Mistakes are bound to be made in one’s management of his or her money for investment purpose, especially when it involves emotions and subjectivity. I am not immune to this either.
During the first quarter of 2012, the earlier part of it saw more than a handful of cheap stocks in Bursa Malaysia, which yours truly failed to resist the temptation to invest in many of it. However, this hurted our performance by way of increased transaction costs as a result of my terrible attempt at being the Jack of all trades – trying to grab it all. Eventually I wisened up, but it was already too late. By calculations, all these clumsy ‘trades’ and lack of investing discipline contributed to an opportunity cost of close to 2.6% – means we may have increased our capital value additionally by that much had I not try to be too smart.
From this portfolio update onwards I’d like to share as well, the movement of the largest unit trust fund in Malaysia, Public Ittikal Fund and the FBM KLCI during the same period of year-to-date (YTD). Public Ittikal Fund, with the size of RM 3 Billion has been closed to new investors since June 2011.
These figures shall bear no indication on how we performed, because our performance has to be measured against ASB’s return at year end, over a minimum period of three years.
Year
|
Partnership
|
Public Ittikal Fund
|
FBM KLCI
|
ASB
|
YTD 2012
|
10.2%
|
3.63%
|
4.3%
|
N.A
|
Sources: Morningstar Malaysia & The Star Online
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