*Official* Shiny Things club - Part 2

[cassowary18]

SRS can be only used for SGX listed ETFs if I am not wrong. The best to do is to verify with your SRS operator.

Yeah the only ETFs you can buy are those listed on SGX, and even then, only some of those ETFs.

Hi, thanks for you advice. Was considering Lion Infinity Global Stock Index Fund SGD Class too. TER is 0.83% which is significantly higher than VWRA, but is SRS eligible. Need to consider if the tax deduction is significant to offset the higher costs.

The way I see it:
VWRA:
Pros:
Significantly lower TER.
Irish-domiciled, lower withholding tax (15%).

Cons:
Not SRS eligible (must buy with cash).
Sales charges.

Lion Infinity Global Stock Index Fund
Pros:
SRS Eligible (tax deduction!)
Sales charge free from Dollardex.

Cons:
Significantly higher TER.
30% dividend withholding tax (someone please confirm?)

 

[Shiny Things]

May I know why invest in IWDA? What is the potential of this share?

IWDA is a good way to get exposure to overseas shares; that's the reason you invest in it, as well as in Singaporean shares and Singaporean bonds.

H
I have just started a 3-Fund Portfolio: IWDA, ES3 and A35 or MBH. Monthly contribution will be $1,000.

Would you suggest I terminate the Autowealth and reallocate the $500 to the 3-Fund portfolio?

Yeah. I don't think any of the Singaporean robo-advisors are quite good enough just yet.

Thank you for advising me.

Is there an upper limit on the size of our holdings in IBKR?
How much is the largest amt. we can fund our account each time?

1) No.
2) There isn't one.

Two reasons for my investment:
1. Get better returns than DBS multiplier account.
2. I will be applying for PR. My consultant has suggested to invest somewhere for a year or more and get an investment proof for submission with application showing financial commitment with SG.

TIA.

Point 2 makes it interesting. I'm not an immigration lawyer, so I don't know what the rules are around what you have to invest in, but I suspect just buying armfuls of equity isn't going to be useful. You should talk to your immigration lawyer about this.

 

[chickenessence]

Hi ST, say if I need to rebalance my portfolio, do I

1- Sell my G3B holdings via POSB IS and use the amount to purchase IWDA
2- Stop investing in G3B and channel all the funds to purchase IWDA on monthly/bi-monthly basis?

Or do you have better advise please?

But after glancing my portfolio, I realised that if I were to sell all G3B now, that would incur a lost of appox 4%. I understand that I should not time the market, any better solution for such situation?

Yes, buy more. G3B is now 4% cheaper. You're a buyer, and that's wonderful news!

i thought he is asking whether IWDA or STI will perform better.. if there is an answer, there would be very clear answer to his question (to go with option 1 or 2).

If there is no way to know, balance the portfolio, thus go with his option 1..

 

[Converged]

While purchasing a stock on scb - when i clikc on 'buy', the following error message appear :"We are not able to process your order during this period due to post-trading processing. Please try again at a later time."

What does this mean and how do i solve this ?

Posted from PCWX using kkj

 

[Desking]

Hi all,

I am looking to start investing every month $1,000 and I need some advise to kick start it.

Where should I start?

 

[flowerpalms]

So...$1000 monthly right?
ES3: SCB
IWDA: IB
MBH: SCB

SCB go to the bank and apply 2 accounts.
1. Esaver account
2. Trading account

Hi all,

I am looking to start investing every month $1,000 and I need some advise to kick start it.

Where should I start?

 

[BBCWatcher]

2. I will be applying for PR. My consultant has suggested to invest somewhere for a year or more and get an investment proof for submission with application showing financial commitment with SG.

I missed this part, and I should comment on it.

First of all, the only thing PR consultants can do is to help you fill out the online application, i.e. clerical work. If you struggle with basic English instructions or extremely highly value your time — for example, you also hire somebody to do your clothes shopping for you too — then I suppose their assistance can be slightly helpful. Otherwise, they’re useless.

Second, unless you’re applying via the Global Investor Programme (when the investment is big and explicitly evaluated), investing S$50,000 or S$100,000 (or much more) in anything isn’t going to mean anything.

 

[kenplicity]

I missed this part, and I should comment on it.

First of all, the only thing PR consultants can do is to help you fill out the online application, i.e. clerical work. If you struggle with basic English instructions or extremely highly value your time — for example, you also hire somebody to do your clothes shopping for you too — then I suppose their assistance can be slightly helpful. Otherwise, they’re useless.

Second, unless you’re applying via the Global Investor Programme (when the investment is big and explicitly evaluated), investing S$50,000 or S$100,000 (or much more) in anything isn’t going to mean anything.

Is at least 500k right?

 

[BBCWatcher]

Is at least 500k right?

There are no such criteria except through the Global Investor Programme. The GIP requires a minimum investment of S$2.5 million for consideration. PR decisions are still entirely discretionary even then; this is not a vending machine.

The PTS Scheme considers “economic contributions to Singapore.” The government is deliberately opaque, but a reasonable, broad interpretation (since they also explicitly demand the tax records) is that direct income tax payments (plural — years) and unique or at least special talent-related contributions figure prominently. Tossing S$100K into some Singapore Savings Bonds likely isn’t going to mean jack s**t. Five years of S$30K/year income tax payments, nicely rising with salary increases, from a well known engineer with a patent or two who is greatly helping her local employer export some new biotechnology made in Singapore to several other countries.... OK, maybe then that PR application gets a second read and rises to the top of the endless pile. As an example.

Anyway, if you’re going to try to buy your PR with money, that’s the GIP. That’s the only way to “buy” PR, and even then it’s not even close to guaranteed. Otherwise, work hard, pay your taxes for at least a few years, do at least your part to make Singapore an economic powerhouse (leading to more and better jobs for Singaporeans), stay out of trouble, actually live in Singapore (working from your laptop from your grandmother’s house in Other Country X an average of 7 months per year total probably isn’t going to help), and then try your luck with the PTS Scheme. Or fall in genuine love with a Singaporean (opposite sex only, sorry), marry, have some children, work hard, stay out of trouble, and try your luck with the Family Ties Scheme. Always file a 100% truthful application. (Lying has to be deadly, one can safely assume.)

There are no “inside tracks,” no secret unlocking invocations, no magic words, no b.s. This isn’t like getting some government permit in a third world country where corruption is rampant.

Good luck.

 

[spartan117]

AGGU vs A35

Hi All,

Just wanted to get your opinion on AGGU (The iShares Global Aggregate Bond UCITS ETF).

Currently I hold a 3 ETF portfolio: IWDA, EIMI and A35.

I am using IB for IWDA and EIMI ans POSB RSP for A35 to DCA each month.

Recently I came across AGGU and was wondering whether there are any strong arguments against moving from A35 to AGGU.

1) Using bond component as a ballast to cushion in time of a downturn.
2) Will be in Singapore for the foreseeable future but do not plan to retire here.

My arguments for cashing out A35 and moving into AGGU are as follows.

1) Would be easier to hit the 100K mark on IB to avoid inactivity fees.
2) straightforward to rebalance since entire portfolio will be in USD
3) Since I do not plan to retire in Singapore (most probably will retire in Sri Lanka/Thailand). Therefore as long as bond allocation is in a "stable" currency, the choice of currency does not make much of a difference.
4) AGGU is hedged. so less volatile?
5) AGGU is accumulating. so dividends will be automatically reinvested.

Any other considerations I should think before making the move ?

Thank you in advance

 

[converse2010]

i thought he is asking whether IWDA or STI will perform better.. if there is an answer, there would be very clear answer to his question (to go with option 1 or 2).

If there is no way to know, balance the portfolio, thus go with his option 1..

Yup that's right. Not in the mood to panic sell my G3B, and yes infact I would like to buy more since it's cheaper.

However, I have read the book and it mentioned about IWDA and therefore the thought of re-balancing my portfolio comes into mind.

 

[Visa4550]

Shiny things who hold the money on these etfs like iwda and can they be trusted? No madoff moment?

Sent from Samsung SM-N960F using GAGT

 

[pylpoh]

how much is the coupon for mbh? and when is the payout date?

can seem to find much information online.

 

[BBCWatcher]

Recently I came across AGGU and was wondering whether there are any strong arguments against moving from A35 to AGGU....
2) Will be in Singapore for the foreseeable future but do not plan to retire here.

That's a really good reason for the bond leg of your long-term portfolio to include bonds denominated in one or more other currencies. Also, in my view A35 is unnecessarily conservative for a long-term investor. An investment grade corporate bond fund is fine.

You should still have emergency reserve denominated in Singapore dollars since you live here, after all. Some Singapore Savings Bonds and an ordinary bank account, for example.

I don't think AGGU is quite the right fund, though. It's hedged to some degree, which you don't need. And it has a blend of investment grade corporate and government bonds, whereas investment grade corporate bonds alone seem perfectly fine to me for long-term investors, with possible future re-mixing into sovereigns in retirement. So I'd suggest CRPA instead of AGGU or its cousins. Yes, CRPA's expense ratio is 10 basis points higher, but its yield will be higher, too (but still investment grade).

I don't think I'd go with a junk ("high yield") bond fund, although some people do, in part anyway.

3) Since I do not plan to retire in Singapore (most probably will retire in Sri Lanka/Thailand). Therefore as long as bond allocation is in a "stable" currency, the choice of currency does not make much of a difference.

Sri Lanka and Thailand both have what I would call "non-quality" currencies, and you're not sure where you'll be retiring anyway. So a global bond fund with bonds denominated in a basket of global currencies is a good fit, agreed.

 

[spartan117]

That's a really good reason for the bond leg of your long-term portfolio to include bonds denominated in one or more other currencies. Also, in my view A35 is unnecessarily conservative for a long-term investor. An investment grade corporate bond fund is fine.

You should still have emergency reserve denominated in Singapore dollars since you live here, after all. Some Singapore Savings Bonds and an ordinary bank account, for example.

I don't think AGGU is quite the right fund, though. It's hedged to some degree, which you don't need. And it has a blend of investment grade corporate and government bonds, whereas investment grade corporate bonds alone seem perfectly fine to me for long-term investors, with possible future re-mixing into sovereigns in retirement. So I'd suggest CRPA instead of AGGU or its cousins. Yes, CRPA's expense ratio is 10 basis points higher, but its yield will be higher, too (but still investment grade).

I don't think I'd go with a junk ("high yield") bond fund, although some people do, in part anyway.


Sri Lanka and Thailand both have what I would call "non-quality" currencies, and you're not sure where you'll be retiring anyway. So a global bond fund with bonds denominated in a basket of global currencies is a good fit, agreed.

Thanks BBCWatcher for the feedback.

1) Currently in addition to the above portfolio, I do have an emergency fund parked in a multiplier account.

2) Does currency hedging matter in case of a long term bond etf? I have checked for CRPA, there is an equivalent USD hedged etf which is CRPU. For CRPA 23% are euro denominated bonds, 5% GBP and 3% CAD. My thinking is that Euro, GBP and CAD all closely linked to USD. hence any gain in USD would be offset by any depreciation in the other currencies vice versa. So was thinking of going with the hedged etf instead of the unhedged version. or it doesn't matter for a long term investor to go with either of the options ?

 

[peipei1]

Hey ST BBC, what are you thoughts of selling cover call options of your long term stock pick and also selling put options for index etf in a rising market?

Is the extra premium to earn enough for a side inflow?

 

[Shiny Things]

Hey ST BBC, what are you thoughts of selling cover call options of your long term stock pick and also selling put options for index etf in a rising market?

Is the extra premium to earn enough for a side inflow?

No. You've been led astray by people who market option-selling strategies as a "source of income", which they're not: they're a source of risk. Option selling always, always, always ends in a blowup. Don't do it.

how much is the coupon for mbh? and when is the payout date?

can seem to find much information online.

The dividend payment is in the high-2s percent, and it gets paid once a year if memory serves, toward the end of the year.

Shiny things who hold the money on these etfs like iwda and can they be trusted? No madoff moment?

The money and stocks are held by giant custodian banks like State Street or Bank of New York. Yes, you can trust them.

(Fun side fact: Bank of New York is the oldest extant bank in the USA! It was founded in 1784, and one of the founders was a certain *******, orphan, son of a ***** and a Scotsman, dropped in a forgotten spot in the Caribbean...)

Hi All,

Recently I came across AGGU and was wondering whether there are any strong arguments against moving from A35 to AGGU.

The only reason for anyone in this forum to hold USD bonds instead of SGD bonds is because they're not planning to retire in Singapore... and that actually does apply to you! Neither LKR or THB are particularly gilt-edged currencies, so from a risk point of view you're better off holding hard-currency bonds and assets.

3) Since I do not plan to retire in Singapore (most probably will retire in Sri Lanka/Thailand). Therefore as long as bond allocation is in a "stable" currency, the choice of currency does not make much of a difference.

AGGU is a bit of a weird one. It buys bonds denominated in a whole bunch of currencies, and then uses currency forwards and swaps to "convert" those bonds into USD (don't ask). This can occasionally be lucrative (as it is right now: some weird dislocations in global bond markets mean that USD investors can earn more by buying non-USD bonds and swapping those returns back into USD... but this is gnarly and it won't last forever.

And you can get the same thing a lot easier by buying an ETF that just buys USD bonds in the first place, instead of buying piles of rando bonds and hedging them back to USD.

My pick: look at LQDA for your bond allocation instead of AGGU. It has slightly higher yields, doesn't buy govvy bonds (which are a bit rich at the moment), and it's a little bigger as well.

 

[RMCWMR]

There are no such criteria except through the Global Investor Programme. The GIP requires a minimum investment of S$2.5 million for consideration. PR decisions are still entirely discretionary even then; this is not a vending machine.

The PTS Scheme considers “economic contributions to Singapore.” The government is deliberately opaque, but a reasonable, broad interpretation (since they also explicitly demand the tax records) is that direct income tax payments (plural — years) and unique or at least special talent-related contributions figure prominently. Tossing S$100K into some Singapore Savings Bonds likely isn’t going to mean jack s**t. Five years of S$30K/year income tax payments, nicely rising with salary increases, from a well known engineer with a patent or two who is greatly helping her local employer export some new biotechnology made in Singapore to several other countries.... OK, maybe then that PR application gets a second read and rises to the top of the endless pile. As an example.

Anyway, if you’re going to try to buy your PR with money, that’s the GIP. That’s the only way to “buy” PR, and even then it’s not even close to guaranteed. Otherwise, work hard, pay your taxes for at least a few years, do at least your part to make Singapore an economic powerhouse (leading to more and better jobs for Singaporeans), stay out of trouble, actually live in Singapore (working from your laptop from your grandmother’s house in Other Country X an average of 7 months per year total probably isn’t going to help), and then try your luck with the PTS Scheme. Or fall in genuine love with a Singaporean (opposite sex only, sorry), marry, have some children, work hard, stay out of trouble, and try your luck with the Family Ties Scheme. Always file a 100% truthful application. (Lying has to be deadly, one can safely assume.)

There are no “inside tracks,” no secret unlocking invocations, no magic words, no b.s. This isn’t like getting some government permit in a third world country where corruption is rampant.

Good luck.

I think it depends on where you are from. If you are Malaysian they practically hand a PR to you. No need GIP or pay income tax for years. In fact I hardly heard any Malaysian get rejected for a PR unless they have committed some sort of crime. If you are from Africa, maybe not so easy.

 

[Okenba]

Seeking advice

As I start my investing journey, I'm also keen to start investing for my kids.

I thought it might be a alternative to a savings account, but also useful as an educational tool to teach them about investing and compounding in the future.

Any suggestions on how this could be done?
Likely a simple DCA to an index etf.

Am wondering if I can create different portfolios within IB to do this so that I can differentiate between their portfolio and mine?

 

[BBCWatcher]

I think it depends on where you are from.

Race and ethnicity are clearly factors, yes, unfortunately. But you didn't choose your parents or your place of birth, and you cannot alter those details, so don't worry about them.