Tags
2014, Emerging Markets, equities, europe, funds, fundsupermart, global outlook, malaysia, mutual fund, mutual fund investment, mutual funds investment, PHEECBF:MK, Pheim Emerging Companies Balanced Fund, qe tapering, strategy, theory
I’ve covered this particular fund in this post back in May, and had since invested some units in it. Last week, I’ve attended yet another investment talk session hosted by Fundsupermart. Mr. James is one of the speaker, in fact, one of the best speaker in the whole session. As always, Fundsupermart will do some 1% sales charge promotion on selected funds, and this time, it’s from the Recommended Fund List 2014/15. Taking this opportunity, I went through the list and decided to top up my holdings in Pheim Emerging Companies Balanced Fund (PHEECBF:MK).
The list is available here for those interested to know.
From the list, readers of my posts would like to understand why I chose to top up on this fund rather than any other funds. Thus, I’m taking this opportunity to list some of my observations and ideas on why this fund and not others.
- Global equities market has been in a bull run for the past years, and IMHO, it’s getting unsustainable due to the corporate earnings will not be as good as it’s being anticipated.
- QE tapering will pull back funds, mostly from Emerging and Frontier markets. Interest rates will pose to hike.
- Pheim Emerging Companies Balanced Fund has given me +1.04% in 1 month plus, even with such a high holdings of cash (~20%). I personally like Mr James idea to keep cash when a pull back is likely to happen.
- Europe is still in gloomy state, deduced from the ECB proposing negative interest rates and reports from BIS (Bank of International Settlement) has mentioned slowed down in a few EU states.
- Emerging markets has been in quite a bull market, and thus valuation is less attractive. With QE tapering in the picture (due October), there will be most likely a pullback.