The NAV for TAGTF on 10/10/2016 is MYR 0.7335 per unit. The unit split happened on 11/10/2016. The NAV for TAGTF on 11/10/2016 that is post unit split became MYR 0.6092

If one has 10,000 units originally his NAV would be 10,000 x 0.7335 = MYR 7,335.00 ====> (A)

Due to unit split of 1 units per 5, he will get 10,000/5 = 2,000 new units. The total units then became 10,000 + 2,000 = 12,000 units.

The new NAV becomes 12,000 x 0.6092 = MYR 7,310.40.====> (B)

Now take a look at the NAV (A) & (B). From this do you see that the actual value is lebih-kurang sama aje! Although you will say the NAV has dropped, but for someone who is actually holding the unit prior to the units split; it does not seem that way.

Hence, do not be deluded that it is cheap or otherwise. The NAV drop is engineered by the UTMC, it is not due to actual drop in its underlying asset price. In another word, the drop in NAV is a manipulation by the UTF management company.

Xuzen

p/s (IMPORTANT NOTE): Actual cheap or otherwise is not determine by the NAV face value per se. Look to its underlying asset to determine. In the absence of knowing the actual underlying asset, then look at the fund benchmark for guidance.

This post has been edited by xuzen: Oct 29 2016, 05:50 PM

Let us consider two scenarios:

Xuzen already has 12,000 units of TA GTF on 11/10/2016 and the NAV on 11/10/2016 post unit split is MYR 0.6092 per unit. Hence Xuzen's actual holding in TA GTF is MYR 12,000 x 0.6092 = MYR 7,310.40 as of 11/10/2016.

On the other hand, Ramjade do not own any TA GTF units and on the same day post unit split, that is on 11/10/2016 he bought 10,000 units of it and he has to pay 10,000 x 0.6092 = MYR 6,092.00 for his settlement.

Let us say one year later, and assuming there are no dividend declared nor any unit split or bonus units declared, that is, the NAV moves up on its own naturally. The NAV moved up 20% to MYR 0.6092 x 1.20 = MYR 0.7310

The NAV for Xuzen becomes 12,000 x 0.7310 = MYR 8,772.48. MYR 8,772.48 less MYR 7,310.40 equals to MYR 1,462.08 and this is equivalent to 20% capital gain.

Let's move on to Ramjade:

The NAV for Ramjade becomes 10,000 x 0.7310 = MYR 7,310.00. MYR 7,310.00 less MYR 6,092.00 equals to MYR 1,218.00 and this is equivalent to 20% capital gain.

Based on the above illustration, whether one holds the unit prior to unit split or whether one does not, does it make a difference or not?

Xuzen

Dear Sifu Ramjade,

Now that we have established that a whether a UTF is cheap or otherwise is independent of unit split or post-distribution events. Then, on what basis do you make the bolded claim or assertion?

On one hand you said it could be cheaper now than next month, on another you said it could be vice-versa. To my ear, your statement is neither here nor there. It is as if something is spoken but has an effect of something not spoken. Isn't it?

Xuzen

This post has been edited by xuzen: Oct 29 2016, 07:51 PM

You said earlier it was due to the drop in NAV because of the unit split effect that the NAV became cheap.

Now you are saying due to the above macro views, the potential for TA GTF NAV to increase is there. Good good! We are making progress! Kipidap!

Xuzen

Algozen™'s portfolio back tested five years.

I only have four UTF in my port coz Algozen™ does not do Pokemon Go, "Gotta catch em' all".

The portfolio has a volatility of 6.54% , and in sixty mths of backtesting, there are 46 mths with positive return which means 77% of the time, it is a winner.

This post has been edited by xuzen: Oct 29 2016, 11:44 PM


Attached thumbnail(s)

My portfolio is classified as aggressive and I only have two asset class..... equities and bond. Super simple hor!

Xuzen

P/s Is the optimise portfolio function rosak or not? I click on it, my current port and optimised portfolio results are the same wan...

This post has been edited by xuzen: Oct 30 2016, 12:12 PM

Education = Paramount, Sunway, Masterskill

Fast Food = KFC, QSR, BFood, QL

Chemical = CCM

Xuzen

P/s Stop playing stock market since 2009, still can remember the counter, not bad hor!

This post has been edited by xuzen: Oct 30 2016, 12:17 PM

D1U! I want automatic, I want simple, I want Maggi Mee™!

Xuzen

Low risk appetite and stock market =

Xuzen

Here's my guide:

Play & Invest are two different thing and they use different strategies to execute. You decide whether you want to play or do you want to invest?

UTF is a better tool for investment but poor tool for play.

Xuzen

What goes up must come down and what goes down will come up again..... Hence in the long long run, all will usually regress to the mean. Sifu Xuzen's theory is da Best !

Xuzen

This post has been edited by xuzen: Oct 31 2016, 02:37 PM

LOL LOL LOL! My fanboi!

Lu ingat lu Moderator kah?

Xuzen

This post has been edited by xuzen: Nov 1 2016, 12:51 PM

I'll go take a walk and switch on Fox and watch Walking Dead S1 to S7. What will you do?

Xuzen

No.

Lower volatility = lower risk = more predictable return = less deviation from mean return.

Xuzen

The above is a post from Nexona which he posted at ASNB thread. Friend Rexona, tumpang your post sekejap ok?

Fund size = MYR 21.983 B
Units in circulation = 18.193 B

NAV = Fund size / units in circulation = MYR 1.21 per unit.

However, the NAV is fixed at MYR 1.00.

Lets say they declare 7cts dividend (follow historical trend). That means you get MYR 1.07 per unit. What happened to the remaining 14cts. Are you entitled to it? Mana perginya MYR 4.2B 14 sen itu?

Xuzen

This post has been edited by xuzen: Nov 2 2016, 04:36 PM

Some tok-kok:


Xuzen

Something from the Schroders report caught my eye. Page 4, second last paragraph.

let me reproduce here for ease of reference:


150K human jobs were replaced by 15. This doesn't bode well for the human race.

This is like the scariest Halloween story of 2016!

Xuzen

There are two leading candidates for the POTUS job: Trump [T] and Clinton [C].

The probability of Trump to Clinton is like T:51 vs C:49 based on latest opinion polls; which we can take to be roughly 50:50 chance.

The consensus is that if C wins, S&P will remain status quo. And if T wins, then S&P will go down.

If you look at the mathematical probability, if T wins , we lose. If C wins we remain as it is. So, better go elsewhere cari-makan lar.....

Since Aug 2016, I have been reducing my US exposure by DCA. As of this week, I have reduced it by 2/3. I am keeping 1/3 "just in case" C wins and S&P remains status quo.

Xuzen

This post has been edited by xuzen: Nov 4 2016, 11:52 AM