Only unfilled day orders expire at the end of the day.

https://www.fsmone.com.my/support/frequentl...tUniqueKey=2615

Limit order is not affected, I think.

So fast CNY already

As long as your returns are somewhat in line with the market it is ok. For UTs, if trading in and out would incur high friction cost, worse than stocks. And you can barely time the market.

If the underlying holdings are sound, stay invested and ride through the volatility.

Cannot just look at few markets mah. You need to look from top, for example now US markets suffer, but HK markets do well YTD.

It's overall portfolio that matters, not specific countries like China/M'sia. Looking back, if you have stakes in US equities UTs, that should help balance your declining Chinese equities holdings.

For countries like Msia, you can consider using EPF/PNB investment vehicle as they can generate alpha better than many fund managers in the country. (They have insider information that other fund managers don't.)

Insider source from local fund managers in Malaysia. I can't reveal much details. All I can say is EPF, due to its size, will outsource some of its investments to local fund managers. So these fund managers know how EPF generates alpha.

It's pretty much the same in Singapore. Temasek and GIC definitely know how to generate alpha better than say, Nikko Asset Management. When you have shear size and scale, your stakes in the market will influence the market itself. And so the market is up to you to "manipulate".

Which is why I always say retail investors can never outperform the institutional fund managers in the long run. If even institutional fund managers can barely generate alpha in the long run, let alone you.

Stay invested and ride through the volatility.

This post has been edited by TOS: Jan 24 2022, 12:33 PM

Yup, one of their top holdings are Serba Dinamik CPs. https://www.fsmone.com.my/admin/buy/factshe...eetMYARSCMF.pdf

Lesson is don't always rely on FSM ratings but do your own due diligence.

All money market funds have low ratings but not all MMFs invest purely in bank loans. When you have CPs coming into play, there is an added layer of corporate risk.

This post has been edited by TOS: Feb 1 2022, 10:16 AM

Well, Caveat Emptor has always been the mantra for retail investors.

I have long realized that FSM marketing has been "bombastic" and exaggerating to some extent. Investors with these low to "zero-risk" funds ought to review the fund documents, especially the annual and semi-annual report and scrutinize the holdings of the funds. Just because it didn't happen to FSM SG does not mean that it won't. In low interest rate environment, a lot of FSM SG "MMFs" are starting to behave more like "short-term" bond funds to squeeze the extra yields.

There is no such thing as zero-risk funds, even MMF funds are subject to a great deal of counterparty risk. You never know who is on the other side of the loans, let alone your funds are not insured. That is why MMFs can offer higher returns than FDs, everything comes at a price. The only zero-risk funds are your bank deposits that are insured (and even that depends on whether the insurance companies are in good financial health...).

Of course as sgh stated there is a possibility of oversight issues they can't control MY operations entirely from Singapore. Reporting to them is one good solution.

But looking back, CPs of poor companies should never be part of any MMFs. They should belong to high-yield space players. I also notice FSM tagged a few high-yield bond funds as low risk funds, investors should review these funds and treat them as "high risk" equity like funds instead.

This post has been edited by TOS: Feb 1 2022, 01:14 PM

I have lots of holdings with CMF 2.

You can read the financial documents like the annual/semi-annual reports and prospectus to know more. CMF 2 is entirely in cash and deposits only, no CPs, bonds etc. If you have CPs and bonds the funds need to report the holdings and the issuer name (Sunway, Genting Bhd. etc.)

Another way to check if the returns are reasonable is to compare with its peers, they should be quite similar but if you observes huge outperformance by a few % then you ought to be more careful and seek to understand the reason behind the outperformance. For reference a wholesale islamic MMF by Eastspring (Islamic Income) is around 1.81% for the past year, so the figures are about there. https://www.eastspring.com/my/funds-and-sol...s?fundcode=E026

If you are concerned, deposits with licensed institutions are usually level 2 at fair value hierarchy. If you see level 3 items in the report, that should raise your eyebrows. Another way to check is a rather dumb method but works fairly well. Just search the whole document for words like "bonds" "commercial papers" or common CP/bonds issuer's name. If the browser search/PDF viewer search turns out nothing then you should be be safe (for now).

https://www.wsj.com/articles/global-fund-in...share_permalink

Might be useful for "global" fund investors.

For starters who don't know the different asset classes: https://www.sinchew.com.my/?p=3606481

(In Mandarin)

For those who can read traditional chinese characters:



However the author might be biased as he likes to trade small-cap speculative counters in the less liquid HKEX GEM market.

He is not that bad lah haha though he is not officially a license holder however (not the CFA type). He is good at blue chips too (He recommended China Mobile to newcomers not long ago) but these are "boring" for him. Some people trade for a living.

Well theoretically you can buy fractional shares in companies on say NYSE/NASDAQ and build your own miniportfolio or these days index funds/ETFs of all kinds are available.

This post has been edited by TOS: Feb 16 2022, 02:53 PM

Ya you are right. I think denomination matters here. If you are looking at starting amounts of hundreds of dollars then mutual funds/ETFs are unavoidable but with a few thousands, it becomes possible to build up a stock/bond etc. portfolio. This is the case for mid-long term investors.

The author is arguing mostly on the expensive fees paid for fund managers.

(By the way, the author is not some kind of bluffer here and there, the name 周显 is well-known in the financial circles here. Some of his friends are "hidden" rich billionaire with mansions across the harbour here.)

This post has been edited by TOS: Feb 16 2022, 03:26 PM

While I agree with most of your points, I don't really think researching on the "best fund" is less taxing than combining individual stock reports etc. That is the author's point. If you can search for the "best fund", and assuming if have the money, you could have constructed the portfolio yourself, bypassing the "managers" (in effect, you are the manager) and save the fees.

Searching for good funds require analysis of the fund manager's style, behaviour, strategy etc and these could be more subtle than open-market avaialble information such as financial reports of companies. (Or as subtle as the corporate culture of a company and its management.)

Which is why the author suggest not to touch funds if you have the money. A passive fund of index ETF for example would work better for those entirely busy with work and occupied. The article is not entirely targeted to traders or speculators. Though its view may be extreme, it can be a good reference for those with more capital to start with.

By the way, that's HK case. So it does not entirely work for Malaysia or Singapore.

This post has been edited by TOS: Feb 16 2022, 04:28 PM

Continuing from yesterday (now with real-life example )



Anyway, the column highlighted the age-old principal-agent problem, that your fund manager's goal (management fees, profits) may not be aligned with yours (high returns).

https://en.wikipedia.org/wiki/Principal%E2%...93agent_problem

As an insider once said, ESG is a joke.











(Sorry, no electronic subscription from my uni, have to resort to photo-taking from a mid-class quality mobile. )

This post has been edited by TOS: Feb 21 2022, 03:04 PM

Ok. Will do.

In some ways, yes. But there are many things to consider as well. For one, there is no universal ESG standards. Some emphasizes E more than S and G, and some emphasizes G more than E and S. Emphasizing E would mean you have heavy weights in RE (renewable energy) counters, but on the contrary emphasizing G would probably mean exposure to some blue chip O&G counters.

In the end, if you really want an ESG fund that really focuses on ESG, you should scrutinize the fund's holdings, that's the best way to understand the fund itself. Another thing to note is not all RE counters are profitable, for example, but it is for most blue chip upstream O&G counters (Exxon, Shell, Total, BP etc.). More often than not, you don't just want ESG, but also a decent and respectable financial returns. However, pure ESG funds are rarely seen. For one thing, it's difficult to juggle between both ESG returns and financial returns.

Which is why you can have ESG funds with lots of banks holdings (while banks may still grant loans to say coal plants (most don't these days), LNG and petrochemical plants etc.) or tech stocks (Apple seems to tick all the ESG boxes until you learn that their suppliers like Foxconn and other Chinese/Taiwanese suppliers are embroiled in low-wage scandals, toxic working environment etc.)

https://www.theverge.com/c/22807871/apple-f...ervice-pandemic (Think twice before you buy an iPhone next time or becoming an AAPL shareholder. )

Lesson is: If pure ESG is hard to come by, pure ESG plus decent financial returns are even harder.

This post has been edited by TOS: Feb 22 2022, 02:11 PM

"Proof" that (US large-cap) market is efficient.

https://www.wsj.com/articles/stock-pickers-...share_permalink

iFAST shareholder speaking.

iFAST is the company, officially known as iFAST corporation (founder is actually a Malaysian, Mr. Lim Chung Chun). It's publicly listed on SGX under ticker symbol AIY.

FSM is one of the services offered and covers all the B2C business segment of the company. There is also a B2B segment which deals with the backend IT support services for the major fund management companies and the backbone of Malaysia's EPF-MIS system, SG's CPF investment adminsitrator and more recently, HK's eMPF platform.

You can scroll towards the end of this presentation slides to know more about iFAST and its offerrings: https://www.ifastcorp.com/ifastcorp/mediahu...H5DYJE79G.2.pdf