Invest Made Easy

Top 10 Best Performing Unit Trust Funds As of 15th Jan 2013

Shane My
Publish date: Tue, 15 Jan 2013, 05:20 PM
Shane My
0 271
Like many of us, we seek for financial security and ultimately financial freedom. This blog is intended to act as a journal of investment as I journey towards that dream. At the same time, I hope that the articles written here would also benefit many others who share the same vision as me.
Following Message
I bring you the Top 10 Best Performing Unit Trust Fund as of 15th January 2013. Funds are grouped according to 4 Major Categories consisting of:
1. Equity Malaysia
2. Asia Excluding Japan
3. Greater China
4. Fixed Income (Malaysia)

All funds are ranked according to their Average 5 Year Returns (Annualized). 

Starting today, I'll be introducing a simple system to track the movement of the Top 10 funds in comparison to their previous ranking. Therefore the Top 10 funds for 15th January 2012 are compared with the fund previous ranking (1st January 2012). Funds movement are indicated based on the legend shown below:
Category : Equity Malaysia (Click Picture to Enlarge)


Overview for Equity Malaysia:
1. The usual suspects of MAAKL-HDBS Fixed Fund, AMB Dividend Trust Fund and Kenanga Growth Fund occupy the top three position of the best performing Equity Malaysia Fund once again. The big three as I would like to term them have also average more then 11% returns annualized over the 5 year period making them the choice of investment for many unit trust investors.
2. Impressive 1 year returns from Philip Master Equity Growth Fund and MAAKL Al-Fauzan helped raised respective Average 5 Year Returns.

Funds to watch :
1. MAAKL Al-Fauzan
2. Public Focus Select Fund
3. Hwang AIIMAN Growth (there is a similar fund offered by Hwang Management Sdn. Bhd. for PRS investment, click HERE to read more)

Category : Asia excluding Japan (Click Picture to Enlarge)


Overview for Asia excluding Japan
1. The top 5 of Asia excluding Japan funds have posted double digit returns for the past one year. A good sign that the Asia market is recovering. I've read several articles which are also expecting better performance of the Asia economy for 2013. Recommended to buy only as a diversification of your portfolio.
2. We also see the entry of MAAKL Pacific Fund into the top 10 list in place of PB Islamic Asia Strategic Sector Fund.. The rise of MAAKL Pacific Fund is due to the 13.06% returns for the one year period (3rd best ranked fund over the one year period).

Funds to watch:
1. MAAKL Pacific Fund
2. Hong Leong Asia-Pacific Dividend Fund
3. PB Islamic Asia Equity Fund

Category : Greater China (Click Picture to Enlarge)


Overview for Greater China
1. The top 10 funds remain unchanged in terms of ranking. As I have mentioned previously, buying Greater China funds is an option if your intend to diversify your portfolio. 
2. One year performance of all the funds are encouraging especially funds from CIMB.

Funds to watch:
1. CIMB-Principal Greater China Equity Fund
2. PB China Pacific Equity Fund
3. Hwang China Select Fund

Category : Fixed Income - Malaysia (Click Picture to Enlarge)


Overview Fixed Income - Malaysia
1. AmDynamic Bond remains the best performing Fixed Income - Malaysia fund. Not surprising with the average of 8.59% returns over 5 years. 
2. KAF Bond Fund rises from 4th to 3rd rank although their 1 year performance have not been encouraging. I believe the past couple of years, KAF Bond Fund should be averaging quite a high figure only to see a drop in ranking recently due to poor performance. Good news for all as KAF Bond Fund can now be purchased at Fundsupermart!

Funds to watch:
1. RHB Golden Life Today


If you like this article, you must can:
1. Share it on your Facebook!
2. Like my Facebook Page
3. Subscribe to me. See the "FOLLOW ME TO FINANCIAL FREEDOM" section located at the top left? Just key in your email and click Submit.

Cheers and Happy Investing!
More articles on Invest Made Easy
Dissatisfaction of the Unit Trust Industry, are you aware?

Created by Shane My | Jun 26, 2022

Is Investing into Award Winning Funds A Good Strategy? (Part 2)

Created by Shane My | Jun 17, 2022

Analysis of Fund Performance versus Fund Size

Created by Shane My | Jun 12, 2022

Is Investing into Award Winning Funds A Good Strategy? (Part 1)

Created by Shane My | Jun 12, 2022

"Top Performing Unit Trust Funds" Data, is it useful?

Created by Shane My | Jun 07, 2022

Cigarette Producer on a Roll...BAT (4162) Stocks on the Rise!

Created by Shane My | Dec 06, 2020

IME versus Market Analyst - Fun with Predicting UWC's Target Price

Created by Shane My | Dec 06, 2020

31 August 2020 Value Stock Price Analysis - YINSON (7293)

Created by Shane My | Aug 31, 2020

31 August 2020 Value Stock Price Analysis - CARLSBERG (2836)

Created by Shane My | Aug 31, 2020

Value Stock Pick - 24 August 2020: AMWAY (6351)

Created by Shane My | Aug 23, 2020

Discussions
Be the first to like this. Showing 2 of 2 comments

Kenneth Vertudez

Rgding the 3rd party ratings, Any other ratings for unit trust in Malaysia besides Lipper & morningstar ratings?

2013-08-06 10:20

kcchongnz

This is my personal assessment of Malaysian unit trust funds. To my surprise, they did pretty good as a whole.

Is it a good idea to invest through unit trusts? Which local equity fund is the best?

Once I asked a forumer who has been posting unit trust funds in i3investor what is the average and median CAR of the unit trust funds in Malaysia. He came back and asked me what CAR is. So I have no choice but to go to the Fundsupermart website myself and compiled and tabulate the compounded annual return (CAR) of the equity funds invested in KLSE for the 1, 3 and 5 years.

From the website, there are a total of 68 local equity funds investing in the KLSE. The average 1-year average and median return is both about 15%, 3 years 12.2% and the 5 years 11.6% as shown below:

Table 1: Fund performance in %
Years 1 3 5
Average 15.2 12.1 11.7
Median 14.9 12.3 11.6
Stdev 5.2 3.8 3.5
No.>KLSE 55 51 49
81% 75% 72%
Max 28.5 22.0 20.8
Min 3.6 3.6 4.0
KLSE 10.80 9.90 9.30

How is the past performance of the funds as a whole? My opinion is they did pretty well. The average returns of the unit trusts outperformed KLSE for all holding periods of 1-year, 3-year and 5-year by 4.4%, 2.2% and 2.4% respectively. 81% of the unit trusts outperformed KLSE for 1-year, and 72% for the 5-year. Even if one invested in the worst performer, he still earns more than the fixed deposit, assumed to be about 3.5%. Wonderful! I think I should make some observations as below:

1. The stock market, especially Bursa Malaysia, is far from efficient.
2. The fund managers in Malaysia are better than those from the US as research has shown that US fund managers under-perform the broad market as a whole. But it could also be due to the inefficiency of KLSE that enable them to out-perform.
3. The performance of the good fund manager are pretty consistent too. For example, Philip Capital Master Growth Fund is the No. 1 for the 1-year return of 28.5%. It also did pretty well for the 3-year and 5-year return of 18.4% and 20% respectively. Similar consistency is shown by the top fund for the 3-year, Kenanga Growth Fund at 22%, and MAAKL-HDBS Flexi fund for the 5-year as shown in Table 2 below.

Table 2: Top fund managers, % CAR
Year 1 3 5
1-year PC Master growth fund 28.5 18.4 20.0
3-year Kenanga Growth Fund 22.3 22.0 20.0
5-year MAAKL-HDBS Flexi Fund 20.9 20.5 20.8

My conclusion is that it may be a good idea for ordinary people who have not much knowledge and wish to invest in the equity market to invest in the local unit trust funds.

For individual investor, how is your return compared with the market? How is it compared to unit trusts funds?

Please note this article is just for sharing purpose. I am not a unit trust agent, neither am I a financial advisor.

kcchongnz

2013-08-06 10:31

Post a Comment