My Investment Record (19) - 31st March 2015

Market Overview

Last month, KLCI declined initially by 40 points into 1778.16 at 11th March, before slowly climbing back to 1830.78 level, 10 point higher than previous month closing. I believe for the next few months KLCI will probably trading around current level, until the effect of GST to Malaysia economy and corporate earning become clear. 

However, oversupply in crude oil market exemplified by the agreement of Iran nuclear deal might caused a burst in US shale oil & gas sector (see here). On the other hand, China is showing every signs of economy slow down (see here, here), the spread over effects to Malaysia economy might cast a shadow to future of KLCI index. 


Current Return and performance

The estimated holding period return for KLCI in the past period (1st March 2015 - 31st March 2015) is 0.79% (with dividend included). Holding Period return for my portfolio, is -1.45%. Total holding period return for my portfolio since the inception is10.02%, annualized to be 3.77%, this is far lagged behind KLCI total return of 21.27% (annualized, 7.75%) and just about the same as return from Fixed Deposit according to current market rate.

Trading Activities

1. Addition of MNRB (6459), although recent quarter results showing a loss for the insurance company, overall i still believe in the long run, insurance company like MNRB will remain profitable and produce handsome return. With share price cost only 2/3 of the book value per share, MNRB looks cheap for me. 

2. Addition of Symphony Life (1538), its unbilled sales increased significantly from 196 million at FY 2015 Q2  to 469 million at FY 2015 Q3, sign indicating that the company still has business ahead. Thus with projected P/E less than 5, and Price to book value around 0.4, the company looks attractive to me. 


Others Investment Notes

When tracking their performance with the market, others often didn't include the fact that stocks in KLCI index do pay dividend. Thus, they will often be able to show their results to be superior/close to the market performance. However, as the average dividend yield of KLCI stocks will be about 3.2%, this will often have a significant impact on whether your portfolio is outperform/underperform compared to the market. 

Taking my performance as example, if we take the dividend component out, KLCI annualized return will be close to 4.5% only, which is still superior, but not far away from my annualized return of about 3.8%.  

Holding high cash position in the long run when stock market is expected to go up at rate higher than Fixed Deposit's rate will hurt one's performance. This can be shown by ICAPITAL's last 4 years (including current FY) results.