SRS Portfolio

[kehyi4]

Edit: Taking outdated Jun 2019 info was not a good idea. Sep 2019 info is available in post #125

From their Semi-Annual Report (30 Jun 2019):

LIONGLOBAL ALL SEASONS FUND (GROWTH)
- LionGlobal Asia Pacific Fund - SGD Class - 20.3%
- LionGlobal Asia Bond Fund - SGD Hedged Class - 8.2%
- LionGlobal Japan Growth Fund - SGD Class - 6.0%
- Vanguard S&P 500 UCITS ETF - 20.4%
- LionGlobal Singapore Fixed Income Investment - SGD Class I - 9.6%
- LionGlobal Short Duration Bond Fund - SGD Class I Acc - 9.5%
- Xtrackers Euro Stoxx 50 UCITS ETF - 7.6%
- Lyxor Core Stoxx Europe 600 DR ETF - 7.0%
- Other net assets - 11.4%

LIONGLOBAL ALL SEASONS FUND (STANDARD)
- LionGlobal Singapore Fixed Income Investment - SGD Class I - 26.4%
- LionGlobal Short Duration Bond Fund - SGD Class I Acc - 26.4%
- LionGlobal Asia Bond Fund - SGD Hedged Class - 15.6%
- LionGlobal Asia Pacific Fund - SGD Class - 9.3%
- LionGlobal Japan Growth Fund - SGD Class - 2.6%
- Vanguard S&P 500 UCITS ETF - 9.5%
- Xtrackers Euro Stoxx 50 UCITS ETF - 5.1%
- Lyxor Core Stoxx Europe 600 DR ETF - 2.0%
- Other net assets - 3.1%

Expense ratio (including preliminary expenses, and including underlying fund expense ratio):
Growth - 0.36%
Standard - 0.32%

Net assets attributable to unitholders:
Growth - 25,588,990
Standard - 36,001,474

 

[w1rbelw1nd]

From their Semi-Annual Report (30 Jun 2019):

LIONGLOBAL ALL SEASONS FUND (GROWTH)
- LionGlobal Asia Pacific Fund - SGD Class - 20.3%
- LionGlobal Asia Bond Fund - SGD Hedged Class - 8.2%
- LionGlobal Japan Growth Fund - SGD Class - 6.0%
- Vanguard S&P 500 UCITS ETF - 20.4%
- LionGlobal Singapore Fixed Income Investment - SGD Class I - 9.6%
- LionGlobal Short Duration Bond Fund - SGD Class I Acc - 9.5%
- Xtrackers Euro Stoxx 50 UCITS ETF - 7.6%
- Lyxor Core Stoxx Europe 600 DR ETF - 7.0%
- Other net assets - 11.4%

LIONGLOBAL ALL SEASONS FUND (STANDARD)
- LionGlobal Singapore Fixed Income Investment - SGD Class I - 26.4%
- LionGlobal Short Duration Bond Fund - SGD Class I Acc - 26.4%
- LionGlobal Asia Bond Fund - SGD Hedged Class - 15.6%
- LionGlobal Asia Pacific Fund - SGD Class - 9.3%
- LionGlobal Japan Growth Fund - SGD Class - 2.6%
- Vanguard S&P 500 UCITS ETF - 9.5%
- Xtrackers Euro Stoxx 50 UCITS ETF - 5.1%
- Lyxor Core Stoxx Europe 600 DR ETF - 2.0%
- Other net assets - 3.1%

Expense ratio (including preliminary expenses, and including underlying fund expense ratio):
Growth - 0.36%
Standard - 0.32%

Net assets attributable to unitholders:
Growth - 25,588,990
Standard - 36,001,474

Thanks for sharing!! I think a 100% equity portfolio makes more sense for me since I have a longer runway, even though I would assume that Lionglobal portfolio will rebalance and therefore may have a better return/risk profile.

Regardless money is locked in for a good 32 years for me, I dont mind taking bigger risk for it.

That said, the 11.4% in cash and other assets is terrible. Wouldnt that lead to a significant error?? I hope it is one off and the fund manager is actually investing the money per fund mandate. It will be quite disturbing if they are always holding on to so much cash.

Guess I will still to Endowus

 

[w1rbelw1nd]

From their Semi-Annual Report (30 Jun 2019):

LIONGLOBAL ALL SEASONS FUND (GROWTH)
- LionGlobal Asia Pacific Fund - SGD Class - 20.3%
- LionGlobal Asia Bond Fund - SGD Hedged Class - 8.2%
- LionGlobal Japan Growth Fund - SGD Class - 6.0%
- Vanguard S&P 500 UCITS ETF - 20.4%
- LionGlobal Singapore Fixed Income Investment - SGD Class I - 9.6%
- LionGlobal Short Duration Bond Fund - SGD Class I Acc - 9.5%
- Xtrackers Euro Stoxx 50 UCITS ETF - 7.6%
- Lyxor Core Stoxx Europe 600 DR ETF - 7.0%
- Other net assets - 11.4%

LIONGLOBAL ALL SEASONS FUND (STANDARD)
- LionGlobal Singapore Fixed Income Investment - SGD Class I - 26.4%
- LionGlobal Short Duration Bond Fund - SGD Class I Acc - 26.4%
- LionGlobal Asia Bond Fund - SGD Hedged Class - 15.6%
- LionGlobal Asia Pacific Fund - SGD Class - 9.3%
- LionGlobal Japan Growth Fund - SGD Class - 2.6%
- Vanguard S&P 500 UCITS ETF - 9.5%
- Xtrackers Euro Stoxx 50 UCITS ETF - 5.1%
- Lyxor Core Stoxx Europe 600 DR ETF - 2.0%
- Other net assets - 3.1%

Expense ratio (including preliminary expenses, and including underlying fund expense ratio):
Growth - 0.36%
Standard - 0.32%

Net assets attributable to unitholders:
Growth - 25,588,990
Standard - 36,001,474

Thanks for sharing!! I think a 100% equity portfolio makes more sense for me since I have a longer runway, even though I would assume that Lionglobal portfolio will rebalance and therefore may have a better return/risk profile.

Regardless money is locked in for a good 32 years for me, I dont mind taking bigger risk for it.

That said, the 11.4% in cash and other assets is terrible. Wouldnt that lead to a significant tracking error?? I hope it is one off and the fund manager is actually investing the money per fund mandate. It will be quite disturbing if they are always holding on to so much cash.

Guess I will still stick with Endowus

 

[kehyi4]

... That said, the 11.4% in cash and other assets is terrible ...

yeah, i was surprised by that too. But bear in mind that this is a snapshot taken on 30 Jun 2019, and may not be an indication of the asset allocation of the fund

The latest factsheet (dated Sep 2019) gives the following:

Growth
Equities - 68.5%
Fixed Income - 29.9%
Cash Equivalent - 1.6%

- LIONGLOBAL ASIA PACIFIC FUND S$ 22.2
- LIONGLOBAL SINGAPORE FIXED INCOME INVESTMENT 10.5
- LIONGLOBAL SHORT DURATION BOND FUND 10.4
- LIONGLOBAL ASIA BOND FD SGDH 9.0
- LIONGLOBAL JAPAN GROWTH FUND 6.6
- VANGUARD S&P 500 UCITS ETF 22.4
- DB X - TRACKERS EURO STOXX 50 UCITS ETF DR 10.5
- LYXOR CORE STOXX EUROPE 600 DR ETF 7.0

Standard
Fixed Income - 69.2%
Equities - 29.8%
Cash Equivalent - 1.0%

- LIONGLOBAL SINGAPORE FIXED INCOME INVESTMENT 26.6
- LIONGLOBAL SHORT DURATION BOND FUND 26.6
- LIONGLOBAL ASIA BOND FD SGDH 15.9
- LIONGLOBAL ASIA PACIFIC FUND S$ 9.3
- LIONGLOBAL JAPAN GROWTH FUND 2.9
- VANGUARD S&P 500 UCITS ETF 10.1
- XTRACKERS EURO STOXX 50 UCITS ETF 5.2
- LYXOR CORE STOXX EUROPE 600 DR ETF 2.3

 

[Yallingup]

I guess that's a fair point. Everything is levered to Singapore risk... My job, my flat and my CPF... Not bad to take some global exposure I guess. Thanks for the advice!

I previously invested in STI ETF, but now I think it is a fairly bad choice because I get dividends and I cant invest it cost efficiently...

Any low cost, globally diversified, non-dividend paying investments like Lionglobal Allseasons and Endowus seem to make sense to me.

 

[assiak71]

From their Semi-Annual Report (30 Jun 2019):

LIONGLOBAL ALL SEASONS FUND (GROWTH)
- LionGlobal Asia Pacific Fund - SGD Class - 20.3%
- LionGlobal Asia Bond Fund - SGD Hedged Class - 8.2%
- LionGlobal Japan Growth Fund - SGD Class - 6.0%
- Vanguard S&P 500 UCITS ETF - 20.4%
- LionGlobal Singapore Fixed Income Investment - SGD Class I - 9.6%
- LionGlobal Short Duration Bond Fund - SGD Class I Acc - 9.5%
- Xtrackers Euro Stoxx 50 UCITS ETF - 7.6%
- Lyxor Core Stoxx Europe 600 DR ETF - 7.0%
- Other net assets - 11.4%

LIONGLOBAL ALL SEASONS FUND (STANDARD)
- LionGlobal Singapore Fixed Income Investment - SGD Class I - 26.4%
- LionGlobal Short Duration Bond Fund - SGD Class I Acc - 26.4%
- LionGlobal Asia Bond Fund - SGD Hedged Class - 15.6%
- LionGlobal Asia Pacific Fund - SGD Class - 9.3%
- LionGlobal Japan Growth Fund - SGD Class - 2.6%
- Vanguard S&P 500 UCITS ETF - 9.5%
- Xtrackers Euro Stoxx 50 UCITS ETF - 5.1%
- Lyxor Core Stoxx Europe 600 DR ETF - 2.0%
- Other net assets - 3.1%

Expense ratio (including preliminary expenses, and including underlying fund expense ratio):
Growth - 0.36%
Standard - 0.32%

Net assets attributable to unitholders:
Growth - 25,588,990
Standard - 36,001,474

Why do they need 2 euro funds?

If only they use all vanguard uk etfs for their equities. In fact vanguard uk has all their desired regions

North america
Europe
Asia pacific ex japan
Japan
Emerging markets

Or they could just use the DM and EM etfs

Lets write to lionglobal to ask them to change all their equities to vanguard uk etfs

 

[JetStorm]

I personally will treat SRS like my "cash" portfolio. Using Shiny Things method of 110- age to buy into ES3/G3B for stock and A35/MBH for bond and rebalancing every 6 months.

Global portfolio just use cash to buy IWDA.

 

[w1rbelw1nd]

I personally will treat SRS like my "cash" portfolio. Using Shiny Things method of 110- age to buy into ES3/G3B for stock and A35/MBH for bond and rebalancing every 6 months.

Global portfolio just use cash to buy IWDA.

I realised that for my CPF and SRS portfolio, if I were to use it to only buy STI ETF, I would be overweight Singapore exposure.

 

[assiak71]

Reply from syfe on srs

We have already applied for SRS and expect it to be ready for us within the next couple months. Till then we suggest you try out one of our regular portfolios.

Thanks,
Dhruv

 

[JetStorm]

I realised that for my CPF and SRS portfolio, if I were to use it to only buy STI ETF, I would be overweight Singapore exposure.

If take cpf srs and cash as a whole, more cash can dump to global etf mah. Sure it will be sg or bond heavy due to cpf but thats what rebalancing is all about no?

To have more bond exposure as we near retirement.

Sent from Xiaomi REDMI NOTE 8 PRO using GAGT

 

[Calibre2019]

Hi, Please help me check my calculations re: SRS vs No SRS.

41 year old.
Assume highest tax bracket -- 22% which remains 22% in 21 years (age 62)
Has disposable savings of $15,300

deciding whether to SRS or not SRS.
investment: 5% annual compounded (for SRS or non-SRS investments)
5% per annum compounded till age 62: 279%

If No SRS :
$15,300 not locked up
in 2020, pay 22% tax on $15,300 = $3,366
cash on hand (after tax): $15,300 - $3,366 = $11,934

at age 62:
5% per annum compounded till age 62: $11,934 * 279% = $33,248

If SRS
$15,300 is locked up into SRS
"cash on hand" (otherwise paid as tax, now freed up): $3,366

at age 62:
cash on hand compounded at 5% per annum: $3,366*279% = $9,378

SRS acct compounded at 5% per annum: $15,300*279%=$42,625
withdraw in full, taxable amount = 50%*$42,625=$21,312
tax = 22%*$21,312.61=$4,689
SRS (after tax) = $42,625-$4,688=$37,936

Total: $9,378 + $37,936 = $47,314

Therefore, it makes sense to do full SRS of $15,300 at age 41
(despite the tax at age 62 on capital gains in SRS acct)


Risks: policy change; long term investment returns risk; tax rate change


any flaws or comments on the above analyses?
Thanks!

 

[1nd3x1nv3stor]

You double count the "cash on hand".
The conclusion is correct, SRS is better than no SRS, $37,936 vs $33,248.
That is due to the fact that we only pay 50% of the taxable amount (the assumption is the tax rate is the same).

Hi, Please help me check my calculations re: SRS vs No SRS.

41 year old.
Assume highest tax bracket -- 22% which remains 22% in 21 years (age 62)
Has disposable savings of $15,300

deciding whether to SRS or not SRS.
investment: 5% annual compounded (for SRS or non-SRS investments)
5% per annum compounded till age 62: 279%

If No SRS :
$15,300 not locked up
in 2020, pay 22% tax on $15,300 = $3,366
cash on hand (after tax): $15,300 - $3,366 = $11,934

at age 62:
5% per annum compounded till age 62: $11,934 * 279% = $33,248

If SRS
$15,300 is locked up into SRS
"cash on hand" (otherwise paid as tax, now freed up): $3,366

at age 62:
cash on hand compounded at 5% per annum: $3,366*279% = $9,378

SRS acct compounded at 5% per annum: $15,300*279%=$42,625
withdraw in full, taxable amount = 50%*$42,625=$21,312
tax = 22%*$21,312.61=$4,689
SRS (after tax) = $42,625-$4,688=$37,936

Total: $9,378 + $37,936 = $47,314

Therefore, it makes sense to do full SRS of $15,300 at age 41
(despite the tax at age 62 on capital gains in SRS acct)


Risks: policy change; long term investment returns risk; tax rate change


any flaws or comments on the above analyses?
Thanks!

 

[tangent314]

Without SRS, it's .78 * 15300 * 1.05^21 = 33248
With SRS, it's .89 * 15300 * 1.05^21 = 37836

Of course, there are ways to avoid paying tax on your SRS amount, like retiring or taking a pay cut, or purchasing a qualifying life annuity.

 

[homedriver]

It is still time to open SRS now to enjoy the tax rebate for year 2019?

 

[BBCWatcher]

It is still time to open SRS now to enjoy the tax rebate for year 2019?

Yes, the deadline this year is sometime on December 31, 2019, since that day falls on a normal working weekday with bank branches open. My recollection is that at least one of the SRS banks has a deadline as late as 9:00 p.m., but don’t cut it that close.

 

[BBCWatcher]

Of course, there are ways to avoid paying tax on your SRS amount, like retiring or taking a pay cut, or purchasing a qualifying life annuity.

Also keep in mind that certain types of non-working income are subject to income tax too, including rents and royalties. If you’re dreaming of real estate tycoonism, maybe you ought to dream another, more tax efficient dream.

Moreover, all bets are off if you are or become subject to another tax jurisdiction. Most countries will treat Singapore SRS accounts identically to how they treat any other offshore accounts, and that might not work out so well.

 

[assiak71]

So which approach gets your vote for srs?

1. Sti etf for srs while cash for global. However this only works if your balance is significant and your SG AA is pretty significant (eg 50% global 50% SG) else you would not be able to maintain your AA

2. Lionglobal all season. Lowest cost but only 70/30 and no clear AA for their equities with some really weird etf choices

3. Endowus but got to be really patient with the valuey DFA world fund - for all you know it may underperform a market cap fund for another 10 years

4. Stashaway. Personally find the fees too high

5. Syfe. Coming in a couple of months. Both syfe and stashaway have tactical adjustments. Between the two, im more inclined towards syfe due to lower mgmt fee (0.4% for 100k and above)

6. Other funds like lionglobal infinity

7. Individual stocks

So clearly no obvious winner. #1 is the best if you can meet your AA. Which would be the better ones out of these available options?

 

[w1rbelw1nd]

So which approach gets your vote for srs?

1. Sti etf for srs while cash for global. However this only works if your balance is significant and your SG AA is pretty significant (eg 50% global 50% SG) else you would not be able to maintain your AA

2. Lionglobal all season. Lowest cost but only 70/30 and no clear AA for their equities with some really weird etf choices

3. Endowus but got to be really patient with the valuey DFA world fund - for all you know it may underperform a market cap fund for another 10 years

4. Stashaway. Personally find the fees too high

5. Syfe. Coming in a couple of months. Both syfe and stashaway have tactical adjustments. Between the two, im more inclined towards syfe due to lower mgmt fee (0.4% for 100k and above)

6. Other funds like lionglobal infinity

7. Individual stocks

So clearly no obvious winner. #1 is the best if you can meet your AA. Which would be the better ones out of these available options?

I am holding 0% STI ETFs. Yup 0%, across all my cash, CPF and SRS.

I am sure someone highlighted how undiversified STI is already. But let me do that again. If you are holding STI to IWDA on a ratio of 20:80 for your equity portfolio, you would own more SPH than Apple, Microsoft, Google, or any of those huge companies. Yes SPH, ranked 25 out of 30 of the index, the exact SPH that has been retrenching people and getting screwed by the new media. The same SPH that has also "diversifying" into real estate.

Not to mention the steady replacement of STI counters to REITs. Not to mention SGX facing frequent delisting, and big companies (and potential STI components) passing listing in SGX.

My personal view has always been that the TLCs are terribly uncompetitive relative to their peers. And our dear STI will continue to underperform its peers. Having STI just because its our local index, when there are doubts about its ability to perform, when there is clear poor diversification, is just silly.

I am so glad to have diversified away all my STI exposure (at a loss for my SRS).

I am going with Endowus because they are cheap and also the funds are very very diversified - since they have a value slant to things its good diversification against my usual indexing.

 

[duststorm]

Was looking at Endowus.. I choose SRS Fund $10k... at the end the fees quoted was:
Fund-level fees after rebates
0.50%
Endowus Access Fee
0.40%
Total cost per year
0.90%

So is not as cheap as it seems to be?

 

[chrisloh65]

I doubt any investment agents like Endowus can be cheap.

Was looking at Endowus.. I choose SRS Fund... at the end the fees quoted was:
Fund-level fees after rebates
0.50%
Endowus Access Fee
0.40%
Total cost per year
0.90%

So is not as cheap as it seems to be?