Portfolio update

It has been a while since I blogged about my portfolios. Recently, markets have rallied quite a bit and my portfolios have finally made money! I am glad I topped up a bit when markets were down. 

Previously, I combined all my unit trusts into one portfolio regardless of whether they were bought using CPF or cash. But now I have decided to separate them as CPF monies could not be used in a cash portfolio and vice versa - this has rather big implications for rebalancing. Also, the list of unit trusts that one can access via CPF is rather limited. 

So here goes. 

CPFIS-OA

My CPFIS-OA portfolio is very heavily skewed towards equity. Okay, it's actually all in equity. This was because I just purchased a property recently, and I liquidated the fixed income funds I had for the downpayment. Also, since I will not be using my CPFIS-OA money in the near future, I can afford to invest all in equities due to the long time horizon.

Fund	Sector/Region	Asset Class	% of portfolio
Aberdeen Global Emerging Markets	Global Emerging Markets	Equity	16.43%
Fidelity America USD	US	Equity	22.55%
First State Dividend Advantage	Asia Pacific ex Japan	Equity	11.76%
First State Global Resources	Global Resources	Equity	7.52%
First State Regional China	Greater China	Equity	10.43%
Henderson Global Technology	Global Technology	Equity	11.07%
LionGlobal Japan Growth Fund	Japan	Equity	7.11%
PRU Pan European Fund	Europe	Equity	13.13%

Asset allocation: 100% equities

The worst performing fund in this portfolio is First State Global Resources, which is currently still down by 16.75%. This was because I bought it at a bad timing - March 2011. Right after that, the Japan earthquake happened, and it dropped. Then came the stock market plunge during August 2011, and it went down even more.


CPFIS-SA

CPFIS-SA portfolios are almost always boring. Because the restrictions under CPFIS-SA is much more stringent than CPFIS-OA, so there are very little choices. In fact, you don't even get to choose any equity funds; the highest risk you can get are balanced funds. And of course, the CPFIS-SA cap is currently S$40,000, which means that you can only invest anything in excess of this amount. Which also means that most people wouldn't have much CPFIS-SA to use to invest.

Fund	Sector/Region	Asset Class	% of portfolio
First State Bridge	Asia Pacific ex Japan	Balanced	72.50%
DWS Premier Select Trust	Global	Balanced	27.50%

Asset allocation: 100% balanced


While DWS Premier Select Trust is categorised as a global balanced fund, the majority of it is invested in Singapore (around 67%) and Luxembourg (around 27%).


Cash

Cash portfolios are obviously more exciting, because you get to invest in any unit trust you want. I chose to diversify more into fixed income as there's no telling when I may need to use the money here, and also to reduce my portfolio volatility.

Fund	Sector/Region	Asset Class	% of portfolio
Aberdeen Global Opportunities	Global	Equity	1.00%
Aberdeen Pacific Equity	Asia Pacific ex Japan	Equity	27.38%
Aviva Inv Glb HY Bd Axh SGD	High Yield	Fixed income	9.50%
BNPPL1 Eq Russia EUR	Russia	Equity	2.98%
DWS SGP small/midCap A SGD	Singapore	Equity	23.03%
FTIF-Templeton Glb bond A(mdis) SGD-H1	Global	Fixed income	5.24%
Fidelity Taiwan USD	Taiwan	Equity	8.66%
LionGlobal Spore Fixed Inc-A	Singapore	Fixed income	11.39%
United Asian Bond Fund	Asia ex Japan	Fixed income	5.89%
United Emerging Markets Bond Fund	Emerging Markets	Fixed income	4.92%

Asset allocation: 63% equities, 37% fixed income


Fidelity Taiwan USD was the biggest culprit for my losses here, as I bought it on March 2008 - just before the Global Financial Crisis. It has been almost 4 years and I am still nowhere near breakeven, at -29.63%. Another bad move was BNPPL1 Eq Russia EUR - right after I bought it on May 2011, oil prices fell and Russia was badly hit. Currently it is still down by 13.40%, but fortunately I only bought a small amount of it.

Having fingered the culprit for my losses, I should mention that the biggest contributors to my gains are Aberdeen Pacific Equity and DWS SGP small/midCap A SGD, which are up by 20.88% and 20.44% respectively. The returns could actually be higher, but I just rebalanced my portfolio recently when markets went up by selling a portion of these two funds and buying into fixed income.

Interestingly, both are RSP (regular savings plan) contributions which I have been adhering to religiously since 2007, and in hindsight, it was a good move. To put things into perspective, my first RSP contribution into Aberdeen Pacific Equity was at a purchase price of S$4.3388 on 9th Nov 2007. Now, after the crisis and the recent rally, the price is at S$4.3143. Which means that if I had invested lump sum then, I would still be sitting on a paper loss right now.

The same goes for DWS SGP small/midCap A SGD - I entered at a price of S$1.7534 on 9th Nov 2007 too, and the price now is S$1.4503. This difference is even more stark compared to Aberdeen Pacific Equity.

FTIF-Templeton Glb Bond A(mdis) SGD-H1 was another good investment choice. After it was hammered in August 2011, dropping by 8.6% in around 2 months (which was a huge drop considering that is a global bond fund), I went in at December 2011. Now, in barely two months, it has gone up by 6.48%.

Aberdeen Global Opportunities only makes up 1% of my cash portfolio currently, because it was a RSP which I only started in January this year.