Unit Trust

[BBCWatcher]

Would you entertain the possibility the fund managers removed the reference index because the comparison embarrasses them?

 

[sohguanh]

Would you entertain the possibility the fund managers removed the reference index because the comparison embarrasses them?

That is one way of looking at it. The other way is to tell potential investors you have faith in our skills invest else just take your monies elsewhere we not interested in your monies haha

 

[sohguanh]

Notice only recently that fsm and endowus updating of their mutual fund holdings is quite slow in comparison to moomoo, webul, poems. The price is transacted same day as moomoo, webull, poems but the time it take for them to reflect the latest unit holdings of the mutual funds you have bought/sold is a bit slow in their respective platform. No harm in that just that I want to compare all four of them at same day on a weekend like today make it troublesome. I place orders on all four of them platforms on same day for the record.

Not sure if other readers also notice this.

 

[gold_eagle36]

Notice only recently that fsm and endowus updating of their mutual fund holdings is quite slow in comparison to moomoo, webul, poems. The price is transacted same day as moomoo, webull, poems but the time it take for them to reflect the latest unit holdings of the mutual funds you have bought/sold is a bit slow in their respective platform. No harm in that just that I want to compare all four of them at same day on a weekend like today make it troublesome. I place orders on all four of them platforms on same day for the record.

Not sure if other readers also notice this.

if im not wrong the purchase date and the confirmation date is different.

Execution should be as soon as possible like next business day, but the time the custodian updates over takes a few more days. So, technically the price transacted closer to the date you placed the order (buy/sell).

I may be wrong on this.

 

[sohguanh]

Just received Endowus email talking about absolute return strategy. Gist is below. Mutual fund that do not focus returns relative to a specific benchmark. This I have flagged before earlier in this thread about fund that explicitly state they do not perform against any benchmark. Seems all along it exist just not so accessible to retail investors.

“Absolute return” strategies focus on generating a positive return over any period through cycles, which is different from the more common relative return strategies that focus on returns relative to a specific benchmark.

 

[sohguanh]

Recently from moomoo learn simple article each talk about different stock strategy. While it seems the strategy applies to single stock some may actually be applicable to unit trust. Some strategy seem to be applicable e.g piercing line based on candlesticks. After using it for 1 month+, I feel it does apply but unit trust is really for long term and the better approach most has offered are RSP i.e buy regardless of the price at a pre-determined day of the month consistently.

However if the fund is on a long term downward trend and no end to it, RSP means you are averaging down but tying up monies in the long term. Those monies could be better deployed elsewhere. Just an e.g Japan unit trust has shot up the roof after keeping low for 30 years? (or lesser not sure). If you buy in just as it breakout recently it is profitable and imagine the monies you have saved during those 30 years? of average down!

So now I am not a 100% RSP supporter I would like to adopt a middle ground approach if possible. Maybe when retired got time to do this as my CPF unit trust investment coupled with OA,SA balance has attained ERS for this year liao.

 

[sohguanh]

I would like to seek readers view on using cpf investment on unit trust aka fund. Since we are using cpf monies to invest ain't the benchmark to beat is 2.5% ?

In the other forum readers insist no the unit trust aka fund benchmark to beat is as stated in the factsheet etc. This make sense if we are using cash I agree but for cpf I don't use this to determine the fund is worth investing.

My reason is simple. Any investment that take cpf monies need to beat 2.5%. I thought this is logical? Maybe there are other reason I am not aware of?

 

[s0crates]

I would like to seek readers view on using cpf investment on unit trust aka fund. Since we are using cpf monies to invest ain't the benchmark to beat is 2.5% ?

In the other forum readers insist no the unit trust aka fund benchmark to beat is as stated in the factsheet etc. This make sense if we are using cash I agree but for cpf I don't use this to determine the fund is worth investing.

My reason is simple. Any investment that take cpf monies need to beat 2.5%. I thought this is logical? Maybe there are other reason I am not aware of?

Not logical at all. You are taking investment risk so how is it even useful to track against a risk free product?

Benchmark should always be against an index of the investment mandate the fund is supposed to beat or track, as much as possible.

 

[blurpandasg2014]

Isit recommended to buy the SGD-H version of fund or just the normal SGD version

 

[BBCWatcher]

I would like to seek readers view on using cpf investment on unit trust aka fund. Since we are using cpf monies to invest ain't the benchmark to beat is 2.5% ?

No, and not only for risk-related reasons (which are good reasons). Currently you can get ~3.8% p.a. from Singapore T-bills. You’re not required to leave investible OA dollars in OA earning 2.5%. T-bills and other Singapore Government Securities exist.

 

[sohguanh]

Not logical at all. You are taking investment risk so how is it even useful to track against a risk free product?

Benchmark should always be against an index of the investment mandate the fund is supposed to beat or track, as much as possible.

Ok your view is same as the other forum readers now I see it from you all angle. Thanks for sharing.

Maybe my view is different as i always differentiate between cpf and cash investment.

 

[sohguanh]

Isit recommended to buy the SGD-H version of fund or just the normal SGD version

There is an article by fsm on this. H is hedged refer to currency hedging as the fund underlying is into non-SGD assets. Fund manager employ various strategies to do hedging. You can read more about it online on this topic.

 

[blurpandasg2014]

There is an article by fsm on this. H is hedged refer to currency hedging as the fund underlying is into non-SGD assets. Fund manager employ various strategies to do hedging. You can read more about it online on this topic.

I have read the article but it's quite confusing.

For lump sum investment, in general, isit advisable to get SGD-H version if the dealing currency is a foreign currency?

And are currency effects negligible in the long run for RSPs?

I'm currently deciding between a platform that only EUR vs another SGD-H version of the fund. But don't know which make more sense over long term. Platform fees for the one that has fund in EUR is cheaper

 

[sohguanh]

I have read the article but it's quite confusing.

For lump sum investment, in general, isit advisable to get SGD-H version if the dealing currency is a foreign currency?

And are currency effects negligible in the long run for RSPs?

I'm currently deciding between a platform that only EUR vs another SGD-H version of the fund. But don't know which make more sense over long term. Platform fees for the one that has fund in EUR is cheaper

The EUR fund you need to invest using EUR? If yes then you need to convert from SGD to EUR isn't it? Then when you sell you get back EUR and if you want SGD you need convert again.

This is same argument previously on another thread about currency exchange play a part in the buy,sell process affect your actual profits.

For me I will try only take the SGD version if there is one. Just me as I want to easier calculate my profits and losses all in SGD

 

[blurpandasg2014]

The EUR fund you need to invest using EUR? If yes then you need to convert from SGD to EUR isn't it? Then when you sell you get back EUR and if you want SGD you need convert again.

This is same argument previously on another thread about currency exchange play a part in the buy,sell process affect your actual profits.

For me I will try only take the SGD version if there is one. Just me as I want to easier calculate my profits and losses all in SGD

Yeap the platform will help convert at spot rate.

 

[sohguanh]

Yeap the platform will help convert at spot rate.

Then up to you to decide. The moment you change to and fro you need to factor in this to arrive at your actual profits,losses.

I share my own earlier. I will take SGD or SGD-H if there is one.

 

[s0crates]

I have read the article but it's quite confusing.

For lump sum investment, in general, isit advisable to get SGD-H version if the dealing currency is a foreign currency?

And are currency effects negligible in the long run for RSPs?

I'm currently deciding between a platform that only EUR vs another SGD-H version of the fund. But don't know which make more sense over long term. Platform fees for the one that has fund in EUR is cheaper

You get the same currency exposure regardless of investing in the sgd denominated fund or the eur fund.

2 questions for you:

Do you prefer to have sgd or euro after you sell the investment?

Does your preferred broker have great FX transaction rate?

Most pple will rather have sgd and their broker would execute the FX at poor rate, so do sgd instead. What fund are you looking at?

 

[blurpandasg2014]

You get the same currency exposure regardless of investing in the sgd denominated fund or the eur fund.

2 questions for you:

Do you prefer to have sgd or euro after you sell the investment?

Does your preferred broker have great FX transaction rate?

Most pple will rather have sgd and their broker would execute the FX at poor rate, so do sgd instead. What fund are you looking at?

Fundsmith equity.

 

[sohguanh]

Fundsmith equity.

You just need to know not only this EUR denominated mutual fund you are looking at, any other investment instrument that require you to convert to and fro different currency you have this factor to consider. If you do not intend to convert back to SGD after sell or mature (my experience was foreign currency FD), then yes possibly you buy in with non-SGD instead.

 

[blurpandasg2014]

You just need to know not only this EUR denominated mutual fund you are looking at, any other investment instrument that require you to convert to and fro different currency you have this factor to consider. If you do not intend to convert back to SGD after sell or mature (my experience was foreign currency FD), then yes possibly you buy in with non-SGD instead.

The sgd version is the hedged version. Does this equate to less risk in terms of currency fluctuations?

I find unit trust not as straight forward, due to different variations available