70% IRR? Can maintain IRR 70% for over a 3 year period boh?

Are you feeling lucky?

Xuzen

Not just any equities: Sectorial and thematic play somemore! Huh!

Xuzen

I read from many sources, discard what is noise and only take what is important.

"News create noises; numbers create momentum"

Xuzen

Awesomeness need no free lunch - sig Kung-Fu Panda 1

India oh India... lu kasi gua manyak untung woh!

Profit skimming.

I have been skimming my profits since early of Aug. I entered RM 30K in early June 2016, the fund has moved up by 9.XX% in less than two mths. So I figure I skim the profit lar.

Skim means I only take the profit but let the original amount remain because I believe India run has not ended just yet.

Why not let the profit run, some might ask. Well, the volatility is very high for India fund, I do not want to get caught off guard especially as the % in my portfolio keeps increasing. (High % holding in my portfolio, makes my portfolio volatility increase).

Xuzen

p/s After skimming I move it to RHB Asian Income for it has a much lower volatility compared to India (India has three times the volatility compared to RHB Asian Income UTF).

This post has been edited by xuzen: Aug 10 2016, 02:53 PM

also nowadays bank officer in charge keep changing faces. Six mth down the line a new officer will be assigned to you. Better buy from FSM because there is no agent, it is a DIY platform. You are your own agent and you will never abandon yourself.

If you are truly noob, then go for Unit Trust Agents or Licensed Financial Planners. Pay them fees to learn about this method of investing and when you think you are good and ready, disengage them and DIY yourself.

Many of us started from agents initially. Only later we move to DIY. A baby needs to learn how to crawl before running.

Xuzen

This post has been edited by xuzen: Aug 10 2016, 03:06 PM

For geeks only!

Formula for portfolio standard - deviation (volatility aka risk):

Xuzen

p/s the above is formula for two assets class only. When you have three asset classes, the formula gets really interesting. When you have 4, 5, 6 etc.... he he he, that's where Algozen™ takes over....



This post has been edited by xuzen: Aug 11 2016, 01:43 PM

If you betul-betul like Jepunis, check out AMAsia-Pac Reits which contains 21% Japan exposure. The other is of course GTF which contains around 12% Jap exposure. One is sectorial, the other broad base equity.

The below is my comment on Japan stock market as a whole.

In my mind, the best way to describe Japan is to take our very own Taiping town. Why? Well, similar like Japan, Taiping is a retiree's town, full of old people or kids in kindergarten. The aged population is highest in the world at around 1/3 of the population.

Why is this significant?

Whatever the govt do, no matter how much money is pumped in (helicopter money), old people are not going to spend. You ask those uncle / auntie in Taiping buy new house ar? Buy new car ar? For what? Their money are "coffin fund". You ask them to renovate and make their house pretty pretty? You have better luck selling sand to the Arabs or selling ice to the Eskimos.

These uncles / aunties will go from shop to shop and ask for the lowest of the lowest of the lowest in price before buying anything, be it a can of paint or a strip of Panadol or a kilo of taugeh.

In Japan's case, there is a real issue of deflation. As consumption dwindle, the businesses there cut prices to drive business. When prices keeps going down, the consumers will be in no hurry to buy anything. Why buy today when tomorrow the price will drop further?

That is why, despite Japan stock market has low PER, I think I am not very gung-ho on it.

Xuzen

Lai lai lai.... forget Jepunis, look west, look at India. Lots of young people... buy cute cute IT gadgets. Vibrant economy.

Same goes with China.

I will keep my eye on ASEAN too.... could be the next boom.

Xuzen

what an apt timing! Only very recently KWSP's CEO Sharil allows KWSP-MIS to have participate into 100% foreign exposed UTF; it was 30% prior to this amendment.

Xuzen

This post has been edited by xuzen: Aug 11 2016, 08:16 PM

Strictly from a number perspective, Manulife India has better risk-adjusted performance compared to the other.

On my portfolio, I already have China, HK & Indonesia exposure through RHB Asian Income fund. That is why I use Manulife India to plug the gap.

If you don't have it, the CH-IND-INA looks ok also. But I reckon the contribution from Indonesia is not that great. Indonesia performance from past three years has been bad. Hence the UTF CH-IND-INA, the contribution mainly from CH (HK) + IND , not INA.

Xuzen

Lai lai open your mouth big - big: Here comes your spoonfeeding.

Xuzen

This post has been edited by xuzen: Aug 12 2016, 10:51 PM

It means the corr-coeff is possibly lower than what the Bintang-Pagi website state!,

Xuzen

This post has been edited by xuzen: Aug 13 2016, 01:58 PM

Aoisky, aren't you a CFA student? Why ask? Lecturer give talk you play Pokémon Go ah? Never pay attention meh? OK, the below is meant for the lay-people.

There are a few accepted risk - adjusted return measurement.

The simplest, that is, kindergarten level is simply take the ROI divided by the Standard-Deviation (over a the same period). This is the one easiest to understand and use.

Next, we come to the well known Sharpe Ratio, which is the above (ROI tolak Risk Free Rate) divided by the Sta-Dev. Just because it was some Mat-Salleh (Prof William F Sharpe) who made it famous, Nobel Prize gave him an award.

Then lagi some ang-moh, some fella named TreynorDr Franck Sortino, went and tweaked the formula, instead of just follow rule and use Sta-Dev, he went and pandai pandai use Semi-Deviation pulak. What the h3ll is Downside Risk Only Standard Deviation you will ask. If you do not know what I am talking about, go google semi-deviation.



Now we come to some STPM level stuff....

Next, we have the Jenssen - Alpha Risk Adjusted Performance , also known as JA-RAP (pronounced Jay-Rap). This one will tell you whether it is worth paying that Fund Manager the sales charge or not to manage your money. Most fund manager very afraid of showing this to the unit trust investor one.

... and finally, go to the University level stuff, which is also my favourite; Introducing [drum roll...] Franco & Leah Modigiliani Risk Adjusted Performance also knowns as M2M or M2 ratio. This allows you to bring risky asset of different classes and compare them apple to apple. It is a extension of Sharpe ratio theory and addresses some of the short coming of Sharpe Ratio. Incidentally, these pair of father & daughter team used to work for Morgan Stanley. Why is this significant? Well to me it means that these two person are real full time practitioner and not some academian tuck away in some ivory tower.

Xuzen

This post has been edited by xuzen: Aug 14 2016, 11:22 AM

all the measurement mentioned before are high level tools use by professional fund manager / risk manager / portfolio managers. They are not tools for the lay-people to use. Hence, I have not come across website offering free of charge DIY style calculators for lay-people.

Xuzen

slow slow lar.... I was once an ignorant lay investor like you.

If you do not want to have a headache, just follow the FSM recommended portfolio. I am sure they would have employed similar strategy as what I have outlined.

That, or engage a licensed financial planner. A fiduciary / licensed financial planner firm also perform these type of analysis to add value to their clients.

Xuzen

P/s If don't believe me, go and ask Lukenn lah!

This post has been edited by xuzen: Aug 13 2016, 07:14 PM

For people like you stick with ASX.... Sharpe ratio = infinity.

Xuzen

Lukenn,

I mixed up Sortino with Treynor. My bad. Thanks for pointing it out. Treynor ratio is (ROI less Risk free rate) divided by the beta coefficient to its benchmark. This is for info only as I personally don't use this ratio. Not very useful for me.

Yes, agree, Sortino is a better ratio to follow but the value Semi-Deviation is not readily available. Do you calculate them yourself Lukenn?


Please explain the statement below, I do not quite comprehend it. Thank you.




Xuzen

This post has been edited by xuzen: Aug 14 2016, 11:15 AM

Assuming you do not need the money in the near term, then yes. KAF-Bond ROI is 5.5% p.a. (3 year average) versus standard FD (not promo rate) is around 3.5% p.a.

Please take note that KAF-Bond has a min investment size of RM 100K, it is most likely targeted at high net-worth investors. In terms of types of bond holding, both are exposed to Malaysia corporate bonds.

Also do note that Libra Asnita Bond has slight advantage in terms of risk - adjusted performance.

Xuzen

This post has been edited by xuzen: Aug 15 2016, 09:58 AM