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Fund managers seem to be very restricted in their investments. We were just thinking one day and imagining when a large redemption occurs, if fund managers had placed their allocations into stocks that are highly illiquid, they will find it quite difficult to sell such stocks and therefore have to sell them at a very low price so as to meet the redemption. This implies they would prefer to place their allocations into stocks that are more liquid.
Judging by the monthly fact sheets published by them, where they show the funds' top 10 holdings, it is usually the common suspects which are highly liquid, Singtel, DBS, UOB, OCBC e.t.c. But are there interesting stocks not shown? Let us see.
Since the market is pretty uninteresting at the moment, we decided to peer into their equity holdings as shown in their prospectus, just to kaypoh a bit. We randomly picked 5 funds, whose objectives are generally the same : Capital Appreciation in the medium to long term. We have highlighted counters which only appears in one fund. Therefore, the fund with the most red colour counters is quite gungho as they have the most different counters.
Some of the red counters are really bad investments with totally no fundamentals are all, in our opinion.( Actually, its includes many of the black colour ones too) But its good to see some variety.
Aberdeen Singapore Equity Fund ( As at 30 Sep 2008)
Read more...[caption id="attachment_1342" align="alignright" width="210" caption="Photo by SGDividends"]
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Fund managers seem to be very restricted in their investments. We were just thinking one day and imagining when a large redemption occurs, if fund managers had placed their allocations into stocks that are highly illiquid, they will find it quite difficult to sell such stocks and therefore have to sell them at a very low price so as to meet the redemption. This implies they would prefer to place their allocations into stocks that are more liquid.
Judging by the monthly fact sheets published by them, where they show the funds' top 10 holdings, it is usually the common suspects which are highly liquid, Singtel, DBS, UOB, OCBC e.t.c. But are there interesting stocks not shown? Let us see.
Since the market is pretty uninteresting at the moment, we decided to peer into their equity holdings as shown in their prospectus, just to kaypoh a bit. We randomly picked 5 funds, whose objectives are generally the same : Capital Appreciation in the medium to long term. We have highlighted counters which only appears in one fund. Therefore, the fund with the most red colour counters is quite gungho as they have the most different counters.
Some of the red counters are really bad investments with totally no fundamentals are all, in our opinion.( Actually, its includes many of the black colour ones too) But its good to see some variety.
Aberdeen Singapore Equity Fund ( As at 30 Sep 2008)
Read more...
[/caption]
Fund managers seem to be very restricted in their investments. We were just thinking one day and imagining when a large redemption occurs, if fund managers had placed their allocations into stocks that are highly illiquid, they will find it quite difficult to sell such stocks and therefore have to sell them at a very low price so as to meet the redemption. This implies they would prefer to place their allocations into stocks that are more liquid.
Judging by the monthly fact sheets published by them, where they show the funds' top 10 holdings, it is usually the common suspects which are highly liquid, Singtel, DBS, UOB, OCBC e.t.c. But are there interesting stocks not shown? Let us see.
Since the market is pretty uninteresting at the moment, we decided to peer into their equity holdings as shown in their prospectus, just to kaypoh a bit. We randomly picked 5 funds, whose objectives are generally the same : Capital Appreciation in the medium to long term. We have highlighted counters which only appears in one fund. Therefore, the fund with the most red colour counters is quite gungho as they have the most different counters.
Some of the red counters are really bad investments with totally no fundamentals are all, in our opinion.( Actually, its includes many of the black colour ones too) But its good to see some variety.
Aberdeen Singapore Equity Fund ( As at 30 Sep 2008)
Read more...
