Friday, April 11, 2008

HDFIV Report Card @ 11 April 2008

(will try to update the chart later - unable to upload at the moment)

Kuala Lumpur Composite Index ("KLCI") increased from 1,221.98 (4 April 2008) to 1,246.79 (11 April 2008), representing an increase of 2.0%. Hengdai Equity Fund IV ("HDFIV")'s registered a return of RM26.64 or 0.31%, down from 1.37% in the previous week. So far, HDFIV is beating KLCI by 6.61%, lower compared to 9.54% a week ago. KLCI had a small rally on Wednesday and Thursday, increasing from 1,228.63 to 1,246.79, mostly boosted by plantation stocks. At the moment, our portfolio does not hold any plantation stocks hence not riding up together with the KLCI.


Bought 700 units of Bursa Malaysia (Stock code 1818) today at RM8.70.


No disposals during the week.

Asset Allocation

We have increased the equity exposure to 76% after today's purchase of Bursa Malaysia. That leaves a cash buffer of about 24% which will easily replenish itself back to 50% thereabout come the third month's capital inflow.

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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