Excuse me while pasir sungai and I engage in some CFA-buddy tete-a-tete

All these are theories which you will learn in your CFA program. Good! However always take them with some perspective:

The expected return of say Titties fund is around 20%++. What is a little ant bite of 0.25% increase in risk free rate gonna do to it? Perhaps now its return becomes 19.75% ++? Will you be sad? Cannot eat; cannot sleep?

I reiterate: Equities fund are not bond funds... they are not so sensitive to interest rate change.

Xuzen

p/s My perspective: With interest rate increase, more cash will flow to the US and this makes USD more popular. In basic Economics 101 when supply increase, the supply gets more expensive. This means USD will become more expensive / go higher. The chances of USD gains against MYR is a bigger factor to consider than that 0.25% ant bite increase in risk free rate. And we all already know that historically Titties fund went up chiefly because of MYR weakness. This will continue with more future fed rate hike.

This post has been edited by xuzen: Dec 24 2015, 10:40 AM

Not "leng gu bao, leng gu bao, mui lap sap ng kao"?

Akauntan tanpa lesen disagrees...

Rate hike (and Fed already indicated that it is the beginning of a series of hikes) WILL:
- cause USD strengthening
- increase borrowing costs for corporations
- cap US consumers' appetite for spending
among others

And the implications?
- US-based corporations' exports will lose their pricing competitiveness vis-a-vis Europe
- when US-based corporations remit their earnings back, they will depreciate in value due to USD up, Europe and emerging currencies down
- savings rate up, Americans might be tempted to cash out from stocks and go back to savings

All these might harm earnings growth and/or rally in US stocks.

Unless u are PURELY betting on MYR/USD weakness...but then, why not just buy USD for keeps?

This post has been edited by Pink Spider: Dec 24 2015, 10:38 AM

What you say is probable and is something for an investor to consider if their local currency is not so volatile against USD. (SGD / BPS / Euro). Again you are stating theories without considering country specific circumstances.

But what I mention above is very localized and country specific to our Bolehland situation.

Xuzen

Please read just-added last line of my previous post

USD alone is just plain paper; it does not generate income.

Equities are real businesses and real human activities.

Xuzen

CFA - CPA - CA - CTA - CFP - CWA - CNN - LUCT - RMIT....

Isn't the idea behind UT is so that you don't have to worry about this ? You already pay 1.5%pa. management fees. Why second guess your managers choices?

eg : assuming fund X is a broad mandate fund which allows use of derivatives etc.

Seeing that high grade US fixed income securities will get crushed as interest rates rise, you cut your positions and move to money markets. The bond markets tank.

You saved yourself some massive pain. Brilliant.

You fund manager seeing the same situation, takes short positions instead, and makes a killing.

Just saying...

This post has been edited by lukenn: Dec 24 2015, 11:15 AM

Sorry ar kawan... boleh cakap dalam Bahasa Inggeris yang betul-betul (lay-man talk)? I no understand you what toking wor?

Xuzen

Dunno why I feel naughty when I read that

OT! Festive and holiday mood

lol sorry... I thought all the CFA here would understand. What I meant was...

we is oredi paying the fund manager many many money every year. Let the feller do his job lor. Nonit for we do the flers job for him/her mah, gaji already very tinggi.

I remember, in replying to your past post, I mentioned that I did not trust the theories in CFA curriculum. I have been investing since 2008, but only started to read CFA books last August.

OTOH, you're the one who keeps talking about std dev, correlation coefficient

In any case, I am keeping my Tits , and Pinky just topped up recently. We remain confident with developed markets

Merry Xmas

Agree.
Even in bear markets, there are still some stocks which do well. It's up to the FM to pick the right stocks.
What we should do is, as stressed by TS, build a portfolio.

Agreed !

So what kinda portfolios are you guys running ?

RHB Asian Total Return
RHB Emerging Markets Bond

Aberdeen Islamic World Equity a.k.a. Aladdin
CIMB Principal Global Titans a.k.a. Tits

CIMB Principal Asia Pacific Dynamic Income a.k.a. Ponzi 2.0
Affin Hwang Select Asia (ex Japan) Quantum a.k.a. Ponzi 1.0

Eastspring Investments Global Emerging Markets

This post has been edited by Pink Spider: Dec 24 2015, 12:00 PM

majority of mind still support this...with all their acronyms.....to say not support would be unfair and unwise to those that had studied and make a good living out of it.
but , I think not all FMs/FHs are of the same caliber and quality, even though they had many of those well educated in there holdings.

This post has been edited by T231H: Dec 24 2015, 12:35 PM

Power la bro ! I'm just equal weighting it... Strangely balanced, but effective.

If u wanna be more anal...
75% equity funds
25% bond funds

Within the 75%...
Eastspring 24%
Affin Hwang Quantum 22%
CIMB Asia Pac 16%
Aberdeen 15%
CIMB Titans 23%

Bond funds pulak...
1/3 Asian Total
2/3 EM

Try again?

wow,...good info.

btw, polarzbearz, wanna add this to the excel file?
maybe as 2016 new year assignment?

Slightly less effective, but still good.
High return, low vol.



This post has been edited by lukenn: Dec 24 2015, 01:01 PM

wow,..strong opposite movement of the trends....
does it coincide or affected by a large degree with the MYR to USD movement?