2. OH¡
¬H¤Ä¼ºªj ̳ ê¸ë§
“The Investor’s chief problem – and
even his worst enemy – is likely to be
himself”
(§jD P» jH¤Ä¼ºª Lv
¤Ì³H ê¸ë ÃÝ°ºª ̤³ ¥O¬N´`±q³ ¤Û¦ )
– Benjamin Graham
Source: “The Left Hemisphere’s Role in Hypothesis Formation”, by G. Wolford, M. Miller, and M. Gazzaniga. The Journal of
Neuroscience. 2000, Vol. 20.
4. gGI
° ¡@¤ä« ¡¶É® (Timing the Market)
14.00%
11.80%
12.00%
10.00% 8.50%
8.00%
6.00% 4.30%
3.00%
4.00%
1.70%
2.00%
0.00%
Source : Dalbar Inc. The above chart shows annualised returns over the period of 1987-2006. Returns are in
USD.
7. gTGi÷ݶ«¥µ ¾É®ºªõ³
° ¤ä« ¡
$140,000
$118,343
$120,000
$117,653
$100,047
$100,000
Assets in USD
$80,000 $78,343
$72,653
$60,047
$60,000
$48,225
$8,225
$40,000
$40,000.00 $40,000.00 $40,000.00 $40,000.00
$20,000
$0
Perfect Investor Regular Investor Terrible Investor Wait & See Investor
SOURCE: Based on the returns of four hypothetical investors. Each investor was given USD2,000 to invest in the global equities market
(as measured by the MSCI World Index) every year for 20 years, till 2006. Each investor followed a different strategy. The money
8. gGI
° ¡|¥ä« À·-²´ ¤F¥Ê¯
Periods to 31 December 2006 in Sterling
Global
Global
Time Period Taiwan Equities Bonds Equities Conclusion
1 Yr 20.52 6.52 19.95 I love Taiwan…?
I hate Global
3 Yrs 12.51 3.63 16.14
Bonds…?
Global
5 Yrs 8.93 7.85 11.31
Equities…OK?
7 Yrs -0.98 6.26 3.08 I love bonds?
Long Term
Averages 0.57 5.5 7.67 ?
(since 1996 Sept)
Past performance is not a guide to future performance.
Source: Russell. Returns are based on MSCI Taiwan, MSCI AC World, LB GB (USD Hedge), measured in USD
10. ¡G
@¤§ H¶{²õ³«¥ ¨C¦~ U¸ê²£Ãþ§Oªí {¤ ºÉ¬Û P
Best Performing
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Inter Inter
Large Large Real Real Small Real Real
Bonds
nationa nationa
Cap Cap Estate Estate Cap Estate Estate
l l
Inter Inter Inter Inter
Small Small Real Real
Bonds Bonds
nationa nationa nationa nationa
Cap Cap Estate Estate
l l l l
Asset Asset Asset Asset
Real Large Small Real Small Small
Allocat Allocat Allocat Allocat
Estate Cap Cap Estate Cap Cap
ed Mix ed Mix ed Mix ed Mix
Asset Asset Asset Inter Asset
Small Large Large Large
Allocat Bonds Allocat Allocat nationa Allocat
Cap Cap Cap Cap
ed Mix ed Mix ed Mix l ed Mix
Asset Asset
Small Large Large Small Large Small
Bonds Bonds Allocat Allocat
Cap Cap Cap Cap Cap Cap
ed Mix ed Mix
Inter Inter Inter
Real Real Large
Bonds Bonds Bonds Bonds
nationa nationa nationa
Estate Estate Cap
l l l
orst Source : Large Cap – S&P 500, Small Cap – Russell 2000, Bonds – Lehman Brothers Aggregate Bond Index,
International – MSCI EAFE, Real Estate – NAREIT Equity Index
14. H¶{²õ³«¥ ¥|¡G ¹L¥h¤Q »¦~¸ê²£°t¸mªº®Ä G
Global Equities offer
3,500,000 potentially high returns
but the volatility is very
high
3,000,000 Annualised
A blend of Global Return/Volatility
Equities and Global
Bond lowers the volatility
2,500,000
and offers higher returns
2,463,219
than just Cash or just
Global Bonds
2,000,000 11.27% p.a. / 13.7
Global Bonds and Cash
are less volatile but
offers lower returns
1,500,000
1,566,659
9.61% p.a. / 8.15
1,000,000
850,576
7.40% p.a. / 7.08
500,000
337,803
4.14% p.a. / 0.67
-
Dec-74
Dec-76
Dec-78
Dec-80
Dec-82
Dec-84
Dec-86
Dec-88
Dec-90
Dec-92
Dec-94
Dec-96
Dec-98
Dec-00
Dec-02
Dec-04
Global Equities Global Bonds Singapore Cash 50% Gl Eq/50% Gl Bonds
Index Data used for last 30 years : Global Equities – MSCI World Index, Global Bonds
– CG WGBI Index, Singapore Cash – SIBOR. All returns in SGD.
21. Disclaimer : The information in this document has been prepared without having
regard to your personal objectives, financial situation or needs. Before making an
investment decision, you need to consider whether this information is appropriate for
your objectives, financial situation and needs. The information has been compiled from
sources considered to be reliable, but is not guaranteed. Past performance is not a
reliable indication of future performance.
1936 Tacoma, Headquarters
1969 New York 1979 London 1984 Sydney 1984 Toronto 1986 Tokyo 1991 Auckland 1994 Paris 1999 Singapore
www.russell.com
23. 1936 Tacoma, Headquarters
1969 New York 1979 London 1984 Toronto 1986 Tokyo 1991 Auckland
1986 Sydney
1996 Amsterdam 2000 Johannesburg 2002 Geneva
1994 Paris 1999 Singapore
www.russell.com
