The Next Fund Manager 2010

• Team Members:
• Philip Ho
• Chong Chee Siong Ryan
• Yap Jie Wei
March 20, 2010
 Agenda
• Situation Analysis
• Other Disasters
• Assumptions
• Reassurance to client
• Changes to portfolio allocation
Situation Analysis
Fragile Economy

Natural Disaster

Billions of dollars in
damages

Business
Property value
operations
decimated
affected
 Other Disasters
• September 11th Terrorist attack at World Trade
Center, New York City
– DJIA plunged 14.3% but recovered in 2 months
– Lives and property loss

Sep 11th 2 months to recover

 Other Disasters
• August 23rd Hurricane Katrina hit New Orleans
– Commodities like Aluminum and Copper prices surged
– “Prices of steel, cement, lumber and other commodities soared after
Hurricane Katrina and changes in the global economy” - (JSonline)

Aug 23rd
2 – 3 years bull run
 Assumptions
Assumptions

NYSE to close 3 days Crisis occurrence date

Client’s portfolio
Operationally
at Start of Year 1
affected

Prevent a
Fire Sale
 Assumptions Cont.
Assumptions

Economic Stability Better Credit Health

Upmost priority

Expect swift Reduces severity

mitigation of the crisis

Short term
impact on
market
 Reassurance to Client
• Initial Assets allocation
 50% bonds, 15% SGX, 35% funds
 Well diversified
 Limited exposure to U.S Markets
 Focus on emerging markets
 Long investment horizon of 20 years

Initial Assets Allocation Final Assets Allocation

SGX Stocks
15%

SGX Stocks,
Bonds, 15%
Capitalizing on unlimited 15%
Bonds free inter and intra fund
50%
house switches
Funds
35%
Year 1 Year 10 Funds, 70%
Asset Distribution
 Final Assets Allocation

SCHRODER BRIC FUND, 10%

SGX Stocks, 15%

FTIF-TEMPLETON ASIAN GRTH

FUND, 5%

SCHRODER AS COMMODITY
FUND, 5% HGIF INDIAN EQY FUND, 5%

ABERDEEN INDONESIA EQY

FUND , 5%
ABERDEEN GLOBAL EMERGING
MARKETS , 10%

DWS CHINA EQY FUND, 15%

UNITED GOLD & GENERAL FUND,

10%

LIONGLOBAL VIETNAM FUND, 5%

DWS LION BOND, 15%
 Reassurance to Client
• Damages are short term
 1-2 months for markets to rebound as seen in past events
 Not as severe as compared to past crisis
o September 11th
o Hurricane Katrina

• Importance of staying invested

 Insignificant as compared to investment tenure of 20 years
 Capitalize on crisis opportunities
 Unaffected growth in emerging markets
 Inflation problem with holding cash
 Reassurance to Client
• Investment Strategy

Annual Market Re-assessment

Change in Market Profit ?

No
Outlook ? Yes • Rebalance Portfolio to Planned allocation
• Continue Dollar Averaging Technique
Yes
No
• Hold Overweighed funds
• Continue Dollar Averaging Technique

Shift funds to
prospective markets
 Changes to Portfolio Allocation
• Capitalize on crisis opportunities
• Bullish on commodities sectors and countries
– Increase demand for re-construction
 Changes to Portfolio Allocation
• Hurricane Katrina Re-Construction Process
– Major construction company : The Shaw Group

Aug 23rd

• Opportunity for investors during crisis

– Advise Client to go bullish in industrial sector
• Fortis L Fund – Overweighs on industrials
• Individual construction firms that participate in the rebuilding process
– Also to capitalize on irrational price movements
• Purchase an prospective undervalued firm
Question and Answer