SRS Portfolio

[w1rbelw1nd]

Nope I don't like the DWT part, or the active investing portion. I am waiting for endowus/moneyowl now.

Stashaway not good enough for you? I wonder if autowealth and smartly are doing anything to be included in srs

 

[limster]

someone has already recommended Lionglobal Allseasons fund for SRS. 0.5% TER, SRS eligible. Apart from the small fund size, it seems to be better than almost anything else that is SRS eligible.

 

[w1rbelw1nd]

TER doesn't include vanguard's cost right... Illiquidity is a concern too.

someone has already recommended Lionglobal Allseasons fund for SRS. 0.5% TER, SRS eligible. Apart from the small fund size, it seems to be better than almost anything else that is SRS eligible.

 

[tangent314]

The T in TER stands for Total, and includes the costs of all underlying funds.
Why would liquidity be an issue with this fund? You put in your buy or sell order and it will take place either later in the day if you put it in before some cutoff time, or the next working day. The fund aggregates all the buy/sell orders for the day and then buy/sell the appropriate amount of the underlying fund.

 

[limster]

TER doesn't include vanguard's cost right... Illiquidity is a concern too.

the bid-offer spread for unit trusts with no sales charge is zero. you can buy the unit trust at its NAV.

i have never heard of unit trust having liquidity issue, even during the GFC.

The vanguard S&P500 UCITS ETF has a TER of 0.07%, and yes you have to factor that in over and above the 0.5% TER.

 

[w1rbelw1nd]

I don't think that's how that the T works.

EDIT: Can read the definition here -

https://lgi.nextview.com/doc/uploads/documents/index.php?type=FS&fid=LGSF&lang=EN

"The total expense ratio (TER) is the sum of
various identified operating expenses charged
on an ongoing basis to the fund’s assets as a
percentage of the fund’s average net asset
value calculated over a 12-month period at the
close of the annual and semi-annual financial
statements of the fund."

does the underlying fund's fund manager TER form part of the "operating expenses" of LG all seasons? No right, since book value of the underlying fund is net of fund mgmt expenses at any point of time.

The T in TER stands for Total, and includes the costs of all underlying funds.
Why would liquidity be an issue with this fund? You put in your buy or sell order and it will take place either later in the day if you put it in before some cutoff time, or the next working day. The fund aggregates all the buy/sell orders for the day and then buy/sell the appropriate amount of the underlying fund.

 

[w1rbelw1nd]

Oh my bad, thought it's exchange traded.

the bid-offer spread for unit trusts with no sales charge is zero. you can buy the unit trust at its NAV.

i have never heard of unit trust having liquidity issue, even during the GFC.

The vanguard S&P500 UCITS ETF has a TER of 0.07%, and yes you have to factor that in over and above the 0.5% TER.

 

[tangent314]

It's a bit ambiguous in the factsheet for the All Seasons, but for their Infinity US 500 fund it explicitly states: "The above Expense Ratio incorporates the Vanguard® U.S.500 StockIndex Fund expense ratio of 0.1%. Note there may alsobe charges payable by the Fund to Vanguard® U.S.500 Stock Index Fund. Please refer to the prospectus for details"

For All Seasons of course they can't copy and paste that because there's a few different funds invested in.

It's pretty much customary (and likely a requirement by law, haven't looked too much into that) to incorporate sub funds costs into the TER of funds of funds. I don't see why All Seasons would be an exception.

Some further reading: https://money.stackexchange.com/que...-funds-include-the-expense-ratios-of-its-hold

 

[warr]

is it clear what are the asset allocation of the All Seasons fund? searched its prospectus but nothing was found.
Since it is not disclosed, it probably won't disclose to investors if that allocation changes.

 

[kehyi4]

is it clear what are the asset allocation of the All Seasons fund? searched its prospectus but nothing was found.
Since it is not disclosed, it probably won't disclose to investors if that allocation changes.

From their Annual Report (31 Dec 2018):

LIONGLOBAL ALL SEASONS FUND (GROWTH)
- LionGlobal Asia Pacific Fund - SGD Class - 23.8%
- LionGlobal Asia Bond Fund - SGD Hedged Class - 9.0%
- LionGlobal Japan Growth Fund - SGD Class - 8.0%
- LionGlobal Singapore Fixed Income Investment - SGD Class I - 10.9%
- LionGlobal Short Duration Bond Fund - SGD Class I Acc - 10.7%
- Vanguard S&P 500 UCITS ETF - 21.2%
- Xtrackers Euro Stoxx 50 UCITS ETF - 13.3%
- Lyxor Core Stoxx Europe 600 DR ETF - 1.5%
- Other net assets - 1.6%

LIONGLOBAL ALL SEASONS FUND (STANDARD)
- LionGlobal Singapore Fixed Income Investment - SGD Class I - 27.4%
- LionGlobal Short Duration Bond Fund - SGD Class I Acc - 27.0%
- LionGlobal Asia Bond Fund - SGD Hedged Class - 16.1%
- LionGlobal Asia Pacific Fund - SGD Class - 10.0%
- LionGlobal Japan Growth Fund - SGD Class - 3.4%
- Vanguard S&P 500 UCITS ETF - 9.0%
- Xtrackers Euro Stoxx 50 UCITS ETF - 5.5%
- Lyxor Core Stoxx Europe 600 DR ETF - 0.8%
- Other net assets - 0.8%

Expense ratio (including preliminary expenses, and including underlying fund expense ratio):
Growth - 0.50%
Standard - 0.46%

Average net asset value:
Growth - 11,234,315
Standard - 26,547,122

 

[assiak71]

How about just 100% sti etf in srs, and adjust the allocation in cash portfolio to the desired overall cash+srs allocation?

 

[tangent314]

is it clear what are the asset allocation of the All Seasons fund? searched its prospectus but nothing was found.
Since it is not disclosed, it probably won't disclose to investors if that allocation changes.

Their own website isn't updated, but you can get up to date factsheets for the funds from the platforms. If you google for it, the link to fsmone's copy should show up second.

How about just 100% sti etf in srs, and adjust the allocation in cash portfolio to the desired overall cash+srs allocation?

Ideally yes, SRS = local equities, cash = global equities, CPF = bonds.

One thing that UTs do better than stocks is that you can put in any amount you like as long as it's higher than the minimum, whereas for STI ETF you have to purchase in lots of 100 plus fees, so you will definitely have some balance left in SRS. What I do is make sure this balance is just a bit higher than $100 then use the exact balance to purchase LG AS(G).

You can also do the same for the dividends received into the SRS account.

 

[foozgarden]

10 year SSB are quite good.
Why no one consider?

Also, selling SSB in SRS. Is this considered as incoming dividend?

 

[w1rbelw1nd]

Depends on your age and what time you intend to start withdrawing your srs funds.

It's like how cpf OA "guaranteed" 2.5% means absolutely nothing to me, as someone who is 30 years old. I am concerned about equity upside, not bond returns. Everyone different.

10 year SSB are quite good.
Why no one consider?

Also, selling SSB in SRS. Is this considered as incoming dividend?

 

[warr]

10 year SSB are quite good.
Why no one consider?

Also, selling SSB in SRS. Is this considered as incoming dividend?

if u have liquidity needs, it is good for within 5 years.
if u have horizon of over 5 years, it is bad investment. for one thing, it can't beat even inflation.
Again, as the above said, it depends on many factors of yourself.


I have a question on the LionGlobal infinity feeder funds to Vanguard funds.
How does Lion Global treat the 30% dividend withholding tax? is it already taxed at 30% on the Vanguard side, or is it tax-free and Lion Global re-invest it?
sorry, searched and no direct answer on this.

 

[tangent314]

10 year SSB are quite good.
Why no one consider?

Also, selling SSB in SRS. Is this considered as incoming dividend?

Many Singaporeans already have huge bond exposure through CPF and will benefit from having more equities exposure especially since SRS is going to be a long term investment.

I have a question on the LionGlobal infinity feeder funds to Vanguard funds.
How does Lion Global treat the 30% dividend withholding tax? is it already taxed at 30% on the Vanguard side, or is it tax-free and Lion Global re-invest it?
sorry, searched and no direct answer on this.

It's taxed 15% at the Vanguard side when they receive the dividends from the underlying instruments since the LGI UT wraps the Ireland-domiciled version of the Vanguard funds. There's no tax on the LG side holding the Vanguard funds.

 

[BBCWatcher]

if u have horizon of over 5 years, it is bad investment. for one thing, it can't beat even inflation.

SSBs are, in fact, beating inflation by quite a lot.

 

[K_E_N_L_A_W]

SSBs are, in fact, beating inflation by quite a lot.

How much more?

 

[badsector]

How much more?

https://www.singstat.gov.sg/modules/infographics/consumer-price-index

a bit...

 

[BBCWatcher]

How much more?

a bit...

About 1.5 percentage points (currently) is more than “a bit.”