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Cast your vote for the Members' Portfolio Challenge September 28, 2011
Here are the five featured portfolios among the entries.
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Members' Portfolio Challenge: vote & win!

After a tough review on the portfolio entries, here are the five outstanding portfolios. Cast your vote for your preferred portfolio now!


Philosophy behind Portfolio 1

Asia Pacific, Brazil and Eastern Europe are still very much affected by the development in the developed countries. However, the story of emerging countries ex Japan has been also impacted by the development of their domestic markets. That is the main reason why most of the allocation will be in emerging counties. Besides, I also added mining equities as I understand that for the emerging countries to improve their domestic markets, more urbanisation is needed and this can be done by building facilities (e.g. transportations, etc).

Some allocation to the bonds had been done as well. My take will be on a smaller allocation to developed countries and bigger allocation to emerging countries' investment grade bond with lower duration. Click here for the full philosophy.


Philosophy behind Portfolio 2

This portfolio is constructed with my retirement in mind. As I am currently in my late-20s, I believe I can afford to be more aggressive in my portfolio allocation. Hence the 10:85 bond:equity allocation.

Although I am positive on Asian economies outpacing their Western counterparts in the next three to five years, I only have 4% and 6% allocated to Asia ex-Japan and Asia Pacific ex-Japan equities respectively. This decision was made after considering the following factors... Click here for the full philosophy.


Philosophy behind Portfolio 3

Current Global Scenario

  • Low / slowing growth
  • Low interest rate (in many markets),
  • High imported inflation (cost push type) and
  • Generally bearish sentiment
  • This has resulted in relatively cheaper valuations for equities. Hence, I see it as an opportunity to be overweight on equities in my "Balanced" portfolio.
    Click here for the full philosophy


    Philosophy behind Portfolio 4

    This portfolio aims to achieve mid to long term capital appreciation by investing 50% to bonds funds and 50% into equity funds. Our current view on the market is that Asia equities are generally undervalued after huge the correction from August to October 2011. At the same time, we believe that the Europe debt problem cannot be solved in the near term but do not wish to miss out on the upside opportunities on the brighter Asia market.

    Based on a three year average annualised return on high yield bonds, Asian Bonds and Emerging Market bonds all have a yield above 10%. Therefore this balanced portfolio offers stable yield from high return bonds to offset volatility during tumultuous market conditions while this arrangement still has the flexibility to rebalance towards to 60-65% equity if the overall market continues to deteriorate. As we are bias toward Asia markets, we have allocated an overall 35% weight on Asia equity including single country equity in China and Hong Kong which we believe offer the highest growth po tential. Global Emerging Market's equity's three years average annualised return is about 15% (reasonable return). This is to diversify the weightage on the equity portion as to not overweighting on the Asia region as a risk control measure. Overall, this portfolio's objective is to gain 15-25% return per annual basis.


    Philosophy behind Portfolio 5

    This portfolio is for mid to long term using RSP because I believe it is difficult to time the market and dollar cost averaging does make investment grow. Although I mentioned it is for mid to long term, when the market condition changes, say, US is out of the mess, or when South East Asia generates poor returns due to constant natural disasters issues, then the portfolio may be changed.

    For diversification, I have allocated 30% into bonds and 70% into equities market. I have been monitoring some unit trusts over past 4.5 years and regardless whether it is bull or bear market, the equities unit trusts make returns. I have focused all my equities in South East Asia because they make the best returns, which can be checked using FSM's performance table. As for bonds, I have allocated 20% to global bond and 10% in Singapore Fixed Income. These fixed income and bonds give better returns and they are also recommended by FSM.

    Until the US and Europe market comes out of the financial mess, I will advise to avoid US and Europe. I have monitored some unit trust performance over the past 4.5 years and through FSM's performance table, you should realise that these unit trusts don't perform and post negative returns.

    I am neutral about India and China but their funds do not seem to generate better returns as compared to South East Asia unit trusts.

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    The winner with the most number of votes will be able to enjoy 0% sales charge for the next six months and $300 prize money which will be credited in the form of units into the Nikko AM Shenton Short Term Bond Fund (A$ Hedged). He/She will also be featured in our exclusive webcast or an article interview, as well as in our Facebook page. We will also randomly select 3 voters who voted for the winner's portfolio who will receive $50 in the form of units into the Nikko AM Shenton Short Term Bond Fund (A$ Hedged).

    Terms and Conditions

    1. will pick the best answer amongst all eligible entries. Decisions made by are final.
    2. Only one entry per person will be accepted. Multiple entries will be void.
    3. Only one vote per person will be accepted.
    4. All contestants and winners must be at least 18 years of age.
    5. Prizes are not exchangeable or redeemable for cash.
    6. Prize redemption requires an account with
    7. By entering the contest, you agree to the use of your personal information submitted on the contest entry, and can make use of them for the promotion purpose.
    8. By entering the contest and accepting the prizes, you are deemed to agree to the terms and conditions stated by
    9. reserves the right to amend the Terms and Conditions without prior notification.

    This advertisement is not to be construed as an offer or solicitation for the subscription, purchase or sale of any fund. An investment in the fund(s) is subject to investment risks, including the possible loss of the principal amount invested. No investment decision should be taken without first viewing a fund's prospectus, which is available from the fund manager or Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. The value of units and the income from them may fall as well as rise. Past performance and any forecast is not necessarily indicative of the future or likely performance of the fund. Investors may wish to seek advice from a financial adviser before making a commitment to invest in units of a fund. In the event an investor chooses not to seek advice from a financial adviser, he/she should consider whether the fund is suitable for him/her.

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