Unit Trust

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limster

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The only unit trust I am recommending to my less financially literate relatives is LionGlobal All Seasons Growth with 0.5% expense ratio. Most of them have set up some sort of RSP for that fund. Long ago, I told them to just buy the 3 local banks, but prices seem rather high currently, better to diversify.

So far its doing pretty well on a 1-yr and YTD basis.

Low cost= more returns for you :cool:
 
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sohguanh

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limster said:
Low cost= more returns for you :cool:
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The above statement usually come from ppl used in ETF etc. My own experience is it is not 100% true. Reason being UT is actively managed if a low cost fund returns cannot beat or only on par with a higher cost UT what does it tell you? Basically the low cost UT managers skill lousy.

Analogy. It is like in workplace why some employers willing to pay more monies to get expensive workers? Becuz they know cheap workers do not always translate into higher productivity. A good worker 1 can do 2-3 cheap workers load which means overall employer earn. Key is where to find that good expensive worker.
 
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VDragoon

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limster said:
The only unit trust I am recommending to my less financially literate relatives is LionGlobal All Seasons Growth with 0.5% expense ratio. Most of them have set up some sort of RSP for that fund. Long ago, I told them to just buy the 3 local banks, but prices seem rather high currently, better to diversify.

So far its doing pretty well on a 1-yr and YTD basis.

Low cost= more returns for you :cool:
Click to expand...

I check up on Lion Globak All Seasons Growth and as of 17 Aug 2024, some of its underlying portfolio includes:
- Lion Global Asia Bond Fund with expense ratio of 1.08%
- IShares MSCI US Quality Factor etf with expense ratio of 0.25%
- SPLG ETF with expense ratio of 0.02% but US withholding tax of 30%
All these then topped with the expense ratio of 0.5% u mentioned.

I am relatively new and I might be wrong but u might want to double check on it.
The fees isn’t as low as you might think.

And anyone can correct me if I am indeed wrong for my learning purpose
 
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sohguanh

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VDragoon said:
I check up on Lion Globak All Seasons Growth and as of 17 Aug 2024, some of its underlying portfolio includes:
- Lion Global Asia Bond Fund with expense ratio of 1.08%
- IShares MSCI US Quality Factor etf with expense ratio of 0.25%
- SPLG ETF with expense ratio of 0.02% but US withholding tax of 30%
All these then topped with the expense ratio of 0.5% u mentioned.

I am relatively new and I might be wrong but u might want to double check on it.
The fees isn’t as low as you might think.

And anyone can correct me if I am indeed wrong for my learning purpose
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You are correct. Just some info mutual fund used to be pure equities aka stocks or just bonds. Then we have mixture of stocks and bonds in the fund. Then later ETF surfaces and fund managers now also package it in.

Mutual fund in some places has this thing called Assets Class. Such mixture in LG All Seasons Growth they call it Multi-Assets besides other terms like Money Market, Fixed Income, Equities, Bond etc.

Lastly I do have a bit monies into this fund as test water that time. Verdict is if you are expecting pure equities kind of returns it is not but it slowly move up.
 
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limster

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VDragoon said:
I check up on Lion Globak All Seasons Growth and as of 17 Aug 2024, some of its underlying portfolio includes:
- Lion Global Asia Bond Fund with expense ratio of 1.08%
- IShares MSCI US Quality Factor etf with expense ratio of 0.25%
- SPLG ETF with expense ratio of 0.02% but US withholding tax of 30%
All these then topped with the expense ratio of 0.5% u mentioned.

I am relatively new and I might be wrong but u might want to double check on it.
The fees isn’t as low as you might think.

And anyone can correct me if I am indeed wrong for my learning purpose
Click to expand...

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This is a natural question and one that has been asked before because the cost structure is unusual. The official LG website explains the situation.

As for your query " SPLG ETF with expense ratio of 0.02% but US withholding tax of 30%", I looked at the factsheet, the fund doesn't hold such an ETF, they hold 18.57 % UCITS S&P500 ETF which is one of the preferred ETFs for SG investors.

They do hold small quantities of other US-listed ETFs but they are probably doing it to generate alpha (i.e. reduce weighting to tech while maintaining US exposure, something I agree with though I implement with VHYD), so the capital gains (or reduction of capital losses if tech crashes) from their positioning are far more important than WHT.
 
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sohguanh

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ahnyaahnya said:
How much commission does the bank charge?
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During my times banks like to charge 5% as sales charge. Now 2024 last I check much better 0.82% 0.88% etc. Last time banks even impose redemption charges now 2024 not sure if same.

Banks face competition over the years. When FSM was started in 2000? It cause quite a stir in the unit trust market as it offer DIY also Internet browser to transact become common. That era mobile or iPhone not born yet.
 
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ahnyaahnya

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sohguanh said:
During my times banks like to charge 5% as sales charge. Now 2024 last I check much better 0.82% 0.88% etc. Last time banks even impose redemption charges now 2024 not sure if same.

Banks face competition over the years. When FSM was started in 2000? It cause quite a stir in the unit trust market as it offer DIY also Internet browser to transact become common. That era mobile or iPhone not born yet.
Click to expand...
Now even broker charges 0 commission.
 
CaptainWu

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twinbaby said:
I am planning to invest all of these in CPF OA, using PEOMS and DBS CPF, is this a good idea?

https://www.poems.com.sg/fund-finder/565001/Amundi Index MSCI World unit trust
https://www.poems.com.sg/fund-finder/565002/Amundi Index Global Aggregate Bond unit trust
https://www.poems.com.sg/fund-finder/amundi-prime-usa-as-c-sgd-565004/Amundi Prime USA AS (C) SGD
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Don't think Prime USA is available yet. For some reason you may be able to search but not transact, may be going to setup in the future?
 
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