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Retired
14 yrs ago
Anyone knows why the Yield on HK Track Fund is not shown on SCMP under the stocks column? HK Track Fund's web-site shows that it declares twice a year dividends, why is this not shown in B5 of SMP business post? What is HK Track Fund's yield? Any comments on investing in it on a long term? Looking for capital gain and dividends on a long term like 10 years.
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Got no idea why SCMP doesn't list its yield. You can find its yield at: http://www.google.com/finance?q=HKG%3A2800 It's currently 2.38%.
Whether it's the right investment for you depends on what you want it for. Yes, it should give you capital gains and dividend appreciation over the next 10 years, but how much capital gain and how much dividend are you looking for?
Also, it should only form part of a diversified portfolio.
Whether it's a good investment also depends on if you plan to make regular investments in it or lump sum(s) as you would have to take into account transaction charges.
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Thks, Chris. I'm looking to build up my stocks portfolio with a cautious approach. I have kept it with blue chips in varying industries and investing in a tracker fund seem to be an appropriate approach. Am thinking of buying a few times whenever the market dips like recently. Currently I only have 4 different stocks in my portfolio and thus would like to add around 5 more different stocks including Tracker Fund and what they call defensive stocks. Since I've not been in active mode buying for some time, thks for the tip on transaction charges. Pls feel free to comments on my strategy.
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Hi Retired,
I generally don't recommend individual stocks unless I know the person has already got a well diversified portfolio. Otherwise they may be taking too much concentrated risk in individual stocks. I would make sure you're diversified across assets classes, e.g. stocks and bonds, as well as globally diversified.
So perhaps instead of buying different stocks you should be looking at different funds or ETF's.
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Thanks, Chris. My portfolio is mainly bond funds, annuities and CDs. I have some equity funds but they have lost some steam. Their returns were good for some time but not seem to have recovered from 2007 as much as I would like. I also don't like the management fees being charged when the funds are not even performing that well. It appeared that the stocks I hold have recovered more and also the dividends helped too. That was why I was thinking of more stocks to help beat inflation. I've seen the ones I hold (HSBC, Swire, etc) to have fallen to lows and climbed up again and still pay ok dividends whereas the recovery of the equity funds I hold have been slowly eaten by management fees and negligible distributions. But I'm not giving up on equity funds yet.....am due to see my fund manager next month for a review. Will see how it goes.
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You've got a fund manager?
You're doing the right thing. You still need some exposure to equities, either through equity funds or stocks, for long term growth potential and to combat inflation. Perhaps it's the choice of equity funds that you're in which are under-performing rather than the market itself.
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Wrong choice of words - not a fund manager but rather a designated manager for my account with the fund management firm. I have to switch those underperforming country funds which have high management fees to some other funds - I'll have another look at the choice of equity funds. Thks
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If the designated manager is there to serve you then tell him/her you're not satisfied with the funds' performance and see what they suggest changing.
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Topol
14 yrs ago
Has anyone ever made any money using funds?
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Uh, well, yeah.
If no one ever made any money from funds they would have closed down ages ago.
Of course that's not a guarantee that you will make money with funds. It depends on your fund choice, when you buy and how long you hold them for.
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Topol
14 yrs ago
Maybe I should clarify. Has anyone made money from funds in comparison to a passively managed tracker fund. For example, would a Hang Seng actively managed fund outperform the Tracker Fund over an identical period.
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Oh, is that what you meant?
Yes, there are actively managed Hong Kong funds that have beaten the Tracker Fund over different and long periods of time. However, the difficult part is trying to figure out which funds are going to beat it in the future as, just because a fund beat the index last year doesn't mean it'll beat it this year.
On the other hand there are many funds that don't beat the Tracker Fund.
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Ed
14 yrs ago
Good question... years ago I read somewhere that Warren Buffet said to never put money in mutual funds because with all the fees involved and index fund almost always comes out ahead in the long run.
I read Jack Volger's book 'Enough' (he started index funds after working in the mutual fund industry) and over the long term index funds always outperform - in the short term you will get some fund managers who luck out but they cannot maintain their luck... he also mentioned that a large number of mutual funds cease to exist because of poor performance...
Perhaps you can ask the funds you are considering investing in to compare the NETT - not gross - returns on their funds vs the index over say a 10yr period... I was pitched mutual funds a few years ago and this is what I asked for - they gave some sort of song and dance and at the end of it they wouldnt provide the comparison and went away...
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For many people who don't know how to invest or don't want to spend the time, then for their 401k, then yes, they should go for an index fund. Of course, even the people who do know how to invest make wrong choices or the market goes against them.
Index funds are good safe choices. But there are people who have handily beat them such as Peter Lynch and Anthony Bolton. The hard part is figuring out which ones were lucky as opposed to gifted and spotting them beforehand.
BTW if anyone wants to look up the reference it's John Bogle "Enough".
Also, no one says you can't own both. Personally I own a mix of stocks, managed funds and ETF's.
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"Also, no one says you can't own both. Personally I own a mix of stocks, managed funds and ETF's."
Ｔｈａｔ’ｓ ｗｈａｔ Ｉ ａｍ ｄｏｉｎｇ and on a half yearly basis, it's good to check the performance of each. However, I find that calculating the fees for managed funds is hard to keep up. Also, I find that for those managed funds which gives distributions, the distributions are not much and are usually reinvested. The thing I really don't like is to pay management fees when the funds underperform for long periods.
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Ed
14 yrs ago
Read Breakfast with Dave newsletter and came across this interesting info:
Did you know … that the gold price has quietly turned in a 16% price advance so far this year and barring a major reversal, this will be the tenth year in a row that the yellow metal has generated a positive “return” for investors. That compares with nine winning years for Treasuries, seven winning years for the broad commodity complex in general, and coming in last, is six for the equity market. The trend is your friend and it is likely with this relative performance in mind that retail investors have yanked money out of U.S. equity mutual funds now for 17 weeks in a row!
https://ems.gluskinsheff.net/Articles/Honey_Cake_with_Dave_090810.pdf
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Retired, I wouldn't get hung up on the fees. It's the performance that counts. If the fund is performing the best in its class then I wouldn't begrudge the investment managers their due. Conversely, if the fund has underperformed for long periods of time then it's time to get out of that fund.
The last 10 years have been far from typical. However that said I believe gold does play a part in diversifying one's portfolio. I just wouldn't go overboard in buying it.
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