CPFIS Guidance Please

[nitro]

1. Fund Selection

Try asking on Fundsupermart's forums. There are many more people there who look at funds and you may get better insights there. The Topic "Asia ex Japan Markets " has 8000+ posts, surely there is something useful there. 10+ years ago when I was looking at funds, the better managers in terms of track record seemed to be Schroders and Aberdeen.

However, Schroders lost their star manager (Ng Soo Nam) a long time ago so the product today is not the same - like the way the Chicago Bulls NBA team no longer has Michael Jordan so they are clearly a different team.

As for Aberdeen, it is still led by Hugh Young, possibly one of the rare value investors who is running a fund available to retail investors. However you must understand that the Aberdeen funds sometimes buy huge stakes in companies e.g. they own 11% of ST Engineering, 19% of City Developments, 10% of Eu Yan Sang, 8% of WBL etc.

Aberdeen's stakes are enormous relative to trading volume, which means that there is no way that Aberdeen can sell without destroying the share price. Economically, they have "married" these companies with no possibility of divorce. If you buy into Aberdeen's funds, recognize that you will be owning such companies forever. Good if the underlying economies are in a terrible recession (you are getting these companies cheap), bad if they are booming (you are buying the same companies at expensive prices). FWIW Asia does not appear to be in a bad recession yet.

Very good insight on the 2 x funds houses.

Just sold off my STI ETFs, looking at some Europe funds now by Templeton, there was an article from TheEdge (July issue) with Alan Chua from Templeton.

Hmn, since Ng Soo Nam is with Nikko now, will explore the funds offered by Nikko.

[d.o.g.]

Hmn, since Ng Soo Nam is highly endorsed by D.O.G, will explore the funds offered by Nikko.

I am not endorsing anyone!!!

Ng Soo Nam was a star many years ago. I have no idea about now. I have not kept up with what or how he is doing.

Hugh Young - my reservations about Aberdeen's portfolio construction have already been stated.

[Bibi]

I am not sure whether this question has been asked.

I have some shares purchased using CPF OA few months back and almost max out my limit. Can I sell the shares and purchase others within the same day? Or do I need to sell and wait for the amount to be credited into my CPF investment account before I can make purchases since my limit is almost max out?

[chialc88]

BiBi,
I had this experience but I'm not sure whether it's still the same now.

Short answer: After selling, you'll need to wait for the money to go back to CPF b4 buying again.

1. After selling, the money is in your CPFIS bank account.
2. Logon to CPFIS bank account and transfer the money back to CPF.
3. Call CPF and ask them to recalculate your stock purchase limit.
4. Logon to CPF and make sure new limit is calculated.
5. Q and buy shares - max out CPF limits.

QED.

Love Compassion

[Bibi]

Thanks chialc88.

[setan]

Thanks chialc88.

Hi Bibi,

This is what I experienced :

1) When you sell, the fund need to go back to investment account before you buy.
2) The investment limit will be adjust back to the "buy" amount of sold investment, not the "sold" amount.

Example :

Current investment limit : -10000
Buy amount of the investment : 20000
Sold amount of the investment : 5000
New investment limit : +10000

Hope this will helps, but I do not know there is any changes now.

setan

[setan]

Thanks chialc88.

Hi Bibi,

This is what I experienced :

1) When you sell, the fund need to go back to investment account before you buy.
2) The investment limit will be adjust back to the "buy" amount of sold investment, not the "sold" amount.

Example :

Current investment limit : -10000
Buy amount of the investment : 20000
Sold amount of the investment : 5000
New investment limit : +10000

Hope this will helps, but I do not know there is any changes now.

setan

Sorry, another point to add the 35% applied to stock investment needed to take into consideration.

[Bibi]

Ahh I got it now. Thanks setan.

[JonRobin]

Hi Guys,

I recently started using CPFIS. I use POEMS (via OCBC as bank linkage).

Which broker (which allows CPFIS) has given you a better deal on commission?

For POEMS, at current webpage, I see:

========
SGX Market (Traded Currency in SGD)

Contract Value
up to SGD50,000

POEMS Online / Mobile
0.28%

Broker - assisted
0.50%
========

(https://www.poems.com.sg/index.php?optio...&Itemid=64)

[opmi]

^^^ 0.0x% wont make much difference. Get one that is most convenient, user-friendly and assessible.

I think POEMS is one of the better ones.