Official Shiny Things thread—Part III

[highsulphur]

No. ES3 and G3B are not bond funds.

However, if the convertible bonds actually convert to shares 10 years from now, then the fund managers will make any necessary adjustments at that time, consistent with keeping their funds tracking the Straits Times Index and assuming Singapore Airlines hasn't dropped out of the STI.

But if the ** are offered to existing shareholders and ES3 does not subscribe when other do, won't it be diluted in its SIA holdings?

 

[BBCWatcher]

But if the ** are offered to existing shareholders and ES3 does not subscribe when other do, won't it be diluted in its SIA holdings?

No. The convertible bonds do not immediately dilute shareholdings and might never, and ES3 and G3B are not bond funds.

 

[flowerpalms]

Its also good to see ES3 recovering slowly

 

[Johnpierpontmorgan]

Hi st

Why I never invest in Europeans and Japanese sovereign bonds is because most developed indebted nations will try to inflate away debt with negative real interest rates. They might wanna push for inflation at 2% while nominal rates continue to pay under 1%, or report cpi lower so they don’t have to pay higher nominal rates


No politicians are honest or serving the nation for the good of the citizens. Politics is still politics, power grabbing and money


My current war chest 65-70% is exactly to buy equities at this type of moment. So metals, and war chest cash pouring into equities now

 

[sslc20th]

Hi guys!

Bought and read Shiny's book, really helped me as i just started out investing.
Just want to check a few things on taxable income

1) I bought IWDA etf on IB and some US stocks like AMZN, MSFT. Do i have to file tax on the dividend or declare it?

2) Bought some ES3 on FSMONE as well, no need to file it for taxes right?

 

[tangent314]

Hi guys!

Bought and read Shiny's book, really helped me as i just started out investing.
Just want to check a few things on taxable income

1) I bought IWDA etf on IB and some US stocks like AMZN, MSFT. Do i have to file tax on the dividend or declare it?

2) Bought some ES3 on FSMONE as well, no need to file it for taxes right?

Assuming you are Singaporea.

You won't need to pay tax on dividends for IWDA, those are paid for by the fund managers.

For AMZN and MSFT I believe, IBKR will automatically withhold the tax from you.

You do not need to pay tax for SGX listed counters.

 

[jtzw23]

Hi Shiny! I am 22 years old, just starting to invest.
Using the 110-Age rule, my Stock/Bond Allocation will be rounded off to 90/10.
I have decided on a 5 fund portfolio consisting of
SPDR STI ETF – ES3.SI
iShares Core MSCI World UCTIS ETF – IWDA.L
iShares Core MSCI AC Asia ex Japan Index ETF – 3010.HK
Nikko AM Straits Trading Asia ex Japan REIT ETF – CFA.SI
Nikko AM SGD Investment Grade Corporate Bond Fund – MBH.SI 10%

1) What your recommendations on the % of each fund I should have?

2) Have your views on SWRD or VHVE changed? Should I use them instead of IWDA?

 

[flowerpalms]

Why is the balance in Securities trading account in SCB not taken based on Average price × total no. of stocks?

But based on last price x total no. of stocks

Which balance do you use for calculating the shortfalls?

 

[BBCWatcher]

I have decided on a 5 fund portfolio consisting of
SPDR STI ETF – ES3.SI
iShares Core MSCI World UCTIS ETF – IWDA.L
iShares Core MSCI AC Asia ex Japan Index ETF – 3010.HK
Nikko AM Straits Trading Asia ex Japan REIT ETF – CFA.SI
Nikko AM SGD Investment Grade Corporate Bond Fund – MBH.SI 10%

This is way too complicated. All you're doing with the pair of Asia ex Japan funds is (a) adding investment costs, (b) overweighting companies that happen to list in a specific geographic region's markets (when you already have regional overweighting in the STI stocks), (c) overweighting a specific sector that you're already overweighted in if/when you buy your own primary residence in Singapore.

Keep it simple! You really, really don't need to make things so complicated -- it's completely unnecessary. If you're concerned about "missing" "Asia" (you won't) then just use VWRA instead of IWDA if you want to pick up "emerging markets" such as China, and you're all set.

Opinions diverge, but my preference is to cap the STI stocks at 20%. So an allocation of something like 20-60-20 (ES3 or G3B-VWRA-MBH) would be fine from my point of view.

 

[dullthings]

“ I Became a Disciplined Investor Over 40 Years. The Virus Broke Me in 40 Days.”
https://www.nytimes.com/2020/03/27/business/stock-market-pandemic-coronavirus.html for reading pleasure this weekend

 

[flowerpalms]

Bumping up this question

Why is the balance in Securities trading account in SCB not taken based on Average price × total no. of stocks?

But based on last price x total no. of stocks

Which balance do you use for calculating the shortfalls?

 

[doody_]

Bumping up this question

I usually take last price on the day I'm buying.

 

[Johnpierpontmorgan]

Possibly a bull trap during the last 3 trading days.
Retesting lows again soon?


Seems like it.

 

[flowerpalms]

But we should take the average price as the actual profit/loss right? In SCB is showing last price of share instead which is a loss?

I usually take last price on the day I'm buying.

 

[chemtt]

Hi everyone, what’s your thoughts about using FSMone for monthly RSP of STI ETF instead of the usual POSB invest saver?
Currently I’m putting $500 per month into POSB invest saver G3B. I’m wondering if I should switch over to FSMone to buy ES3 instead?
FSMone has lower commission fees but I’m not sure if they’re reliable since they’re relatively new.

Also for IB’s monthly US 10 activity fee, is it charged to my account at the end of the month? From where should I be able to see the charges? Thank you in advance!

 

[flowerpalms]

No need to change .

Less than 1k per month, you should be using SCB for IWDA.

Hi everyone, what’s your thoughts about using FSMone for monthly RSP of STI ETF instead of the usual POSB invest saver?
Currently I’m putting $500 per month into POSB invest saver G3B. I’m wondering if I should switch over to FSMone to buy ES3 instead?
FSMone has lower commission fees but I’m not sure if they’re reliable since they’re relatively new.

Also for IB’s monthly US 10 activity fee, is it charged to my account at the end of the month? From where should I be able to see the charges? Thank you in advance!

 

[spvnnn]

No need to change .

Less than 1k per month, you should be using SCB for IWDA.

Is there a reason you're suggesting not to change to FSMone for STI ETF? It's definitely cheaper by a fair bit. POSB charges 0.82% IIRC, so that's $4.10 per month (assuming $500). FSMone charges $1 as its min fee for RSPs. Even at this low amount that's a difference of $37.2 a year, or over 10 years at 7% returns that's another 600+ dollars.

I mean sure not THAT significant but as your RSP amount goes up it gets more and more significant. For example at $750 a month, the difference in fees amounts to $1000 over 10 years at 7% returns. Unless the issue is with reliability of FSM? Kindly advice, I'm new to this.

 

[pcslacker]

Bumping up this question

If you are talking about the current balance of your securities account, it is probably showing you the mark to market value which will be based on the last available price against your holdings to calculate value at that point in time. The price you bought at doesn't matter, only the price you can sell at to calculate your current balance/value. If SCB needs you to maintain 50k balance for example then this balance should be above 50k or any shortfall would need to be topped up. Also if you are rebalancing then you would the latest price available to understand current ratios and where you have shortfall or excess to rebalance back to your target ratios. If you are talking about some other balance then it depends on which one you are referring to.

 

[flowerpalms]

You wont be investing in local stock every month. It depends on which fund is the most shortfall

Is there a reason you're suggesting not to change to FSMone for STI ETF? It's definitely cheaper by a fair bit. POSB charges 0.082% IIRC, so that's $4.10 per month (assuming $500). FSMone charges $1 as its min fee for RSPs. Even at this low amount that's a difference of $37.2 a year, or over 10 years at 7% returns that's another 600+ dollars.

I mean sure not THAT significant but as your RSP amount goes up it gets more and more significant. For example at $750 a month, the difference in fees amounts to $1000 over 10 years at 7% returns. Unless the issue is with reliability of FSM? Kindly advice, I'm new to this.

 

[pcslacker]

Hi everyone, what’s your thoughts about using FSMone for monthly RSP of STI ETF instead of the usual POSB invest saver?
Currently I’m putting $500 per month into POSB invest saver G3B. I’m wondering if I should switch over to FSMone to buy ES3 instead?
FSMone has lower commission fees but I’m not sure if they’re reliable since they’re relatively new.

Also for IB’s monthly US 10 activity fee, is it charged to my account at the end of the month? From where should I be able to see the charges? Thank you in advance!

FSMOne itself is not new except for the RSP service which is generally a new service by most brokerages in SG. Fund super mart has been around for a while and is part of iFast who are definitely a top tier company. For RSP I think they have one of the most competitive offering in terms of transaction costs and you can google to find plenty of comparisons done recently on this by financial blogs.