Wednesday, 21 August 2019

Analysis of newly launched United Global Healthcare Fund by UOB Malaysia

United Global Healthcare Fund
UOB Asset Management (Malaysia) Bhd has recently launched the United Global Healthcare Fund to provide Malaysian investors with opportunities for long-term capital growth through investments in global medical healthcare stocks. 

Fund Focus Area
Based on the Product Highlight Sheet, the fund aims to achieve the following:
United Global Healthcare Fund Investment Strategy

Fund Background
Despite being newly made available in Malaysia, the United Global Healthcare Fund is in fact an fund that was launched in 2000 and managed by UOB Asset Management Limited, Singapore. 

To understand the potential that this fund new fund is able to offer Malaysian investors, let's take a look at the historical performance of the same fund via data from Singapore.

Fund Performance
1) Total Return of Fund since Inception (August 2000)
Initial Investment Amount: RM 10,000.00 
Period of Investment: 19 years
Current Investment Value: RM 68,762.28 (15th August 2019)
Annualized (%) Return: ~10.6% per annum

United Global Healthcare Fund Performance Sg since August 2000
2) Total Return of Fund (10 Yr)
Initial Investment Amount: RM 10,000.00 (21 August 2009)
Period of Investment: 10 years
Current Investment Value: RM 37,842.10 (15 August 2019)
Annualized (%) Return: ~14.2% per annum

United Global Healthcare Fund Sg Performance (10 Years)
3) Total Return of Fund (5 Yr)
Initial Investment Amount: RM 10,000.00 (15 August 2014)
Period of Investment: 5 years
Current Investment Value: RM 18,707.01 (15 August 2019)
Annualized (%) Return: ~13.3% per annum

United Global Healthcare Fund Sg Performance (5 Years)
4) Total Return of Fund (3 Yr)
Initial Investment Amount: RM 10,000.00 (19 August 2016)
Period of Investment: 3 years
Current Investment Value: RM 12,171.77 (15 August 2019)
Annualized (%) Return: ~6.77% per annum

United Global Healthcare Fund Sg Performance (3 Years)

All in all, the double digit Annualized (%) Return for 19 years, 10 years and 5 years for this fund are pretty impressive. Next up is for us to get a holistic comparison in terms of investing into this fund versus investing into our own Malaysia Mid/Small Cap Equity funds.

Fund Comparison 
(United Global Healthcare Fund Sg vs Equity-Malaysia Mid/Small Cap funds)
The reasons Malaysia Equity Mid/Small cap category was chosen for comparison are due to the following:
  • Funds in this category have been the best performing as compared to other categories
  • Funds in this category are popular among Malaysians investors 
1) 10 Year Annualized (%) Return Comparison
Ranked by Annualized Return:
  1. Eastspring Inv Small Cap Fund: 14.22% 
  2. United Global Healthcare Fund (Sg): 14.2% 
  3. Kenanga Growth Fund: 13.90%
  4. Areca EquityTRUST: 13.37%
  5. Manulife Investment Progress: 10.53%
  6. Public Small Cap: 10.05%
  7. Funds ranked 7 and below have only single digit annualized return (Total Funds: 23)
2) 5 Year Annualized (%) Return Comparison
Ranked by Annualized Return:
  1. United Global Healthcare Fund (Sg): 13.3% 
  2. Areca EquityTRUST: 8.87%
  3. Hong Leong Penny Stock: 8.20%
  4. Hong Leong Growth: 5.48%
  5. Funds ranked 4 and below average less than 5% in annualized return (Total Funds: 23)
3) 3 Year Annualized (%) Return Comparison
Ranked by Annualized Return:
  1. Areca EquityTRUST: 14.51%
  2. Hong Leong Penny Stock: 7.97%
  3. Hong Leong Growth: 7.96%
  4. United Global Healthcare Fund (Sg): 6.77% 
  5. Singular Value: 5.93%
  6. Kenanga Malaysian Inc: 5.78%
  7. KAF Tactical Fund: 5.64%
  8. Funds ranked 4 and below average less than 5% in annualized return (Total Funds: 23)
Summary
As shown in the Fund Performance and Fund Comparison section of this post, the United Global Healthcare Fund (Sg) as well as the upcoming Malaysia version  will certainly be a great addition to any portfolio of investors in terms bringing in better than average returns. Exposure into the healthcare sector via this fund also provides a good diversification element to an investor's portfolio.

For further in-depth analysis/discussion of this fund in terms of resiliency towards market crashes, check out our discussion topic at The Guided Investor Forum under UT Funds Discussion Category

Cheers and Happy Investing!

EPF i-Invest Online Platform (FAQ - General)

This FAQ is taken from EPF's i-Invest portal and published as a form of reference for Malaysians who has yet to register an EPF i-Akaun. Registered members can also log-in to their EPF i-Akaun and access i-Invest platform via the Investment tab.

What is an EPF i-Akaun?
i-Akaun is an online services portal provided EPF

What is an EPF i-Invest Online Platform?
An online portal that enables eligible members to invest directly in unit trust (UT) funds offered by EPF-approved fund management institutions. The i-Invest platform is accessible via the Investment Tab of an i-Akaun member. Features of this platform are:
  • Information hub: You can access, analyse and compare useful information on Fund Management Institutions (FMIs) and approved unit trust funds, such as cost of investment, historical performance and statutory information.
  • Efficiency: Real-time transactions and shorter end-to-end processes by eliminating the middle men.
  • Flexibility: You can execute unlimited transactions (buy, sell or switch) at anytime from anywhere in the world on any number of approved unit trust funds offered by FMIs. If you are aged 55 and above, you can still utilise the i-Akaun (Member) to invest conveniently with FMIs. However, EPF releases control over such investments, as they are withdrawals from your Akaun 55 and/or Akaun Emas.
  • Cost optimisation: Initial service charge capped at 0.5% through the i-Akaun (Member) versus 3.0% through agents.
  • Functionality: You can view your consolidated Members Investment Scheme (MIS) investment holdings with detailed breakdowns by FMIs/IUTAs, approved unit trust funds and private mandate portfolios.

What is Members Investment Scheme (MIS)?

Members Investment Scheme (MIS) is an initiative by the EPF to provide investment options to members in enhancing their retirement savings. It allows only eligible members to voluntarily transfer a portion of their excess savings from EPF Account 1 to FMIs/IUTAs for eligible investments. The MIS was introduced in November 1996.

Am I eligible to invest through MIS?
You can invest through MIS if:
  • Your EPF Account 1 savings exceed Basic Savings;
  • You are aged below 55*; and
  • You have an investment account with any FMI/IUTA
* If you are aged 55 and above, you can still utilise the i-Akaun (Member) to invest conveniently with FMIs/IUTAs. However, EPF releases control over such investments, as they are withdrawals from your Akaun 55 and/or Akaun Emas.

If you are a non-Malaysian, you are eligible to invest through MIS only if you registered with the EPF before 1 August 1998 or are a permanent resident.

What is Basic Savings?
It is the minimum level of savings you should have in your EPF Account 1. The minimum level increases with your age. If your EPF Account 1 balance is below your Basic Savings, you cannot invest through MIS. Click here for Basic Savings table.

How can I invest through MIS?
You can now invest through MIS using: (a) agents; or (b) the i-Akaun (Member). The Investment tab on the i-Akaun (Member) is an online, self-service function that does not require agents. As such, you may be charged higher fees when investing through agents versus the i-Akaun (Member).
How much can I invest through MIS?
You can invest your entire Available Investment Amount. After clicking on the Investment tab on the i-Akaun (Member), your Available Investment Amount is shown under the BUY tab. For further information:

Members aged below 55: 
  • You can invest all your Available Investment Amount. Available investment amount = Eligible investment amount - Transferred amount.
  • The Eligible Investment Amount is equivalent to 30% of any amount exceeding your Basic Savings. The transferred amount is the amount that has already been invested through MIS. 
  • Furthermore, the minimum MIS investment amount is RM1,000. Therefore, the minimum savings in excess of Basic Savings required is RM3,333.34, such that RM3,333.34 x 30% = RM1,000.
Members aged 55-60: 
  • Your Available Investment Amount is equivalent to almost the entire Akaun 55 balance; however, you must maintain at least RM1,000 in the account.
  • Furthermore, the minimum withdrawal amount for investments with FMIs is RM1,000.
Members aged 60 and above: 
  • Your Available Investment Amount is equivalent to almost the entire combined balances in your Akaun 55 and Akaun Emas; however, you must maintain at least RM1,000 in Akaun Emas.
  • Furthermore, the minimum withdrawal amount for investments with FMIs is RM1,000.
All ages: 
  • The minimum investment amount also depends on the chosen unit trust fund and whether the investment is an initial or subsequent one.
Example 1
If you are 30 years old, the Basic Savings is RM35,000. If your EPF Account 1 savings balance is RM50,000, the Eligible Investment Amount is: (RM50,000 - RM35,000) x 30% = RM4,500. 

If you have already invested RM2,000 through MIS within the current validity period, the Available Investment Amount is RM4,500 - RM2,000 = RM2,500, which is more than the minimum MIS investment amount of RM1,000. 

If the minimum fund investment amount is RM1,200, you must invest at least RM1,200 in the unit trust fund, up to a maximum of RM2,500.

Example 2: 
If you are 30 years old, the Basic Savings is RM35,000. If your EPF Account 1 savings balance is RM37,000, the Eligible Investment Amount is: (RM37,000 - RM35,000) x 30% = RM600. 

You cannot invest through MIS since RM600 is less than the minimum MIS investment amount of RM1,000.

What is the validity period?
After clicking on the Investment tab on the i-Akaun (Member), your validity period is shown under the BUY tab. For further information:

Your eligible and Available Investment Amounts are applicable for 3 months only, beginning from any attempted MIS transactions after the end of the last validity period (if any).

For example, if you attempt a MIS transaction on 4 January 2019, the validity period will be from 4 January 2019 to 3 April 2019. You may make as many transactions as you wish within this validity period, subject to the Available Investment Amount. After 3 April 2019, if you attempt a MIS transaction on 1 May 2019, the updated validity period will be from 1 May 2019 to 31 July 2019.

What is FMI?
A FMI is a fund management institution approved by the EPF to offer eligible investments to EPF members. FMIs are typically unit trust management companies (UTMCs) or asset management companies (AMCs). FMIs are governed by the EPF’s Guidelines on EPF MIS.

What is an IUTA
An IUTA or Institutional UTS Adviser is a corporation registered with FIMM that is authorised to market and distribute various unit trust funds of FMIs. When investing through the i-Akaun (Member), approved unit trust funds of certain FMIs can only be transacted through IUTA platforms (this is because the relevant FMIs do not have their own platforms that are connected to the i-Akaun (Member)).

When does the EPF release control
The EPF releases control over investments through MIS, subject to any other conditions, under the following scenarios:
  1. You have attained the age of 55;
  2. You have passed away and a full withdrawal of your EPF savings is made by your next-of-kin, beneficiaries and/or nominees;
  3. You make a full withdrawal of your EPF savings due to physical or mental incapacitation that prevents employment;
  4. You make a full withdrawal of your EPF savings as a non-Malaysian and are about to leave Malaysia; or
  5. You make a full withdrawal of your EPF savings as a pensionable employee aged below 55 and are still employed with the Government of Malaysia, any State Government or any statutory or local authority.
What happens when EPF releases control
When the EPF releases control, you must deal directly with FMIs in relation to any investments previously made through MIS. If you redeem any investments, the proceeds cannot be deposited back into your EPF account(s), and must be deposited into your personal bank account. Kindly contact the relevant FMI for further clarification.

Sunday, 18 August 2019

EPF Approved Unit Trust Funds (Pdf Analysis + Excel Data Pack)

Contains:
  • 7 years of unit trust fund performance data with specific annual return (%) from 2012 to 2018
  • Analysis of fund performance for the following categories (equity-conventional funds, equity-islamic funds, mixed assets-conventional funds, mixed assets-islamic funds, bond funds and money market funds)
  • 7 years back simulation of all investment into EPF approved unit trust funds versus EPF benchmark return in order to show which unit trust fund managed to outperform EPF return.
  • Data Pack in excel format containing each individual fund data are provided for you to further analyze and back test any investment scenario.
  • Compare your existing EPF invested Unit Trust fund against competing Unit Trust funds from other providers.

BUY the analysis and data pack:
https://shanesee03.wixsite.com/theguidedinvestor/online-store/EPF-Approved-Unit-Trust-Fund-Data-Pack-p146943645

 
Screenshots of the analysis and data pack:
Data Pack Excel File (sample)

Analysis of Data by Category (Sample 1)

Analysis of Data by Category (Sample 2)