They did the same thing with Ponzi 2.0 last year. This enable them to sell the fund in its banks in ASEAN region

the effect on us will be??

oh like tat.. Thanks for info

should be no problem. BAU

The answer is in the "locked profit".
Yes, no way you can have positive IRR if total investment showed a nett loss.

My IRR was positive becos i had sold and locked in some 28k profit earlier,
more than enough to cover the 10k loss on 29.2.2016

It really puzzles me how you could be enlightened by Lukenn's example.


True, but the long and short of that is:
overalll there must be a profit, otherwise IRR cannot be positive.


This is a poor example to explain a negative portfolio with positive IRR.

In your example the IRR CANNOT be positive, unless with locked profit ealier.
Invested amount totalled RM20010,
and current value only RM19019, IRR sure negative.




NB:
If you go to FSM "MY INVESTMENT" then "Analyse my porfolio", there u can see your exact amount of overall profit or loss.
see attachment.
And i find that figure closely mirrors Polarbearz's Portfolio Summary Profit/Loss.

If you buy and sell, buy and sell, you cannot use the current FSM holdings' profit or loss,
as it does not take into consideration ealier transactions' gain or loss.

You know what, when I first read his example I have the same thought as you.... but, being a nerd bean counter as I am, put in spreadsheet and calculate lor


And this is what I got... the IRR is slightly positive, and hence my comment that it doesn't weight average returns but takes the time value of return instead

There is such a thing as GIGO - garbage in, garbage out.
The extreme numbers broke the function! Try changing the 'time value' from 1/1/2015 to any date, and the XIRR remains the same...

Here's the logic on what the numbers are saying:
$10 gains on $10 invested is ROI 100%, and since the time period is 1 year, the IRR (or CAGR) is also 100%.
$1000 lost on $20,000 is -5% ROI, and since the time period is 1 day, the CAGR is -100%.

The projected lost (in one year) is very close to 100%, since if we lose 5% a day, we will lose NEARLY all in several weeks. We can't lose more than $20,000 (or in other words, less than -100%), because the maths is not a simple 'minus' ie. 20k - 1k - 1k - 1k ... but 20k x 95% x 95% x 95%....

Even if we lost 10% a day, which is $2000, the projected lost will still be capped at -100%.

Putting the 2 investments of 'extreme' figures and dates together into the XIRR function, it resulted in a confusing/misleading IRR of 0%.

But using cow sense and being aware of GIGO, any reasonable investor would ignore the initial $10, and think and calculate solely on the $20,000...

Anyone still holding EI APSEF?

Err, full name pls. Or nickname if it's popular 😁

Eastspring Invt Asia Pacific Shariah Equity Fund

Oh. Didn't they close this fund? Anyway I don't have 😁

you still holding this fund ?

Not yet but going to

Yup

switch sale it for good

I am reducing my exposure to riskier assets. Generally for equity exposed UTF the returns are dropping but volatility is increasing.

Xuzen

p/s: GTF, ESISC & Ponzi 2.0 still forms my portfolio.

This post has been edited by xuzen: Mar 26 2016, 06:09 PM

almost similar warning words by the hwang's MD in his speech recently..

great minds think alikes......

...he did mentioned that the expectation of returns % have to be adjusted downwards from now on.....

the current local ringgit direction will be seen soon.....
the BNM governor replacement.......1 side is liked by mkts, the others is perceived to be political choices....
if the mkts don't like the selection...RM will be hit.

he spoke of how, when the recent mkts rally for 3 weeks....he sold some 5% to raise cash.....

this got me thinking......should we follow "sell some on few % gains, buy some on a few % drops".....(with wrap a/c can lah)
no more buy and keep long long.....the volatility is fast and short.

he expects the M'sia interest rate to come down.......and if the banks offers 4.5% pa FD......take it!
btw,...I met a Affin bank PR at the dinner too...she said....AFFIN Bank only at Padang Kota Lama in Penang branch got offering 4.5% pa till end of March. fresh fund 10k min
is that a coincident?

he warned....pay a closer look on the yuan outflow till next year.....

china has a BIG reserves, but there is a confident level of min 2.x Trillion reserves value......if the rate falls....expected next year can see results....
then he jokingly said.....don't invest anywhere....as if CHINA falls....the whole mkts will too.

Buy pound now as the BRIEXIT polls is in June had dragged it down.....
he expects Britain to remains in EU and after the polls pound will rises some %.
why will stays?...b'cos it has nothing without EU....

This post has been edited by yklooi: Mar 26 2016, 06:56 PM

Doing any adjustment on your portfolio?

Not yet. I am not on wrap s/c.
Will see how some of the funds moves in July. Then decide.

I think good decision.. Review every 6 months or so.. There will always be many news that will effect decisions. Just ignore them..

I review every qtr

So your coming review will be these few days lor... How is your portfolio performing this Q1?