NAV includes in the value of assets regardless is cash/stock value. NAV can be manipulated by distribution/unit split but end of the day it still reflects how much is the fund worth.


This post has been edited by Ramjade: Jul 13 2017, 11:08 AM

From what is given by investopedia, the NAV can be changed if no of assets go up. I.e. amount of cash holdings increases. If cash goes up, say price of stock and liabilities remain constant, asset goes up. No of units remain constant. Hence the NAV will go up if there's a drastic increase in cash inflow.

A very simple example
Cash = 1
Stock value = 2
Liabilities =1
Outstanding shares/units = 10

NAV = cash + stock value - liabilities / total units
NAV = 1 + 2 - 1 /10
NAV = 0.2

Now, let's increase the cash
Cash = 5
Stock value = 2
Liabilities =1
Outstanding shares/units = 10

NAV = cash + stock value - liabilities / total units
NAV = 5 + 2 - 1 /10
NAV = 0.6

No?

This post has been edited by Ramjade: Jul 13 2017, 11:18 AM

Cash have value. RM1 = RM1 It won't become -RM1 or RM2 unless we put it to work. It will forever be RM1. Of course it's not fair that injection of cash can increase the NAV, but the fund manager is mandate to not hold lots of cash so it's fair.
So back to topic, somehow, the fund manager had to deploy all this new cash. Now let's get into technicals of what "common people" will do if they see fund manager X inject bucketload of cash into Stock A. Common people will follow because they could think along the line, "if fund manager X into Stock A something good must be brewing in this stock, or else fund manager would not have buy so much. More and more people jump in, price of Stock A increases"


A fund have fixed amount of unit. If a fund want to increase it's unit, it must ask SC for permission. If the fund did not increase no of units, then yes, calculation is valid. If the fund increase the number of unit, NAV will drop as we all know. You can check out how many units in circulation in the prospectus.

This post has been edited by Ramjade: Jul 13 2017, 11:44 AM

Come come. Let me burst your bubble.
https://forum.lowyat.net/index.php?showtopi...post&p=85599049

Ok.

Let us look at manulife india which does not do distribution/unit split. Current unit in circulation as of June 2017 = 188.23mil units. Let see for July 2017, will the units increase/remain the same. If we can get the may FFS, we don't need to wait until august.

This post has been edited by Ramjade: Jul 13 2017, 12:28 PM

Definition is not that far off from Investopedia.

We will only know if we look at fund's fundfactsheet which don't increase NAV by distribution/unit split (eg Manulife India) If the unit doesn't increase next month that means the fund is limited by how many units it have. If it increase, that means, they are issuing new units for new investors.

I prefer if money can come back into bank account faster like Phillip Money market fund which have same day withdrawal.

Maybe you can convince him/her why you have confidence.

At the expense of platform fees. Every fund you buy have 0.1% platform fees per quarter

There's lots of funds which are "shells"
- TA Global Tech
- Manulife India
- RHB Income
- RHB Asian Total Return
- Manulife US
- RHB Emerging Markets Bond Fund

I think yes.
Reason: One is paying 2x
- feeder fund
- main fund

Just admit the fund is lousy. Liquidate it and put into other place. Mannulife AP reit hardly drop yo xuzen

This post has been edited by Ramjade: Jul 14 2017, 12:56 PM

Dividend not important. Same with unit split. If you are selecting stocks for income, dividend is important. The only unit trust where dividend is important are those amanah saham fixed price fund.

A little tip from an s-reit investor. S-reit dividend yield is one of the highest in the developed market. If you think S-reit focus on SG alone, that's where you are wrong. Many of their S-reits are listed on SGX but own overseas properites. I haven't seen the latest top holdings in FFS but this is my own real testimony. It's a rather stable place. Pity, I didn't buy more last time.

Btw, individual investor got 100% of the dividend declare. For fund, one only get 85% of the dividend as there's a 15% with holding tax for funds.

Hell even the 2 SG reit ETF are not properly diversify. One conventrate too much in SG, one concentrate too much in AU.

This post has been edited by Ramjade: Jul 14 2017, 03:22 PM

Could be
(i) fund manager could have make big bet and win big
(ii) sudden influx of money into the fund due to previous good move by fund manager (puchngnite denies that influx of money will increase the NAV drastically, I disagree as NAV = total assets (including cash) - liabilities / total units)

Until now, not sure whether it's cause by huge influx of cash or fund manager hebat. Fund manager came from RHB before.

I think people like Lee Sook Yee is going to get worried if this fund manager is really a powerful fund manager.

RM dropping.

He only show one part. Could have another part not shown. Now what is RM2000 when we can pocket RM200k easy free money if say interpac increase another 50%.

Practically it never even move. Either negative or same digit return
0.8% in 6 months vs Manulife at 6%+ in 6 months.

Don't get me wrong, as an S-reit investor, amasia holds decent reits (manulife US reits, frasers logistics and parkway life). But my guess is the fund manager have bought at wrong time as those who bough Manulife and Frasers earlier would have made double digit return (I have frasers in my portfolio). However, I would never considered Parkway as the reits yield is pathetic at ~4%. It's more of defensive play.

Manulife holding
Frasers logistics, Mapletree commercial, capitalland commercial, ascendas reit are all profitable reit. Ascendas and capitlalland commerical especially are well liked by institutional investors. Ascendas and capitlalland commerical are part of STI. They will buy even though yield is not nice.

Don't topup Amasia. I don't know what amasia fund manager did to warrant only 0.8% rise in 6 months but my own portfolio is slightly higher than Manulife.

This post has been edited by Ramjade: Jul 15 2017, 12:40 PM