European Situation

This morning the HS index have dropped more than 500+ points, this is due to Spanish 10 years note government generic bonds have exceeded the critical 7%. Rumors say IMF might bail out from the previous agreement of financing Greece, it makes other countries who involved in the agreement such as Holland and Finland also announced if IMF withdraw from this agreement, they will do the same.

The market atmosphere have quickly turned negative due to the agreement which gave positive hope to the market previously might turn sour.

When the market is full of fear, I am ready to use the previous cash reserve to enter the market, if you want to join as well, feel free to contact me.

2012年6月基金報告: 資產分佈比看準大市更重要

Launch Date 發行日期	2009/6/4
Launch Price 發行價值	1.00
Currency 貨幣	HKD 港元
Investment Management Fee 投資管理費	0.00%
Market Value 市值	HKD 715,051.60  港元
NAV per unit 單位資產淨值	1.0485

Risk 風險	Low 低
Volatility 波幅	Low 低
Fund Manager Style 基金經理風格	Conservative 保守
Current Investment Strategy 現時投資策略	Wait for chance 等待機會

Manager’s Comment 投資經理簡報

六月股市回穩, 基金股票都回升, 本月的集資3倍超額完成, 共集大概相等30萬左右的港元. 令現金增加到30%, 基金規模由47萬增加至71萬. 因為股市沒有再下跌, 所以投資策略由上月的準備出擊轉至等待機會.

在股票市場動盪的時候, 大家的注意力都集中在股市, 每天身邊都聽到今天恆生指數又連升或連跌了多少點, 連沒有買股票的也好像關他事. 我有個朋友見面時又會說股市如何如何,恆生指數又跌了多少, 未來下半年會如何,結果有天我忍不住問他:「 你買了甚麼股票這樣緊張?」他回答:「我沒有呀!」-_-"

無論有沒有買股票, 其實在股票的遊戲中勝出, 跟大市的波動關係不大. 把你的注意力集中在大市, 只會受到不必要的影響, 你應該把你的注意力集中在自己手持的資產上, 想想現在應該如何分佈.

好像現在本基金的資產分佈, 30%在現金, 27%在短期借貸, 17%在亞洲基金, 22%在香港股票, 我話之你明天整個歐洲變天, 對我的基金影響實在十分有限, 非常穩健也深感安全.

這就像打風的時候, 大家都將注意力集中在天氣報告, 而不認為應該是時候把自己家中的門窗關好, 上釘. 大部份在股票市場失利的投資人也是一樣, 將希望投放在不可控制的大市, 而不是自己可控制的資產.

控制你可控制的(資產), 對不可控制的(大市)一笑了之, 投資雖然不需秒秒都看住, 但也不是整天望天打掛的學問.

June, 2012 MECHCalvin Fund Portfolio Update.

This month mechcalvin fund has an good example of what a stable portfolio should be like, after the fund raising the cash reserve has increased up to ~30%

Follow by the golden rules of financial planning.

1. at the bottom is cash (31.06%), cash is always the most secure types, the only risk for cash is currency and inflation, high cash reserve meaning high liquidity and high buying power thus potential growth. That's also the reason why people say "Cash is King" at low tide.

2. up one level is loan (27.97%), you can see from many mutual fund and recognized this as bonds, bonds basically is a kind of loan as well, you lend money to companies for fix income and guarantee return, the only risk is default risk - the loaner unable to return, thus it is the second lowest risk of all. High % of loan/ bonds in a fund meaning it doesn't go for aggressive growth, but a stable and less volatility approach.

3. up one more level is business (0.77%), most of the time people see new business has very high risk, but I put this below mutual fund and stocks is because I am directly involve in the business I invest to, my evaluation of them is that they have little chance to fail and loss money than mutual funds and stocks, plus it is only very little at this stage.

4. On the second top level is mutual fund (17.38%), there is a lot of mutual funds on the market with different risk, but the mutual fund I picked is stock fund, which means the fund managers always go for very high stocks portfolio, so it has higher risk and higher volatility. However it still contains lower risk than stocks, since a fund has already diversify its risk by buying a large amount of different stocks (between 50-70).

5. on the top level are stocks (22.81%), contain only 3-4 stocks in this sector gives it the highest risk and highest volatility, but also the highest potential return.

Some people will add derivatives which has even higher risk than stocks, but my fund won't do derivatives because its dangerous nature.

So there you have it, we are at the very safe position no matter how the world is shocking outside, and at the moment it looks pretty calm outside, maybe with some undercurrents, but again, overall we are pretty safe with so much cash in hand!