HOW I MANAGE YOUR INVESTMENT.< Part 3 >

What you see above is the blank actual table currently i am using to summarize what fund and

how much allocation is chosen for my clients. It contains 2 tables, one on top of the other.

The top table consists of  3 broad columns tagged as Primary strategy plan, Current Strategy

and Current Return. In the Primary strategy column, i will input your proposed asset allocation

consistent with your Expected Return table (See sample in Part 2 article). The Current strategy

column will show actual dispersion of the portfolio from time to time. I can better manage your

proposed allocation by looking at this dispersion and should it rail-off from the initial allocation,

some corrective measures can be taken. The last column 'Current Return' enables me to see

the actual dispersion from the value perspective. Value here means what the market is giving us.

In conclusion, this top table is actually a representative of asset allocation seen in 3 forms, i.e.

proposed, current invested and current value. This table doesn't assist me to know the invested

value but rather supports me in way of monitoring the asset allocation of all your unit trust funds.

The bottom table, on the other hand functions differently.

It will show all the funds i have chosen consistent to your Expected Return table in Part 2 article.

From the previous example cited, your portfolio of unit trust investment will look something like

the one displayed in the table below.

I have chosen ( example only) 4 equity type funds and 2 passive types. This diversification of

funds is in tandem with the Expected rate of return table displayed in Part 2 which would

anticipate a return of 6.20% (moderate type profile). See carefully the table above. Notice

that it also conforms the amount dispersed for equity and Bond/MM which is RM 15000

and RM 35000 respectively. Look also the top table on the strategy plan column and current

exposure column. The current return column is left empty obviously! Figures will appear in this

column once the value invested is shown on the lower table.

Why you may ask, i choose 4 equities and not 1? Well, it a question of mitigation of RISK!

It means i have leverage the inherent risk of the aggregate equities exposure to minimum. 

Confused??? Don't worry. It is my job to maintain your investment therefore it is suffice for me

to know and not you. Cheers..!

This is the end of Part 3. In my subsequent posting, i have embedded the similar chart
as above but with invested value. Please ZOOM yourself in there now!