160 Private Global Wrap Account (PGWA) - your answer to offshore investment 离岸投资

160 Private Global Wrap Account (PGWA) - your answer to offshore investment 离岸投资

We have customers who:-

(1) have savings oversea, e.g. people working in Singapore or HK but no time to do investment in their office hours

(2) want to invest their overseas saving but they are now staying in Malaysia

(3) want to build children's education funds in other currencies

(4) want to invest in overseas shares / ETF / unit trust

Overseas vs Offshore

Before explaining PGWA, it's very important to differentiate overseas and offshore. I use unit trust funds as example. In Malaysia, many of us invest in overseas funds (eg China funds) to diversified our portfolio. However, even though it is overseas fund, it is still investment in Malaysia and in MYR, the money is still in Malaysia.

For offshore unit trust funds, we are investing in funds outside of Malaysia. Example unit trust funds in Singapore market or US markets. The money is outside of Malaysia.

Using example of a person having savings in Singapore:-

(1) If he want to buy China funds in Malaysia, he has to move the money back into Malaysia, convert into MYR, then only he can invest.

(2) He has another options of buying China funds in Singapore without moving money back into Malaysia. This way his money is still in Singapore.

What is PGWA?

PGWA is our answer to people who want to invest his money that is outside Malaysia, or parents who want to build education fund in SGD or USD or AUD etc.

Comparing of buying shares / ETF, it may be cheaper to use Phillip Securities Singapore's platform than local investment banks platform. And we can reach out to so many stock exchanges.

In terms of unit trust, I can suggest more funds for clients like Taiwan fund or Korea fund. In Malaysia, we can only invest through Greater China fund or Asia Pac funds.

Why PGWA?

In PGWA, we have many PMA mandate that may be beneficial to investors.

Examples:-

PGWA - In this portfolio, investors can choose whether to invest in unit trust or shares available in Singapore or US other markets. Some of our customers buy Apple / Tesla shares etc.

PGWA PPM - In this portfolio, Phillip's fund manager will help investors to in shares in Singapore / HK / Thailand markets.

PGWA DWrap - For investors who are not comfortable investing in stocks, PGWA DWrap invest in a portfolio of unit trust funds that fund manager identified to be the best in the category.

So, imagine you are still working and you build your blue chips stocks or dividend stocks. By the time you retire, you can transfer all the shares into your personal CDS account and start getting those dividends.

PGWA suitable for you?

If you want to earn more for your offshore savings, you can invest it to grow without moving the money back to Malaysia.

Or you are parents who are planning for children's education fund in say SGD or USD, start by investing in offshore unit trust / shares directly in that particular currency to avoid future currency exchange rate loss.

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160 Private Global Wrap Account (PGWA) - 离岸投资方案

我们的顾客当中，有的:-

(1) 在国外有储蓄，例如那些在新加坡或是香港工作的，但无法在工作时间做投资

(2) 想投资他们在国外的储蓄但却住在马来西亚

(3) 想为孩子准备其他钱币的教育基金

(4) 想投资外国的股票/ETF/信托基金

国外 vs 离岸

解释 PGWA 前，先来分别国外跟离岸的区别。我以信托基金来做例子。在马来西亚，我们很多人都有投资国外基金（如中国基金）来分散风险。但是呢，虽然是国外基金，其实呢那个投资还是在国内并以马币计算，钱仍然在国内。

而离岸基金呢，我们是投资在存在于国外的基金。例如在新加坡、或美国市场的销售的信托基金。钱是在国外的。

比如某位在新加坡拥有储蓄的人:-

(1) 如果他想买在马来西亚的中国基金，那他就必须把钱从国外移回马来西亚，转换成马币，之后才能投资。

(2) 他还有另一个选择就是买新加坡销售的中国基金。如此，他的钱仍旧在新加坡。

什么是 PGWA?

PGWA 是给投资者的方案，来帮助他们投资于国外（离岸），或是父母为孩子建立新币、美元、澳币教育基金。

买卖股票 / ETF 来讲，或许通过 Phillip Securities Singapore' 平台会比较划算。且可以投资更多的股市。

以信托基金来讲，我可以建议更多的基金比如台湾或南韩基金。而在本地，我们只能投资大中华或亚太基金。

为何考虑 PGWA?

透过 PGWA，我们有几个组合供投资者参考。

例如:-

PGWA - 这个组合让投资者有机会投资于新加坡或美国等的信托基金、股票。有顾客买了 Apple / Tesla 股等。信托基金跟股票、ETF在同一个户头喔。

PGWA PPM - 这个组合让辉立的基金经理把投资者的钱投资在新加坡、香港、泰国股票。

PGWA DWrap - 对于较不能接受股票的投资者， PGWA DWrap 是基金经理帮投资者投资于一揽子的信托基金。

PGWA 适合你吗？

若是你想为在国外的储蓄赚取更多的财富，PGWA 平台让你免于把钱移回马来西亚。

又或者你想为孩子建立新币、美元的教育基金，现在就投资于离岸信托基金或是股票来避免将来要用到时面对汇率的损失。

159 Private Managed Accounts (PMA) - your answer to local shares investment 本地股票投资

 159 Private Managed Accounts (PMA) - your answer to local shares investment 本地股票投资

A lot of investors may be interested in investing in shares, but without the knowledge or time to do so. The current work around method is investing in unit trust to indirectly investing in shares. Now, investors can consider using PMA to hold shares.

What is PMA?

PMA is very similar to unit trust or fund of funds, depending on the target investment. The major difference between unit trust and PMA is management of investors' money.

In unit trust, all investors' money are put into a pool or a unit trust fund and then managed by a fund manager. During redemption time, investor will get back his investment in money only.

While in PMA, fund manager managed an investor's money separately from other people's money. During redemption time, investor has the choice of getting back his investment in money or shares etc.

Simple analogy to understand PMA

Let's say today I found a very good business that is worth investing, but I do not know how to run the business, I can invest in the business and become a sleeping partner. All I need to do is periodically spot check on the business or the account. At one day if I want to withdraw from the business, I get back my share in money. This is unit trust.

Let's say today I found a very good business that is worth investing, but I do not how to run the business, instead of joining the business as a sleeping partner, I decided to come out with the capital and employ a capable manager to run it for me. All I need to do is periodically spot check on the business or the account. At the same time, I may or may not want learn how to run the business. At one day, if I decided to terminate the manager's contract, (1) I can decide whether to sell the business and pocket the money, or (2) I can take over the business and run it myself. This is PMA.

Why PMA?

From the simple analogy, you can get the idea PMA is building an investment portfolio for your future. Why do I say so? Because we have many PMA mandate that may be beneficial to investors.

Examples:-

PMA Blue Chips - In this portfolio, Phillip's fund manager will invest investor's money into blue chips stocks.

PMA Dividend Enhanced - In this portfolio, Phillip's fund manager will help investors to invest in dividend stocks.

PMA Opportunity - In this portfolio, Phillip's fund manager will help investors to in small- and mid-cap stocks.

PMA UT - For investors who are not comfortable investing in stocks, PMA UT invest in a portfolio of unit trust funds that fund manager identified to be the best in the category.

So, imagine you are still working and you build your blue chips stocks or dividend stocks. By the time you retire, you can transfer all the shares into your personal CDS account and start getting those dividends.

PMA suitable for you?

I like to encourage investors to have a retirement fund making up of diversified portfolio. You must have EPF, PRS, unit trust and shares.

For shares, investors may not have the knowledge or time to invest. Why not give it to professional fund managers? Investors can top up regularly and build up a portfolio of shares for retirement.

I especially encourage investors to have blue chip stocks and dividend stocks. During retirement, we want passive income - dividend from EPF, unit trust, and shares.

Why not build it now instead of waiting until retirement? Working years are the prime investing time because we have regular income, sufficient time for portfolio to grow and top up to make grow bigger.

After retirement, we may have become too conservative to invest!

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 159 Private Managed Accounts (PMA) 本地股票投资的方案

有许多投资者有兴趣投资股票但却没有相关能力1或时间。目前只能透过信托基金来间接投资股票。投资者不妨考虑透过 PMA 持有股票。

什么是 PMA?

PMA 是辉立独有的投资产品，它类似信托基金或是 fund of funds，这就取决于投资在哪里。PMA与信托基金最大的差别在于投资者的钱如何管理。

在信托基金里，所以投资者的钱都会放进同一个基金里，然后由基金经理管理。在赎回时，投资者只以钱的方式拿回投资。

而在 PMA 呢，基金经理单单管理某位投资者的钱，不能把这位投资者的钱跟别的投资者的钱参在一起管理。在赎回时，投资者可以选择拿钱或是拿股票。

理解 PMA 的简单比喻

假设今天我发现了某个有利可图的生意，但我又不会管理，我可以参股成为睡觉的股东。我就是不时不时的查看生意或是账目。到某一天我决定退股啦，我只能以金钱的方式拿回我的那一份。这就是信托基金啦。

又假设我发现了某个有利可图的生意，但我不会管理，我可以出资然后请有本事的经理来管理。我就不时不时的查看生意或是账目，甚至从中学习。知道有一天时机成熟了，哦我决定不需要那位经理来管理了，我可以卖掉整盘生意或是自己接着做。当然也表示将来我可以让孩子继承生意喔。这就是PMA啦。

为何选 PMA?

从以上的比喻，你应该可以理解可以通过 PMA 来建立未来的股票投资组合。怎说呢？PMA 里有几个组合挺好的。

例如:-

PMA Blue Chips - 辉立的基金经理会把投资者的钱投资在蓝筹股。

PMA Dividend Enhanced - 辉立的基金经理会把投资者的钱投资在有派股息的股票里面。

PMA Opportunity - 辉立的基金经理会把投资者的钱投资在中、小型股票里。

PMA UT - 对于还不能接受股票的投资者，基金经理会把投资者的钱投资在有潜能又是最好的信托基金里面。

所以呢，试想你还在工作却已经开始建造你的蓝筹股或是股息股，以便你退休时，你可以把这些好股票转入你私人的 CDS 来收股息。多好呢？

PMA 适合你吗？

我乐意鼓励投资者把自己的退休金建造成多方收入的组合。你一定要有公积金、私人退休金、信托基金以及股票。

股票呢，不是每个人有能力或时间投资的。即如此，何不交给专业的基金经理呢？投资者可以不时的加码来创造更多股票组合供退休用。

我尤其鼓励投资者拥有蓝筹股和股息股。此类股票一般都属于大型的、赚钱的公司，所以比较安稳点。退休时，我们就像可以收到被动收入嘛 - 来自公积金、信托基金和股票的股息嘛。

因此，与其等到退休后，何不现在开始呢？乘着还在工作时仍然有固定收入、又有足够时间让投资增值变大时，开始吧。

退休后，可能我们已经变得保守而不敢投资了呢！

158 Do I prefer single country funds or regional funds?

 158 Do I prefer single country funds or regional funds?

In short, single country funds.

Why?

1. Easier to monitor. Each country has an index, easier to track the index of a single country. Example, track STI for Singapore funds, JKSE for Indonesia funds. If, example, you see an index drop, you know you can get cheaper fund price if you want to take advantage to do dollar cost averaging.

2. Easier to predict the closing price trend of the fund. Overseas funds' fund price normally come in 2 days later, so easier to track the index and predict the price trend. When you need to do switching or redemption, you can know you'll get a higher or lower price by seeing the index. You may not know the actual price, but knowing it is higher or lower than now.

3. The underlying asset is within a single country only. If a fund is Singapore fund, majority of the fund will be in Singapore. You know you won't order a durian but it become apple. I once bought a Far East fund with most of its investment in China, Japan etc.; but who knows few years later its allocation became majority in Malaysia.

4. Regional funds may invest in countries I don't favour or duplicated in my portfolio. Example, an Asia Pacific fund may invest in Japan and it could happened I may think Japan market is over-priced. Or an Emerging Market fund may invest quite a lot in China while I may already have China funds.

That said, the pre-conditions are:-

1. Capital. If I have enough capital to manually select the countries. If I only have few thousands, then maybe a regional fund.

2. No other choices. Two situations: First, example is I may want to invest in Thailand but there is no such fund in Malaysia, so I may use ASEAN fund that overweight Thailand. Second is let's say I may want a single country fund but it's not approved under EPf investment scheme, I may need to look for regional fund.

 158 我比较喜欢单一国家型基金还是区域型基金呢？

简单一句，是单一国家型基金。

为何？

1. 容易追踪。每个国家有自己的指数，那追踪单一指数容易过追踪一揽子指数。例如，新加坡基金就追踪海峡指数、印尼基金就追踪雅加达综合指数。若是看到某个指数大跌，就晓得基金报价也会变得便宜，这就容易进行摊平啦。

2. 比较容易预测基金的报价趋势。国外基金的报价通常会迟两天报出，所以比较容易追踪指数并预测报价趋势。当我们有意进行基金转换或是赎回，看单一指数就可以大约知道可以以更高或是更低的价位交易。当然无法知道真正的价位，而是知道更高或更低。区域型基金因牵涉多个指数，比较难预测整体的高低。

3. 基金后边的真实投资仅在一个国家罢了。新加坡基金顾名思义绝大部分投资在新加坡。买的是榴莲绝不会收到苹果的意思。我曾买过远东基金（投资于中国、日本等）但几年后发觉绝大部分竟然投资在马来西亚！

4. 区域型基金或许会投资于我不喜欢的国家或是重复的国家。例如，亚太平洋基金可能投资在日本而我可能觉得日本市场已经过热。抑或新兴市场基金可能投资于中国，而我已经另外有中国基金了。

当然，先决条件如下：-

1. 资本。如果我有足够的资本，就自行配置。如果只有区区几千元，可能就买区域型基金吧。

2. 别无选择。两个：其一，比如我想投资泰国而本地没有泰国基金，那可能就选侧重泰国的亚细安基金；其二，如果我要的单一国家型基金不开放于公积金投资，那只好屈就于类似的区域型基金。

157 Regular Savings Plan 2.0 (RSP 2.0)

157 Regular Savings Plan 2.0 (RSP 2.0)

RSP 2.0 is the total upgrade of RSP 1.0 and RSP 1.5.

Under RSP 2.0, all monthly top up will be channeled into cost-efficient unit trust investment platform (aka Wrap Account).

Under this cost-efficient platform, investors enjoy lower upfront service fee, and unrestricted free switching. There is an annual wrap fee though.

By using this cost-efficient platform, investors first pay lesser fee to lower his investment cost (faster to make profit). The difference can be as high as 2%-3% depending on funds. Meaning the same fund can be charge different service charge / service fee because of different platform use.

And investors can always use the best funds according to market conditions. Example before this China funds was leading but recently European funds has been rising. Under this cost-efficient platform, investors can choose and invest in the best funds in the market, at NAV price.

However, to achieve the privilege of free switching, investors has to pay a annual fee (Wrap fee). With that, investors need not be bound by a fund company's product only.

Under normal RSP 1.0, agents will not ask investors to take profit. Under RSP 1.5 and RSP 2.0, agent will ask investors to take profit and then re-deploy the redeemed amount into market by doing manual monthly switching.

It is very important to take profit. Market can be very volatile. By taking profit, investors can lock in profit and use it to re-invest again. The benefits of taking profits are:-

1) after long term of monthly top up, the total amount invested is no different to lump sum investment. Any large drop could have a big impact for the investment.

2) by locking profit, investors can use the profit or let profit be invested again, and thus compound the interest. So if market still go up, investors still enjoy new profits.

3) by locking profit, investors can wait for market drop to buy more cheap units.

4) letting a profit investment to become a loss investment is really a painful experience.

5) after locking in profit, investors will be very happy to see market drops. His emotion is totally different than letting whole investment floating with the market. For he knows he will make more profit by capitalizing the market movement, but he must have his first pot of silver (and his first pot of silver is exactly his redeemed profit investment).

So, if you have been investing for a long time, at a substantial amount with profit, you should consider doing your own RSP 2.0. However, if your platform is not switching friendly, then you should think somewhere else. Like I mentioned before, I transfer most of my investments from a very famous unit trust company into Phillip because it is not cost-efficient to do switching there.

156 Regular Savings Plan 1.5 (RSP 1.5)

156 Regular Savings Plan 1.5 (RSP 1.5)

Yesterday I wrote about our normal regular savings plan (RSP), where I termed it as RSP 1.0.

Today, I am going to write about RSP 1.5 (again, I created the term)

In RSP 1.0, when an investors accumulated sum becomes very big (e.g. RM100k), the whole investment is no difference from a lump sum investment.

In lump sum investment, any slight fluctuations in fund price will have a big impact on the value of the investment. Same in RSP 1.0. The investor will feel pain when seeing value drop.

The way to avoid earned profit from getting thinner or totally gone, is to take profit. The problem with taking profit is when should we invest back or where to invest next.

When one market is good, it usually means another market is also good. So it makes no sense to come out from this fund and go into another fund especially if they invest in similar sector/industry.

In RSP 1.5, we modified the whole investing process.

We start with an regular savings plan. After three to five years when the sum get big, we will take profit by redeeming the fund and re-invest into a cost-efficient platform. To be fair to clients, the re-invest is done at zero sales charge.

The original regular savings plan will keep on running in the original platform. Repeat the redemption and re-invest process after 3-5 years or profit target hit.

In the new platform, the whole amount will be put into bond funds and money market funds.Then, we split the amount into 30 parts and re-invest into equity fund every month. Whenever profit taking target is hit, the money in equity fund will be switched to bond funds again. Repeat the whole process.

This way, an investor can take profit when market is running up and re-deploy the money into market when market drop. As the market rapidly goes up, the frequency to take profit should happen faster. Hopefully investor can be in time to get out of market before a fall, or reduce the amount bought at high price. As the market goes down, the money in bond fund can be use to buy more units to expedite the process to make profit.

As the money keep on accumulating in original regular savings plan and cost-efficient platform, the monthly investment amount also becomes higher and higher. But the risk is greatly reduced.

Actually, the ideal situation is straight way implement RSP 2.0 (explain in later article). But because of Phillip Mutual's cost efficient platform requires a monthly RSP of minimum RM2,000, RSP 1.5 is the alternative method.

To give an idea of cost difference. Example of upfront service charge, normal unit trust platform will charge service charge of 5%-6.5% (depending on the fund). In cost efficient platform, upfront service fee is 3% only.

I also have some small investment in a very famous big fund house. I find it very costly to do frequent switching there because of the high switching fee.

Whoever familiar with unit trust investing, will know one of the strategy is re-balancing of equity-bond ratio. RSP 1.5 and RSP 2.0, though not re-balancing, are methods to take profit.