*Official* Shiny Things club - Part 2

[Jadetheflower]

Please dont lump sum 10k straight but divide it into 4 parts. Your target allocations will depend on ur age

I am 28 this year, read somewhere in this thread that it goes like 110-age = % that goes into non bonds etf, is that correct? If so it will be 80% mixed up of IWDA and G3B?

 

[Shiny Things]

I am 28 this year, read somewhere in this thread that it goes like 110-age = % that goes into non bonds etf, is that correct? If so it will be 80% mixed up of IWDA and G3B?

Yep!

Hi, good day all!

Followed ST's advice, currently DCA (if it means Dollar Cost Averaging) A35 & G3B via POSB (only minimum sum).

Could i have some advice if i should add-on MBH or ES3?

MBH: Yes, I’d replace A35 with MBH going forward. POSB IS now offers MBH, which is great news for investors.

ES3: Nope, no need. ES3 and G3B are basically the same.

Read previous comments about IWDA, is it only possible to enter via SCB? Or is there any alternative that i can look into.

There are alternative brokers that you can use to buy overseas stocks (like IWDA), but they’re all worse (or, at least, they’re not any better). Just use Stanchart.

Curious about this statement.
LionGlobal All Seasons Fund (Growth) has a TER of 0.36

Which, while higher than IWDA's TER of 0.20, isn't all *that* much higher is it?
How is it 'overly' expensive?

Because they’re charging 36 basis points (and 2% upfront!) to invest a quarter of the fund’s assets in an S&P 500 ETF. That is lazy and exploitative. It’s disgraceful business practice.

And a lot of the rest goes straight into LionGlobal’s own funds, which will be charging another layer of fees over and above the 36bps. More than 20% of the All Seasons fund is funneled into the LionGlobal Asia Pacific Fund, which charges 1.5%... so you’re actually paying nearly 2% on that chunk of your portfolio!

LionGlobal likes to market themselves as being a low-cost passive-management shop, because they’ve seen that passive management is the future and they don’t want to get run over by that particular steamroller. But they manage to screw it up Every Single Time. High fees; lazy portfolios that aren’t worth what they charge... they’re just bad.

Also, I’d take issue with your thought that “if we aren’t keen on exposure to local stocks and bonds”. You live in Singapore; you’re going to need Singapore-dollar assets when you retire. You want to own Singaporean stocks and bonds.

 

[salmonella]

Shiny, you suggested to invest our SRS into ES3. Can SRS be invested in stuff outside of SG? USD denominated stuff on SGX like J0P?

P.S. The Citibank Maxigain gravy train is over - for those who trumpeted high interest rate accounts vs those who insisted on SSB/A35/MBH. What next for funds in these accounts?

 

[Okenba]

Because they’re charging 36 basis points (and 2% upfront!) to invest a quarter of the fund’s assets in an S&P 500 ETF. That is lazy and exploitative. It’s disgraceful business practice.

*Shrug* It's arbitage. I take what I can get, and I don't see much competition at this point for SRS qualified, global equities exposure.
Happy to be corrected.

Also, my understanding is that TER is 0.36, so any other fees depend on the brokerage platform. And from what I read, FSMone and POEMs do not charge the 2% upfront. Again, happy to be corrected. I'm not familiar with these things.

And a lot of the rest goes straight into LionGlobal’s own funds, which will be charging another layer of fees over and above the 36bps. More than 20% of the All Seasons fund is funneled into the LionGlobal Asia Pacific Fund, which charges 1.5%... so you’re actually paying nearly 2% on that chunk of your portfolio!

Again, because TER is 0.36, I don't think the charges for these other funds will be channeled to the buyer?

LionGlobal likes to market themselves as being a low-cost passive-management shop, because they’ve seen that passive management is the future and they don’t want to get run over by that particular steamroller. But they manage to screw it up Every Single Time. High fees; lazy portfolios that aren’t worth what they charge... they’re just bad.

If the cost is just 0.36, I think they've got the low fees part pretty well done.
My concern after that would be performance since its not just a passive, market index tracking type of fund...

Also, I’d take issue with your thought that “if we aren’t keen on exposure to local stocks and bonds”. You live in Singapore; you’re going to need Singapore-dollar assets when you retire. You want to own Singaporean stocks and bonds.

My take is that my job and CPF are already highly dependent on the SG economy. Would be good for the rest of my assets to reflect the global economy. Once my global portfolio is more built up, I might turn again to further build up my SG portfolio.

 

[BBCWatcher]

I take what I can get, and I don't see much competition at this point for SRS qualified, global equities exposure. Happy to be corrected.

I think ST's point is that you're under no obligation to use SRS dollars specifically for global (or global-ish) investing. You could use SRS dollars to chase MBH and ES3/G3B while your non-SRS dollars could go chase VWRA, IWDA, or LCWD. It's also reasonable to assume that a mix of MBH and ES3/G3B will have a lower long-term average yield, which may not be a bad thing from a tax point of view given how SRS accounts work.

The exception here would be if you do not plan to retire in Singapore. But if that's the case, the Supplementary Retirement Scheme may be even less interesting.

Also, my understanding is that TER is 0.36, so any other fees depend on the brokerage platform. And from what I read, FSMone and POEMs do not charge the 2% upfront. Again, happy to be corrected. I'm not familiar with these things.

Same with DollarDex. I think FSMOne might charge some extra fees for SRS dollars. If so, I'd avoid FSMOne.

Again, because TER is 0.36, I don't think the charges for these other funds will be channeled to the buyer?

I dug through the prospectus, and you are correct: the TER is indeed the Total Expense Ratio, inclusive of the expenses that the underlying funds have. LionGlobal is also using the correct funds from a tax point of view for non-U.S. persons.

The portfolio allocations to the underlying funds are pretty lousy, and they're actively selected.

My take is that my job and CPF are already highly dependent on the SG economy. Would be good for the rest of my assets to reflect the global economy. Once my global portfolio is more built up, I might turn again to further build up my SG portfolio.

OK, but you can do that with all or most of your non-CPF/non-SRS holdings. And that LionGlobal All Seasons Growth fund isn't particularly global. It has a BIG slug of "Singapore" exposure in there. It looks like about 25%, eyeballing it.

 

[Jadetheflower]

Thanks Shiny things & Flowerpalms for the great infos !

 

[Okenba]

I think ST's point is that you're under no obligation to use SRS dollars specifically for global (or global-ish) investing. You could use SRS dollars to chase MBH and ES3/G3B while your non-SRS dollars could go chase VWRA, IWDA, or LCWD. It's also reasonable to assume that a mix of MBH and ES3/G3B will have a lower long-term average yield, which may not be a bad thing from a tax point of view given how SRS accounts work.

Thanks. I guess its about how much we all have to allocate and what our current situation is. I'm only recently starting in global investing so my global investments are almost $0, while almost all my net worth is in SG right now. So my priority is building up the global side of things.

I also don't have enough free cashflow to pump in full SRS and invest too much in global at the same time. So I'm trying to find a way to invest in global through SRS if at all possible.

I could forego SRS, but the tax savings are pretty decent imo.

I dug through the prospectus, and you are correct: the TER is indeed the Total Expense Ratio, inclusive of the expenses that the underlying funds have. LionGlobal is also using the correct funds from a tax point of view for non-U.S. persons.

The portfolio allocations to the underlying funds are pretty lousy, and they're actively selected.

So yes. This is where I'm at. I think the cost of the fund is decent. I'm unsure about its performance moving forward.

OK, but you can do that with all or most of your non-CPF/non-SRS holdings. And that LionGlobal All Seasons Growth fund isn't particularly global. It has a BIG slug of "Singapore" exposure in there. It looks like about 25%, eyeballing it.

Cashflow. Single income with kids. Income high enough to put me in a decent tax bracket so that SRS gives substantial savings, but not high enough for me to have high amounts of excess cash to invest in both SRS and a lot of cash. (Some cash, maybe.)

Singapore exposure works to my benefit doesn't it?
STI etfs are 0.30 anyway, so I'm paying a little more for the 75% global exposure?
Hahha. I'm not sure if I'm just trying to convince myself at this point.


Perhaps the question to ask is:
Is it worth it to forego SRS savings (I est about 2k), not contribute to SRS and instead build up Global via cash?
Or take a slower Global build up via cash, still contribute SRS and use SRS for local STI etfs?
Or (what I'm thinking of now) use SRS for Global (LionGlobal or Endowus), and some cash for even more Global (IWDA at IBKR)

 

[FrostWurm]

If the cost is just 0.36, I think they've got the low fees part pretty well done.
My concern after that would be performance since its not just a passive, market index tracking type of fund...

Given the list of possible SRS investments you can make, I think this ranks as one of the better ones if you want global exposure.

Until they allow us to buy stuff on other stock exchanges (which is very unlikely sadly).

 

[BBCWatcher]

Given the list of possible SRS investments you can make, I think this ranks as one of the better ones if you want global exposure.

I think that's right, but your cash savings should be doing the global lifting first since VWRA/IWDA/LCWD are much more attractive from a cost and portfolio point of view. If you don't have or cannot afford cash savings/investing, OK, different story perhaps.

 

[Okenba]

I think that's right, but your cash savings should be doing the global lifting first since VWRA/IWDA/LCWD are much more attractive from a cost and portfolio point of view. If you don't have or cannot afford cash savings/investing, OK, different story perhaps.

I think cost-wise is negligible because of the savings from SRS.

My concern is the performance of the portfolio.
So if I want to do due diligence, what needs to be done now is to delve a bit deeper into underlying funds and perhaps a bit more history of the fund managers.

 

[KeytoFreedom]

I am not talking abt monthly fee.

I mean if you are investing 1k or more per month, use IB for IWDA

Shiny things, can I put 1k a month into IWDA via SCB and transfer to IB when the IWDA reaches 100k?

 

[Astro2]

Hi ST,

My apology if this has been discussed before.

SPDR recently launched a SPDR MSCI World UCITS ETF (ticker: SWRD). The dividend is also accumulating and its Expense Ratio is 0.12%. This is also listed in LSE. What's your take on this? Would this be another alternatuve to IWDA?

 

[morbidjewel]

I am currently still in NS and about to go to Uni, I have about 30k of savings saved up and want to invest majority of the money as I have no need in the near future.

Is it better to use Saxo Capital over SCB as the fees seems to be about the same but Saxo seems to have a much better brokerage site for research and analysing. Looking mostly to invest in IWDA and picking up a few stocks international and local stocks on my own.

Also is what is the difference from buying NIKKO AM STI ETF/ BOND ETF from the POSB regular savings plan unit trust/etf section as compared to buying it from a brokerage where there are commissions to be paid. Is it correct to say there are no commissions paid when using the POSB account to invest in the ETFS except for the managements fees?

 

[Okenba]

Congrats. You certainly look like you're doing well for yourself.

I'm guessing you're going in with the majority of your liquid assets.

Personally, I would not lump sum everything. Maybe half lump sum and half DCA. I would get a heart attack if the market dropped just after I lump summed my assets.

But that's me. Your heart is probably made of sterner stuff.

 

[cassowary18]

Hi ST,

My apology if this has been discussed before.

SPDR recently launched a SPDR MSCI World UCITS ETF (ticker: SWRD). The dividend is also accumulating and its Expense Ratio is 0.12%. This is also listed in LSE. What's your take on this? Would this be another alternatuve to IWDA?

I asked this question before earlier; ST said that there's really no discernable difference.

 

[Zombiewar]

Congrats. You certainly look like you're doing well for yourself.

I'm guessing you're going in with the majority of your liquid assets.

Personally, I would not lump sum everything. Maybe half lump sum and half DCA. I would get a heart attack if the market dropped just after I lump summed my assets.

But that's me. Your heart is probably made of sterner stuff.

Thank you for your kind words.

many have said that my heart is black or am heartless.
None has so far think that it might stern.
Im actually shaking inside to go in at once partly cause its about 10+yrs since the last slide.

 

[decibel.]

Any good investment for using SRS? Can I invest lump sum per year on IWDA using SRS? Cos I alr got monthly investment in G3B I'm not sure if I want to invest G3B with SRS again

Sent from HUAWEI VOG-L29 using GAGT

 

[Okenba]

Any good investment for using SRS? Can I invest lump sum per year on IWDA using SRS? Cos I alr got monthly investment in G3B I'm not sure if I want to invest G3B with SRS again

Sent from HUAWEI VOG-L29 using GAGT

You can consider to discontinue your monthly cash, use SRS for local and redirect your monthly to global

 

[sheng6690]

In order to best use my SRS
I plan to do RSP on MBH with DBS..
However it seem that MBH is not available for RSP...Does anyone know how to buy it with SRS account in monthly basis ?

It has mention in product sheet can be done by sgx st

 

[lingalong]

Unrelated but, anyone has a good brokerage to recommend for forex trading? Looking to do more of swing trades. The one I’m using currently has been increasing their commissions but quite abit

In fact does IBKR have a good forex trading platform?