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)
Bukit Sembawang Estates Limited
Capitaland Limited
City Developments Limited
ComfortDelGro Corporation Limited
Eu Yan Sang International Limited
FJ Benjamin Holdings Limited
Fraser & Neave Ltd
Hong Leong Finance Limited
Keppel Corporation Limited
Oversea-Chinese Banking Corporation Limited
SBS Transit Limited
SembCorp Marine Limited
Singapore Airlines Limited
Singapore Airport Terminal Services Limited
Singapore Exchange Limited
Singapore Food Industries Limited
Singapore Petroleum Co Limited
Singapore Post Limited
Singapore Press Holdings Limited
Singapore Technologies Engineering Limited
Singapore Telecommunications Limited
United Overseas Bank Limited
Venture Corporation Limited
WBL Corporation Limited
Wheelock Properties (S) Limited
(SGDividends : Wah, all the counters like really household names man!)
HGIF Spore Eq-A USD (As at 30 Sep 2008)
ALLGREEN PROPERTIES LTD
BANYAN TREE HOLDINGS
CITY DEVELOPMENTS LTD
DBS GROUP HOLDINGS LTD
HO BEE INVESTMENT LTD
JAYA HOLDINGS LTD
KEPPEL CORP LTD
MOBILEONE LTD
SC GLOBAL DEVELOPMENTS
SEMBCORP MARINE LTD
SINGAPORE AIRLINES LTD
SINGAPORE EXCHANGE LTD
SINGAPORE PRESS HOLDINGS LTD
SINGAPORE TELECOMMUNICATIONS
STRAITS ASIA RESOURCES
UTD OVERSEAS BK
VENTURE CORPORATION
WHEELOCKPROPERT(SINGAPORE)LTD
WING TAI HLDS
SARIN TECHNOLOGIES LTD
BEAUTY CHINA HOLDINGS
ARA ASSET MANAGEMENT
MERMAID MARITIME PCL
Lion Global Balanced Fund (30 June 2008)
DBS Group Holdings Limited
United Overseas Bank Limited
Oversea-Chinese Banking Corporation
MacarthurCook Industrial Real Estate Investment Trust
CapitaMall Trust
Macquarie International Infrastructure Fund Limited
CapitaLand Limited
Hongkong Land Holdings Limited
Frasers Centrepoint Trust
CDL Hospitality Trusts
Suntec Real Estate Investment Trust
Ascendas India Trust
Ascendas Real Estate InvestmentTrust
SMRT Corporation Limited
Singapore Post Limited
Cosco Corporation (Singapore)Limited
Hyflux Limited
Unisteel Technology Limited
Singapore Technologies Engineering
AusGroup Limited
SBS Transit Limited
Peace Mark
Raffles Medical Group Limited
Wilmar International Limited
Ezion Holdings Limited
China Fishery Group Limited
Thomson Medical Centre Limited
Singapore Telecommunications
StarHub Limited
Keppel Corporation Limited
Tat Hong Holdings Limited
CitySpring Infrastructure Trust
Ferrochina Limited
SCHRODER SINGAPORE TRUST CL A(3o June 2008)
Asia Dekor Hldg Lt
Fraser and Neave Ltd
Golden Agri-Resources Ltd
Jardine Cycle &Carriage Ltd
Parkway Hldg Ltd
Singapore Airlines Ltd
Singapore Post Ltd
Singapore Press Hldg Ltd
Wilmar Intl Ltd
Jardine Strategic Hldg Ltd
Noble Group Ltd
ARA Asset Management Ltd
DBS Group Hldg Ltd
Keppel Corp Ltd
Oversea-Chinese Banking Corp Ltd
Singapore Exchange Ltd
United Overseas Bank Ltd
ASL Marine Hldg Ltd
ComfortDelGro Corp Ltd
Cosco Corp (Singapore) Ltd
Hiap Seng Engineering Ltd
Pan-United Corp Ltd
Rotary Engineering Ltd
SembCorp Ind Ltd
Singapore Technologies Engineering Ltd
Allgreen Properties Ltd
Ascendas Real Estate Investment Trust
Ascott Residence Trust
Bukit Sembawang Estates Ltd
Capitaland Ltd
CapitaMall Trust
City Developments Ltd
Guocoland Ltd
Keppel Land Ltd
Suntec Real Estate Investment Trust
UOL Group Ltd
Wing Tai Hldg Ltd
Datacraft Asia Ltd
Singapore Telecommunications
Total Access Communication PCL
DWS SINGAPORE EQUITY FUND(30 June 2008)
DBS Group Holdings Limited
United Overseas Bank Limited
Keppel Corporation Limited
Oversea-Chinese Banking Corporation
Singapore Press Holdings Limited
SembCorp Industries
Capitaland Limited
Cosco Corporation (Singapore) Limited
StarHub Limited
Fraser & Neave Limited
SMRT Corporation Limited
Capitamall Trust Real Estate Investment Trust
City Developments Limited
Singapore Exchange Limited
Wilmar International Limited
CDL Hospitality Trusts
Hotel Properties Limited
UOL Group Limited
Raffles Medical Group Limited
Jaya Holdings Limited
Unisteel Technology Limited
Ascott Residence Trust Real Estate Investment Trust
FJ Benjamin Holdings Limited
Singapore Airlines Limited
Wheelock Properties (S) Limited
Allgreen Properties Limited
Ausgroup Limited
Yanlord Land Group Limited
China Eratat Sports Fashion Limited
First Resources
Synear Food Holdings Limited
"Wide diversification is only required when investors do not understand what they are doing."- Warren (Pot calling the kettle black. Just joking, it makes sense actually.)
"Diversification is a protection against ignorance. It makes very little sense for those who know what they're doing" - Old Fogey WB
The strategy we've adopted precludes our following standard diversification dogma. Many pundits would therefore say the strategy must be riskier than that employed by more conventional investors. We disagree. We believe that a policy of portfolio concentration may well decrease risk if it raises, as it should, both the intensity with which an investor thinks about a business and the comfort-level he must feel with its economic characteristics before buying into it. - Old Fogey WB
Important: The objective of the articles in this blog is to set you thinking about the company before you invest your hard-earned money. Do not invest solely based on this article. Unlike House or Instituitional Analysts who have to maintain relations with corporations due to investment banking relations, generating commissions,e.t.c, SGDividends say things as it is, factually. Unlike Analyst who have to be "uptight" and "cheem", we make it simplified and cheapskate. -The Vigilante Investor, SGDividends Team
With the recent scandal of Madoff, it signals that the more people there are managing one's money, the higher the risk there is. Remember the lawyer who ran away with the clients money? So, in conclusion, the above shows when one uses fund managers, they decrease their returns and increase their risk.