Partnership Fund Updates! Oct 1 2006

Dear Partners,

Due to our lack of exposure to India and G.China (the two most improved markets for 1 month, our fund has severely underperformed the MSCI Asia Ex-Jap Index (+12.37%), but did well against the MSCI World Free Index (+4.54%).

These two markets also carry the greatest risks for now, with HK at 22.3x PE, China (HSCE) at 28.2x and India (SENSEX) at 26.3x.

On a rationale basis, we think that the risks are getting a little high in respect of the P/E picture, thus we are still giving those regions a miss.

Another development is that the SGD has been strengthening against the Taiwan dollar, Korean Won and USD, but weakening against EUR. That’s hurting the portfolio slightly in view of the amount slanted towards USD related currencies.

We view that the last quarter should still be bullish for the equities market esp. for Asia Ex-Jap (avoiding China, India and HK for now), Our Cash position is also uncomfortably low, perhaps in the next 2-3 months, we may increase the amount of Cash/Money Market.

The Asian Small/Mid Cap play is not really playing out well at the moment, small/mid caps having taken a sever confidence blow. Our original intention is that when the players get bored with the Blue Chips, they’ll start to move the Small/Mid Co. This effect might turn up much longer than expected. So we are likely to reduce the current exposure 23% over the next few months and look for other opportunities.

June Updates!

We added Taiwan in Jun as we observed a possible breakout.

The Market is continuing it's backbreaking charge upwards. One noticeable market that is missing from action is the India Stock Market. After 3 record breaking years, the overvalued India Market is taking a breather. Meanwhile, Korea, Taiwan and Thailiand is leading the charge this time round. A possible correction may happen one to two months down the road. We are keeping our fingers crossed though. Let see if the rally can continue all the way till end of December.

Here is the performance of the fund this month round.

Fund performance for May 2007

NAV as at 1 Jun 2007: $1.5256

This month, we beat the MSCI World (-0.34%), the contribution same primarily from our positions Latin America, Indonesia and Korea.

Just when will the correction come? The fact that we have not reduced our equity weighting underlies the optimism of the current state. We believe even if there is a correction, it will not be too deep or too protracted. It will be a case of “buying on dips”.

As of now, we hold 37% in money market to standby for a correction. I believe this amount is sufficient for the moment.

No extra funds will be solicited this month.

Wrap up for the year!

December caps of with another 4.54% gain of the portfolio. Contributions from the BRIC, Indo and HK/SIN comes with a welcome decline in oil prices. Korea has started to exhibit signs of exhaustion, and may be switched out for opportunities elsewhere.

Overall for the year 2006, our portfolio has done 28%.

We shall be holding our annual shareholder meeting soon. Pls look for for it.

Dear all,

The Partnership Fund has broken out from the previous high achieved in May, and is on its way up.

The latest report from BCA indicates a strong swing towards Asian Equities, which we have 4 position in Indonesia, Korea and indirectly thru DBS Shenton Twin City: Singapore & HK, indirectly thru BRIC: China and India, which is probably a good representation of the current state of Asian Equities. Combined Asian Eq exposure is abt 55-60%.

Also, our USD/EUR positions have been more or less neutralized by strengthening EUR and weakening USD.

We still anticipate a reasonable run-up till the 1st Quarter of next year, but expect a bumpy ride.

We strongly suggest a top-up when the market dips, and we’ll be asking for more subscription then.

Cheers.
Brendan Yong

Performance for Oct 06

Wonderful news. The portfolio has recovered to the Apr 06 high in line with the broad market. I have also done some interesting study of the progress we made against the backdrop of Global Markets. The oil prices have consistently been below $60, and that gives the markets a strong incentive to remain bullish about the economy. We anticipate the rally to continue into the last quarter, and hope to extend our winning streak. ~Brendan Yong

Our Holdings as of now

Dear Friends,

This is our holdings as of now. We are back in black now with the US stock market soaring to new highs. Some of the Asia countries have not recovered from the May correction yet. However, most of our holdings have more or last recovered to its previous high. Indonesia and Hong Kong are the 2 exceptional countries that have made much higher new highs. Our position will stay as how it is now and we expect the rally to come hard and fast till next year.

Performance for Sept 2006

Aberdeen Indonesia & DBS Twin City continues its sterling performance with falling oil prices & commodities. This should be nicely hedged with our exposure to Latin America through the fidelity and schroder BRIC funds (via Russia, Latin which are net exporters of commodities). We maintain our long-term view for korea given attractive valuations, though the recent N.Korea nuclear threat creates a “resistance” for the KOSPI.

Portfolio did a nice 2.49% in Sep.

There could be a slight drop in October, which will be a healthy correction given the last 4 months of bullishness. I will be advising of the opening of a possible investing tranche in October.


Current NAV as at 30 Sep 2006: $1.294

Portfolio Returns for Aug 2006