaysian equities

If combine 3 & 4, the allocation is roughly 50% fixed income + 50% equities. But if we include 2 into the picture, it's gonna be quite fixed income-heavy. If include 1 also, it's a very lopsided allocation toward fixed income.

But 1 being designated as cash buffer to cover for unforeseen contingencies, I'd prefer to take it out of the picture. Do u think I should take 2 into the portfolio allocation?

If yes, I should go 50/50 for my UT funds, and let 2 be the fixed income "balancer" against 4.

Guys, any comment?

This post has been edited by Pink Spider: Apr 7 2013, 06:10 PM

Hm.. no expert here yar, just logical view:
a. One shd split "investment pile" (untouchable for >5yrs+, especially for new capital injected -think like biz)
VS for "use pile"
b. Emergency buffer funds aren't for investment but more for "use pile"
U've got (a) + (b) in your (1) VS (2)to(4)

Thus my Q would be:
c. Why are U not including your (2) into your investment pile's Asset Allocation?
Yes, U store your excess there BUT is it part of your investment pile OR "use pile"?

The next Q would be - may i understand your reasoning on using (2) to "balance" (4)?
Personally, i take a holistic approach - ie. i dont care whether foreign or local, i tag them as Asset Class first
THEN only i sub-tag each as Foreign or Domestic
Logic = if it's Stocks - whether Foreign or Domestic, when BIG kaka hits the fan, ALL Stocks fall hard (perhaps except REITs due to their nature).
Think 2008 US CDOs-caused credit crunch & more recently 2011 Europe scare dip Jul-Oct

d. IMHO:
Asset Allocation isn't just about risk management but to me, it is more of optimizing returns for risk, based on one's risk appetite, time for managing investments & skills.
Risk management to me is the diversification within asset classes.

eg.
I choose to own 3 types of vehicles for 3 types of usage/goals:
e. Sports cars - for fun & high speed + long distance driving, to reach destination faster
f. 4x4 All terrain vehicle - for reliabilty & usage when the roads flood + off road
g. Scooters - for easy in/out, cheap & affordable usage for nearby solo usage & easy parking
The above is my choice of Asset Allocation - each class/type of vehicle for a specific reason

My risk management is then:
i buy 2-3 sports cars (one local, the rest foreign),
2 or 3 4x4 (one local, the rest foreign),
and 2 or 3 scooters (one local, the rest foreign),
all from the top manufacturers.

Just a thought

This post has been edited by wongmunkeong: Apr 7 2013, 08:07 PM

(2) is excess funds which I do not foresee needed within 1 year, but should a NEED arises, I will draw on that first before touching my FDs. I see the FDs as my "last resort", bond funds as "cash reserves". U could say that (2) is a "multi-purpose" asset.

In addition to (2), I have cash equivalent to my 2 months expenses in very liquid form.

This post has been edited by Pink Spider: Apr 7 2013, 08:09 PM

neh - U have 2 piles of reserves?
i'd think yr 12 mths shd be enuf neh?
If so, perhaps:
Perhaps a split of 4 mths cash
+ 4mths in MM funds
+ 4mths bond funds (no.. not that Emerging Market thinggy - something simple like AmBond)

Note - having all yr emergency funds locked in FD isn't too flexible leh, especially for emergencies... unless U stagger / ladder them

Worry not my Seafood, my EM bonds are classified under (3) UT funds as long-term investment

Currently majority of my (2) is in OSK-UOB Income Fund, its risk profile is similar to AmBond's. My current plan is, should I have a major cash NEED, I will draw on this. Similarly, should I see an opportunity to buy some good stocks with decent dividend yield, my ammo will come from here.

My FDs (4 of them) are all 12-months FDs, each maturing 3 months after the other.

So, the conclusion is? Should I go 50/50 for my UT funds as long-term investment, and let my "cash reserves" balance off against my equity investments?

This post has been edited by Pink Spider: Apr 7 2013, 08:49 PM

50/50 if U mean:
50% in fixed income
50% in equities
OK gua

BUT if U meant
50% UT (equities & fixed income)
50% in cash reserves
er.. a bit out of whack

other than the 2 above, unsure any other combos / whatcha mean heheh
ie. your 50/50 AND your "cash reserves" balance off against.. = 2 Qs or 1 Q
Caffeine in my blood stream dying off for today

Everyone is staying away from fund related to Malaysia due to hoohaa upcoming GE but is it advisable to invest in equity fund that has 30% Malaysia exposure?

Come find me I belanja u good ol' kopitiam Kopi O ice

By 50/50 I meant 50% fixed income/bond + 50% equities:
- maintain 50/50 allocation for my UT funds as long term investment
- maintain matching amount in bond fund - "cash reserves" against my Malaysian equities, e.g. RM15K in equities, RM15K in OSK-UOB Income Fund

Of course, the "cash reserves" being a "multi-purpose asset" (bullets for equities and reserve for unexpected needs), it will fluctuate. Maybe set a upper and lower limit, like max. 75% bond + 25% equities, min. 50% bond + 50% equties?

Let me guess...Hwang Asia Quantum?

This post has been edited by Pink Spider: Apr 7 2013, 09:34 PM

any good equity funds covering US which is recommended....