3rd Quarter, 2012 – Watching them driving by

As the title suggests, we basically did very little to the Partnership’s fund during the months of July, August and September 2012. We did however disposed our entire stake in a machinery equipment business, for reasons stated in my previous post. I should have highlighted too that we added to our existing stake in an auto paint manufacturer, a smallish company, rarely mentioned in the media but has had a steady climb of net profit for the five straight years with an average return on equities at 15%. Further readings of their annual report highlighted their ability to pass the cost of rising raw materials to consumers, while requiring very little reinvested earnings and capital expenditure to grow their business. 21% of the Partnership’s capital are now invested in this company.

The Partnership’s return up to 28^th of September, 2012 is shown in table below. Returns are reported with dividends reinvested, but before advance payment to new capital added by partners during the year 2012 and before any additional capital or withdrawal made by partners.

Year	Partnership	Public Ittikal Fund	FBM KLCI	ASB
YTD 2012	26.7%	8.8%	6.9%	N.A

Sources: Morningstar Malaysia & Citibank Weekly Market Updates dated 1^st Oct 2012