Comparing the figures adele123 posted vs a benchmark is meaningless because the point in posting them is to see how her funds performed from her initial investment amount.

We don't talk about it because risk/volatility is a measurement that we consider before we invest into a fund. Additionally, the risk/volatility measurement of a fund does not reflect the performance of our investment (i.e. the thing we're talking about most of the time), rather it reflects the potential future performance of the fund we're investing in.

The Compound Annual Growth Rate (CAGR) is never meant to measure dispersion/deviation.

It's not about "suitability". ROI, CAGR, and IRR are all general metrics that tell you the return of your investment in different ways.

This post has been edited by idyllrain: Oct 16 2015, 12:24 PM

The price chart just shows the NAV price. Quick example:

Month 1: Buy 10000 units @ RM1.00
Month 2: NAV is RM2.00. Value of investments become RM20000.
Month 3: NAV is RM2.00. Fund declares distribution RM0.50. NAV becomes RM1.50. Value of holdings still RM20000
Month 4: NAV is RM2.00. Value of holdings become RM26666.67.

Looking at the price chart for these 4 months, you'll see it go up down up back to same spot. If you look at the performance/growth chart however, it'll go up only.

Ah, that's because of the distribution. You have:

Before distribution: 10000 units worth RM2.00 each.
After distribution: 10000 units worth RM1.50 each + RM5000 (distribution was RM0.50 per unit x 10000). This RM5000 is reinvested to purchase more units at RM1.50 per unit, so RM5000 / RM1.50 = 3333.33 units. Bringing your total amount of units to 13333.33.

In Month 4, when the price goes back up to RM2.00, the value of your holdings become 13333.33 x RM2.00 = RM26666.67. Basically distribution turns a portion of the value of each unit into money (RM2.00 = RM1.50 + RM0.50).

More or less, yeah. For funds that don't do distributions/unit splits etc, the price chart will be the same as the performance chart.

Since putting in the functionality to grab fund prices from FSM, I've been devising a way to track the value of my portfolio. This is what I've come up with:


What it does is that every time I update my fund prices, it will snapshot the current investment per fund, current value of your investment per fund, and the NAV price for that day. This daily information is then used to construct this chart. The chart itself is dynamic and you will not have to add in more graphs when you add in new funds in the future.

There is no requirement to update every day (it will only be more accurate) and some days the historical data may be inaccurate as FSM can be slow with their Fund Price updates (you can go in and fix this manually if you wish but in the long run it should be insignificant).

Is this something you guys will be interested in?

p/s: Yellow line represents absolute profit/loss

This post has been edited by idyllrain: Oct 31 2015, 10:59 PM

That functionality is already present in the latest Polarzbearz Excel sheet through the "Capture Snapshot" button. I made this to see how our portfolio allocation changes through time as you can change the colors of each of the stacked area graphs to reflect asset types or geographical distribution.

Although changing the colors is manual right now, one possible improvement to this is to add an "asset type" or "geographical region" column on the Fund Allocation or Investment Details sheets and let you see the chart color-coded by those two parameters.

As for the reason I included the Absolute Profit/Loss line in the chart... it's a way for me to see how my portfolio performed at a particular time regardless of total value (which includes investments I made). Also I elected to use absolute values because the Overall IRR for a portfolio can be inaccurate due to short-term funds from switching operations.

This post has been edited by idyllrain: Oct 31 2015, 06:40 PM

Polarzbearz Here you go. Pardon the ugly code!

Divide by RM 0.8566 lah. Post distribution NAV

This post has been edited by idyllrain: Nov 5 2015, 06:29 PM

The price history for GTF during the closest dates to distribution are these

27 Oct NAV RM 0.8912
28 Oct NAV RM 0.8972
29 Oct NAV RM 0.9054 <-- Distribution day price showing pre-distribution price
30 Oct NAV RM 0.8566 <-- GTF price on following day reflects fall due to distribution + gain
Distribution Ex Date 29 Oct @ RM 0.05

If we do units x distribution / pre-distribution price, that means we are using value extracted from NAV to "buy" units at the price before value extraction.

I'm more inclined to think the NAV prices that were announced by fund houses aren't standardised. KGF's NAV in the days leading to its distribution of RM 0.0948 on 26 Feb are as follows:

24/02/2015 1.0904
25/02/2015 1.0932
26/02/2015 1.0004 <-- Ex date
27/02/2015 1.0006

Does that mean that without the distribution announcement the actual NAV would've been:

27 Oct - 0.8912
28 Oct - 0.8972
29 Oct - 0.9554
30 Oct - 0.9066



Is it possible for a fund house to reinvest the distribution gains on much later date (say one week later)?

Since you bolded this question: "Is it possible for a fund house to reinvest the distribution gains on much later date (say one week later)?" I would guess you're referring the "no" to this.

That was my understanding as well. This means that the NAV of the fund on reinvestment date is not the one that is used for the reinvestment of the distribution.

I do understand distribution. I'm sure you do too, just that I think you assumed the 29 Oct price to be the correct price for reinvestment.

Without assuming too many things (anomalous spikes, reinvestment at a later time, etc) I would wager that the 0.9054 value is pre-distribution, and that different fund houses report NAV prices to a different standard. Following from David83: it is impossible that a fund house would reinvest distribution to a price that isn't post-distribution.

Edit:
FSM CIS says 29 Oct NAV of 0.9054 is the reinvestment NAV.
CIMB-Principal AM tells me reinvestment NAV is 0.8554.

This post has been edited by idyllrain: Nov 6 2015, 10:44 AM

I've added on the previous post this:

FSM CIS says 29 Oct NAV of 0.9054 is the reinvestment NAV.
CIMB-Principal AM tells me reinvestment NAV is 0.8554.

This post has been edited by idyllrain: Nov 6 2015, 10:46 AM