Taking profits on unit trusts

I decided to realise some gains from owning two unit trusts, namely First State Bridge Fund and First State Regional China Fund. The redemption of some units in these two funds was to withdraw the gains over initial costs and hold on to the original cost of investments in my portfolio.

Is this the good time to redeem? I cannot answer that except that both unit trusts were above cost price right now. I thought that I should take profits now. First State Regional China Fund did very well. The price differential was 20.4% over 1-2 years of holding period.

Details of transactions are highlighted below.

1 First State Bridge Fund (Balanced fund, Asia Pacific excl Japan)

Bought on 23 April 2008
Net Asset Value $1.3859
Sold 3 June 2014
Net Asset Value $1.4961
Price gain = 7.9% over 6 years

2 First State Regional China (Equity fund, Greater China)

Bought between 18 July 2012 and 7 March 2013
Average costs of $2.0567
Sold on 3 June 2014
Net Asset Value $2.4768
Price gain = 20.4% over 1-2 years

I am not abandoning funds with focus on Asia Pacific (ex Japan) and China by still keeping my original investments (at cost) in these two funds. In fact, I bought into First State Asian Growth fund on 13 May 2014. The net asset value had since moved up from $1.9917 to $2.0891 (+5.08%) in less a month. This fund invests primarily in securities in the Asian region excluding Japan (such as S Korea, Hong Kong, Taiwan, India, Singapore, China).

Copyright © 2014, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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