Two countries with lower growth rates have more "expensive" currency than one country with a higher growth rate, and you say rightly that logically that should not happen..

So your conclusion from that is that the currency of the country with the higher growth rate, and is currently a lot cheaper than the currencies of the countries with lower growth rates.. should be going downhill. An interesting conclusion.

Look at IDR and THB. For so long, Malaysia have been the strong currency. But just these few years, Malaysia weaken against them a lot. Now those foreign workers also complaining not sending enough money back to their country. The Trump tantrum at the end of Nov, Dec showed us the strength of RM vs THB and IDR. We are the worst performer in whole of South East Asia.

Also, look at their reserves vs our reserve. No need to talk la that one.  Our reserves is tiny compare to theirs.

In a way yes, but your understanding is not so accurate. There is no double sales charge, for managed portfolio you only pay subscription fees and not sales charge.

The "additional fee" charged by FSM for managed portfolio is the 0.5% portfolio management fee per annum.

The unit trust fund manager charges annual management fee and trustee fee as usual.

That's why robo advisor is cheaper in this sense, they charge portfolio management fee also, but the underlying assets are ETFs which has minimal management fee.

But in the end, one should compare nett returns. If low cost but low net return, what's the point?

Again, the country with the one of the highest growth rates has the cheapest currency in the whole of SEA! and you think the currency is going to get weaker. Okay interesting conclusion. Dreamer101 had even more interesting conclusions ten years ago.. had pictures too, and graphs long,long essays with lots of pictures and graphs about how we'd all be living in trees hunting and eating each other by now. Study all the charts you like, write all the long essays you like, in ten or twenty years, we will see I guess

As far as I understand from FSM website, managed portfolio is investing in UTF, not ETF like robo advisor. Am I missing anything from the website?

I don't need to see. History have already shown us. You think RM can appreciate back to 3.8 vs the USD or 2.x vs SGD/AUD?

Well it's your choice. I have already make mine. If you have faith in RM so be it. I don't. I regretted not listening to Dreamer last time.
That's true. Malaysia is not ETF ready. That's why Smartly the robo advisor which was going to launch in SG which invest in ETF said for malaysian and indon market, they will use unit trust instead as banking regulations does not permit ETF investing.

I don't need to see. History have already shown us. You think RM can appreciate back to 3.8 vs the USD or 2.x vs SGD/AUD?

Well it's your choice. I have already make mine. If you have faith in RM so be it. I don't. I regretted not listening to Dreamer last time.

Thanks for the clarification Ramjade. Then, this would mean my invested money will need to pay for all the UTF charges + FSM managed portfolio charges.

I think currencies are manipulated by governments.
What did he say that made you regret not listening to him? he was pro-US and anti-Asia. Wonder how that turned out for him.

UTF management fees are already calculated into the NAV. If a fund beats the index benchmark, it means it also beat the ETF (ETF is based on the index) as performance of the fund have already included the management fees.

Eg. Kenanga Growth Fund vs KLCI (there are few ETF based on KLCI). It beats the KLCI by wide margin yearly. If you buy KLCI ETF, no doubt it's cheaper, but you did not beat Kenanga Growth Fund which means you get less money as the KLCI did not perform as good as Kenanga Growth fund.
Actually he's anti everything Malaysia. He mentioned anywhere is better. Even if he's pro US, he's laughing all the way to the bank as USD is still 4.3 vs the RM. Yes no doubt RM strengthen but how long can it last. I want the RM to strengthen (it's good for me) but I am a realistic person so I don't my hopes high

Algozen™ speaketh; listen well...

I tried putting in various UTF(s) into Algozen™ and letting her run the numbers. Maximum per simulation run is ten UTFs. Anything more, is limited by the correlation coefficient parameters. 

The criteria for selecting UTFs for simulations are:

1) Good risk to reward ratio among peers
2) They must have poor correlation among each other (meaning must be well diversified)
3) Good rating from FSM or other rating agencies such as morning star, lipper etc.

Some of the UTFs I used to run the simulation are:

KGF representing home ground

TA GTF, Manulife US & CIMB Titan representing US

CIMB Greater China &  Eastspring Dinasti representing Greater China

Esther Bond, RHB ATR & RHB EMB representing bonds

Manulife India

TA Europe

If I do not put those into the simulation it means those UTFs do not satisfy the above three criteria.

After running multiple scenarios (I think Dasecret gave it a fanciful name: Monte - Carlo simulation), Algozen™ came out with the best scenario that is:

TA-GTF @ 25%
India @ 10%
AMReits @ 25%
Ester bond @ 40%

This will give a ROI of 12 to 13% with a risk to reward ratio greater than two. This port is moderate with bias towards some aggressiveness. If you want to be more aggressive, reduce Esther Bond by ten percent and increase by proportion into the other. This port is scalable.

Take note that Algozen™ is very focused, she doesn't play Pokémon Go style. The above four are very well diversified and quite optimized in terms of risk to reward.

Xuzen

Thanks for the enlightenment!

Some questions here:
1) AMReits meaning AMASIA PACIFIC REITS PLUS or AMASIA PACIFIC REITS - Class B? Or is it either one?

2) What is Esther bond? refers to which UT specifically?

Can find answer from the first page:
https://forum.lowyat.net/topic/4193169

Esther Bond ---> Affin Hwang Select Bond Fund (MYR)
Selina REIT ---> AmAsia Pacific REITs - Class B (MYR)

hi peeps,

after opening an account i contacted the in-house investment specialist dude and he was really helpful in giving an in-depth recommendation on how i should get started. i'm quite convinced with his recommended portfolio but of course, it would be nice if i could gather some thoughts from the sifus here before i start committing into it.

kenanga growth fund - 10%
kaf vision fund - 10%
eastspring investment global emerging market fund - 10%
cimb principal asia pacific dynamic income fund - 20%
cimb principal global titans fund - 10%
rhb emerging market bond fund - 10%
affin hwang select bond fund - 10%
libra asnita bond fund - 20%

60% eq/40% fi

good portfolio to start off with?

hi peeps,

after opening an account i contacted the in-house investment specialist dude and he was really helpful in giving an in-depth recommendation on how i should get started. i'm quite convinced with his recommended portfolio but of course, it would be nice if i could gather some thoughts from the sifus here before i start committing into it.

kenanga growth fund - 10%
kaf vision fund - 10%
eastspring investment global emerging market fund - 10%
cimb principal asia pacific dynamic income fund - 20%
cimb principal global titans fund - 10%
rhb emerging market bond fund - 10%
affin hwang select bond fund - 10%
libra asnita bond fund - 20%

60% eq/40% fi

good portfolio to start off with?

Consolidate KAF > KGF = 20%
Eastapring > 5% Manulife india + 5% cimb greater china/10% india
Consolidate Rhb Emerging + Libra asnita > affin hwang.

You can use eUT to buy affin hwang select bond fund if you have >=rm5k. For this bond fund, ok to do lump sum one shot. This will save you few RM/year (no need to pay FSM MY platform fees).

yes, can try start with that portfolio for 2~3 yrs.....
in the meantime try to feel how your emotion response to the mkts movements.....
maybe you will feel that your portfolio returns maybe too slow or to volatile.......if in need and if possible try to make adjustment after the 2/3 yrs period.
if you really cannot sleep at night...then don't wait to make adjustment.

thanks for the quick reply but could you please elaborate a bit why i should be considering your suggestions?

Did you follow instruction to change the url to MYR or not. This looks like USD correlation

......
i heard from my gf to not buy manulife india for now as it's back up again. is it still a viable fund choice?
yes, i agree with you that i shouldn't touch my initial portfolio so soon as it's beneficial for me to learn markets movement through it. i'm open to any tweaks to the portfolio i posted if you have any!

Where to find this page?