Current Asset Allocation – 29 March 2015

Tomorrow is the end of first quarter of the year. Three months into the year and we know that countries still fear deflation including China, Japan, Euro-zone countries, UK. Oil prices at persistent low level caught the world by surprise. US dollar remains very strong against most currencies. These countries are happy to see it that way in order to boost exports. The Federal Reserve’s (FED) intention to raise interest rate has affected global investors. The days of cheap money may soon come to an end for US albeit in small steps. This has huge impact on our investments, be it financial or real estates.

I started 2015 by saying that I would be careful and intended to place money in fixed deposits as some investments matured.

My asset allocation now was compared with 31 October 2014, some 5 months ago.

Asset Class 29.3.2015 (%) 31.10.2014 (%)
Cash (including fixed deposits) 16.7 14.5
Structured deposits with banks 5.7 8.2
Preference shares of local banks 21.1 22.7
Retail bonds traded on Singapore Exchange 4.9 3.3
Unit trusts – equity and bonds funds 17.6 16.8
Currency investments 12.2 12.2
Singapore equity 11.3 11.9
Insurance plans 10.4 10.4

On an overall basis, the market value of total portfolio was 0.55% below costs. But on an individual asset class basis, one asset class was 14.0% below (Australian dollar investment) while others were in positive territory. One such investment was 17.4% up (Chinese Yuan investment). The Singapore equity was down 3.6%. The spread into different asset classes helped to cushion the negative impact of some investments.

I do not invest in real estates or commodities or exotic instruments that I do not understand. Most of my investments are liquid and are in well-known entities and investment houses with proven track records. The only speculative investments are in two currencies, namely the Australian dollar (AUD) and the offshore Chinese Yuan (CNH). CNH did very well in terms of appreciation. This compensates the poor performance of AUD but not totally.

Copyright © 2015, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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