Budget 2013

Najib unveils RM251b Budget

FMT Staff

 | September 28, 2012

UPDATED

KUALA LUMPUR: Prime Minister Najib Tun Razak unveiled the Budget 2013 in the Dewan Rakyat this afternoon.

The Budget 2013 theme was “prospering the nation, enhancing the well-being of the rakyat and a promise fulfilled”.

At the onset of his more than two-hour-long speech, Najib said the budget was a manifestation of Barisan Nasional’s campaign slogan, “Janji ditepati”.

The premier announced numerous measures to stimulate the economy and other sweeteners such as tax incentives and monetary rewards aimed at securing votes.

Salient points:

• The allocation for next year’s budget is RM251.6 billion with the fiscal deficit at 4% compared with 2012′s deficit of 4.5%.

• Government will reintroduce foreign company acquisition incentives and tax incentives for local service providers.

• The government is suggesting group insurance coverage scheme for hawkers and small business holders who are registered with the Companies Commission of Malaysia. This scheme will provide maximum coverage up to RM5,000 and the government will fund it at RM16 million annually.

• Tax incentive for the Global Incentive for Trading (GIFT) programme to make Malaysia an international commodity trading hub.

• Taking into account expected revenue and expenditure, government’s deficit to decline further to 4% for 2013 from 4.5% in 2012.

• Tax incentives for private entrepreneurs in the oil and gas industry including 100% income tax waiver for 10 years, exemption of withholding tax and stamp duty.

• To support agriculture, government will provide subsidies and incentives worth RM2.4 billion for padi, padi seeds and fertiliser prices. Paddy farmers below 10 hectares will fall under the Paddy Takaful Coverage Scheme with compensation of up to RM13,000.

• RM500 million will be allocated for the River of Life project to rejuvenate the Klang River.

• RM230 million in incentives for fishermen, RM2.4 billion in subsidies and incentives for paddy sectors

• Securities Commission will provide the framework for the issuance of AgroSukuk for companies involved in agriculture. For AgroSukuk, the government has allocated a double tax deduction for a four-year period from 2012-2015.

• Halal Industry Fund will provide RM200 million to fund working capital for SMEs that produce halal products.

• The government will allocate RM600 million for crime reduction.

• Putrajaya to give RM276 million to beef up the Malaysian Anti-Corruption Agency (MACC).

• RM350 million Tekun loans for entrepreneurs (including RM50 million for the Indian community).

• RM38.7 billion allocated for education. Additional RM500 million for training of teachers in core subjects English, Bahasa Malaysia, Science and Maths.

• RM1 billion for primary schools (RM100 million for Tamil and Chinese schools).

• PERMATA to get RM20.5 million under PM’s Department.

• RM1.2 billion allocation for pre-school development.

• The government will form the “Graduate Employability Task Force” to assist unemployed graduates.

• Tun Razak Exchange expected to attract 250 international financial services companies and offer 40,000 job opportunities.

• RM50 million for poor Indian students to undergo technical training.

• RM200 milion for Socso in oder for its 1.4 million contributors aged 40-55 to undergo free medical screening in government hospitals.

• For retired civil servants who served a minimum of 25 years, minimum pension raised from RM720 to RM820.

• Retired army personnel who served a minimum of 21 years to receive RM1,000 one-off payment.

• RM1 billion fund to be set up to help Bumiputera SMEs to increase their equity share in the economy.

• Legal aid centre to get RM20 million.

• Annual increase of 150 officers for MACC annually until the 5,000 target is met.

• RM20 million for 1Malaysia Clinics, to build an additional 17 more clinics with facilities to check cholesterol and glucose levels. Another RM100 million for maintenance work on current clinics.

• Another round of cash handouts of RM250 under BRIM 2.0 for household incomes less than RM3,000. It will also be extended to single individuals aged 21 and above earning less than RM2,000. The total cost will be RM3 billion.

• Subsidy for sugar will be reduced by 20 sen effective tomorrow.

• The government will allocate RM440 million to the Skills Development Fund Corporation (PTPK) to provide loans for trainees to undergo skills training.

• To further boost the production and utilisation of green technology-based products, the fund for GTFS will be increased by RM2 billion and the application period extended for another three years ending Dec 31, 2015.

• RM20 million for 1Malaysia Clinics, to build an additional 17 more clinics with facilities to check cholesterol and glucose levels. Another RM100 million for maintenance work on current clinics.

• Another round of cash handouts of RM250 under BRIM 2.0 for household incomes less than RM3,000. It will also be extended to single individuals aged 21 and above earning less than RM2,000. The total cost will be RM3 billion.

• Subsidy for sugar will be reduced by 20 sen effective tomorrow.

• RM1.9 billion to build 123,000 affordable housing units in strategic locations, to be implemented by PR1MA, SPNB, National Housing Department. PR1MA will spend RM500 million to build 80,000 houses nationwide priced between RM100,000 and RM400,000.

• To enable more Malaysians own their first residential property, My First Home Scheme, which was launched under the previous budget, will be improved by increasing the income limit for individual loans from RM3,000 to RM5,000 per month or joint loans of husband and wife of up to RM10,000 per month. In addition, the requirement for a savings record equivalent to three months instalment and minimum employment of six months will be abolished.

• RM1.9 billion to build 123,000 affordable housing units in strategic locations, to be implemented by PR1MA, SPNB, National Housing Department. PR1MA will spend RM500 million to build 80,000 houses nationwide priced between RM100,000 and RM400,000.

• The government proposes the real property gains tax (RPGT) from the disposal of properties made within a period not exceeding two years from the date of purchase will be taxed at the rate of between 15% and 10% of disposal of property within a period of two to five years. For property disposed after five years from the date of acquisition, RPGT is not applicable. In addition, gains from the disposal of one residential property once in a lifetime and disposal of properties based on love and affection between husband and wife, parents and children, grandparents and grandchildren are exempted from RPGT.

• The government will allocate RM386 million to ensure the prices of essential goods in Sabah and Sarawak as well as in Labuan are sold at lower prices through the opening of 57 KR1M; and to bear the cost of delivering products from Peninsular Malaysia to Sabah, Sarawak and Labuan including the interior areas. For example, in Ba’kalalan, Sarawak, the price of a 14 per kg cooking gas cylinder is sold at RM70. With the price uniformity programme, the cooking gas can be purchased at only RM26.60 per cylinder.

• In addition, to reduce the burden of the rakyat who commute daily by ferry from Labuan to Sabah and Sarawak, the government will provide a 50% discount on ferry charges to all passengers. Furthermore, 50% discounts will also be provided on ferry charges for commercial vehicles that transport basic essential goods and construction materials to Labuan.

• The government will continue the 1Malaysia Book Voucher programme for all students in institutions of higher learning (IPT) and at pre-university level. The value of the voucher will be increased from RM200 to RM250. The measure will involve an allocation of RM325 million and benefit 1.3 million students nationwide.

• The government proposes that individual income tax rate be reduced by 1 percentage point for each grouped annual income tax exceeding RM2,500 to RM50,000. The measure will remove 170,000 taxpayers from paying tax as well as provide savings on their tax payment. As an example, an unmarried young professional with a monthly income of RM5,000 will enjoy income tax savings up to RM425 per person.

• The government proposes school bus operators to be given, firstly, assistance of RM10,000 cash rebate and a 2% interest rate subsidy on full loans for the purchase of new buses to replace buses that have exceeded 25 years with new 12- to 18-seater buses. This loan scheme, managed by BSN, will be offered for a period of two years commencing Jan 1, 2013.

• The government will once again provide the Schooling Assistance of RM100 to all primary and secondary students. This assistance is expected to benefit 5.4 million students involving an allocation of RM540 million and will commence in January 2013.

• The government will establish 100 1Malaysia Internet Centres from 2013 to 2015 in suitable areas in the city such as PPR locations. The centres will be equipped with computer facilities and broadband services for daily usage and will enhance the socio-economic activities. For this, SKMM will provide an allocation of RM150 million.

• Repayment of PTPTN full loan within a year upon this announcement effective from Oct 1, 2012 until Sept 30, 2013, a discount of 20% will be given on their loans. Meanwhile, for those with consistent repayment of PTPTN loan in accordance with their repayment schedule, a 10% discount per annum on their repayment will be given effective from Oct 1, 2012.

• Government announces a bonus of one and a half months for civil servants.

http://www.freemalaysiatoday.com/category/nation/2012/09/28/najib-unveils-budget-2013/

Uncle Chua's Buy and Hold Portfolio Performance Update

I have written about Uncle Chua's story and how he accumulated a great deal of wealth through his stock investment in Singapore.  The portfolio of stocks that he left in his will was mentioned in a book.

Here is Uncle Chua's portfolio & dividend income, reproduced here as accurately as was depicted in the book:
Uncle Chua's portfolio 2001
http://spreadsheets.google.com/pub?key=r5DhwS2nWTiIAK0pDCIPD-Q

All the shares he dealt in were ALL blue chip stocks.

I thought it would be interesting to see how his portfolio of stocks might have performed up to today, assuming the portfolio was left unmanaged, essentially a buy and hold strategy.

It was difficult to determine the initial prices of some of the stocks in the year 2001 and I have used the earliest available stock prices, from the Yahoo Finance website, to represent these initial prices of the stocks in 2001.  Some initial prices were left blank as I could not get any information on these.

Well, let's have a look at his updated portfolio.

Click here:
Uncle Chua's Updated portfolio 2012
https://docs.google.com/spreadsheet/ccc?key=0AuRRzs61sKqRdG43MlFBeWVDWVVpaDFBeHZxY181U1E

Uncle Chua's portfolio (Update)

Performance (not including dividends)
From 2001 to 2012
Period of 11 years		Gain %
		215.6%
		CAGR
		11.0%

What conclusions can we derive from Uncle Chua's updated portfolio?

The portfolio has done quite well, returning a CAGR in share appreciation of  11.0%.  With dividends added, its performance has certainly outperformed the general market.  Do you agree?

The buy and hold strategy for this portfolio can be adopted by the defensive investors in their investing.

There are great lessons one can derive from Uncle Chua's legacy even today.

Conclusion:   Buy and hold is a safe and rewarding strategy for highly selected stocks.  



Related:

Uncle Chua's Portfolio & Dividend Income

http://myinvestingnotes.blogspot.com/2009/05/uncle-chuas-portfolio-dividend-income.html

The story of Uncle Chua

http://myinvestingnotes.blogspot.com/2009/05/story-of-uncle-chua.html


Appendix:   Rule Of Five 

The Rule of Five is BetterInvesting's method of letting you know you're not perfect and neither are your stock selections.

It states "For every five stocks you select using BetterInvesting methods, one will do much better than you expected, three will do about as well as you expected, and one will do much worse than you expected." 



The Rule of Five forms the basis for the first step of portfolio management, defense.

Here are the three possible outcomes for a stock's fundamentals on the SSG.



Defensive portfolio management's ONLY concern is finding stocks whose FUNDAMENTALS of SALES, PRE-TAX PROFITS, EPS, & PRE-TAX PROFIT MARGIN are not meeting your projections for future quality.

Click here  for a more indepth discussion of defensive portfolio management or click here   to see how the PERT Report is used to implement defensive portfolio management.

Economy Is Top Priority: Indonesian President

By Jean Chua | CNBC 

As protests against a U.S. made anti-Islam video continue across the world, the president of Indonesia, which has the world's largest Muslim population, seeks to reassure investors that all steps will be taken to ensure stability and promote economic growth in his country.

Susilo Bambang Yudhoyono, who is in the U.S. to attend the United Nations General Assembly told CNBC's Maria Bartimoro that Indonesia respected freedom of speech and was committed to nurturing democratic traditions.

"We will continue to nurture our democracy because democracy should also bring benefit to the people and stability. And with stability we can build our economy," Yudhoyono said.

Weeks of protests against the controversial film posted on YouTube have resulted in more than 50 deaths so far, Reuters reported. In Indonesia as well there have been anti-U.S. demonstrations, which made the U.S. shut its embassy temporarily in the capital Jakarta on Friday.

"I have to assure you that we are responsible and will ensure that all embassies can accomplish their missions in Indonesia," Yudhoyono told CNBC.

He added that the recent violent protests were because of a clash of different views and the only way forward was to respect different religions and cultures. "We have to live together, in a better atmosphere," he said.

The president added that Indonesia would continue to make the country investor-friendly and could not afford to let social unrest come in the way of growth.

Indonesia has been one of the bright spots in the global economy that's struggling with a synchronized slowdown in the U.S., Europe and China, having grown a higher-than-expected 6.4 percent in the second quarter.

The Southeast Asian nation, the world's sixteenth-largest economy, could surpass Germany and the U.K. by 2030 and become the world's seventh-largest, according to consulting firm McKinsey last week.

While in New York, Yudhoyono is expected to meet up with foreign investors to convince them that doing business with Indonesia will be good for them. "We are building more infrastructure and offer lot of opportunities in agriculture and in industry across the country," he said.

Yudhoyono added there has to be a "dramatic increase" in investment to offset exports, which have been declining, and the best way to do that is to ensure there is stability in the country.

"We are doing our best to maintain growth with greater certainty and predictability. ...We are improving our investment climate," he said.

Yudhoyono expects the economy to keep its momentum into the next year growing at 6.5 percent, driven largely by domestic consumption.

-By CNBC's Jean Chua.

http://finance.yahoo.com/news/indonesia-president-reassures-investors-economy-073533120.html

Hartalega versus Top Glove

Comparing Hartalega and Top Glove performance over 2 years from 2009 to 2011

Hartalega					Period (Yrs)	2
	Mar-09		Mar-11		Change	CAGR
	millions		millions
Equity	254.2		494.44		94.51%	39.47%
LT Assets	246.4		348.86		41.58%	18.99%
Current Assets	128.36		286		122.81%	49.27%
LT Liabilities	67.5		61.29		-9.20%	-4.71%
Current Liabilities	52.76		78.78		49.32%	22.20%
Sales	443.2		734.92		65.82%	28.77%
Earnings	84.51		190.3		125.18%	50.06%
Interest expense	2.43		2.47		1.65%	0.82%
D/E	0.23		0.08
ROA	22.55%		29.98%
ROE	33.25%		38.49%
Market cap	1512.26		2908.38		92.32%	38.68%
P/E	17.89		15.28
Earnings Yield	5.59%		6.54%
P/BV	5.95		5.88
DPO ratio (historical)	30.37%
Dividend Yield range	High		Low
	4.60%			2.60%
Capital changes	-
Top Glove					Period (Yrs)	2
	Aug-09		Aug-11		Change	CAGR
	millions		millions
Equity	824.51		1121.8		36.06%	16.64%
LT Assets	620.91		816.11		31.44%	14.65%
Current Assets	511.5		593.69		16.07%	7.74%
LT Liabilities	42.37		47.24		11.49%	5.59%
Current Liabilities	244.06		216.18		-11.42%	-5.88%
Sales	1529.08		2053.92		34.32%	15.90%
Earnings	169.13		113.09		-33.13%	-18.23%
Interest expense	8.53		0.24		-97.19%	-83.23%
D/E	0.02		0
ROA	14.94%		8.02%
ROE	20.51%		10.08%
Market cap	2118.81		2672.54		26.13%	12.31%
P/E	12.53		23.63
Earnings Yield	7.98%		4.23%
P/BV	2.57		2.38
DPO ratio (historical)	42.08%
Dividend Yield range	High		Low
	3.60%		2.00%
Capital changes	-

The Second Secret of Small-Cap Investing: Invest for the Long Term (but Monitor in the Short Term)

Successful stock investors know that a long-term approach often pays off by allowing individuals to ride out a company’s temporary setbacks and realize gains over a period of five years or a decade or even longer. In addition, minimizing transaction costs and short-term capital gains taxes can add to the overall rates of return.

With small-cap stocks, however, some tweaking to the buy-and-hold strategy used in a large-cap stock portfolio may be necessary. Because smaller companies are less established, there is often a higher degree of risk and volatility involved in holding these kinds of stocks. That’s not to say that a buy-and-hold approach can’t work, though, but just a reminder that “buy and hold” does not mean “buy and forget.” With small-cap stocks it can be prudent to maintain a somewhat higher level of vigilance on their activities, watching for signs of trouble and selling promptly when real problems affect a company.

When problems do arise, the market is often less forgiving of small companies when they hit roadblocks. Even when management eventually steers these companies back in the right direction,investors may stay away until they are receive excessive degrees of reassurance, keeping stock prices depressed all the while.

It’s never good to be swayed into action by irrational market moves, however, and patience is frequently required to become a successful stock investor. Smaller companies often don’t have the broad institutional interest required to support share price growth. As a result, stock prices may only grow moderately until a tipping point is reached, at which the market seems to wakes up to the potential of a company. Investors who have already discovered the stock will then be nicely rewarded.

http://blog.betterinvesting.org/investing/five-secrets-of-small-cap-investing-part-two/

The First Secret of Small-Cap Investing: DEMAND PROOF OF MANAGERIAL EXCELLENCE

Great businesses are made, not born. And the secret to making a great business is having solid leadership in place — a management team that can drive a company on the route to sustainable excellence.

As with any stock investment, it’s imperative to establish that a small company’s leaders are more than competent — they have the skill and expertise to deliver profits to shareholders. Although there are many ways to determine whether a company’s management team is up to the task, a few factors rise to the top.

First, a company should have an operating history of at least three years. For companies that have recently gone public, this period could include years before its initial offering. There should have been no jarring changes of management during the company’s recent past as well. A company’s management can’t be evaluated without evidence, so the team responsible for the success of the venture to date must still be in place in order to make judgments.

Second, a company must be profitable to be considered for investment. The promise of future profits is not sufficient. Nor is it enough for a company to have recently turned the corner and posted positive earnings for the first time in its history. If a company has been able to deliver several recent years of profitability, management has passed the most important test of its skills.

But it’s not enough that a business’s management is merely competent. Our third suggestion is that stock investors strive for excellence — seek companies that meet or surpass the performance measures of their peers and competitors.

Fourth, the strength and consistency of historical growth is certainly area where investors can discern the hand of management in building a business poised for long-term future success.

Fifth, the trend and level of a company‘s pretax profit margins is perhaps the single most important comparative factor. Successful, quality companies can be identified by the margins they eke out on each dollar of revenue. Higher margins than competitors are almost always a sign of management expertise. Relatively stable annual margins are demanded of all companies. Growing margins are a positive.

To be sure, smaller companies may be in the phase of building their business, investing now to support greater success in the future, so the analysis of margins when compared with more established competitors should keep this possibility in mind.

A company’s return on equity should be reviewed carefully, but this measure not be less useful as a quality consideration for newer-stage businesses. Smaller companies can earn higher returns on initial equity, but these levels are not sustainable. Caution must again be exercised when comparing small businesses with established enterprises. Finally, any company included in a growth stock portfolio must have identifiable drivers of future growth. Tailwinds should be stronger than headwinds. No business can coast to success on the coattails of its past success, so management must be able to present a viable vision for how it intends to grow the business in the years ahead.

http://blog.betterinvesting.org/?p=2417

Malaysian Plantations Market Capitalization

Market Capitalization					Period (Yr)	4
	Mar-08		Mar-12		Change	CAGR
RM	(million)		(million)
Batu Kawan	4490.3		8239.47		83.5%	16.4%
Boustead	3176.65		5636.46		77.4%	15.4%
Chin Teck	666.95		827.75		24.1%	5.5%
Far East Hold	844.31		1060.43		25.6%	5.9%
GENP	6082.19		7284.92		19.8%	4.6%
Glenealy	546.82		827.15		51.3%	10.9%
Hap Seng Plant	2272		2440		7.4%	1.8%
IJM Plantations	1942.52		2709.8		39.5%	8.7%
IOI	44617.65		35907.77		-19.5%	-5.3%
Kim Loong	708.17		829.35		17.1%	4.0%
KLK	17613.83		25961.72		47.4%	10.2%
Kulim	2180.19		5583.1		156.1%	26.5%
Kwantas	1271.65		748.03		-41.2%	-12.4%
SOP	1140.86		3018.77		164.6%	27.5%
THPlant	615.74		1480.7		140.5%	24.5%
TWSPlant	1852.04		3000.3		62.0%	12.8%
TSH	1176.59		2082.34		77.0%	15.3%
Unico	892.15		1055.38		18.3%	4.3%
UMCCA	1031.84		1545.61		49.8%	10.6%
UTDPLT	2893.06		5124.26		77.1%	15.4%

Sorted by Market Cap of Mar 2012 (from largest to smallest)

Market Capitalisation					Period (Yr)	4
	Mar-08		Mar-12		Change	CAGR
RM	(million)		(million)
IOI	44617.65		35907.77		-19.5%	-5.3%
KLK	17613.83		25961.72		47.4%	10.2%
Batu Kawan	4490.3		8239.47		83.5%	16.4%
GENP	6082.19		7284.92		19.8%	4.6%
Boustead	3176.65		5636.46		77.4%	15.4%
Kulim	2180.19		5583.1		156.1%	26.5%
UTDPLT	2893.06		5124.26		77.1%	15.4%
SOP	1140.86		3018.77		164.6%	27.5%
TWSPlant	1852.04		3000.3		62.0%	12.8%
IJM Plantations	1942.52		2709.8		39.5%	8.7%
Hap Seng Plant	2272		2440		7.4%	1.8%
TSH	1176.59		2082.34		77.0%	15.3%
UMCCA	1031.84		1545.61		49.8%	10.6%
THPlant	615.74		1480.7		140.5%	24.5%
Far East Hold	844.31		1060.43		25.6%	5.9%
Unico	892.15		1055.38		18.3%	4.3%
Kim Loong	708.17		829.35		17.1%	4.0%
Chin Teck	666.95		827.75		24.1%	5.5%
Glenealy	546.82		827.15		51.3%	10.9%
Kwantas	1271.65		748.03		-41.2%	-12.4%

Sorted by biggest change in Market Capitalization over the last 4 years (from biggest to smallest)

Market Capitalisation					Period (Yr)	4
	Mar-08		Mar-12		Change	CAGR
RM	(million)		(million)
SOP	1140.86		3018.77		164.6%	27.5%
Kulim	2180.19		5583.1		156.1%	26.5%
THPlant	615.74		1480.7		140.5%	24.5%
Batu Kawan	4490.3		8239.47		83.5%	16.4%
Boustead	3176.65		5636.46		77.4%	15.4%
UTDPLT	2893.06		5124.26		77.1%	15.4%
TSH	1176.59		2082.34		77.0%	15.3%
TWSPlant	1852.04		3000.3		62.0%	12.8%
Glenealy	546.82		827.15		51.3%	10.9%
UMCCA	1031.84		1545.61		49.8%	10.6%
KLK	17613.83		25961.72		47.4%	10.2%
IJM Plantations	1942.52		2709.8		39.5%	8.7%
Far East Hold	844.31		1060.43		25.6%	5.9%
Chin Teck	666.95		827.75		24.1%	5.5%
GENP	6082.19		7284.92		19.8%	4.6%
Unico	892.15		1055.38		18.3%	4.3%
Kim Loong	708.17		829.35		17.1%	4.0%
Hap Seng Plant	2272		2440		7.4%	1.8%
IOI	44617.65		35907.77		-19.5%	-5.3%
Kwantas	1271.65		748.03		-41.2%	-12.4%

Market Capitalization from 1996 to 2012

Market Capitalisation
	Dec-96		Mar-08		Mar-12
RM			(million)		(million)
Batu Kawan	1544.29		4490.3		8239.47
Boustead			3176.65		5636.46
Chin Teck	484.49		666.95		827.75
Far East Hold	216.16		844.31		1060.43
GENP	1645.77		6082.19		7284.92
Glenealy			546.82		827.15
Hap Seng Plant			2272		2440
IJM Plantations			1942.52		2709.8
IOI	1063.46		44617.65		35907.77
Kim Loong			708.17		829.35
KLK	4561.93		17613.83		25961.72
Kulim	1077.38		2180.19		5583.1
Kwantas	416		1271.65		748.03
SOP	508.08		1140.86		3018.77
THPlant	230.97		615.74		1480.7
TSH			1176.59		2082.34
TWSPlant			1852.04		3000.3
UMCCA	209.38		1031.84		1545.61
Unico			892.15		1055.38
UTDPLT	803		2893.06		5124.26

Market Capitalization Growth rate from 1996 to 2012

Market Capitalisation					Period (Yr)	15
	Dec-96		Mar-12		Change	CAGR
RM	(million)		(million)

iCap Closed End Fund

iCap					Period (Yrs)	6
	May-06		May-12		Change	CAGR
	millions		millions
Equity	138.64		400		188.34%	19.30%
LT Assets	78.13		262.658		236.18%	22.39%
C. Assets	61.49		137.364		123.39%	14.33%
LT Liabilities	0		0		#DIV/0!	#DIV/0!
C. Liabilities	0.97		0.263		-72.89%	-19.55%
Sales	1.02		4.586		349.61%	28.47%
Earnings	-1.22		1.709		-240.08%	#NUM!
Interest exp.	0		0		#DIV/0!	#DIV/0!
Market cap	138.6		315		127.27%	14.66%
D/E ratio	0		0		#DIV/0!
ROE	-0.88%		0.43%		-148.58%
P/E	-113.61		184.32
P/BV	1.00		0.79
Dividends
DPO ratio	0.00%
DY range	0

Closed-ended funds: Why a discount, anyway? Most closed-ended funds sell at a discount. A recent sampling showed that more than 2/3rds of equity funds trade at a discount, and more than 90% of international equity funds trade at a discount. Many discounts are modest (5 to 10%), but many are 30% or more. There is much research and speculation about why discounts happen. The debate isn't nearly as important as understanding a few of the most common reasons. When selecting a closed-ended fund, investors must determine the reasonthe fund is trading at a discount and whether the discount is significant enought to be attractive. A discount may be justified by uncertainty, popularity or perceptions of the fund, and the underlying asset base. All 3 factors can work to cause a fund based on securities in Russia or Turkey, for example, to sell at a discount. Likewise, during the heyday of the Asian Tigers, many funds based in Asia sold at a premium. The reason? Popularity and the perception of future growth and gains.