Friday, March 28, 2008

HDFIV Report Card @ 28 March 2008


Kuala Lumpur Composite Index ("KLCI") increased from 1,189 (on 21 March 2008) to 1,256.54, representing an increase of 5.7%. Hengdai Equity Fund IV ("HDFIV")'s registered a return of RM223.94 or 4.39%, up from -0.87% in the previous week.

So far, HDFIV is beating KLCI by 9.96%, slightly higher than 9.77% a week ago.


HDFIV made an investment of 150 units of Malayan Banking Berhad at RM8.30 per share. The all in cost per share is RM8.36.

No disposals during the week.

Asset Allocation

We have increased our equities from 61% to 71% this week, still leaving a comfortable buffer in the form of fixed income and cash. The cash buffer, coupled with the incoming cash by next month, should provide sufficient capital to average down if the market continuest to plummet.

Note: 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. 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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