Information as beauty: The art of the financial sector

Analysis of financial systems is still dominated by talking-heads and written punditry. The traditional financial website is all tables and graphs with numbers, cliched phrases and received wisdom, normally more confusing than enlightening. These approaches don’t come remotely close to conveying the emotional currents of the financial sector, the historical richness, the sociological complexity and the sheer chaotic surrealism. Art is frequently viewed as a financial asset, so why not treat finance as art? That’s what my new 'Financial Expressions' series will be about. It is aimed at exploring creative alternative ways of expressing financial information and ideas about the financial sector.

Raw Material: Back to basics with pure information

David McCandless was right to point out that information is beautiful. He's made a career out of finding pretty ways to present it, but sometimes even the most raw forms of information can have a gorgeous artistry. The beauty of raw financial information was first made apparent to me when I was introduced to the Bloomberg financial data terminal.

ISN'T IT BEAUTIFUL?

It looks like 1970s pop art, with an armour-plated keyboard, colour-coded keys and retro text set against a black backdrop like the old DOS systems. Its design seems to be inspired by old films of communist Russia, but for all its low-fi chic, the Bloomberg Terminal is one of the single most important items in the functioning of a capitalist financial system. The reason for this is that it provides raw information, live streaming prices of financial instruments and commodities, databases of company information, complex calculators to work out values and crunch statistics, profiles of individuals, and a lot of other stuff. It functions in a manner which serves to remind you that finance is an ancient art: It does not allow you to easily use a mouse to point and click on different options - you actually have to type in codes and hit ‘enter’. WEI gives you world equity indices, BTMM gives global bond markets. GRAB allows you to take a screenshot and email yourself a snapshot from a window into the world.

To me, the unique beauty of Bloomberg screenshots comes from the fact that they do not attempt to weave a coherent narrative around the information they present. If it's confusing watching the numbers jump around, it’s because confusion is the reality, and understanding is the abnormality.

Attempts to contain the chaotic nature of financial reality with clear stories must necessarily be shallow, but sometimes we need simplified realities. The following seven areas might be fruitful channels for those looking for creative routes to exploring financial complexities.

1) Sketching the system: Financial schematics

Thanks Brook

Schematics are a great way to simplify complex systems. Take the Shadow-Banking system for example. That's the vast labyrinth of securitised madness set on the wild shores of tax havens and the grimy jungles of London and New York. Need a map to navigate it? You sure do, lest you get eaten by an algorithm. Fortunately, the New York Fed was kind enough last year to develop a massive schematic to map it (see pg. 3). The map is so huge that to read the writing, one has to zoom the PDF to 300%. Alternatively, you can be like Brook Masters of the FT and print it out on a 3ft by 4ft sheet of paper. Take a look at it. Feel more enlightened?

Zerohedge did some great remixes of the map. The first is a circuit-board complete with a 'bailout chip' - try run this baby on your computer and watch the CPU explode and screen catch fire. The second is a Buddist Mandala - that's the Fed chanting soothing monetary aums.

Much work needs to be done in mapping financial systems with schematics. Mazes that people might want to take on include:

• Multinational company ownership structures
• Financial instruments (for example, structured products)
• Alternative money transfer systems, like Hawala
• Internal structures and dynamics of a large bank (good luck)

2) Financial visualisations & infographics
Visualising information and packaging it with slick graphics is increasingly popular as a means to convey the basic essence of certain financial and economic issues. Infographics are especially useful for presenting statistics, which frequently mean nothing when served up blandly in tables. In a world exploding with stats, the infographics industry can only get bigger. Listed below are a few samples from some great sites.

VisualComplexity: US Trade Deficits and Surplus
Wallstats: Death and Taxes
Chart Porn: US Energy Production
Flowing Data: 27 visualisations to understand the financial crisis
US Debt Visualised in 100 dollar bills

Other sites worth checking out include Many Eyes, Visualising Data, Information Aesthetics, and Cool Infographics. I've been using Newsmap as a useful way to get a  quick sense of the top trending news stories across countries and topics. Finviz heatmaps are a great way to visualise the size of stockmarkets and companies. I haven't yet had a chance to explore it, but GlobalSpirometry looks incredible.

3) Moving pictures

There's also a whole world of infographic visualisation videos out there now. It's a fantastic medium, but I can't help but notice that a lot of these videos have become slightly formulaic variations on each other, sometimes a bit too slick, with flickering advert-like graphics and soundbites drawing seemingly clear messages from complex information. The financial ones have a tendency to depict bankers as fat men with top hats, which is slightly archaic, and suggestive of the fact that the people that make these videos probably don't hang out with bankers. That's especially clear when the technical mistakes slip in. Take this video about Glencore, the global physical commodity trader. It's visually stunning, but come on guys, Glencore isn't an 'institutional investor', as is claimed. I wish they'd get somebody to fact-check it if they’re going to go to all that work to create it in the first place.

Going forward, I think it would be great to expand collaboration between financial professionals and visual artists. An awesome example of fruitful professional collaboration on the economics front are the Keynes vs. Hayek rap videos, created by filmaker John Papola and economist Russ Roberts of George Mason University (and host of the great podcast, EconTalk).

4) Financial Haikus

Less is frequently more, so I've been trying to start a Twitter trend called #MarketHaiku. I'd like people to attempt to sum up the madness of daily markets in three lines with 17 syllables. Here are some examples (Ok, so these need some work still, but man is it fun):

• #MarketHaiku 1: Volatility, is a five syllable word, bringing destruction
• #PretentiousMarketHaiku 1: Wisened sage once said, To fear both the bull and bear, Is to fear nothing
• #CommodityHaiku 1: Avocado, how tasty you are to me, all green and mushy
• #PretentiousCommodityHaiku 1: I trade oil futures, and thereby make the present, the far distant past

5) Financial Landscape Art & Guerilla Semiotics

Andy Goldsworthy makes beautiful landscape art in the countryside, but I think we could do it within London itself, in financial zones such as The City, Mayfair and Canary Wharf. Banksy has long shown us that workscapes are pristine environments waiting to be subverted, but financial workscapes remain underrepresented in the urban subversion scene. There's a whole world of culture-jamming waiting to be unlocked, epic fireworks shows and small disruptions on the back of toilet doors. Who's up for stensilling the Wall Street Crash on the windows of Barclays Capital?

TOILET SUBVERSION: "CRASH JP MORGAN BUY SILVER"

6) Financial Performance art

Back in 2009 I had the rare opportunity to participate in an intriguing piece of financial performance art, run by well-known avant-gardista Haley Newman. A group of us stood outside the Bank of England and recited a mantra about consumerism. She called it Capitalists Anonymous. It was fun, albeit pretty bizarre. Let's design some more of these performances, because in a world characterised by absurdity disguised as normality, what do we have to lose, except dignity, and what's that worth anyway... (yo, get me the market price of dignity)

7) Markets and Music

Perhaps the most exciting idea for me personally, is putting music to financial markets. A while back, the FT commissioned composer Julian Anderson to create a musical piece interpreting the financial crisis. The result, to my ears, was underwhelming (listen to some snippets here). It's not just about notes and melodies, it's about texture of sound. A piano is not the right instrument for the financial crisis. You need electric guitars with fuzz pedals, amplifiers with built-in reverb and a moog synthesiser. A volatile market might be a Jimi Hendrix solo, set against a Les Claypool bassline of long term fundamentals. That's a future project waiting to happen. Anyone want to collaborate?

In the mean time, I thought I’d experiment with financial DJ decks and mash some Youtube videos together. I've found a radical combination: What do you get when mix an audio recording of a crazed S&P 500 futures commentator during last year's flash crash with a laid back bassline of 10ft Ganja Plant? You get Blood Money. It's not perfect yet by any means (and Youtube Doubler is pretty crap at synching - make sure both videos have a chance to load before watching), but I'm going to invest in some proper video editing technology so I can do this properly. Watch this space for my upcoming Youtube channel.

All these mediums offer potential channels for great creative madness, and maybe, just maybe, unorthodox routes to deepening our understanding of finance. If anybody has any other ideas, feel free to contact me. I'm always up for collaborating if you buy the whiskey.

Over and out.

4 Components of Economic Growth (August 2011)

So far, equity markets are down anywhere between 10-20% and bond yields in a number of major markets are reaching historic lows. Although it is difficult and nerve racking, investors should understand some of the forces behind what's creating this volatility and how they're likely to play out in the near term.

When will market rebound?

Again, we simply cannot answer that million-dollar question. If I know, I won't be writing this article here telling you all stories and facts. We should have a longer term view, especially during volatile times when fears dominating the marketplace.

So, what are some of the driving forces behind?

If we go back to basics, the 4 components that really drive economic growth are Government, Consumer, Corporate, Import & Export. If we look at each individually, we can do better opinion, by analyzing them.

Government:

Since 2008, governments have played an increasingly dominant role in the markets that we're familiar with. They are expanding monetary policy, expanding fiscal policy, bailing out companies, regulating companies or buying companies. Who else can replace the government now? Of course, NO one. The government are now a fact of life in the markets and investment as we know it. Example, the Citigroup bailout had actually turned out to be a very profitable investment for US Government. Undeniably, we have to understand each movements of government in order to make returns from.

However, Government cannot runaway from political issues which may confused the markets. Everyday, we guessed what is Obama or Bernanke going to say next, what's ECB going to do, when is our next general election? As the market continues to test Governments and its policy continue to evolve, we are due for continued uncertainty and volatility in the market.

Consumer:

We as a consumer are going through a difficult time, especially in developed markets. We faced with higher taxes, unemployment and inflation, all eroding our disposable income which in turn makes spending power and confidence lower. Market falls because of lower consumption/retail figures, and this will further enhance fear in the eyes of the consumer in return.

Investment:

This is what ETP of Malaysia means: Private investment with Government facilitation. However, corporates is talking about managing their costs and having a good solid balance sheets with cash to avoid problems in downturns. Right now, they are the healthiest of the 3 domestic components towards economic growth. Government is indebted more than corporates. Companies with strong balance sheets are in a better positions in expanding, be it organically or through acquisitions, like what Google doing right now (taking over Motorola).

Picture taken from www.money4invest.com

Export-Import:

Lastly, developing countries are the main growth drivers in international trades. Still, they are growing, albeit slower pace. We need to keep an eye of it and it's impact between developing and developed countries.

In summary, we should not over-react given the volatility of the market. In fact, we should take this as an opportunity to take on good solid companies for long-term investing. I still see a lot of good companies trading at single digit P/E, some with good dividend yield too. Should you forego the chances?

yada yada .... Eurbor, OIS, BDI ... yada yada

Jag har tidigare pratat om betydelsen av att noggrannt informera sig om de tradingsignaler man använder för sin trading. Annars blir det aldrig bra. Jag har t.ex. betonat min skepsis vad gäller att använda lastfartygs´fraktkostnader (Baltic dry index) som en indikator på världskonjunkturen, och därmed som köp/säljsignal för aktiemarknaden. Se t.ex. Lastfartyg och dess finansiella betydelse – Del III Argumentet den gången var att det överflöd av nyproducerade lastfartyg som väntar i de Koreanska varven trycker ner indexet oberoende av hur snabbt hjulen i ekonomin snurrar. Att detta till mångt och mycket varit korrekt kan man ju bl.a. se i veckans kontroverser mellan COSCO och dess grekiska redare.



Ett aktuellt exempel på att man måste informera sig väl innan man agerar är europeiska banker och den stress de är under just nu. Jag uttalade mig ju i ämnet i förrförra bloggen och en indikator jag INTE använde för min prediktion är Euribor-OIS spreaden ”The gap between three-month bank-lending rates and expected risk-free, overnight, interest rates”. Det ligger ju annars nära till hands att använda denna spread för att betona europeiska bankernas kreditvärdighetsproblem just nu. Och det är det faktiskt många som gör.



Dock, detta är INTE riktigt OK. Även om spreaden just nu är på 2-års högsta, 70 bp ungefär vilket kan jämföras med ett genomsnitt historiskt på kanske 10 bp, så är det nog fel att tolka detta rakt av som solvesnproblem hos bankerna. Anledningen är att spreaden är en differens mellan två storheter och det gör att en stor spread kan bero både på en hög Euribor ränta OCH en låg OIS ränta. Och faktum är att experterna, och tyvärr räknar jag inte mig själv dit, hävdar att det just är den sistnämnda som är rekordlåg just nu. D.v.s marknaden anser att övernattenräntan inte behöver vara hög för att vara intressant. och detta är möjligen snarare tecken på en god likviditet. M.a.o. spreaden kanske inte är en korret indikator för att försvara argumentet att bankerna är stressade just nu, trots allt. Åtminstone inte om man med stressade menar överhopta med dåliga lån.... Yada yada yada....

Oil & Gas: Why Malaysia is different? (21 Aug 2011)

With oil prices hovering around USD80-85 per barrel currently, what is the outlook for Malaysia oil & gas (O&G) industry? Dubbed as "Black Gold", crude oil is one of investors favorite asset classes, which is highly volatile. Here, we examined the implications of lower oil prices, current scenario of the industry, and sustainability of oil price going forward. Feel free to share this out via our Facebook page (www.facebook.com/financemalaysia).

What drags down oil prices?

As most of you already know, US and Europe is main culprit for the sliding oil prices. High debt issues still lingering the global economy since 2008 global financial crisis. As such, the potential slowdown in the global economy as per investors perception, droves oil prices lower to current level.

What is the implications?

Actually, the correction of oil prices is driven by sentiment of traders, whom thinking that the demand is going ton be weak soon. What would you do if you're a CEO of Shell? Cutting back on oil exploration spending, re-evaluating the feasibility of planned projects, or even delaying some of them. At worst, you already seen it during 2008 financial crisis, where KNM battling for survival when a few of its clients delaying projects.

Oil prices outlook?

We believe the price of crude oil will trend lower in tandem with easing demand as industrial activities slow down. OSK had revising downwards their oil price forecasts for FY11 and FY12 to USD85-95/barrel and USD80-90/barrel respectively. Immediate resistance at USD90/barrel, while support at USD70/barrel.

Why Malaysia is different?

Unlike other countries, local O&G players are more dependent on our big boss - Petronas. Why? Because, Petronas is the one who is feeding the local players by dishing out marginal oil fields contracts and higher capex committed for next 10 years. No matter how global oil prices trend, Petronas is the growth engine of local players.

Target Price by OSK Research dated 19 Aug 2011

Buy or Sell?

Based on our reasons given above, we should Buy those companies which have strong relationship with Petronas (higher chances of getting contracts) and Sell those companies with excessive foreign contracts. This assumption is correct if oil prices are trending lower. As such, I picks Kencana (strong relationship and earnings) and Dialog (sound business with recurring income).

New Fund: OSK-UOB Agriculture Fund

With the world population slated to increase, particularly from the emerging markets like India and China, coupled with the increase in per capita income in the developing nations and an improvement in lifestyle, the demand for food, and in turn agricultural commodities, will see an upward rise. Moreover, with rising income, meat consumption is also expected to increase and therefore more grains, wheat and other soft commodities are needed to feed the poultry demand, thus also creating demand for agricultural commodities. 

However, despite the expected increase in demand, supply factors remain constrained due to land and water scarcity caused by urbanisation. Climate has also proven to be very unpredictable in the recent past, with increasing frequency of extreme weather events. This makes the planning and production of crops harder, especially when the supply of agricultural commodities is concentrated in a few countries.

This mismatch in demand and supply factors is expected to move prices of agricultural commodities upwards. OSK-UOB has therefore established this Fund so as to capitalise on this potential price increase in the agricultural commodities sector.

The Cultivating Fund

The OSK-UOB Agriculture Fund (AGRI) is an open-ended, growth fund which aims to achieve long term (5-7 years) capital appreciation through an over-the-counter derivative instrument in the form of a swap agreement that is linked to the agricultural commodities sector. 

The Fund seeks to achieve its investment objective by investing up to 100% of its Net Asset Value into fixed income instruments and up to 10% of its Net Asset Value as capital payment for exposure to an over-the-counter (OTC) derivative instrument in the form of a swap agreement with a counterparty that offers exposure to the performance of one of 3 indices, the Contag Beta Agriculture Excess Return Index-Beta Index, the Contag Beta Agriculture Excess Return Index-Alpha Index and the Contag Beta Agriculture Excess Return Index-Alpha Beta Index ("Contag Indices") that are linked to the agricultural commodities sector.

More on Contag Indices

The Contag Indices provide exposure to agricultural commodities by referencing exposure to certain commodity futures over time. They use the Contag contract selection methodology to select a maturity for each commodity futures on a monthly basis. Each of the Contag Indices invests in the same underlying commodities as included in the S&P GSCI™ Agriculture Official Close Index Excess Return (the “GSCI”) which currently as at 11 June 2011, by way of example, comprise exposure to the following underlying commodities but which may change in accordance with the GSCI’s own rules: sugar, cocoa, coffee, corn, cotton, Kansas wheat, soybeans and wheat. The workings of the Contag Indices are elaborated further in the Prospectus (page 18-20).

 

AGRI is suitable for investors who: 

(i)	seek investment opportunities in the agricultural commodities sector;
(ii)	seek capital growth;
(iii)	have a long term investment horizon; and
(iv)	have an appetite for risk to gain higher returns.

Source: OSK-UOB Investment Management

Click here to download prospectus

CLSA Top 5 Picks during volatile times (16 Aug 2011)

After an unexpected AAA rating downgrades and an expected correction, KLCI is coming down from its peak of 1,597 points in early July. CLSA come out with a timely report highlighting 5 stocks which investors should focus on even during volatile times. These stocks have resilient earnings, clear earnings visibility and are supported with dividend yields.

CLSA: YTD major indices performances as at 08 Aug 2011.

Which are the counters?

Axiata - Turning into a cash cow

• Axiata's earnings will remain resilient during downturn as EBITDA is dominated by cellcos in Malaysia and Indonesia where price competition is muted these days.


• From a highly geared company in 2008, Axiata is now turning into a cash cow with forecast yield rising to 10% in FY13. CLSA is expecting dividend yield of 3.6% for FY11, translating into total shareholders return of 10%.

Gamuda - Risk discounted

• The 22% share price fall from 52-week high has discounted its Vietnam investment risk. US$600m market cap loss is more than its US$350-400m investment to date.


• FY12 earnings are underpinned by high-margin construction orderbook worth RM2.7bn, unbilled property sales of RM1bn and recurrent infrastructure earnings.


• MRT project news flow catalyst. Potential 26% upside to RM4.20 target.

Genting Malaysia - Growth, value and net cash

• Its investment thesis remains geared towards growth as the UK casinos rebounds off a low base and the New York facility begins maiden contributions.


• Gaming revenue, particularly in Malaysia, is uncorrelated with economic health. Balance sheet remains robust and it is among the most attractively valued gaming stocks globally.

Maybank - Resilient dividend yield

• Regional expansion strategy through Kim Eng acquisition is earnings accredited.


• Rising productivity and cross-selling activities will improve ROE and regaining domestic market share in profitable loan segments and investment bank deals.


• High net yield of over 6% in FY12, supported by dividend reinvestment plan.

TM - Potential for special dividend

• TM is recording strong growth for HSBB and this product could turn EBITDA positive earlier than expected.


• Management undertakes active capital management and we are expecting special dividend of 3.3% from recent sale of Axiata shares.

Source: CLSA article dated 09 Aug 2011

New Fund: OSK-UOB Taiwan Opportunity Fund

Taiwan has recovered strongly from the global economic downturn with a growth of 10.8% in 2010. According to Global Economic Prospects, January 2011 by World Bank, Taiwan’s gross domestic product is tipped to grow 5% in 2011. Taiwan is a beneficiary of Asia’s growth, in particular that of China’s. Following the liberalization policies of Taiwan’s new administration towards China, Taiwan’s economy has become increasingly linked with China’s.

Foreseeing a significant growth prospects for Taiwan in the next few years, OSK-UOB has therefore established a Fund that is structured to benefit from these potential opportunities through a swap agreement which will provide exposure to Taiwan’s capital markets as represented by the Taiwan Taiex Index (“TWSE”). This Fund will provide investors with an opportunity to participate in the potential benefits from this outlook on the Taiwan economy in the next three years.

About the Fund

This is a 3 year close-ended growth fund which aims to achieve medium term capital appreciation. It seeks to achieve its investment objective by investing 90% of its NAV into fixed income instruments and the remaining 10% as capital payment for exposure to an over the over-the-counter (OTC) derivative instrument in the form of a swap agreement.

Swap Agreement?

The Fund's potential returns will principally be derived from the swap agreement through its exposure to the performance of TWSE over a 3 year period and also from an enhanced payout if certain criteria are met at the maturity of the Fund. As such, the Swap Counter-party will charge a swap fee of 1% per annum of the notional amount.

How to calculate the return, which consists of Enhanced return?

Investors are entitled to the enhanced return at maturity, if the following conditions are fulfilled:

1. the final average level of TWSE is greater than the initial reference level, and


2. the lowest level is below the initial reference level of TWSE

What is the downside risk?

First, this is NOT a capital protected or guaranteed fund, although 90% of its NAV is in fixed income instruments. The Fund may lose all its assets under the swap agreement (limited to investor's investment amount only) if:

1. the TWSE declines 100% from its initial reference level determined, or


2. the TWSE declines close to 100% from its initial reference level determined and USD appreciates against RM.

Source: OSK-UOB Investment Management Berhad

Click here to download the fund's prospectus

US rating cut: Should we buy now? (9 Aug 2011)

To answer that million dollar question, please let us examine the whole situation. First, what actually caused the market to slump? Second, the correction is short or long-term? In the end, it depends on how gut are you as an investor in this sentiment driven market.

What actually caused the market to slump?

Panic selling is my answer. Simple and straight to the point. Investors are so scared that they can't figure out what is going to happen after S&P downgraded US long-time AAA rating. This was the first time US was being downgraded. No previous record for investors to forecasts, so dump first la. Herd mentality is playing a very crucial role now (again).

Short or Long-term correction?

As mentioned, panic selling also means short-term correction. People are throwing their assets at a discounted price for the sake of getting their sleepless night away. After awhile, then only they realized that the actual situation is not as bad as they think. Then, investors will come back to the "playground".

The panicky Good news?

While bear market set the stage last week, US did reported a few surprising announcements as below:

1. unemployment rate fell slightly in July to 9.1% as compare to 9.2% in previous month


2. payroll salary is increasing again in July (boosting consumer spending going forward)


3. 2nd quarter corporate earnings are better than many analysts forecast


4. After all, only S&P cut US rating while Moody's and Fitch still maintain the AAA rating


5. Commodities price came down so much which would put less pressure on inflation

Despite the good news, seems like the market was conquered by negative vibes successfully distributed by S&P. Finance Malaysia believes the market will sooner or later realized that the world economy is actually still recovering, albeit slowly. Investors will come back again in medium term owing to a few catalysts to rejuvenate investors' sentiment. Who knows QE3 is in the making?

Disaster after US rating downgrade? (8 Aug 2011)

The news that S&P downgrading US credit rating shows that rating agencies are doing their job fairly. Previously, rating agencies were blamed by Greece and Europe countries for downgrading their ratings when Greece facing rising debt issue. Though, US did not spare this round when S&P downgrade US AAA rating to AA+ (one notch lower).

What would be the implications?

Normally, the downgraded currency will slump, sovereign bonds will become less attractive by carrying higher degree of risk, hence pushing up the yields. Does US follow these theory? NO.

Why US is different?

USD will not fall much like Euro. First, USD is one of the safest asset, along with gold, during economic uncertainties. That's why USD was chosen as the world's most widely traded currency. During uncertainties (like now), investors are scare and they pull-out from equities around the world. But, where did they put the cash? USD is the answer mainly because it is widely used globally and of high liquidity.

Bond Yield will not jump like Greece's. Second, when the demand for USD is still there, US treasury bonds' yield will remain (or even fall). Continuing from previous question, where would you place your money, if it must be denominated in USD? Treasury bond or Cash Deposit? Definitely treasury bonds which still can give you around 2.5% yield (10 years US treasury).

The remaining AAA rated currency by there of the largest rating agencies.

How is the currency market would be?

Finance Malaysia believes that USD will weaken against major currencies which were rated AAA, but will strengthen against other non-AAA countries (including Malaysia). You may refer to the table above to gauge which currency should perform better in the near term.

New Fund: Public Islamic Treasure Growth Fund & Public Sukuk Fund

Public Mutual recently launched two local funds. One is an equity growth fund, while another one is a bond fund.

Public Islamic Treasures Growth Fund (PITGF) seeks to achieve capital growth over the medium to long-term period by investing primarily in small and medium sized companies, which comply with Shariah principles.

 

The fund will invest in Shariah-compliant securities with market capitalization of up to RM6 billion at the point of purchase or companies which form the bottom 30% of the cumulative market capitalization of the market which the stock is listed on at the point of purchase. The fund will focus its investments in the domestic market with equity exposure ranging 75% - 98% of its NAV. To achieve increased diversification, the fund may invest in selected foreign markets if the returns are assessed to be promising.

Another SUKUK fund in the selves?

Meanwhile, Public Sukuk Fund (PSKF) seeks to provide annual income through investments in sukuk and Islamic money market instruments, by investing at least 75% of its NAV in a portfolio of sukuk such as sovereign sukuk and corporate sukuk with the balance invested in Islamic money market instruments. To achieve increased diversification, the fund may invest up to 30% of its NAV in foreign sukuk if the returns are assessed to be promising.

Source: Public Mutual

Click here to download prospectus

Intervjuad i Sydsvenska Dagbladet

Förrförra fredagen (22 juli) intervjuades jag i Sydsvenskan. Se Grekerna får 135 miljarder euro.

Inte mycket att orda om, ni känner till mina åsikter vid det här laget. Kanske kan man notera att jag är den mest pessimistiska i samlingen (Stefan Fölster och Lars Jonung intervjuades också). Känns ibland som om jag är en lokal version av Dr Doom! Jag är dock ingen permabear även om det ibland verkar så. Då hade jag nog inte överlevt nära 20 år på marknaden.

Ps. Jag tror inte ( :) ) att det största problemet vid ett euro-utträde blir att byta ut bankomaterna........ snarare att hela det grekiska banksystemet kommer att kollapsa!