REGULARS
The Professionals
Many brokers throughout the world struggle from time to time with portfolio construction. The truth is that not too many are qualified risk assessors or take a scientific approach to the task. I thought this month it was worth taking a look at how the professionals do it.
Collis Stewart Portfolio Management (CSPM) is the stockbroker featured here.
Many financial advisers approached Friends Provident International (FPI) (part of the Friends Provident group, a FTSE100 listed company) requesting direction and guidance when selecting funds from the FPI range.
Consequently FPI approached CSPM in August 2000 to formulate and manage a series of asset allocation models, which could be used as investment guidelines in the initial construction and ongoing management of client portfolios. So popular was the concept that in April 2001 FPI decided to utilize the portfolios. This has enabled Collis Stewart to increase their active management and control of the funds, not only reducing client and adviser administration but also resulting in improved performance and dealing efficiency.
Collis Stewart is an investment management company based in Guernsey in the Channel Islands . The company is totally dedicated to and focused on producing superior investment performance for all its clients whilst recognizing that performance expectations and objectives may vary from client to client.
They believe that successful investment is as much about managing risk as maximizing returns and as a result, the management of risk forms an important part of their investment process. They are in the business of wealth creation and protection and they bring institutional investment disciplines to private client asset management.
Core to the Collis Stewart approach to multi-manager investing is selecting funds and managers who consistently outperform their market benchmark and peer group net of all fees. Equal emphasis is placed on quantitative and qualitative analysis and there is a strict set of criteria for measuring the performance of individual managers. They also include alternative investments to both enhance returns and reduce risk and volatility.
The success of this investment strategy is illustrated by their historical track record relative to funds with similar investment mandates within the FPI mirror fund range.
Here are some comments from Collis Stewart on their managed funds.
From their Balanced Portfolio: “During the month we reduced the Fund's allocation to US equities whilst adding to the European and emerging market equity ratings. While we believe the US stock market will post reasonable gains this year, weakness in the global economy is very much centred on the US economy at that time. Business activity elsewhere is still very strong. This de-synchronization in the world economy suggests that the US dollar will remain weak and that US equities may lag the rest of the world. European growth continues to surprise on the upside and despite strong gains from many emerging markets in recent years we believe they remain a very attractive asset class. Strengthening currencies, superior growth rates, attractive valuations and improvement in fiscal and monetary economic management cannot be discounted in our opinion”.
From Growth Funds: Much the same comment re US equities “ As noted above global economic activity has held up very well in the face of a US slowdown in recent months, indicating a welcome decline in the role of US consumers as the mainstay of global demand. For example growth in Europe and China has accelerated even as the US has slowed. This de-synchronization in the world economy suggests that the US dollar will remain weak and that US equities may lag the rest of the world. Conversely, Europe and emerging markets should outperform”
From Aggressive funds: Again US equities were sold and “In the sterling fund the US weighting was sold completely. The proceeds from this sale were used to increase the funds' Asian, Eastern European and Latin American weightings. The global economy continues to show remarkable resilience to weakening growth in the US with emerging markets in particular looking set to lead global markets higher. Low interest rates, surging liquidity and strong growth in the developing world are all working together to create the conditions necessary for further price gains. Setbacks will inevitably occur along the way as investor sentiment at times becomes too exuberant, however these should prove to be good buying opportunities for those willing to accept the higher risks associated with emerging markets”.
Some of the comments are similar here but that is because they come from different fund managers.
For me the lesson to be learnt is that in a managed fund people do not just leave your money lying around. They really actively manage it in accordance with your risk profile.
Your comments appreciated to jerry@swissinvestcenter.net
d'Geek
Disappear
A researcher working for Xerox has managed to create a new type of ink that prints invisibly on to a piece of paper opening up the way for more secure paperwork.
The researcher in question is Reiner Eschbach who worked with colour scientist Raja Bala at the Xerox Innovation Group to develop the new ink. The breakthrough comes from managing to make the invisible ink fluoresce without the ink itself being fluorescent. That was achieved by taking advantage of the fluorescent elements already present in paper to make it look bright white.
The ink only requires a mix of colour tones and the fluorescent elements of the paper, meaning it can be easily used on standard four-color digital printers.
The development of this invisible ink is seen as opening the way for a low-cost authentication system for all businesses. Speaking on the matter, Eschbach said, “Just as U.S. currency has a fluorescent thread to authenticate it, I can imagine a time when your checks will have your signature printed in an [invisible] fluorescent strip.”
The Chinese Way
The Chinese education system is a competitive place, and this year was no exception. High school students attempting to get a University place have to take the national college entrance exam for the 5.7 million places available. The pressure is because 10 million students are trying to get a place.
Ultimately, this has meant some turn to cheating, and this year it has gone high-tech. The most recent case of cheating involved three people helping a student via wireless tech. The incident happened in Jiutai, the north-eastern province of Jilin where a mini-bus was parked outside a school. Suspicions as to why the mini-bus was there lead to police opening it to find three men with computers and a walkie-talkie.
Inside the school, a student was relaying the questions to the mini-bus via a wireless microphone. The men used the computers to find the answers and relayed them back to the student. The student had paid the equivalent of US$1,500 for the service.
Other techniques used to cheat include shoes, hats, and wallets that have a wireless link to allow information to be transferred. Those options cost the student around $260. Some 8,000 schools have also had metal detectors fitted in order to catch any devices before the students enter the exam room.
Sound + Vision
The last of the four big music companies has now signed a content deal with Google's YouTube. EMI Group has completed negotiations with the online video site that allows it to host music videos of the artists it has on its books.
The specific terms of the agreement have not been made public, but some elements are clear. EMI will use the YouTube content management system to ensure artists get paid for their work. Also, the deal allows for a system to be set up in which YouTube users can use EMI music videos as part of their own video works. This is not a feature that will be available right away, but something to be worked on and released in the future.
The deal means celebrated artists such as David Bowie will now have their videos made available to millions of users worldwide.
The Power
The folks at MIT are creating a technology that will dramatically change how we power and charge the batteries of many electronic devices. A team consisting of folks from MIT's Department of Physics, Department of Electrical Engineering and Computer Science, and Institute for Soldier Nanotechnologies has proven this technology is no longer a pipe dream; it can be a reality.
According to a report from MIT's website, the team was able to power a 60 W light bulb from a power source that was 7 feet away. The technology behind the wireless power is thanks to magnetically coupled resonance. It is this resonance that makes it safe for humans to be around such wireless energy, since it interacts weakly with biological organisms, according to Kurs, a graduate student in physics at the university.
The team calls its use of the technology WiTricity, which could mean not only mobile phone and laptop batteries charging without cables, but also it could mean some household electronics could be powered wirelessly with no battery at all.
The Chinese Way II
On the news of problems accessing the photo- sharing website Flickr by users in China , owner Yahoo! did a number of technical checks but could find no problems. The finger of blame is now pointing at the Chinese government, which is thought to be blocking access to the site.
In a statement, a spokesperson for Yahoo! Hong Kong said: “It is our understanding that Flickr users in China are not able to see images on Flickr, and we have confirmed that this is not a technical issue on our end. It appears that the Chinese government is restricting access to Flickr, although we have not received confirmation from them.”
The Chinese government has not commented on the problem, but it is rumoured pictures of the Tiananmen massacre appeared on the site and the government took action to get rid of them. The Chinese government has banned any reference to the massacre and has even had references removed from books to ensure younger generations of Chinese citizens do not know it happened.
Castaway
It seems appropriate that our current castaway chose Paris Hilton to visit him as she is currently in exile herself.
Once a year you are allowed 1 visitor, for 1 day only. In the 3 years you can choose 1 family member (or close friend), 1 living famous person, and 1 historical figure (alive for their visit!).
A) FAMILY/FRIEND: My Mother. Well, who wouldn't want to see their mother once a year.
B) FAMOUS LIVING: Paris Hilton There's been so much talk about her in HHAD that I'd now like to get to know her better.
C) HISTORICAL FIGURE: Chairman Mao. I would be interested to hear how he managed to control and fool his whole regime and his own people for almost 50 years and how he eventually managed to fool almost the whole world.
2. You can take 5 music albums on CD with you, but no box sets, compilations or greatest hits. Double/triple albums count as one.
A). Lamb Lies Down On Broadway. The first Genesis album to hit me big time.
B) The White Album by Beatles. One of my all time favourites.
C) Taivaan Kappaleita (Pieces Of Heaven) by Juice Leskinen. One of the best albums by one of the greatest Finnish musicians.
D) Karelia Suite by Jean Sibelius. My classical music favourite.
E) Hungarian Dances by Brahms. Another classical favourite.
3. You can take 5 books as well as a religious book. One of your choices can be a ‘Complete Works of...'..
A). Sinuhe The Egyptian. One of the best books I know. Written by a Finnish author Mika Waltari.
B) Compact Unabridged Dictionary by Random House. Enough words to cover the three years.
C) Yökehrääjä by Eino Leino. Poems by a long gone Finnish Poet.
D) The Romance of Three Kingdoms. One of the most famous Chinese novels. They say you should read this while you still young, because when you are older, you already have learnt a lot about human behaviour. I've read it 3 times but I could still do for a couple of times more.
E) Chinese Characters. I used to study Chinese a long time ago. Now there would be time to learn a few more characters.
Religious book: The Book of the Way and its Virtue
4. You can also take 5 movies on DVD.
A) Unknown Soldier by Väinö Linna. An epic about the Finnish battles in World War II
B) One Flew over the Cuckoo's Nest. One of my favourite Jack Nicholson movies.
C) Forrest Gump. A movie I could watch 1-2 times per year.
D) Modern Times. A Chaplin favourite.
E) Quo Vadis.
I've seen it only once and wouldn't
mind watching it again.
5. You can take 5 items that will make your stay more enjoyable. Items to enable communication are not allowed.
A) Pool Table. With practice I might finally be able to make our team stay in the 3rd division by our own merits
B) Darts Board and darts equipment. Maybe I could learn how to play the game.
C) Civilization, play station game. This also fills in a lot of hours.
D) Play Station III. Would need it to play the above mentioned game.
E) Brewery equipment. To have a party when
those people who can visit me arrive.
6. You are allowed to take one pet with you, existing, previous or fictional. Please give details here.
Thai Elephant, because I might need some help in moving around the island.
7. Please tell us the 3 things or people that you think you would miss the most during your stay.
A) Social life. That's hard to have on your own.
B) My daughters. It's wonderful to watch children grow.
C) Going for one more beer with my friends. Another thing that is hard to do on your own.
8. Finally, you must set yourself an objective to be achieved within your three-year stay, something that you have always wanted to do (within the constraints of being on the island of course!). Any item required will have to be included in your list of five allowed.
Come back sane.
FINNISH-ING TOUCH
Well what can we say about Osmo, his movie preferences show a fascination for individual, oddball characters. Charlie Chaplin the loner tramp, Forrest Gump the loner oddball, Jack Nicholson's rebellious individual in One Flew Over The Cuckoos Nest and the ‘Fiddle while Rome burns' isolated Nero.
He has a fascination with things Chinese. Mao, with his control of China . The Chinese language, probably more difficult to learn than Thai with its graphic symbols. The Romance of Three Kingdoms a Chinese classic. And the book ‘The Way and It's Virtue', presumably a rendition of the thoughts atributed to the great Chinese sage Lao Tzu.
Next, its easy to see what Osmo tends to gravitate towards in the evening, give him a play station at his local bar and you might find it difficult to remove him from the premises. But be warned Osmo, Paris might want more than a pint and a game of arrows. But we are sure it might be entertaining watching her bend over the pool table.
From our Finnish spy we have found out that Juice seems to be a bit of a character. The Genesis and Beatles shows Osmo's vintage while the classical choices are unusual but show the romantic side of our Castaway.
Overall, it appears that Osmo is torn between his Finnish roots and a wanderlust for Asia, particularly China . Three years alone on an island would be a hard thing for such an amiable and gregarious (sosiaalinen) guy. Don't go cuckoo on us, Osmo!
Chahn's Impressions‘07
An exhibition by Chahn Sutarapong 3 – 28 July 2007.
“Chahn's Impressions 2007” is Chahn's 30th solo exhibition and his 7th exhibition at the Rotunda Gallery. This exhibition will show 30 mainly landscape paintings, which are painted in the beautiful soft-tone, impressionistic style Chahn is known for. Chahn paints quickly, on the spot, which gives his landscapes a freshness and vibrancy, that catches the mood of the moment. He paints “anything which impresses him”, but it is just light and shade that you see when you gaze at his timeless scenes of moored barges and Chao Praya river life. Chahn's impressions will stay with you long after you have left the gallery.
Chahn Sutarapong graduated from Chung Ling High School in Penang , Malaysia , while studying art under two Malaysian artists. one of them, Chua Thien Teng, is a well-known batik painter and one of Malaysia 's foremost contemporary art gurus. Chahn also took correspondence courses offered by the Washington School of Art and the British Institute of Careers. Chahn began his career as an artist by working with advertising agencies as visualizer and illustrator prior to joining the Bangkok Post's creative department in 1974. After more than twenty years of service, he left the Post in 1995 to pursue painting full-time. Chahn also taught Japanese painting classes at the Japanese Association for many years.
His works can be seen in the finest hotels and in the offices of prestigious companies. In fact, more than 10 of Chahn's paintings decorate the Oriental Hotel's Royal Suite. Adding an international note, Philips Corp. also acquired some of his paintings for their 1989 calendar. In fact, Chahn's evocation of Thailand 's warm play of light can be seen in homes in Japan , Paris , Malaysia , Switzerland , the U.S. and South Africa .
If you would like further information about the artist, or the opportunity to interview Chahn Sutarapong, please contact Susanne van Laarhoven, Curator of the Rotunda Gallery, by e-mail at susannevl@yahoo.com or phone at 02-233-1731. The Rotunda opening hours are: Tuesday-Sunday 9.30 am - 5.00 pm.
Useful Telephone Numbers for Hua Hin
Railway station
032-512 770, 032-511 073
Bus station of Hua Hin
032-511 654, 032-512 543
Bus station of Prachuabkirikhan
032-601 901
Bus station of Pranburi
032-621 443
Hua Hin Hospital
032-520 401
Dog Rescue Center
0-1981 4406
Wild life Rescue Center (Tayang)
032-458 135
Department of Land Cha-am office:
032- 430 846-7
Department of Land Hua Hin office:
032-536 164, 032-512 407
Department of Land Prachuabkirikhan:
032-611 211
Department of Land Pranburi
032-622 199
Local Government (Hua Hin)
032-521 340, 532 471
Local water supply
032-511 677
The Power Board of Hua Hin
032-512 215, 032 513 165
Observer office:
032-531 078
Red Cross.
032-512 567
San Paolo Hospital
032-532 576-85
Polyclinic International
032-516 424, 032-516 425
Shell Cooking Gas
032-511 144, 032- 515 620
The Communication Authority of Thailand
(Hua Hin)
032-511 351
Rotary Club of Hua Hin
0-1916 6637
Meeting every Thursday 8.pm
at Hua Hin Grand Hotel & Plaza
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