UT Portfolio as of 27 July 07

This is the time of the week to showcase my portfolio. This week has been pretty bumpy. With DJIA down more than 300pts on thursday and the Asian market losing more than 2% across, the week ahead will be very volatile. However, i see good opportunity in the coming weeks for more upside.

I will be watching the Thai funds..... :)

Princess Andrea Ng

This has got nothing to do with my postings on financial planning; but about a bundle of joy i would like all who visits my blog to share with me. Click on the image to visit her blog.

Portfolio Analysis

"Over-analysis creates Paralysis"

A 64-yrs old housewife beat top investment bankers to cliche top prize in a recent warrant trading contest. She traded solely in HSI warrants only. In 8 weeks, she managed to convert her S$100,000 virtual money into more than S$1,000,000. She eventually walked away with S$8,000 cash prize.

Moral of the story:

Maximise your senses; dun just think - learn to act (even on gut feel). To taste the food, one needs to take a bite. :)

UT Structuring 101

I received a call from a fren today asking me if i could help structure a portfolio for his client. As i have not met or spoken to this client of his, i will not be able to give any advice. Hope this fren understands my position. :)

Anyway, it is quite simple to structure a portfolio when you have the financial objectives of your clients:

1. Find out his current investment status (Any holdings in Stocks, UT, ILP or FDs)
2. Map out the investment horizon
3. Identify his preference in a particular investment (if any)
4. Evaulate his risk adversity (risk profiling)
5. Establish his required rate of return (e.g. better than FD rates)
6. Seek out UT funds that meets his risk-appetite & returns requirement

Though the above steps are not exhausive, it should be quite easy to start structuring some basic portfolio with the following "Rule of Thumb":

Conservative risk investor: 100pts
Medium risk investor: 110pts
High risk Investor:120pts

e.g. Medium risk investor aged 55 years => 110 - 55 = 55% Equity, 45% Bonds
e.g. High risk investor aged 30 years => 120 - 30 = 90% Equity, 10% Bonds

DISCLAIMER: This is not an inducement to buy or sell. You should do your own analysis on top of my postings. Pls seek professional help if necessary.

UT Portfolio as at 21 July 07

It's time to publish my portflio again; after a strong performance last week, emotions are again flying on whether a correction is round the corner. This resulted in volatility swings in the market this week. With Dow closing weaker yesterday (-149pts) after hiting a new record at 14,000pts mid-week, next week will be a healthy week with new records to be set. However, this is provided that positive/negative news on mid-yr earnings reports of companies do not cause too much excitement which would result in profit-taking by short term investors.

Personal Favourite for the 2nd half of 07:

1. DWS AgriBusiness
2. Aberdeen Thailand
3. Schroder ISF Emerging Market Opp
4. Fidelity SEA
5. DWS Climate Change

Updates: Schroder ISF Global Climate Change Equity

This is the other fund which deals with Climate Change. After looking thru the materials on hand; if i have to choose betwen DWS and this, i would be very lost. But here are some food for thoughts:

Schroder Climate Change:
1. Team of dedicated Fund Mgrs + Sectorial Specialist
2. Diverse portfolio allocation in US, EU, UK, JP, GEM & others
3. Concentrated stock pick (50-80 stks)
4. 5 diefferent investment themes

DWS Climate Change:
1. Same Fund Mgr as per their global equity fund
2. Less diverse allocation (mostly invested in EU & North US)
3. Diverse Stock pick (100-120 stks)
4. 3 Investment themes

The launch period will be from now till 8th August 2007. Priced at NAV $10.

DWS Global Climate Change Fund is now available!

DWS Global Climate Change Fund - Offer period starts from 16 July 07 till 17 August 07. Priced at $1.00 (NAV).

The interesting thing to note is that more than 40% is allocated in Europe and North America. My contact from DWS mentioned that this is due to the fact that these regions are more actively involved and technically more advance in curbing environmental problems than the emerging superpowers (e.g. China & India) in polluting. Since this is not a benchmark rigid fund, the fund mgrs has the option to skew their investment into emerging markets when the region is more ready.

As i have mentioned my preference to invest in Europe for long term, this fund happens to land into my radar. I will be looking at switching my Fidelity MAN fund into this or into DWS Agribiz. :p