Executive/Senior Management lost heavily in investments!!! All Red!!!

[masgnoeL]

Did this investor meet his Investment Objectives?
Let us read and analyze what went wrong for him, as it had gone wrong for so many others.

Source: http://www.fundsupermart.com/main/community/Portfolio_View.svdo?pid=P11324

Members' Portfolio<!--Members' Portfolio-->Portfolio Name<!--Portfolio Name-->:Retirement Portfolio (from Aug 07) Category<!--Category-->: 50s & above
Portfolio Owner<!--Portfolio Owner-->: fc285

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fc285's Public Profile</td> </tr> <tr class="pagetablebody1A"> <td align="left" valign="top"> Gender<!--Gender-->: Male
Occupation: Executive/Senior Management
Risk Appetite<!--Risk Appetite-->: Moderately Aggressive

Started UT investments with banks in 1990. Fed up of paying high 5% sales charges and frequent change of inexperienced Financial Planners, I decided to DIY and transferred all my funds in early 2007 to FSM.
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<table border="0" bordercolor="white" cellpadding="3" cellspacing="2" width="100%"><tbody><tr class="pagetableheader1"> <td align="center">fc285's Investment Philosophy</td> </tr> <tr class="pagetablebody1A"> <td align="left" valign="top">1. Jun 07 - sold 90% to avoid China bubble talks, major correction, overheated markets, and locked profits to cash fund and CPF.

2. After Aug 07’s correction, rebuild my long-term retirement portfolio of Core and Supplementary portions. No US and Japan yet.

3. Adopt diversification, "Buy and Hold", DCA and rebalancing strategies. Will try "Value Averaging" in 2008.

4. Planned to retire from full-time employment at age 65 in 2023 and survive on profits from stock and UT investments, annuities, savings and insurance.

End of month performance
1. 31 Oct 07: Gained $9,658 (+9.86% on $98k investment) paper profit in 2 mths of new portfolio.

2. 30 Nov 07: hit by Nov correction, paper gain dropped to +$1,755 (1.59% on $110k investment).

3. 31 Dec 07: 4-mth old portfolio ended the year with $2,760 paper profit (+2.03% on $135k investment).

4. 31 Jan 08: got out of Europe (avoided 15% loss), heavy in Asia ex-Japan and GEM/BRIC; lost 10% or $130k of capital, which is actually part of previous profits from Jun 07 sell-off.

5. Feb 08 onwards - to DCA and VA. Delay decision to mid-2008 to diversify to US, Europe and Japan.

6. 29 Feb 08: lost 4.9% on $126k of capital, slowly recovering. Failed to meet target of 10% return PA.

7. 31 Mar 08 - portfolio dropped 11.72%, within my -20% volatility. Lost $14.9k on 127k investment.

8. 30 Apr 08 - invested $130k. Lost 10k or 8%.

9. 31 May 08 - invested $130k. Lost 8k or 6%.

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[masgnoeL]

My humble comments in RED:

Started UT investments with banks in 1990. Fed up of paying high 5% sales charges and frequent change of inexperienced Financial Planners, I decided to DIY and transferred all my funds in early 2007 to FSM.

<table border="0" bordercolor="white" cellpadding="3" cellspacing="2" width="100%"><tbody><tr class="pagetableheader1"> <td align="center">fc285's Investment Philosophy</td> </tr> <tr class="pagetablebody1A"> <td align="left" valign="top">1. Jun 07 - sold 90% to avoid China bubble talks, major correction, overheated markets, and locked profits to cash fund and CPF.

fc285 is investing for his retirement plan. Looks like he cannot retire liao. China bubble did not burst. US bubble did.

2. After Aug 07’s correction, rebuild my long-term retirement portfolio of Core and Supplementary portions. No US and Japan yet.

If you had stayed out instead, you would not have been in this RED situation now!!! Going into the market after June 07 was a very bad decision. Now then you know. Too late.

3. Adopt diversification, "Buy and Hold", DCA and rebalancing strategies. Will try "Value Averaging" in 2008.

Yeah sure. "Value Averaging" in 2008? Are you nuts? Try it now if you dare.

4. Planned to retire from full-time employment at age 65 in 2023 and survive on profits from stock and UT investments, annuities, savings and insurance.

Looks like 85 is more the option left for you. When you retire for good.

End of month performance
1. 31 Oct 07: Gained $9,658 (+9.86% on $98k investment) paper profit in 2 mths of new portfolio.

Considering your funds are aggressive funds, your return is peanuts for the risk you take.

2. 30 Nov 07: hit by Nov correction, paper gain dropped to +$1,755 (1.59% on $110k investment).

You should have liquidated and run as fast as you can. Nov 07 is already too late, IMHO.

3. 31 Dec 07: 4-mth old portfolio ended the year with $2,760 paper profit (+2.03% on $135k investment).

Surprise, surprise. You made a profit. This is the illusion that sealed your fate. Should have listen to your head, not your heart.

4. 31 Jan 08: got out of Europe (avoided 15% loss), heavy in Asia ex-Japan and GEM/BRIC; lost 10% or $130k of capital, which is actually part of previous profits from Jun 07 sell-off.

See what I mean...haiz.

5. Feb 08 onwards - to DCA and VA. Delay decision to mid-2008 to diversify to US, Europe and Japan.

Diversify to US, Europe and Japan????? You must be crazy!!!

6. 29 Feb 08: lost 4.9% on $126k of capital, slowly recovering. Failed to meet target of 10% return PA.

Slowly recover??? Not in the next ten years, you bet. You lost 47% of your portfolio and you have been at it since 1990. So, what do you think are your chances of re-cooping your loss?

7. 31 Mar 08 - portfolio dropped 11.72%, within my -20% volatility. Lost $14.9k on 127k investment.

Obviously you did not see the tsunami coming.

8. 30 Apr 08 - invested $130k. Lost 10k or 8%.

We know. You lost money.

9. 31 May 08 - invested $130k. Lost 8k or 6%.

We know. We also noticed that since May 08, there have been no updates from you. I hope you are still alife and have not jumped off a building.

You lost S$61k out of S$130k. That is a whopping 47% paper loss. As this crash is a deep one, you will not see your funds re-tracing 47% for the next 10 years. Looks like you should have left your investments to your grandma. She could have done a better job than you.

The fault lies with MAS for allowing un-trained and unsupervised investors like you to run amok with your own hard-earned money. For allowing risky investment instruments to be purchased so easily by novice like you. MAS should take the rap, IMHO.

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