Finally, we are doing a portfolio for our Malaysian readers!
Craig Rowland, the author of The Permanent Portfolio, mentioned that Permanent Portfolio (PP) should be implemented in their own country. Since we have done a version of Singapore PP, we think there is value to create a Malaysia PP.
Stocks – 25%
For stocks, the most suitable index-tracking ETF will be FTSE Bursa Malaysia KLCI (0820EA). It fulfills a few criteria:
- No active management or stock selection by the fund manager
- Tracks the big cap stocks of the Malaysian Stock Index
- Low cost (0.5% per annum)
- Reputable company (AmInvestment Services is part of AmBank, one of the largest bank in Malaysia)
The component stocks of KLCI are well known big cap stocks (as at 25 Jun 13):
- Public Bank Berhad
- Malayan Banking BHD
- CIMB Group Holdings BHD
- Sime Darby Berhad
- Axiata Group Berhad
- Tenaga Nasional BHD
- Genting BHD
- Petronas Chemicals ...
