Boutique Funds from Friends Provident International (FPI)

[jteo]

Hi Dennis,

I would like to ask for your insight & views of the above organisation (FPI) boutique funds whether it is worth investing. May i ask what are boutique funds? Are there anything else that i should find out before making the commitment as this seems to be for retirement planning?

The financial company in Singapore which carry FPI boutique funds is Finexis Advisory Pte Ltd. The financial consultant mentioned that the investment funds are not found in the retail market. To make an investment through bank, per investment is S$100,000. Through Finexis, it is a monthly investment of S$750 to S$3000, at customer's comfort level. Currently, additional units are given when the investment is made. Client have to pay eg. S$750 every mth for at least 18 mths. Should the client loses job, on the 19th mth onwards it is fine not to pay the regular amount of S$750 monthly but would have to pay $750 at least once a year to make this investment. Charges for the first 18 mths if 6% but as the investment stretches for 25 years, the charges is about 0.46%. Penalty involved (pay up the remaining years to be put into the investment $) if investment terminated before 25 years.

The recommended boutique funds are for S$750 monthly investment are:

1. Baring Hong Kong & China. Underlying fund breakdown 40.80% in financial, energy 12.80%, Consumer discretionary 12.70%, Others 10.10%, IT 8.00%, Industrials 7.60%, Telecom utilities 4.90% & money market 3.10%. Allocation: Hong Kong 2.30%, Money Market 3.10% & China 94.60%. Holdings: China Construction Bank 9.30%, China Life Insurance 5.60%, Bank of China 5.40%, Kunlun Energy Co Ltd 4.20%, Tencent Hldgs 4.10%, China Shenhua Energy 3.70%, China Mobile 2.90%, CTRIP.Com International 2.90%, China Taiping Insurance 2.40% & China CITIC Bank 2.30%. Annualised performance since launch (Dec 1982) 17.24% growth.

2. Black Rock World Mining Fund. Underlying fund breakdown European equities 41.80%, North American Equities 32.90%, South African Equities, 11.00%, Australian Equities 6.90%, American Emerging Equities 3.20%, Money Market 3.00%, Asia/Pacific Equities 1.20%. Allocation: Diversified industrials 51.90%, Other Metals 13.60%, Gold 12.80%, Precious Stones & Metals 7.50%, Others 6.80% Coal, 4.40% & Money Market 3.00%. Holdings: Rio Tinto 9.70%, BHP Billiton 8.70%, Vale SA 8.40%, Teck Ressources 5.60%, Impala Platinum Hldgs 4.80%, Xstrata PLC 4.80%, Freeport-Mcmoran Cooper & Gold Inc 4.70%, Compania de Minas Buenaventura S.A 3.40%, Anglo American 3.30%, Eurasian Natural Resources 2.70%. Annualised performance since launch (Mar 1997) 2.37%
growth.

3. Templeton BRIC. Underlying fund breakdown: Energy 34.54%, Materials 28.00%, Banks 20.85%, Software 3.39%, Real Estate 3.19%, Food,bevergaes& Tobacco 2.23%, Money Market 2.19%, Transport 1.82%, Others 1.57% & Utilities 1.13%. Allocation: Brazil 30.13%, China 28.57%, Russia 19.69%, India 18.30%, Money Market 2.19% & Kazakhstan 1.12%. Holdings: Vale SA 7.62%, Petrolleo Brasileiro SA Petrobras 7.62%, Yanzhou Coal Mining 5.27%, Itau Unibanco Hldg 4.41%, PetroChina 4.26%, Banco Bradesco 3.71, Gazprom Oao 3.65%, MMC Norilsk Nickel 3.17%, Lukoil Oao 3.13% & Hinddalco Industries 3.08%. Annulaised performance since Launch (Oct 2005) 9.7% growth.

Example of such an investment with additional units:
"Client paying S$3000 per month for a 25 year term will benefit from 147.5 % allocation. This extra allocation equates to an adtional S$25.650 being invested for client over the 18 month initial period. This is giving client the equivalent of 8.55% extra months' premiums or, put another way, for every S$3000 invested there's S$4,425 working to buy units in client's investment.

Many thanks for your kind advice.

[Dennis Ng]

Hi jteo,

I think if you read through the forum, you would realise that most of the stocks we mentioned in this forum, prices have gone up 30% or more in year 2010 alone.

Frankly, if you learn how to invest into stocks yourself, you are unlikely to find any of these Unit Trusts or Boutique Funds attractive.

Cheers!

Dennis Ng

Hi Dennis,

I would like to ask for your insight & views of the above organisation (FPI) boutique funds whether it is worth investing. May i ask what are boutique funds? Are there anything else that i should find out before making the commitment as this seems to be for retirement planning?

The financial company in Singapore which carry FPI boutique funds is Finexis Advisory Pte Ltd. The financial consultant mentioned that the investment funds are not found in the retail market. To make an investment through bank, per investment is S$100,000. Through Finexis, it is a monthly investment of S$750 to S$3000, at customer's comfort level. Currently, additional units are given when the investment is made. Client have to pay eg. S$750 every mth for at least 18 mths. Should the client loses job, on the 19th mth onwards it is fine not to pay the regular amount of S$750 monthly but would have to pay $750 at least once a year to make this investment. Charges for the first 18 mths if 6% but as the investment stretches for 25 years, the charges is about 0.46%. Penalty involved (pay up the remaining years to be put into the investment $) if investment terminated before 25 years.

The recommended boutique funds are for S$750 monthly investment are:

1. Baring Hong Kong & China. Underlying fund breakdown 40.80% in financial, energy 12.80%, Consumer discretionary 12.70%, Others 10.10%, IT 8.00%, Industrials 7.60%, Telecom utilities 4.90% & money market 3.10%. Allocation: Hong Kong 2.30%, Money Market 3.10% & China 94.60%. Holdings: China Construction Bank 9.30%, China Life Insurance 5.60%, Bank of China 5.40%, Kunlun Energy Co Ltd 4.20%, Tencent Hldgs 4.10%, China Shenhua Energy 3.70%, China Mobile 2.90%, CTRIP.Com International 2.90%, China Taiping Insurance 2.40% & China CITIC Bank 2.30%. Annualised performance since launch (Dec 1982) 17.24% growth.

2. Black Rock World Mining Fund. Underlying fund breakdown European equities 41.80%, North American Equities 32.90%, South African Equities, 11.00%, Australian Equities 6.90%, American Emerging Equities 3.20%, Money Market 3.00%, Asia/Pacific Equities 1.20%. Allocation: Diversified industrials 51.90%, Other Metals 13.60%, Gold 12.80%, Precious Stones & Metals 7.50%, Others 6.80% Coal, 4.40% & Money Market 3.00%. Holdings: Rio Tinto 9.70%, BHP Billiton 8.70%, Vale SA 8.40%, Teck Ressources 5.60%, Impala Platinum Hldgs 4.80%, Xstrata PLC 4.80%, Freeport-Mcmoran Cooper & Gold Inc 4.70%, Compania de Minas Buenaventura S.A 3.40%, Anglo American 3.30%, Eurasian Natural Resources 2.70%. Annualised performance since launch (Mar 1997) 2.37%
growth.

3. Templeton BRIC. Underlying fund breakdown: Energy 34.54%, Materials 28.00%, Banks 20.85%, Software 3.39%, Real Estate 3.19%, Food,bevergaes& Tobacco 2.23%, Money Market 2.19%, Transport 1.82%, Others 1.57% & Utilities 1.13%. Allocation: Brazil 30.13%, China 28.57%, Russia 19.69%, India 18.30%, Money Market 2.19% & Kazakhstan 1.12%. Holdings: Vale SA 7.62%, Petrolleo Brasileiro SA Petrobras 7.62%, Yanzhou Coal Mining 5.27%, Itau Unibanco Hldg 4.41%, PetroChina 4.26%, Banco Bradesco 3.71, Gazprom Oao 3.65%, MMC Norilsk Nickel 3.17%, Lukoil Oao 3.13% & Hinddalco Industries 3.08%. Annulaised performance since Launch (Oct 2005) 9.7% growth.

Example of such an investment with additional units:
"Client paying S$3000 per month for a 25 year term will benefit from 147.5 % allocation. This extra allocation equates to an adtional S$25.650 being invested for client over the 18 month initial period. This is giving client the equivalent of 8.55% extra months' premiums or, put another way, for every S$3000 invested there's S$4,425 working to buy units in client's investment.

Many thanks for your kind advice.

[jteo]

Hi Dennis,

I agree. Many thanks for your prompt reply.

Maybe should think of UK endowment and silver investment to diversify portfolio.

Cheers!

[Dennis Ng]

Hi Dennis,

I agree. Many thanks for your prompt reply.

Maybe should think of UK endowment and silver investment to diversify portfolio.

Cheers!

yes, that's what I personally do. Try to make my investment portfollio "all weather proof", that I'll be financially ok whether the market goes up (stocks would do well), whether there is inflation (silver will do well) or even if there is a Financial Crisis (my money in UK Endowment will enjoy the Capital Guarantee).