We are introducing three new sets of model portfolios for 2016 under the “On Our Portfolio” series after recording three consecutive fruitful years since 2013. The themes of these portfolios remain unchanged as THEMATIC, DIVIDEND YIELD and GROWTH with the same investment criteria as for the previous portfolios. For a start, we have the portfolios with funds less than 50% invested in view of imminent healthy pull back. All these portfolios will be reviewed on a monthly basis. Our invested stocks partly mirrored our upcoming 1Q16 Strategy Outlook which we believe the market to remain in a range-bound mode. “Be Selective” and more trading oriented investment strategy will likely to be the preferred strategy for 1Q16.

The THEMATIC Portfolio is designed for aggressive investors who are looking for at least a 10% total return a year while the DIVIDEND YIELD Portfolio is suitable for conservative investors who focus on income stocks with minimum 4% annual yield. On the other hand, The GROWTH Portfolio provides a balance between the aggressive and conservative risk classes with less than 1.0x PEG (PER over Growth) ratio. We are investing 35%-59% of the RM100,000 allocation to each portfolio for a start but will only be reviewed on a monthly basis vs. a weekly review manner that adopted over the past three-year. Despite being less aggressive in reviewing our performance, we will continue to issue a separate report to update our followers if there are any changes in our portfolios during the month.

As we are anticipating a healthy pull-back, we have merely less than half of our fund allocation for now with TENAGA (solid and resilient earnings) being the sole counter that includes in all the portfolios. For the aggressive portfolio, we have another two mid-caps, namely TOPGLOV and PESTECH in THEMATIC Portfolio. Similarly, BJTOTO is the other midcaps names in the conservative DIVIDEND YIELD Portfolio. The balance fund - GROWTH Portfolio, meanwhile, has three mid/small-caps stocks, namely PESTECH, TOPGLOV and TEXCYCLE, on top of the blue-chips' selection. We will further expand the portfolios progressively if our anticipation comes through.

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