OSK Research: 1Q2012 Report Card and Strategy (June 2012)

In the recently concluded 1Q2012 reporting season, a similar number of companies under our coverage underperformed, at 31% versus 32% in 4Q2011 and 34% in 3Q2011. The percentage of companies that outperformed fell to 14%  from 17% in the previous quarter (see Fig 1) and 15% in 3Q2011. Surprisingly, there were more earnings letdowns among the big caps, with 27% missing estimates versus 17% in the preceding quarter while among the small caps, more companies trumped estimates - at 20% - compared with 12% in 4Q2011. The notable positive surprises among the big caps were Maybank and JCY while the negatives were from MAS, the Genting Group and MISC.

Steel, plantations and oil & gas disappointed.

2012/2013 List of Unit Trust Funds for EPF Members Investment Scheme

Last week, EPF announced that it has published the revised list of Fund Management Institutions (FMI) and unit trust funds for 2012/2013 for EPF Members Investment Scheme (EPF-MIS). For the period of 2012/2013, a total of 223 active unit trust funds from 24 FMIs are offered under EPF-MIS, details of which are as follows:

"The list of funds under EPF-MIS is reviewed annually based on a set of evaluation criteria that focuses on the consistency of fund performance, as approved by the Ministry of Finance. The evaluation process is carried out together with the Federation of Investment Managers Malaysia (FIMM) which represents the unit trust industry," said EPF General Manager for Public Relations.

When would it be effective?

The revised list will be effective for the period of 1 June 2012 until 31 May 2013. 

List of EPF approved funds from some of the popular Fund Management Institutions:

Europe’s Woes Flood Wall Street—But Not the Economy? (May 2012)

After months of buildup, Europe’s sovereign-debt crisis has finally wreaked havoc on the U.S. stock market, as a wave of anxiety has prompted a major sell-off on Wall Street. We’ve seen a dramatically “risk off” environment with the Dow Jones Industrial Average dropping 3.52% — the biggest one-week decline since November — and the S&P 500 falling 4.3%. Among the hardest hit stocks were small caps and tech, with the Russell 2000 and the Nasdaq Composite falling 5.4% and 5.3%, respectively. To further underscore the risk-off environment, the yield on the 10-year Treasury still appears to be searching for a bottom, finishing at 1.702%, but falling below 1.700% intraday this week — a modern-era low.

Spring Swoon?

Was Genneva Gold Investment Scheme a Scam?

Lately, I have a long-lost friend calling me out for a drink. Without hesitation, I am more than happy to meet up with him, a successful businessman. Well, we started off with very casual conversation from politic to investment. Yes, investment is my all-time favorite topic and he knew it. Once my hot button was pressed, he share with me the Genneva Gold Investment Scheme.

With its headquarter situated at Kuchai Entrepreneurs Park, Genneva has evolved to become one of the leading and most innovative gold traders in Malaysia and neighboring countries. What I want to stress here is INNOVATIVE. Why? Please read on...

About the Scheme

Why Gold Behave Differently this Round? (May 2012)

When market sentiment was bearish, equities market would slump, just like what we seen for past few days. Global markets suffered yet another blow due to the uncertainties surrounding EU, where Greece may potentially exit European Union. Would Greece finally exit EU? This is an interesting yet important questions for investors.

The headlines have been on the EU crisis recently, overshadowing the highly speculated Malaysia general election's date. Well, now would be a tough time for our Prime Minister to call on an election amid the gloomy global outlook. Maybe, the best time to hold an election already gone!!!

Anyway, another interesting issue was the slump in Gold prices. Curiously, many investors questioning the different trend for gold prices. Normally, it will spike up along with the risk level of global equities market, together with USD. Theoretically, gold and USD would over-perform other asset classes during bad times. Yes, USD had already appreciated against a basket of currencies for a record 12 straight days. However, bullion erased its 2012 gains this week while investors are reducing gold holdings for a 3rd month, the longest stretch since 2004.

So, which is the Safe Heaven now?