AIYH

Only this is widely available for lay-person. J-alpha ratio, you sendiri kena kira, if you can get the fund beta available w.r.t. its benchmark.


M2M formula bukan macam ni wor. Let me go back to my old notes and recheck the formula. IIRC the above macam tak betul aje!


My own formula.


No, I don't use their benchmark. For me, I choose AIF because risk / return for AIF is better than Ponzi 2.0. Next question you will ask, but AIF ROI is so low, how to carry makan right? Hence if you notice, my portfolio is made up of AIF which is stable and boring, but supplemented by a US fund (TA GTF) plus India. These are the Viagra booster. So, when one is constructing a portfolio, one needs to strategize. Algozen™ helps me in this department by finding the sweet-spot, the Goldilocks' point. The point where the risk and return are just optimized.

Xuzen

This post has been edited by xuzen: Oct 17 2016, 04:17 PM

100% ASX FP UTF Pasti Menang™ fund

W1NN4R 4EV4!

Xuzen

This post has been edited by xuzen: Oct 17 2016, 04:43 PM

Yes, has happened before . At the moment I cannot remember which one. But I do vaguely recall the UTMC decision was to transfer the moonies contained therein the fund to another UTF of similar nature by the UTMC. Any unit-holders who is not desirous to participate further were advised to redeem all their units and exit the UTF.

The reasons were:

1) The fund size was too small a few million only

2) There are similar UTF in the same UTMC's inventory.

3) The parent fund is closing down

Xuzen

Between TA & Manulife, both have similar risk adjusted performance (RAP). How do you choose? How do you choose?

AIYH,

This is exactly what I meant when I said book smart versus experience. A book smart person without real life experience when comes to this will be dumb-founded.

For me, I choose TA because although it has same RAP as Manulife, TA has more chance of giving better return than Manulife, even though its risk will be correspondingly higher than Manulife.

Why I do this?

Recall that I already have RHB-AIF which is a low volatility fund, hence I can take a little bit more risk with TA to boost my overall portfolio return. Make sense? Strategy forged from being in the field versus book smart.

Xuzen

TA Global Technology Fund = Ikan-bilis friendly!

Xuzen

This post has been edited by xuzen: Oct 18 2016, 11:45 AM

Story telling time.

At the end of 2014, I noticed that the one year historical Sharpe ratio of China specific fund namely Manulife China Equity was awesome. It looked so good! My darling Algozen™ was screaming into my ears:

MASUK! MASUK! Moh Man Tai! Sai Lang! Show Hand!

Relying purely on numbers, and without wisdom, I was 80% China at that time. That was how good the China numbers were at that time.

Then mid 2015 China came tumbling down. It dropped 20% or so and since I was 80% China, 0.2 x 0.8 = 16% drop in my portfolio. Aduhai! Sakit hati-nya.

So, you see, Kimyee, one year historical data can be quite daunting. I was like Officer Harry Callahan.... Do you feel lucky punk? Well do ya? It felt lucky for a while until mid 2015.

Now a days I use 3 years data. So far so good. Three years data provides a better margin of safety.

AIYH,

So you see, again if you are only book-smart and rely only on numbers or algorithm alone, it can bite you. You need a little bit of numbers plus some real life experience to be a successful investors. For those who are always scare to lose (kiasu), and never really participate and keep on asking and asking only and only rely on reading lots of book, you will never be able to learn it properly.

Xuzen

p/s If I were to show you my IRR, taken into account my misstep, it surely will not look good. Similarly with Pink Spider, both of us have gone through some rough patches before as part of our leaning curve. In the end, we learned our lessons and came back stronger and became a more mature investor.

IRR is basically a number and is meaningless on its own without knowing its context. So showing IRR can be misleading.

BTW, if you ask me what is my IRR now, I will tell you straight off, I don't know because I erased it and start a new from there on. I do not want to dwell on my past painful memory. Lesson learned, moved on.

This post has been edited by xuzen: Oct 18 2016, 02:39 PM

That is why do not be too eager to participate in new fund I say. Let the fund run for 3 years or more before decide whether to participate in it or not.

Xuzen

I think you made a typo, you left a zero or two behind right?

Xuzen

Hey Malaysia FSM research staff, you toking kok izzit?

Your HK counterpart just wrote the opposite. Asking us to Sai-Lang into equities!

Xuzen

P/s This happens very often, even amongst those ang-mohs analysts. One says A, another says B and A and B are opposite of each other. Sigh.... looks like I have to rely on Algozen™ after all......

AIYH,

Below is my formula of Modigliani ratio:

You check whether is correct or not with your previous example?

Legends:

R(i) = return on investment of fund (i)

R(f) = Risk free rate

SD(b) = Std-Dev of benchmark

SD(i) = Std-Dev of fund (i)

This post has been edited by xuzen: Oct 19 2016, 10:07 PM


Attached thumbnail(s)

AIYH,

Here is the simplified or an alternative way to express M2M ratio:




Attached thumbnail(s)

Their crystal ball rosak at that time?

Xuzen

That is why listen to Xuzen: He is known as the "maggi mee man". Why "maggi mee man?" Because he makes complicated finance stuff to become "cepat dimasak, sedap dimakan".

I believe you can compare directly KGF and Kap-chai fund side by side. Their benchmark should be similar that is FBM Emas index (Top 100 company by capitalization listed in Bursa KL)

If that is the case, Kap-chai fund is number one, and KGF is number two. However, these two awesome UTFs are always leader of the pack. Pick either one also a W1NN4R!

To answer your question that has been bolded: If you use Sharpe ratio as basis for comparison, then you need to have a common benchmark or similar asset class. For example, comparing Sharpe for KGF versus Kap-chai fund is fair. Using Sharpe to comparing KGF versus Asnita Bond is silly.

Morningstar got info on the benchmark standard - deviation meh? If got I want! I want!

Xuzen

This post has been edited by xuzen: Oct 20 2016, 11:25 AM

Kamsiah! Terima-kasih! Nandri-Vanakam!

The info hyperlinked will occupy this little excited pussy-cat for a long time..... New toy, must play

Back to your question: M2M ratio can make you compare different asset class as long you have the parameters needed and plug them into the M2M equation. With M2M, you don't need to use common benchmark. That is the beauty of M2M ratio... you can now compare across different asset class.

Xuzen

TA Europe give it a miss. Still suxs!

Xuzen

Come come, lai lai.... don't be shy. Show use some numbers

Xuzen

Memperkenalkan Pengurus Dana Jenis Pendapatan Tetap dari Syarikat Pengurusan Dana Amanah Saham Affin-Hwang Asset Management Berhad



This post has been edited by xuzen: Oct 20 2016, 09:52 PM


Attached thumbnail(s)

I have four apples; he has one pineapple....

Four apples exchange for one pineapple....

Then, perhaps pineapple for some reason are perceived to be more valuable, so the pineapple man demands 4.2 apples to exchange with one pineapple.

Sometime later, apple man said, I am tired of eating your pineapple, I don't want it so badly anymore, can I exchange 2.4 apples for one pineapple?

In the end where got one lose one win?

Both got apple and pineapple willingly exchanged.

Now go enjoy this song...

Apple & Pineapple song

P/s Now go substitute apple with MYR and Pineapple with USD and go figure out the rest...

This post has been edited by xuzen: Oct 20 2016, 10:29 PM

Come come lai lai

Kor kor Xuzen teach you his ninja trick ver 2.0.

Want to buy Affin-Hwang Select Income fund and Bond fund at anytime anywhere through FSM at zero sales charge?

Just buy the Affin-Hwang PRS Moderate fund lor!

all bundled up in a nice package, just like the McHappy Meal™.

This post has been edited by xuzen: Oct 21 2016, 12:39 PM

Hypothetical answer:

You eat full full, too free nothing to do izzit?

Why do I say the above?

KWSP is quite heavy into bond. Hence when you want to participate in EPF-MIS program, it makes no sense to put it into bond fund.

Xuzen

This post has been edited by xuzen: Oct 21 2016, 02:54 PM