Wednesday, 29 July 2015

Why are overvalued India equities still attracting foreign investors?

I'm not sure how many of us are aware of the fact that India equity market had an outstanding performance for the year 2014. Looking at the performance of India Stock Exchange (commonly known as Nifty), the index managed to achieve a double digit gain of 33.14% in 2014 alone!

Nifty returns 33.14% in 2014

With India equities making great gains in 2014, many analyst are saying that the India market has fallen into the overvalued category. As a matter of fact, in one of my older post on undervalued countries as of August 2014, India sits at the top of the overvalued category. 

Despite the above, India equities have managed to defy all odds and posted an incredible return for 2014. However in 2015, latest market valuation has made India an unpopular choice for many investors. Its current Fwd P/E of 18.3 is way above the 10 year average of 15.9.

In addition, a report by JP Morgan dated 30th June 2015 indicates that India equities are valuated at +4.5 standard deviation from the global average as shown below:

India Overvalued

How about 2015?
A peak into Nifty's YTD for 2015 indicates that the index is at -0.7% as of 28th July 2015.

Flat Nifty as of 28 July 2015
Further scrutiny shows that for the first 6 months, the Nifty actually shed 5.12% with a low point of 7965.35 points recorded on the 11th of June 2015. After which from the 11th of June 2015 till 22 July 2015, the Nifty enjoyed a brief rally by gaining 8.39%!

Brief Rally, Nifty gains 8.39%
The Nifty rally from Mid June till the 3rd week of July 2015 was partially supported by net inflow of foreign funds as indicated by data taken from MIDF Research. Beginning from week ending June 26th till week ending July 24th (except week ending July 3rd), we can see a large amount of net inflow of USD being invested into India.

Hundreds of million of net inflow within a one month period.
Why the sudden interest India?
Positive economic outlook as stated below:
The economic recovery continued with encouraging growth and inflation numbers. 
  • Index of industrial production expanded at pace of 4.1% y-o-y in April 2015 (against 2.1% in March 2015). 
  • Inflation consumer price index continued to stay at moderate levels at 5.01% in June 2015, close to the levels seen in May 2015. 
  • During its June 2015 policy meeting, the Reserve Bank of India announced an interest rate cut of 25 basis points. 
  • Banks continued to cut their lending rates in June 2015 and we expect rates to be gradually lowered going forward, which will help economic recovery.
  • Purchasing Managers' Index for India is at a healthy 51.3 (above the 50 level)
  • IMF's target growth projection for India is 7.5% (which exceeds that of China)
Further optimism if:
Important bills such as the Goods and Services Tax bill and the land acquisition bill due to be taken up in the upper house during the monsoon session of parliament set to begin in July 2015. Successful passage of these bills will be an important determinant of the confidence of the market in the government’s ability to push through reforms.

Biggest challenge for India?
  • Lower than expected rainfall during the monsoon season, which may have a negative impact on agricultural income. In addition, the agricultural export for India might suffer this year as highlighted in this article entitled "Agri Export Outlook Not Bright for India" from the Financial Express. 
  • Failure to pass the GST bill could also be another problem that deters growth for India. India is in need of a single tax system (such as GST) in order to wipe out the various taxes and levies currently in practice. 

Summary
Many articles, reports and valuations on India paint a picture of minimal opportunity for investment. No doubt the reasons for the poor outlook are based on fundamental evaluations as seen by the data provided in this article. 

What irks me most is that despite the poor valuations, massive amount of foreign fund are flowing into India over the past one month. Why is that so? Is there an expectation of a short term rally? Perhaps overvalued is just an interpretation that does not justify the vast opportunity offered by the equity market of India?

Despite not having the answers for my own self posed questions, I believe there are enough facts and data in this post for you to do additional research and determine for yourself whether it is worth investing into India or not.

If the answer is yes, there's one feeder fund which invest directly into India that you may consider. Just email me at shanesee03@gmail.com if you like to find out which fund is it.

That's all for this post!

Cheers and have a great week ahead.

Tuesday, 21 July 2015

Can Europe offer us an opportunity for short term investment?

Now that Grexit is temporarily averted through another bailout by the European Union, we finally witness some form of normality returning to most major European markets. For the past couple of months we bear witness to the Euro markets being severely shaken by concerns that Greece could default on their loan and ultimately "exit" the European Union.

Benchmark index such as the EURO STOXX 50 was dragged down by fearful investor sentiments over the Greek issue. Since April 2015, the index was bearish right up till early July 2015 as shown below:

EURO STOXX 50

Fortunately after several marathon sessions of negotiation between Greece and the leaders from the European Union, another bailout deal was agreed upon, albeit with stricter austerity measures being imposed on Greeks. In other words, normalcy has been restored (at least for now) and the nerves of many fearful investors have been calmed.

Now that the Greek treat has subsided, let us take a look at a few key reasons that makes Europe attractive for us investors. 

Reason 1 : Cheaper Valuation
Index wise, the Euro STOXX 50 is trading at 15.8 times estimated earnings. Despite being up from 12.6 times in January.it is still low as compared to US equities earnings (S&P 500 is trading at 18.0 times).

In terms of country, the two key European countries, Germany and France have evaluations below the Global Average. In addition UK which is part of the European Union also has an evaluation that is slightly lower to the Global Average. All three countries are attractive for investment epsecially when compared against the United States and Japan.

Evaluation for Market at Developed Countries

Reason 2 : European Central Bank (ECB) injecting 1.1 trillion stimulus
In an attempt to boost euro zone economy, the ECB which is lead by the optimistic Mario Draghi. has launched a bond buying program since March 2015. This program which is a form of Quantitative Easing (QE) will inject 1.1 trillion euros into Eurozone through gradual buying of bank bonds as well as private and public sector debts of eurozone countries. It is estimated that 60 billion euros will be spent on a monthly basis from March 2015 till September 2016.

Why QE? Here's a simple illustration on what ECB is trying to create:

QE concept courtesy of BBC.com 
The announcement of the 1.1 trillion euro stimulus has also dragged the euro lower vs the US dollar. So far the ECB’s bond buying weakened the euro as much as 14 percent against the dollar this year. That helped push up exports in the first quarter, leading to a 0.4 percent growth in the region’s gross domestic product

Reason 3 : Positive corporate earnings expected!
A flurry of corporate earnings are scheduled to be announced this week. The big guns from Euro STOXX 50 such as SAP SE, Novartis AG and Daimler AG. Lenders Banco Santander SA, Deutsche Bank AG and BNP Paribas SA will post earnings next week. It is expected that automobile companies and banks will be announcing major increase in earnings. 

Summary
Grexit averted, cheaper evaluations, massive QE as well as improved corporate earnings, Europe is fast turning into an attractive area for investment as compared to other developed and emerging countries.  Despite all the attractive points highlighted, I would still urge you to carry out additional research before investing. 

Lastly if you like to invest into Europe, my recommendation is for you to invest via a unit trust fund that has exposure into companies listed in the Euro STOXX 50. I already have a fund in mind that I would like to recommend you to check it out. However as usual, I will not be publishing the fund's name here in order to prevent bias. If you like to find out the fund's name, just drop me an email at shanesee03@gmail.com

That's all from me! 

Cheers and happy investing!

P.S : If Europe is not your cup of tea, you can also check out other unit trust funds investing in other countries. These funds are also currently undergoing a 0% sales charge promotion. Further details available HERE.

Monday, 13 July 2015

Malaysia suffers 11 consecutive weeks of foreign outflows! Plus other key fund flow highlights for week ending 10th July 2015

Here's the latest fund flow report from MIDF research for week ended July 10, 2015. There are some interesting findings that might be worth your time to read.

Market Snapshot:
Greece:
  • There was a flurry of activity over the weekend to decide the fate of Greece, which has sought a third bailout to help it face its EUR320b debt mountain.
China:
  • The CSI300 rose 5.7% last week after losing 27% in the preceding three weeks.
  • Bank of China injected Yuan35b into the money market through open market operations, the fifth cash injection since June 25, and said it will continue to support liquidity need of China Securities Finance Corporation Limited (CSF), the national margin trading service provider. 
  • China Securities Regulatory Commission (CSRC) said it would provide capital to mutual funds in order to increase liquidity to help offset redemption pressures. (Author's comment : This is an unprecedented move by China regulators. The Government is actually bailing out mutual funds!)
  • Authorities clamped down on “malicious short selling”.
  • China will also ban major shareholders from selling stakes in listed companies for six months. 

Snapshot of Major Asian Indices (%)

Asian Indices : YTD as of 10 July 2015


Author's comment : Despite the immediate yet draconian measures implemented by the Chinese regulators, the crash of China's market seemed to be in control at least for now. As of writing (13th of July 2015), the CSI300 has added another 2.563%. 

For international investors, we are not exposed directly to the CSI300 market where the so called A-shares are traded. A-shares can only be traded by the mainland citizens. Foreign investment is only allowed to trade A-shares through a tightly-regulated structure known as the Qualified Foreign Institutional Investor (QFII) system. 

Because of tight regulations imposed for A-shares, most China and Greater China unit trust funds from Malaysia tend to invest into H-shares and Red Chips which are traded at the Hong Kong exchange as well as B-shares which are traded at Shanghai and Shenzhen exchange.  

By investing into a mixture of H-shares, Red Chips and B-shares, most China and Greater China mutual funds are showing losses that are lower as compared to the losses from A-shares over the past 3 weeks. If you check my report on the Top 10 Performing Greater China Unit Trust funds as of 1st July 2015, you'll notice the average loss of the top 10 funds over a 1 month period is only -1.91% as compared to -17.97% loss suffered by the Shanghai Stock Exchange.


Fund Flow Report:
  • Investors classified as “foreign” were aggregate net sellers of listed equity in the 7 Asian stock markets that we track (Thailand, Indonesia, Philippines, India, Taiwan, Korea and Malaysia). The net amount sold surged to USD2.47b, the highest in a week this year
  • Foreign investors’ net sale in Korea surged to USD1.2b last week, the most this year. Korea appears to be among the hardest hit over the developments in Greece and China.
  • In Taiwan, foreign investors offloaded USD1.1b, the second highest in a week this year. However, the market was also struggling with a different kind of pressure. Taiwan was preparing for the arrival of Typhoon Chan-hom.
  • Heavy foreign attrition from Thailand where the amount of USD319m offloaded was the highest in a week this year. 
  • Meltdown in China cast a dark cloud over Bangkok as the Chinese market accounts for 12-13% of Thailand’s exports. 
Malaysia suffering the worst foreign fund outflow as compared to our closest neighbors


Weekly Net Flow of Foreign Fund


Tracking Money Flow - Malaysia
  • Foreign investors have now been net sellers on Bursa for eleven consecutive weeks. Last week, investors classified as “foreign” sold equity listed in the open market on Bursa (i.e excluding off-market deals) amounted to RM811.7m on a net basis. That was the 7th highest this year.
  • For 2015, last week’s selldown increased the cumulative net foreign outflow to RM9.8b, significantly surpassing the RM6.9b outflow for the entire 2014. 
  • Local institutions mopped up RM785.7m in the open market last week.
  • Local funds have mopped up RM11.2b this year, compared with RM8.2b in 2014.



Author's comment: It seems to me the local institutions are the ones supporting our local market. To me there are pros and cons to the foreign fund leaving Malaysian. 

Pros : Gradual reduction of foreign investment is way better then a sudden massive selling of foreign fund. History have shown that in a sentiment based environment such as the stock market, a sudden exodus of foreign funds could trigger panic which eventually would lead to a collapse in our stock market. Therefore, a slow and gradual exit of foreign funds is indeed a much preferred scenario for local investors as compared to the other one.

Cons : When foreign funds are net selling for 11 weeks in a row, it goes to show that Malaysia is loosing its attractiveness. Even with positive ratings given by Fitch early July 2015, the market continues to experience net foreign fund outflow! It is clear to me that as long as the RM42 billion debt problem is not resolved/clarified, we will continue to witness foreign funds exiting Malaysia.

The other trend that I noticed is the continuous buying by our local institutions over the past 7 weeks. If you are able to see the bigger picture, you''ll realize that it is us whom are actually buying up everything that was sold by the foreign investors. It is from the money that you and I have invested into local mutual funds, tabungs, danas and retirement schemes that are being used to purchase all that was sold by foreign funds. Is this a sustainable way to promote long term growth to the market? We all have to just wait and see. 

That's all for me! Cheers and happy investing!

P.S : If you find this post is useful, do share it with your family and friends via Facebook and don't forget to LIKE our Facebook page too!

P.P.S : With uncertainties clouding our local stock market, ever considered diversifying your investment into other countries? If the answer is yes, try checking out some of these overseas funds available for Malaysian investors for as low as 0% sales charge! Click HERE to find out more.

Sunday, 12 July 2015

Differentiating all 80 funds under the "0% Unit Trust Sales Charge Promotion". Fund category, fund risk profile and %YTD included!

Hi readers, another 20 days left for the "Invest for as low as 0% unit trust sales charge promotion". 80 funds from 6 funds houses are on low sales charge promotion until the 31st of July 2015. 

Now the problem with 80 funds in a single promotion is that investors/readers aren't familiar with each and every fund. To be honest, I myself am only able to identify between 20 to 30 funds from the promo list.

Therefore to make things easier for everyone (including myself), I have taken the liberty to check out each fund and cross reference them with data from Morningstar. By doing so, I am able to provide you with the following details:
  • Fund Category - This will help you to narrow down the sector or geographical location where the fund is invested in. 
  • Risk Profile (relative to M'sia market) - This will help you to sort out the risk category of each fund. 
  • Year To Date (%YTD) as of 9th July 2015 - This information will tell you the performance of a fund from 1st January 2015 till 9th July 2015

All the details available for download!
Yup, that's right, details for all 80 funds have been updated in an excel file as shown in the screenshot below:
80 unit trust funds details
You may download the excel file HERE.

What can you do with the excel file?
Using the "sort & filter function", you can now sort funds based on the category, risk profile and YTD. Hopefully this will help you to:
  • Select the category that you wish to invest in (sector or geographical location)
  • Find out the risk profile of each fund
  • Compare YTD Returns between funds from the same category

Unable to download the excel file?
For readers whom are unable to download the excel, I've made it easier for you by sorting all the funds according to category:

Non Islamic Funds by Category
1) All things Asia (non Islamic) Funds   
Asia (non Islamic) Unit Trust Funds

2) BRIC (non Islamic) Funds (Brazil, Russia, India & China)
BRIC (non Islamic) Unit Trust Fund

3) Europe (non Islamic) Funds
Europe (non Islamic) Unit Trust Fund

4) Global (non Islamic) Funds
Global (non Islamic) Unit Trust Funds

5) Indonesia (non Islamic) Funds

Indonesia (non Islamic) Unit Trust Funds

6) Malaysia Equity (non Islamic) Funds
Malaysia Equity (non Islamic) Unit Trust Funds

7) MYR Allocation (non Islamic) Funds
MYR Allocation / Balanced (non Islamic) Unit Trust Funds

8) MYR Bond (non Islamic) Funds
MYR Bond (non Islamic) Unit Trust Funds

9) Australia (non Islamic) Funds
Australia (non Islamic) Unit Trust Fund

10) Property/REITS (non Islamic) Funds
Property/REITS (non Islamic) Unit Trust Funds

11) Various Sectors (non Islamic) Funds
Various Sectors (non Islamic) Unit Trust Funds

12) United States (non Islamic) Funds
US (non Islamic) Unit Trust Funds

Islamic Funds by Category
1) Asean (Islamic) Funds
Asean (Islamic) Unit Trust Fund

2) Asia Pacific Equity (Islamic) Funds
Asia Pacific Equity (Islamic) Unit Trust Funds

3) Greater China (Islamic) Funds
Greater China (Islamic) Unit Trust Fund

4) Global (Islamic) Funds
Global (Islamic) Unit Trust Funds

5) Malaysia Equity (Islamic) Funds
Malaysia Equity (Islamic) Uint Trust Funds

6) MYR Allocation / Balanced (Islamic) Funds
MYR Allocation/Balanced (Islamic) Unit Trust Funds

7) MYR Money Market and Bond (Islamic) Funds
Bond & Money Market (Islamic) Unit Trust Funds

Summary
I hope that the uploaded excel file as well as this post will help you understand better the funds listed under this promotion. By zooming into the category of your choice, you can further research upon the funds in that category before making a decision to invest. 

Lastly, if you have any questions with regards to the above post, feel free to drop me an email at shanesee03@gmail.com

That's all for this post! Cheers and happy investing everyone!

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Details about the "Invest for as low as 0% Sales Charge promotion"
If you've not heard or read about the ongoing promotion, you can check it out the details below:



How to invest?
In order to invest, you need to have an eUnittrust account. 
  • To read about the eUnittrust and its benefits, click HERE
  • To register an eUnittrust account, click HERE

Thursday, 9 July 2015

Grexit and China market crash, how did Unit Trust funds perform during this period?

Crisis...crisis and more crisis!
Over the past one month, we've witness two major crisis which have rocked the equity markets all over the world.

Crisis 1 : Grexit
The first crisis begin on worries that Greece might default on their debt and eventually exit Europe. Failed negotiations and the calling of a referendum by Greek Prime Minister created panic especially in Europe, America and Japan markets.

Photo from Washingtontimes.com
While there is still no resolution of the Greece crisis as of time of writing, there's hope that a deal will be struck between Greece and their lenders by today.

Can a deal be struck?
Crisis 2 : China Stock Market Crash
Crisis number 2 is happening in China. If you've followed the news for the past couple of weeks, you should be well informed of the fact that the China equity markets have been bleeding points over the past one month..

Greed, euphoria and unfounded believe that the market will go higher are the catalysts that drove many retailers to invest/trade/speculate using money they do not have. Panic selling by China retailers whom borrow heavily to invest in the stock market have caused the market in China to "crash".
Her expression tells it all. Picture from usatoday.com
The spillover effect of the crash has also dragged down majority of Asia markets especially Hong Kong. As of date of writing, the regulators at China are imposing multiple measures to stop the stock market from further combustion. The latest move by China regulators to ban major shareholders from selling their stock holdings/stakes for the next six months seemed to have temporarily stem the crash.

How did Unit Trust Performed During These 2 Crisis?
With two crisis running amok in the equity markets over the past couple of months, I'm pretty sure most unit trust funds suffered losses. However I was rather pretty curious if any unit trust fund posted gain during this period? In order to find out, I went over Morningstar to check out the details..

IME Tip : I highly recommend everyone to refer to the Morningstar website when researching on unit trust funds. Apart from being comprehensive, you can also access all information absolutely free!

What went up?
Shown below are the top 5 unit trust categories which generated positive gains over a 3 month period (Data as of 30th June 2015):

Top 5 Gainers : 3-mth Return as of 30th June 2015

Rank 1 : Category RMB Bond
Funds listed under this category:
1. United RMB Income & Growth Fund MYR Class

  • 3-mth Return as of 7 July 2015 : +5.84%
  • Fund provider : UOB Asset Management (Malaysia) Berhad
  • Available online @ eUnittrust : No

2. United RMB Income & Growth RMB
  • 3-mth Return as of 7 July 2015 : +4.45%
  • Fund provider : UOB Asset Management (Malaysia) Berhad
  • Available online @ eUnittrust : No

Rank 2 : Category Islamic Global Bond
Funds listed under this category:
1. AmDynamic Sukuk
  • 3-mth Return as of 7 July 2015 : +1.30%
  • Fund provider : AmInvestment Services Berhad
  • Available online @ eUnittrust : Yes
2. AmGlobal Sukuk
  • 3-mth Return as of 7 July 2015 : +4.65%
  • Fund provider : AmInvestment Services Berhad
  • Available online @ eUnittrust : No

Rank 3 : US Mid-Cap Equity
Funds listed under this category:
1. RHB US Focus Equity
  • 3-mth Return as of 7 July 2015 : +2.10%
  • Fund provider : RHB Asset Management Sdn Bhd
  • Available online @ eUnittrust : Yes
  • Listed under as low as 0% Sales Charge Promotion : Yes

Rank 4 : US Large-Cap Blend Equity
Funds listed under this category:
1. Manulife Investment US Equity
  • 3-mth Return as of 7 July 2015 : +4.68%
  • Fund provider : Manulife Asset Management Services Berhad
  • Available online @ eUnittrust : No
2. RHB-OSK-GS US Equity Fund
  • 3-mth Return as of 7 July 2015 : -0.28%
  • Fund provider : RHB Asset Management Sdn Bhd
  • Available online @ eUnittrust : Yes
  • Listed under as low as 0% Sales Charge Promotion : Yes

Rank 5 : US Large-Cap Growth Equity
Funds listed under this category:
1. Franklin US Opportunities MYR
  • 3-mth Return as of 7 July 2015 : -1.28%
  • Fund provider : Franklin Templeton Investments
  • Available online @ eUnittrust : No
2. Franklin US Opportunities USD
  • 3-mth Return as of 7 July 2015 : +2.90%
  • Fund provider : Franklin Templeton Investments
  • Available online @ eUnittrust : No

What went down?
Here are the top 5 fund categories that lost the most during these 2 crisis:

Top 5 Losers : 3-mth Return as of 30th June 2015
Now each category has a list of specific funds under them (similar to the top 5 gainers list). The problem is that each category has quite a number of funds. Therefore instead of listing down all the funds in each category, I'm going to just list down funds that are currently available to be invested online.

Tip : The reason I am listing only funds available online is simple. If you as an investor believe that one of the listed categories has a chance of recovering from recent losses, why not invest into funds from that category at lower sales chargeBy doing so, a recovery by the invested fund is quickly translated into profit for you.

Rank 1 : Category China Equity
Funds available online under this category:
1. RHB Big Cap China Enterprise
  • 3-mth Return as of 7 July 2015 : +1.92%
  • Fund provider : RHB Asset Management Sdn Bhd
  • Available online @ eUnittrust : Yes

Rank 2 : Hong Kong Equity
Funds available online under this category:
-None-



Rank 3 : Indonesia Equity
Funds available online under this category:
1. Eastspring Investment Indonesia Equity MY
  • 3-mth Return as of 7 July 2015 : -11.18%
  • Fund provider : Eastspring Investments Berhad
  • Available online @ eUnittrust : Yes
2. RHB Indonesia Equity Growth
  • 3-mth Return as of 7 July 2015 : -8.38%
  • Fund provider : RHB Asset Management Sdn Bhd
  • Available online @ eUnittrust : Yes

Rank 4 : BRIC Equity
Tip : BRIC refers to Brazil, Russia, India and China
Funds available online under this category:
1. RHB-GS BRIC Equity
  • 3-mth Return as of 7 July 2015 : -6.06%
  • Fund provider : RHB Asset Management Sdn Bhd
  • Available online @ eUnittrust : Yes

Rank 5 : Category Greater China Equity
Funds available online under this category:
1. Manulife China Equity 
  • 3-mth Return as of 7 July 2015 : -10.16%
  • Fund provider : Manulife Asset Management Services Berhad
  • Available online @ eUnittrust : Yes
2. Pacific Focus China
  • 3-mth Return as of 7 July 2015 : -6.83%
  • Fund provider : Pacific Mutual
  • Available online @ eUnittrust : Yes
3. RHB Golden Dragon
  • 3-mth Return as of 7 July 2015 : +5.95%
  • Fund provider : RHB Asset Management Sdn Bhd
  • Available online @ eUnittrust : Yes
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That's all for this post!
Cheers and Happy Investing!

P.S :
1. If you have any inquiries or questions, feel free to email me at shanesee03@gmail.com
2. If you find this post is useful, do share it with your family and friends via Facebook
3. Don't forget to LIKE our Facebook page too!

Tuesday, 7 July 2015

FIMM's Free Unit Trust Investment Seminar - August 2015

Good news everyone!

Federation of Investment Managers Malaysia (FIMM) will be organizing two FREE public seminars this coming August 2015

Why is it FREE?
This is in line with FIMM's objective to conduct Investor Education programme as one of the mediums to explain and reach out to the public on understanding of unit trusts and the benefits of it.

What, who, when and where?
Seminar 1 (Kota Kinabalu)
Title : What are Unit Trusts, Benefits of Unit Trusts Investing & Understanding Its Risks
Date : 1st August 2015 (Saturday)
Location : Ming Garden Hotel, Kota Kinabalu
Time : 9:00am to 12.30pm
Speaker : Jit Singh
Language : English

Seminar 2 (Kuantan)
Title : Pelaburan Berasaskan Syariah
Date : 8th August 2015 (Saturday)
Location : Vistana Hotel, Kuantan
Time : 9:00am to 12.30pm
Speaker : Khamarul Hashim
Language : Bahasa Malaysia

Speakers' profile
Both Mr. Jit Singh and Mr. Khamarul are experienced speakers in the field of investment and wealth building. Check out their profiles by clicking HERE.

How to register for the seminar?
Call FIMM at 03-2093 2600
or 
email FIMM at corpcomm@fimm.com.my

Important : Registration ends 5 days before the seminar date

Why should you attend the seminar?
Why should you attend Seminar 1?
  • If you are new to unit trust investment, this seminar provides you with an introduction to unit trust.
  • The presentation title has the point "Understanding Its Risks" in it. This is a plus point for me because most seminars do not like to speak about risk moreover to include this topic in the presentation title. For this seminar to cover this topic on risk goes to show that this is in fact an educational seminar.
  • The speaker is a highly qualified individual specially engaged by FIMM.
  • The seminar is FREE. What more can you ask?
Why should you attend Seminar 2?
  • This is a specially organized to provide awareness for the Muslim community on the topic of syariah based investment.
  • I believe the speaker will cover on the concept of unit trust investing and how it is compliant to the syariah laws.
  • The speaker is a highly qualified individual specially engaged by FIMM.
  • Once again this seminar is also FREE!
My personal take:
I laud FIMM's efforts in conducting free seminars to create awareness on unit trust investing among the public. This is somewhat similar with IME's goal to educate readers on how to invest and manage their own unit trust investments. 

Due to the similarity of our goal, I approached FIMM with the intention of helping them to promote their seminars for free. Fortunately after numerous email correspondence with them, FIMM gave Invest Made Easy blog the approval to help promote their seminars and events. 

I believe this is the first time FIMM is reaching out to the public via blog posting. Therefore in order to prove the effectiveness of promoting FIMM seminars via Invest Made Easy blog, I would like to seek your favor to mention "Invest Made Easy blog" when registering for the seminar. 
Last but not least, do share this post with your family and friends (especially those that seek knowledge on unit trust investing). As the sayings goes, sharing is caring!

Cheers and Happy Investing!

Saturday, 4 July 2015

Top 10 Performing Greater China Unit Trust Funds as of 1st July 2015

Fund Category : Greater China
The best performing Greater China funds are compared according to these 4 criteria:
a. Ranking according to 5 Year Annualized returns
b. 4 weeks fund Gain/Loss ranking
c. Comparison against the Shanghai Stock Exchange (SSE) Index
d. Ranking according to Year to Date (YTD) returns

a) Top 10 funds ranked according to 5 Year Annualized Returns


Top 10 Unit Trust Funds Greater China (ranked by annualized returns)
5 Years Annualised Ranked 1 (Non-Islamic) 
CIMB-Principal Greater China Equity Fund (+11.03% per annum)

5 Years Annualised Ranked 1 (Islamic Equity) 
- Eastspring Investments Dinasti Equity Fund (+8.47% per annum)

b) 4 Weeks Gain/Loss Ranking Table for Category Greater China Funds:


Fund Name
YTD as of
28th May 2015
YTD as of
1st July 2015
4 Weeks
Gain / Loss (%)
4 Weeks Gain/
Loss Rankings
Previous
4 Weeks Gain/Loss Rankings
CIMB-Principal Greater China Equity Fund
24.53
20.66
-3.87
10
1
Manulife Investment - China Value Fund
26.9
23.09
-3.81
9
3
PB China Pacific Equity Fund
21.34
21.05
-0.29
1
9
Pacific Focus China Fund
19.36
17.81
-1.55
6
4
Eastspring Investments Dinasti Equity Fund
17.92
17.08
-0.84
4
7
Public China Select Fund
21.26
20.54
-0.72
3
5
PB China Titans Fund
18.59
17.3
-1.29
5
8
Public China Ittikal Fund
12.03
11.4
-0.63
2
10
MAAKL Greater China Fund
25.18
22.22
-2.96
7
2
AmIslamic Greater China
11.17
8.02
-3.15
8
6
AVERAGE 4 WEEKS GAIN/LOSS (%)
-1.91

Best Performing Fund over 4 weeks period: 
  • Non Syariah : PB China Pacific Equity Fund (Loss : -0.29%)
  • Syariah : Eastspring Investments Dinasti Equity Fund (Loss : -0.84%)
Worst Performing Fund over 4 weeks period:
  • Non Syariah : CIMB-Principal Greater China Equity Fund (Loss : -3.87%)
  • Syariah : AmIslamic Greater China Fund (Loss : -3.15%)

c) Comparison against the Shanghai Stock Exchange (SSE) Index between 28 May 2015 to 1 July 2015


SSE Index (28 May 2015 - 1 July 2015)


SSE Index (%) Gain/Loss : -17.97%

Comparison With:
Average Top 10 Unit Trust Equity (%) Gain/Loss : 
(Loss : -1.91% - Out performed the SSE Index)

Non Syariah Best Performing Fund:
PB China Pacific Equity Fund (Loss : -0.29% - Out performed the SSE Index)

Syariah Best Performing Fund:
Eastspring Investments Dinasti Equity Fund : (Loss : -0.84% - Out performed the SSE Index)

d) Top 10 funds ranked According to Year To Date (YTD) returns:


Top 10 Unit Trust Fund - Greater China (Year To Date)

YTD Ranked 1 (Non-Islamic) 
Manulife Investment China Value Fund (YTD : +26.9%)

YTD Annualised Ranked 1 (Islamic Equity) 
- Eastspring Investments Dinasti Equity Fund (YTD : +17.92%)



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For first time readers:
  • If this is your first time reading this review, do check out "A Guide Towards Understanding Unit Trust Performance Table". This guide will help you understand the review better.
  • If you are new to unit trust investing, I'll be more then happy to share with you on how to get started on Unit Trust Investing. Just drop me an email at shanesee03@gmail.com.

By the way, don't miss out on the ongoing Sales Charge Promotion!
There is an ongoing promotion for investors to invest for as low as 0% sales charge! The promotion runs from 26th June 2015 till 31st July 2015. The fantastic thing is that some of the top performing funds from this review are also listed in the promotion. They consist of:

Greater China Funds listed under the "Invest for as low as 0% Sales Charge Promotion"
Status as of 1st July 2015
Eastspring Investments Dinasti Equity Fund
No.1 ranked Islamic fund over 5 Years Annualized Return

For more information about the 0% Sales Charge Promotion as well as how you can start investing, just click HERE.