Then...the fund managers were stupid to select the wrong/overly ambitious benchmark

KAF Global Equities invests globally, with 1/3 in Developed Markets and 2/3 in Asia ex Japan.
When I use FSM Chart Centre to see that fund with MSCI World and MSCI Asia ex Japan, its performance more or less is between those two lines.

Aiyoyo...why u have not been following meh? Our unker David83 have been invested in it for loooooooong time.

Yes, I would agree - either benchmark is inappropriate, or fund is under-performing.

Therefore, underperforming benchmark NOT EQUAL underperforming. Similary, overperforming benchmark NOT EQUAL performing.

Benchmark is one of the things you look at, but it's just one of many.

Since April 2013 only!

That calls long?

Hey all, i have a question.
Does the dropping of MYR value affects our investment in foreign UTs in any way?
For example, is it a good/bad time to invest more in foreign UTs now?

Sorry if it's stupid question but I just thought from a logical perspective.

I think this question has been answered in the past. Taking CIMB Global Titans fund as an example, this fund has benefited from the MYRUSD appreciation.

Thank you. In that case does it mean now would be a good time to invest in foreign UT now since MYRUSD is depreciating?

I asked FSM if they had an alternative to RHB-OSK Global Multi Manager which has been doing well recently but underperforms its index. They replied today. One of their suggestions is RHB-OSK Global Allocation Fund which seems to have even worse performance and also underperforms its index!

Depends. Do you think the MYR will fall even further against the USD?

I see. if like that, then this should be a major factor to consider. Understood. Thank you!

Top Volume (EQ) 1 week, Manulife Sensex Rank 1
Top Volume (EQ) 1 month, Manulife Sensex Rank 2

gung ho betul ni.

India economy was already on a bullish outlook.

Throw in cheaper oil where India is the 3rd largest import guzzler, conditions are even better.

Same goes for another import guzzler - China. Rebalancing towards China-India seems like a good idea.

sometimes the FM reduce the currency risk volatity by doing currency hedging.....

Fund managers almost always DO NOT do currency hedging.

If one buys foreign equity-based funds, the exchange risk is all on the investors. The currency risk is clearly spelt out in the prospectus.

The few exceptions tend to be bond funds, where if the FM ventures into foreign bonds, they will (should) state in the prospectus that the FM may or may not do hedging.

There is no point for the FM to do hedging - the principal high-risk, high-returns applies.

Preservation of capital is not a FM's objective. The potential rewards (and all the risks) lies with the investor.

saw this in the prospectus of Affin hwang Japan Growth Fund.....



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Interesting phrases and choice of words.

They "may invest". It "does not entirely eliminate currency risk". "Fund would not benefit from any upside in currency movement".

They may or they may not. When they do, it may not be significant, and they may not always get it right. In other words, you may not count too much on it.

But you are right, this is a more technically correct sentence: "Fund managers almost always DO NOT do any significant currency hedging."


This post has been edited by howszat: Dec 8 2014, 10:35 PM

guess "they" usually have a large group of lawyers to draft those little clauses in the prospectus to cover their axxes just in case....ha-ha. guess it is normal.?

Yes, quite normal.

I've stopped reading prospectus'es for that reason, too many mays and may-nots on their part, while the rest is squarely the responsibility of investors.

The only thing to get out of it is the regions/sectors they are investing in, and the ratios of equities/bonds/cash, the charges, and maybe the manager(s). The rest is waffle.

hello sifus! I am relatively new to mutual funds. I have bought public mutual strategic smallcap fund but the service charge is so expensive so I have decided to dive into FSM. I have just got my account approved this evening. I would like to obtain some suggestions from sifus on the funds I have intended to invest in so far:

1. Kenanga Growth Fund
2. Eastspring Investments My Focus Fund
3. CIMB Principal Asia Pacific Dynamic Income Fund
4. Arbedeen Islamic World Equity Fund

The investment specialist in FSM have also advised me to invest in some bonds, but ringgit have been depreciated these few days. Is it worth investing or is it better to park into CMF instead? He has suggested me to invest in AMB Dana Arif Class A and AmConservative/ RHB-OSK Asian Total Refund.

Thank you all sifus for the advice in advance!

I think that's the only fund I know which has hedging in YEN denomination.

This post has been edited by David83: Dec 9 2014, 07:40 AM

...quite a solid portfolio you got there...play with % of allocation....try not to be TOO heavy on one side.
while waiting for sifus to reply.....I hope you did have some basic requirement covered.....
examples....pooled enough emergency fund? insurance? bought most of the high valued things you needed (and not going to buy again in the next few years with the invested monies) read some about your risk profile, have not a too high expectation of the returns etc, etc...

This post has been edited by yklooi: Dec 9 2014, 08:04 AM