Malaysians usually direct ownership and kiasu against custodian/trustee ownership

Custodian in everyone’s minds means more cost

SGX not much attractive due to less choices for growth stocks hence which is why a lot prefer US markets especially for Tech counters

But isn't ibkr, moomoo etc all under custodian model? And yet so many investors is ok. I belong to old generation but I need to keep up with the times. Pain is always when you want to transfer holdings out from custodian A to another company custodian B.

It is pseudo custodians but Moomoo if iinm fully custoded

Transferrring these days all depends on original broker holding whether they are flexible or not

Sorry can you give an example what is pseudo custodians and full custodian? Pseudo custodian is not custodian?

Hi guys. Just curious as to how most others are going about with their FSM UT investments. Will be glad if anyone is willing to share their strategy/allocation/etc.

In my case I’m going with a 90/10 stock to bond allocation for now. My bonds are local, as for my equities it’s mainly split between developed markets and APAC, although it is more heavy on APAC for now.

My funds are as follows:
Amanahraya Unit Trust Fund 10%
Affin Hwang Select APAC Div Fund 30%
Principal APAC Dynamic Growth Fund 25%
Principal Global Titans 35%

I mainly rebalance monthly using new funds (just by adding to whichever has fallen most from the ideal allocation). If there’s some significant change to the allocation due to market volatility (5-10%), then I would consider rebalancing.

What do you guys think? What’s does your portfolio of UTs look like?

Cheers.

no right or wrong,...
just wondering,...what is the 10% FI in your port for?
in time of market volatility, i think that 10% does not help much to act as a stabilizer of your port

your port is now 55% in Asia Pac + 10% Japan = 65% in Asia Pac include Jpn

Got my RM40 TnG reload pin via email today for the PRS top up.

Answering your question on what my UT portfolio looks like.

7% bond
93% equity

the 93% is actually
45% asia pacific via Principal Asia pacific dynamic income fund
22% eastspring small cap fund
19% kenanga growth
7% manulife india

as to what i think of your portfolio, i would suggest you simulate abit what happened in march 2020, and understand how you feel if a similar event happen. aside from that. i myself do not have a good strategy myself.

Above caught my attention. That is a rather big allocation on small cap fund which I also have but smaller. The upside is good if it perform well.

This fund geography is Malaysia only small cap fund? Hmmm more daring than me. My small cap funds are usually say Asia,Europe etc region based small cap fund.

Sorry pls ignore above. I am from Spore just notice yours is FSM Msia. It doesn't hurt to support your own country economy. Then quite ok allocation.

This post has been edited by sgh: Dec 27 2021, 01:55 PM

It's ok. Also he asked about UT allocation. I just share for fun. But the 22% is high but it's not high relative to overall asset.

Ibkr some of the holdings are not custodies and are held by IBKR itself while some of the are being held by tri custody

The Custody Account constitutes a tri-party agreement between IB, the custodial bank holding the customer's assets, and the IB customer. Assets (long stock, retail and government money-market funds, and Treasuries only) that are held at a pledged account at the Custodial bank are reflected in the customers IB trading account and used to margin trades

This post has been edited by xander83: Dec 27 2021, 05:15 PM

got mine too. valid till 24th March 2022.



This post has been edited by genesic: Dec 27 2021, 05:58 PM

Ooh I think I misunderstood the meaning of custodian. Back in Spore when we bought SGX stocks there is a company called CDP that will hold all our shares. When we transact with brokerage it will deposit the shares in this CDP not the brokerage. So broker 1,2,3 different broker you use to buy sell all will go into this same CDP account.

So when the stock are held by the broker in your case IBKR I thot this is called custodian acct.

Well there are a few reasons why it’s there actually. Initially it started due to having the misguided idea that maintaining a bond fund and rebalancing it helps me buy stocks when it’s cheap and lock in profits when it’s overvalued.

However having read up more studies on the matter, due to the long term returns on bonds not being anywhere close to stocks means that it this whole exercise does not actually help you increase returns. Then again there are other articles that say otherwise.

So yea I decided I will just maintain it for now cz while it doesn’t guarantee more optimised returns for the portfolio, it certainly does increase my risk adjusted returns quite significantly, while sacrificing some returns surely but not as much.

I also keep it around get to know how the bond market behaves given that I would someday need to have a larger sum in these assets when I retire, and what better way to experience the market then by getting some skin in the game right?

But yea lastly I think it just serves as a bantam busuk to provide some consolation when the markets are either down or sideways. At least one fund will be in the green, albeit an insignificant amount, but it certainly has a significant psychological impact.

Also yeah I’m quite heavily weighted in Asia now mainly cz of the affin apac dividend fund. I was trying to offset the significant amount of US stocks in it by adding more of the principal apac dynamic growth fund. But yea I want to keep developed markets at 45-35% ideally.

Btw what’s your UT strategy like so far? If you don’t mind sharing that is, no obligations. ✌️


Hey thanks for sharing. That’s quite a bit of exposure in Malaysia I see. Any reason for that? Anticipating some significant growth in the near future?

In my case, the equity funds are predominantly foreign Cz if I consider the money I have growing in epf and my bursa stock portfolio, I would say I’m overly exposed to the Malaysian market (and it hasn’t exactly been the best place for steady long term growth, in recent times at least). So yeah, I’m overly weighted in one country currently, one with a volatile political climate too. Didn’t want to put all my eggs in one basket so to speak. Well I guess it’s not too bad if you go for the local small cap and growth funds in the long term, just that in comparison to some foreign market, I personally feel there’s more certainty for decent growth. Just my speculative opinion tho.

All in how has your portfolio mix been returns wise and all? That being said this was a bad year anyways. My portfolio is down. But they’re UTs so I’m not too concerned. In fact if I had more cash I would dump in more. My stock holdings tho, those are rather concerning.

could be biased,... after having gone thru the downs since Mar....and having seen FI dropped too and with the interest rate expected to go up in the near future

preferably,....
35% Asia Pac
20% US
10% China A shares
10% India
10% Tech
15% Global Reits

i started off in 2014 when i think ppl are into global titan funds and also greater china fund... i invest in neither because i think it was too volatile for my taste. i have made mistakes here and there. my UT portfolio gives about 5 to 6% IRR on average but recently dropped to 4%. i believe, if i reduce my malaysia exposure, overall return should be better.

i think for me now is, the focus should be around 5 to 6 funds max. di-worse-sification is a thing. i actually stop buying into local funds. my plan is to not increase my malaysian equity... increase my exposure with some bond funds also. continue to increase put money into asia pacific regularly.

and i'm slowly increasing my stake into china heavy fund given recent drop in hk/china but doing via ETF instead.

what i'm lacking is exposure to the USA in my opinion.

I dont have a strategy. i just trial and error, see what i can do.

In your case CDP is custodian who will trade your shares with the broker

IBKR is the broker while custodian which are listed banks chosen by IBKR itself

I wouldn’t buy into bonds but more cyclical dividends like banks cause no one want bonds due rate hike as shown last tapering back a few years ago

Your exposure is also lacking in Euro and Japan as well otherwise it will considered balance with buying into REITs, commodities rather than putting into HK/China because next year it is policy changes with new politburo in place

delete

This post has been edited by sgh: Dec 28 2021, 05:37 PM

Just made my first transaction today for PRS. May I know how to redeem the Tng credit?

It's a campaign ended in november i believe. You need to fulfill the campaign criteria to be entitled.