Monday, March 17, 2008

HDFIV Report Card @ 14 March 2008

This is the first performance report of Hengdai Equity Fund IV ("HDFIV") to fellow shareholders. KLCI was at 1,330.61 at date of commencement of HDFIV i.e. 3 March 2008. As at 14 March 2008, KLCI was recorded at 1,179, representing a drop of 11%. As HDFIV has not made any investments, the return is nil. NAV in the able is defined as the net asset value of HDFIV or in layman terms is how much the fund is worth.

No purchases were made.

No investments were sold.

Asset Allocation

Asset allocation shows the three main categories that our money lies in. The main category which we are expected to invest in to make the return that we wanted is Equities. At the moment, Equities is at 0% as we have yet to make any investments. Secondly, Fixed Income is in the form of fixed deposits that provides stable but low return. This second category provides small return when the cash is yet to be utilised for investment. As there is a lock-in period for fixed deposit such as at least for two months (if the amount is less than RM5,000), there is a need to maintain cash in the form of 'pure' cash, which is the third category. The set back of holding 'pure' cash ("Cash") is that we do not earn any return at all.

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