2009 Investment Program & Methods (continuation)

Continuation from the last post 2009 Investment Program & Methods

Cash Investment Methods:
I apportioned 2 areas for my cash investments, REITs and Foreign focussed equity funds, for moving towards my Asset Allocation (REITs/Properties) and diversification (foreign equity) goals.
Note that each transaction is tracked individually, thus enabling me to calculate the transaction's Net Profit or Loss pa + Trailing Stop Loss / Stop Loss.

1. REITs - 77% of cash investments
   Capital for investing into REITs is accumulated in my SCB Mortgage1 account, thereby knocking-off the amount of interest I have to pay, effectively "earning" me BLR-2.2%.
   Methods
   a. Filter: The top 5 with
      ROE>=10% for preferably >=2yrs; Consistantcy of good management
      D/E <=0.5; Financing of business is not over reliance on external loan (debt)
   b. Value trigger: The best combination of
      DY%>=9%
     Current Price/Net Asset Per Share (NAPS) <= Average Current Price/NAPS of filtered REITs
     P/E <= Average P/E of filtered REITs
     EPS >= Average P/E of filtered REITs
   c. Buy in >= $2,856 (based on my HLeB account's minimum order to minimize brokerage cost % over transaction cost) and within a balanced/diversified spread of value held in 3 or more REITs, as compared to my available accumulated capital to inject.
   d. Sell off:
      Stop Loss (not Trailing Stop Loss) of 7%: Sell all
   
      REITs for me are for income + equity growth (like Properties), thus as long I don't lose 7% or more of my initial investment, in the long-run, that investment transaction should be good enough to play its role in my portfolio.
   
      OR
      Price hits a net profit >= 3 X expected DY%: Sell to recover capital
      eg. A capital growth >= 3 x 10% (ie. 30%) will trigger me to sell because 3 years' worth of returns in hand NOW is worth more than in 3 years time due to inflation, risks and opportunity cost
   
   
2. Foreign focussed equity funds - 23% of cash investments
   Same as REITs' capital, the capital for investing into Foreign focussed equity funds is accumulated in my SCB Mortgage1 account, thereby knocking-off the amount of interest I have to pay, effectively "earning" me BLR-2.2%.
   Methods
      a. Buy in
      Allocate a fixed amount of money every quarter (3 months) to Public Far East Select Fund (PFES) and Public Regional Sector Fund (PRSF) and execute buy-in with Combo program of Dollar Cost Averaging + Value Cost Averaging.
      b. Sell off: To recover capital + expected returns pa
      Look to sell when a transaction hits 200% of my expected returns (10%pa), ie. 20%pa + tempered with the current Trend for that fund (ie. if it's in one of the 3 negative trends - see Trend Buy & Sell Rules 2009 Investment Program & Methods)

Of course I have an OPPORTUNITY or Trading sum put aside from my "windfall" (part of "Feel Good" ;P). That's for another day (thank you Boss! again - else my Trading fund = $0 hehheh).