6% Annual Yield

[OngHuatHuat]

Okay... good luck!

Yes, I was invested 50% into equities. I sold enough so that now I am only 33% in equities.

 

[limster]

Annualized return since inception less than 4 %.

Cpf special win by quite a huge margin.

you are a funny guy. you don't know how to read fund factsheet? like i said, if you bother to learn more about this unit trust and study how it works rather than anyhow whack, you'll know you missed out something. note that factsheet is 31 Jan 2019 but the other link is FSM which takes into account the Feb rally...

 

[OngHuatHuat]

Current price: 1.70 sgd(as of 15 feb)

Launch price : 1 sgd in year 2003

Doesn’t fit in 6 % annual yield consistently.

you are a funny guy. you don't know how to read fund factsheet? like i said, if you bother to learn more about this unit trust and study how it works rather than anyhow whack, you'll know you missed out something. note that factsheet is 31 Jan 2019 but the other link is FSM which takes into account the Feb rally...

 

[limster]

Current price: 1.70 sgd(as of 15 feb)

Launch price : 1 sgd in year 2003

Doesn’t fit in 6 % annual yield consistently.

If you think First State is lying in their fund factsheet, pls complain MAS! Or maybe you can study the product characteristics more carefully.

By the way, the factsheet says 7.0% p.a. since inception, that means even going through the GFC, it was able to survive and recover well.... hats off to the fund managers.

 

[tangent314]

It's just the 10 year window starting right at the bottom of the subprime crisis stock market crash. All equities will be doing supremely well within this 10 year window, e.g. S&P500 had annualized 15.00% for the 10 years ending 31 Jan.

When it comes to unit trusts, you can always find some that did particularly well and many that did not do as well. You don't know whether the unit trust you choose will do well or not as past performance is no indicator of the future. The best you can do is to keep your costs as low as possible.

 

[limster]

It's just the 10 year window starting right at the bottom of the subprime crisis stock market crash. All equities will be doing supremely well within this 10 year window, e.g. S&P500 had annualized 15.00% for the 10 years ending 31 Jan.

When it comes to unit trusts, you can always find some that did particularly well and many that did not do as well. You don't know whether the unit trust you choose will do well or not as past performance is no indicator of the future. The best you can do is to keep your costs as low as possible.

look at the difference in performance between since GFC (10-years) :9% (as of 14 Feb you can add 0.2% due to the nice rally..)
and since inception (2003) when there was a China bubble etc: 7%.

Only 2 % difference, maybe time in market is better than market timing? I salute the fund manager.

 

[Mecisteus]

you are a funny guy. you don't know how to read fund factsheet? like i said, if you bother to learn more about this unit trust and study how it works rather than anyhow whack, you'll know you missed out something. note that factsheet is 31 Jan 2019 but the other link is FSM which takes into account the Feb rally...

I tell you. He is indeed a funny guy.

I wonder how he can become a tuition teacher.

The fund is distributing dividends. So unit price doesn't tell the full story.

Annualised returns is 7%. Unit price went up 70% since inception. That means a bulk of total returns come from dividends. Or there is a split.

 

[BBCWatcher]

The fund is distributing dividends. So unit price doesn't tell the full story.

And ordinarily the published total annualized return figures assume dividend reinvestment.

I’m with Tangent314 on this. A unit trust with these kind of figures over this particular time period is unremarkable, or even expensive. There’s no special skill involved, and the past does not necessarily predict the future.

 

[Mecisteus]

And ordinarily the published total annualized return figures assume dividend reinvestment.

I’m with Tangent314 on this. A unit trust with these kind of figures over this particular time period is unremarkable, or even expensive. There’s no special skill involved, and the past does not necessarily predict the future.

I don't think you understand the Maths that yyhwin was questioning.

 

[BBCWatcher]

I don't think you understand the Maths that yyhwin was questioning.

I do, and so do you. We’re in agreement.

 

[limster]

I feel that risk-adjusted return is relevant and thats why I don't evaluate fund performance based purely on absolute return. But I guess many investors here just look at absolute return!

I hold FS China as one of my biggest holdings with 12.28% p.a. over 10 years (I guess it became one of my biggest holdings due to capital gain) but I am more impressed by FS Bridge at 9.24% only 'losing' by 3% despite holding 50% bonds and a more diversified portfolio.

Anyway, its common knowledge that almost everyone in MM/SSI thinks unit trusts are bad! But since yyhwin's question is about 6% return and even lousy unit trusts can achieve that! So in the end, what return will you be satisfied with? Myself, I am satisfied with the returns from First State Bridge and First State China, so i'll keep these funds and just look at the capital gains occasionally... sadly FSM forces auto-reinvest of dividends so I have no dividends to collect!

 

[Mecisteus]

I do, and so do you. We’re in agreement.

Alright.

Actually total returns of 6% over 16 years is quite decent.

 

[Mecisteus]

I feel that risk-adjusted return is relevant and thats why I don't evaluate fund performance based purely on absolute return. But I guess many investors here just look at absolute return!

I hold FS China as one of my biggest holdings with 12.28% p.a. over 10 years (I guess it became one of my biggest holdings due to capital gain) but I am more impressed by FS Bridge at 9.24% only 'losing' by 3% despite holding 50% bonds and a more diversified portfolio.

Anyway, its common knowledge that almost everyone in MM/SSI thinks unit trusts are bad! But since yyhwin's question is about 6% return and even lousy unit trusts can achieve that! So in the end, what return will you be satisfied with? Myself, I am satisfied with the returns from First State Bridge and First State China, so i'll keep these funds and just look at the capital gains occasionally... sadly FSM forces auto-reinvest of dividends so I have no dividends to collect!

I thought he already said he wants a 6% yield. I think he is referring to dividends yield alone.

So add capital gains.

And he is looking for no potential loss.

If you live in India, I think you can achieve that with their government bonds.

 

[Mecisteus]

My instinct is correct.

https://countryeconomy.com/bonds/india

As I said, assuming you live in India.

 

[BBCWatcher]

Yes, that works. Pick an economy/currency with a higher inflation rate, and a 6% nominal yield is much easier.

 

[revhappy]

In the past whenever we had a currency offering high yield on fixed deposits, that currency has subsequently crashed. For example GBP, EUR and AUD used to have high yields in 2011-12. Now those currencies have fallen.

Currently, USD fixed deposits are offering high yield, so I am guessing USD is going to fall, is this logical? This is why I converted all my USD to SGD in interactive brokers and plan to open SGD Fixed deposit.

 

[limster]

In the past whenever we had a currency offering high yield on fixed deposits, that currency has subsequently crashed. For example GBP, EUR and AUD used to have high yields in 2011-12. Now those currencies have fallen.

Currently, USD fixed deposits are offering high yield, so I am guessing USD is going to fall, is this logical? This is why I converted all my USD to SGD in interactive brokers and plan to open SGD Fixed deposit.

so not only have you sold all your IWDA, you can converted the US$ back to S$

so the US market and US$ are both going to crash soon?

I better get ready warchest!

 

[revhappy]

so not only have you sold all your IWDA, you can converted the US$ back to S$

so the US market and US$ are both going to crash soon?

I better get ready warchest!

Usually when stocks rise USD falls because it is doesn't receive safe haven flows when there is risk on. So if markets continue moving up, then USD falls, so I will be a loser to sell IWDA and then watch USD falling.

If markets tank for some reason, then USD rises sharply.

I am terrible timer, so I understand markets can continue chugging up from here too. It is just that I don't want to risk it.

I am just wondering at what point US record debt load and it's deficits will hit it's ratings. The DXY is already at 96 and it was 80 sometime ago. Donald Trump could come out and say USD is overvalued and cause it fall. So I am just thinking what are the scenarios where USD will fall.

 

[Mecisteus]

In the past whenever we had a currency offering high yield on fixed deposits, that currency has subsequently crashed. For example GBP, EUR and AUD used to have high yields in 2011-12. Now those currencies have fallen.

Currently, USD fixed deposits are offering high yield, so I am guessing USD is going to fall, is this logical? This is why I converted all my USD to SGD in interactive brokers and plan to open SGD Fixed deposit.

Usually when stocks rise USD falls because it is doesn't receive safe haven flows when there is risk on. So if markets continue moving up, then USD falls, so I will be a loser to sell IWDA and then watch USD falling.

I don't think you get all the fundamentals correct.

1) Central banks raise interest rates to combat inflation and falling currencies. Not the other way around.

2) Stocks rise in the longer term because of earnings potential and valuations. Not so much on FX movements. Short to mid term wise probably they have a relationship.

If you are a not a trader, I don't think it's necessary to speculate the impact of FX on stocks which are denominated in major currencies.

 

[focus1974]

In the past whenever we had a currency offering high yield on fixed deposits, that currency has subsequently crashed. For example GBP, EUR and AUD used to have high yields in 2011-12. Now those currencies have fallen.

Currently, USD fixed deposits are offering high yield, so I am guessing USD is going to fall, is this logical? This is why I converted all my USD to SGD in interactive brokers and plan to open SGD Fixed deposit.

if USD falls , US stock market goes up.