Investment Performance Review 1H 2013 – Retirement Portfolio

Here, I wish share with you the part of my long term retirement portfolio which is being managed by a private fund manager, in KLSE. The potentials are higher return – matching long term savings with long term investment. Below is a screenshot of my portfolio holdings uncensored, to reflect the investment returns to date – in just less than 6 months after my first capital injection. There are a few blue chips stocks held in this portfolio, including QL Resources, AirAsia X, Maybank, Malaysian Building Society, Public Bank, Tune Holdings.

The unrealized paper gain of the portfolio hovers at 9 percent. 

Also, I want to share some scenarios which happened to some of my clients.  Remember 5 May? General election? People are generally cautious and in their opinion, market has reached all time high. So they hold their submission, sitting on cash. Which is not wrong, after all, no one can time the market. 

PMART PCM

But do you agree that whether the market is generally bullish or bearish, there is always undervalued stocks that escapes our radar, and that window of opportunity may be in a day or two, then it’s gone. But we have our jobs to do, so it’s impossible to spot these, and by the time we know, the window of opportunity is already closed.

 

*Also featured in the video – changing my mandate from Discretionary to Advisory, why and what buy transactions I did*

Of course, if there’s really no good buy at any time, any fund manager for that matter, will sit on cash and there will be no activity on our money. I give you an example of my account – since April 2013, only HALF of the amount I injected is invested so far. The rest are still in CASH, until today. But I trust the fund manager to do his job, so regardless of any market outlook or sentiment I just park my money there – if he spot good value, he can instantly execute. So far, it’s 9.34% gross return today, which is pretty awesome considering that’s only in 5 months time, and excluding dividends.

The second video below shows the returns for Discretionary accounts versus Advisory accounts, and how they perform versus KLCI.

The other thing is to know the industry or sector if we were to invest. I doubt anyone not working as fund manager knows every sectors there are to know without getting frustrated.

So here’s my opinion – if you want to explore or cover the entire market, leverage the resources and knowledge of a fund manager. Pay him some money and make sure his interest is aligned with yours. How? By paying him in accordance with your portfolio size or asset under management. Perhaps do this with part of your portfolio – you can learn and know what the fund manager buys too – and WHEN.

The other part of your DIY portfolio – focus on only a few sectors which you are familiar with, and doesn’t take much effort or time to research. Do Value Investing – like how Mr Lai Seng Choy did it in InvestBursa program, supercharging your way to financial freedom.

Related – Click Here for a Video Detailing More about how to participate, what are the charges, how it works, etc

This Post Has 6 Comments

  1. CF,

    Thanks for the sharing. Keep growing your freedom fund and before long, your financial freedom will be on its way to realization.

  2. Thanks for sharing!
    BTW what’s the difference between this managed fund and PRS?
    I understand this managed fund have upfront charges, higher than PRS?
    Thanks for your feedback.

    Jason Wong

    1. Hi Jason, PRS is essentially unit trust funds, lower risk and returns are more conservative. This is essentially a portfolio of direct stocks investment.

  3. Hi CF,

    May I know if below are the fees charged by Philip Discretionary/Advisory Account?

    3% withdrawal fee – this applies to withdrawing from EPF to invest with them
    1% annual management fee – prorated and charged monthly
    0.1% or min RM15 transaction fee – this is per transaction basis

    Thanks.

    1. Hi Daniel, pls drop me a mail at admin[at]howtofinancemoney.com and I can explain it in detail to you. TQ

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