Monday, December 28, 2009

Unit Trust Dividend Investment (Failed)

Results: Half Failed
Note: After going through the historical records, after dividends payout, the fund price will reduce to similar amount also.
[Updated 5 Apr 2010] Note: Except for this Bond: Ftif-templeton Glb Bond A(Mdis) Sgd
Do you know that some unit trust gives out dividends?

Their dividends is quite fixed and you can actualy 'predict' their next dividend payment. Because of this, you can actually make a quick profit.

Previously the profit is not much because of the switching limitation; where extra charges will be incurred.
Now that FSM has no-limit switching, we can actually switch to the dividend paying funds just before the ex-Date and switch back out on the ex-Date itself.

E.g. Fund A declares Dividend ex-Date 1st october 2009 (Thursday).
You need to purchase the fund before 1 October, i.e. you funds must be transacted on or before 30 September 2009 (Wednesday).

For cash purchase it'll usually takes T+1 day and for switching it'll take T+2 days.

Purchase (T+1 day)
If I want to buy Fund A to enjoy the dividend, I will have to place an order, including transfer of funds before the cut-off time (3pm for FSM), on or before the 29 September (Tuesday).
So that my transaction date will be on 30 September 2009 (T+1).

Switching (T+2 days)
So if I want to switch my Fund B to Fund A to enjoy the dividend, then I have to switch my fund latest by 28 September 2009 (Monday).
So that my transaction date will be on 30 September 2009 (T+2).

For the month of January, I will recommend to switch your funds to:
1) 2 January: AllianzGI RCM Glb High Payout(SGD): Avg Dividend 4.24%
Risk 8; Minimum $1000; CPF, SRS; 2% Sales Charge

2) 2 January: Schroder Emerging Markets Bond Fd: Avg Dividend 2.97%
Risk 5; Minimum $1000; SRS; 1% Sales Charge

On 2nd January, you can switch all your funds back to your normal allocation.

Finally managed to compiled the list of all the funds that I think it's worth investing.

Fund NameRiskChrgInitialDvd %2009CPFOA
AllianzGI RCM Glb High Payout(SGD)82%10004.32%2 - 15 JanY
First State Glb Infrastr92%10003.10%2 - 15 JanN
Schroder Emerging Markets Bond Fd51%10003.08%2 - 30 JanN
Schroder Asian Bond Fund41%10002.33%2 - 30 JanN
AllianzGI Choice Eq SGD62%10007.47%25Feb - 10MarN
PRU Mthly Income Plan Cl A (fixed 0.05)41%10006.46%1 - 10 FebN
LionGlobal Multi Income62%50004.95%2 - 23 MarN
DBS Glb Prop Securities Fd (fixed 0.015)82%50003.16%1 - 21 AprY
Schroder Global High Yield Fund (fx 0.0125)41%10001.76%1 - 17 AprN
First State Bridge62%10001.41%1 - 21 MayY
PRU Income X62%10007.39%1 - 15 JunN
SGAM Spore Dividend Growth (fx 0.025)82%10001.86%1 - 19 JunY
AllianzGI RCM Glb High Payout(SGD)82%10004.16%1 - 14 JulY
HGIF EUR Eq SGD PD (since 2007)82%10003.34%17 - 31 JulN
First State Glb Infrastr92%10003.15%1 - 14 JulN
Schroder Emerging Markets Bond Fd51%10002.87%1 - 16 JulN
Schroder Asian Bond Fund41%10002.39%1 - 16 JulN
Fidelity EmerMktDebt A-SGD51%10005.87%1 - 17 AugN
Fidelity EUR Agg A-SGD82%10002.37%1 - 17 AugY
Fidelity ASEAN A-SGD92%10001.99%1 - 17 AugN
LionGlobal Multi Income62%50002.86%1 - 23 SepN
Henderson Asia-Pacific Prop Eq Fd (fx 0.02)102%10002.74%21Oct - 10NovN
DBS Glb Prop Securities Fd (fixed 0.015)82%50002.54%23 - 30 OctY
Schroder Global High Yield Fund (fx 0.0125)41%10001.52%1 - 16 OctN
LionGlobal Bond(Cl A)21%10002.59%2 - 23 NovN
First State Bridge62%10001.51%2 - 19 NovY
First State Glb Prop Invt92%10004.07%1 - 14 DecN
SGAM Spore Dividend Growth (fx 0.025)82%10001.52%1 - 21 DecY
DBS Shenton Income21%10001.63% N
FTIF-Templeton Glb Bond A(mdis) SGD21%10000.40%8 - 15 JanN
Lionglobal Singapore Balanced52%1000--Y
LionGlobal SGD Income Plus52%50000.97% Y

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