Hi, new to the thread !

I read back the last 5-10 pages and your guys postings are very interesting with all the special terminology.

I find it very interesting that you guys trade in and out of funds like people trade shares.

What are you guys strategies like ? Asset allocation ?

I have a very simple theory, but I'm not sure if you'd agree.

The shariah compliance list is very short. The generally prohibited sectors include

1. Alcohol
2. Casinos
3. Restaurants
4. Broadcasting
5. Cable / Satellite
6. Entertainment
7. Tobacco
8. Conventional banking
9. Insurance
10. Real estate

So the only major areas left are O&G, plantations, pharma, FMCG. From the malaysian perspective, this is very apparent as 2014-2015 has turned out to be severely disappointing for all local shariah compliant funds.

Most of these funds are invested in the O&G and plantation/commodity sectors, which have tanked in value. In the preceding 3-4 years, it was magnificent as an over-weighted O&G sector was soaring.

On a grander scale, this is what we call concentration risk. If you're right, you're a star, if you're wrong you burn.

With that being said, its quite unfair to be expecting a single fund to be performing when all the others seem to be.

KGF mandate allows it to invest anywhere in the entire KLSE. They are bottom up stock pickers, running what they call a bar-bell strategy. 50% growth stocks 50% dividend yield stocks.

If you like Ms. Lee's style you should look into KAPTRF and the new KATRF.

I do not have access to the FSM platform, as I am not a client . I am looking at the last fund, PMB Shariah Aggressive, and trying to read up on its FFS here.

The data seems ... different. Am I looking at the right thing there ? I'm trying to figure out how to post pictures here. Help ?

Full disclosure : I am an IC with a competing FI.

LoL ... previous post I mentioned I'm an IC at a competitor.

If can con sultan, I won't be here already

The more i read this thread the more questions I have ...

1. Why Kenanga Bond Fund ? It's not a performer. Actually I think they're below benchmark.
2. What fund is Ponzi 1.0 ?
3. Which one of Ms. Lee's funds are you referring to ?

Please be patient with me.

1. Actually the are talking about KBF, but more of an intermediary fund to reduce sales charge, I think.
2. SAQF is actually one of the best AP funds that Malaysians have direct access to.
3. Actually shes also the designated fund manager for KAPTRF and a whole bunch of other funds, but shes KIB's CIO.

So you guys are paying :
1. 2% sales charge, for all equity funds ? 1% on fixed income ?
2. 2% switching if you're moving to equity funds in different fund houses ?
3. 2% switching if moving from fixed income to equity funds ?

This post has been edited by lukenn: Dec 22 2015, 10:41 PM

Thanks. Just had a look at the pricing structure on FSM website.

So what you've described here, if I'm not mistaken

1. Buy equity funds => pay sales charge
2. Switch to fixed income => get credit points
3. Sell fixed income funds

Assuming you've bought and sold at exactly the same price, you've technically converted sales charges to credit points. How much are the credit points worth that you would deem it as a profit?

Does making massive switches of entire positions out perform a stable portfolio, with only minimal switching to rebalance? It sounds like the switching cost would be a massive drag on performance.

My RM0.02

I don't mean to sound like a troll, but it was confusing.



Anyway, what you're talking about is very common practice, where per unit, you'll never be charged more than max. equity charges. The guys at Public Mutual call it loaded/unloaded units. For that matter, FA firms can charge 0% for all inter/intra transactions if they wanted to, subjected to the 0.5% that 4-5 UTMCs impose as an absolute minimum.

Good morning !

I'm guessing you guys are quite heavily invested in KGF, SAQF, AIWE. Thought I'd share this with you guys.

For investors with a buy and hold strategy, I would suggest they have a look at RHB Growth & Income Focus Trust (GIFT). It's an allocator/swing fund which goes 30-70% small caps and 30-70% fixed income. They've got a proven track record even in bad times, and is generally quite stable.

If compared to a traditional balanced fund, then that's absolutely correct.

RM100K invested
=> RM50K equities => RM1K fees
=> RM50K fixed income = > RM0 fees, RM25/quarter
=> rebalancing from fixed income to equities => xxx fees

RM100K invested into a balanced fund => RM2K fees

RM100K invested into an allocation funds also RM2K, but all rebalancing is done internally, so no fees.
(eg: Eastspring Dynamic, Eastspring Dana Dinamik, RHB GIFT, RHB Smart Balanced).

So if its worth it, you have to ask yourself :
1. how often do I switch ?
2. can my research outperform RHB-AM ?
3. can the cost savings cover the cost of my time ?

Seeing as most investors do not have enough fixed income in their portfolio, this would be one method of introducing more stability, without giving up too much growth.

I also want to invest in some tits!

You going to belanja some Xmas fruit cake ? Lesgo !

It's the Santa Claus rally!

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

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.

Agreed !

So what kinda portfolios are you guys running ?

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

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



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