Comments:
March 2021 was an overall poor month in terms of fund performance versus the major indices. Sure the Hang Seng (-2.1%) and KLCI (-0.3%) were in the red this month due to (1) the Asian investors selling off fearing that the stocks in this region are overvalued and (2) increase in COVID19 cases casting doubt of economic recovery. However, the S&P 500 did very well, going up +4.2% attributed mainly to the passing of the USD1.9t stimulus bill and improving US economic data. Despite that, my overall portfolio only went up by +0.6% this month signaling that my funds may be holding a bit too much growth stocks.
My company stock (Europe based industrial) led the charge by gaining 11% in a month as sentiments of economic (and industrial) recovery strengthens. In second place, the Manulife APAC REIT gained a respectable +4.8%. The rise in these funds proves that the there is indeed a sector rotation going on from growth to value stocks.
The United Global (+0.4%) did poorly compared to its benchmark S&P 500 (+4.2%). This could due to the fact that United Global held comparatively more growth stocks than the S&P 500. Hence, unlike the S&P500, the United Global was not able to greatly benefit from the sector rotation.
I was pleasantly surprised to see TA Global Tech (2.0%) faring slightly better than the XLK (+1.6%). I thought the China tech holdings in TA Global Tech was going to greatly drag the entire fund down but looks like it held up just fine.
Of course, we have to talk about the downers. The Hang Seng (-2.1%) had a lot going against it this month. From the sell-off due to overheated stocks to the increase in COVID19 cases and of course, the tightening rules by USA that affected some China-based big tech companies listed in USA. Principal Greater China (-3.3%) fell a bit more than the HSI as it held a greater percentage of tech stocks which were the worst affected by the sell-off. Although StashAway had more weight in the Asian stocks, it still ended up +0.3%. The US ETFs did well to keep the fund afloat.
The United ASEAN (-2.9%) did not do so well this month compared to the KLCI (-0.3%) but I don't mind it since it has been doing very well for the past few months. A bit of correction is always healthy.
The AmBond continued its dip this month by another -2.4%. For a bond fund, that is quite a severe drop. Bonds are still continued to be sold (causing rising yields) as investors seem to be optimistic about the economic recovery. Funds are being transferred from bond funds to value stocks. I may be starting to question my decision to park all my emergency cash here but I'm going to keep at it for a few months to see how it goes.
I got about RM2,800 from my tax return hence I had a bit more saved up this month (RM 5,861). Yay!
Forward Strategy:
I will continue to Value Cost Average (VCA) into my funds, keeping them at a fixed weightage as follows; United Global Equity (20.0%), StashAway (20.0%), TA Global Tech (20.0%), Principal Greater China (15.0%), United ASEAN (12.5%) and Manulife REITS (12.5%).