As usual, my portfolio review for year 2010 is divided into three sections: Expenses, Emotion and Return.
Expenses
| 2010 | 2009 | |
|---|---|---|
| Number of Buy | 4 | 9 |
| Number of Sell | 0 | 1 |
| Turnover Ratio | 0.0% | 0.72% |
| Average Holding Period (year) | Infinity | 139 |
| Total Expense Ratio | 0.36% | 0.58% |
Quite a passive year, partly because of delay on planned portfolio activity in October 2010.
Emotion
Nothing much to say here, except the frustration of finding London Stock Exchange(LSE)-listed global bond ETFs that are available in Saxo (the stock broker I use), and the delay caused by the waiting. Anyway, the two LSE-listed global bond ETFs are available now (since May 2011) for trading in Saxo.
Return
| 2010 | 2009 | |||||
|---|---|---|---|---|---|---|
| Portfolio IRR | Portfolio TWR | Benchmark | Portfolio IRR | Portfolio TWR | Benchmark | |
| SGD |
5.21% | 5.20% | 4.47% | 25.60% | 25.48% | 20.39% |
| USD |
14.50% | 13.70% | 28.92% | 23.58% | ||
Note:
- IRR = Internal Rate of Return, also known as Dollar-Weighted Returns.
- TWR = Time-Weighted Returns
- Both TWR and IRR returns include dividend and un-invested cash holding.
Comments on the return
- The IRR and TWR are almost the same. This is because new cash contribution is evenly spread out over the year, as I save monthly to contribute to the portfolio.
- Portfolio return is quite close to the benchmark, which tells me that my portfolio behaves as expected as a 75/25 portfolio.
- The gap between SGD return and USD return is due to depreciating US dollars.
Portfolio Allocation
| Current | Target | |
|---|---|---|
| Equity | 71% | 75% |
| US | 25% | 25% |
| EU | 13% | 20% |
| JP | 5% | 5% |
| APEJ | 7% | 10% |
| SG | 3% | 5% |
| REIT | 17% | 10% |
| Fixed Income | 29% | 25% |
| Global | 5% | 10% |
| Asia | 4% | 5% |
| SG | 16% | 10% |
| Cash | 3% | 0% |
There is a slight over allocation in REIT due to a number of right issues by several REIT managers. The Cash holding is caused by the delay on planned portfolio activity mentioned above.
Looking into 2011
There are more and more ETFs listed in SGX and I have not looked into them; could be interesting. For global bond ETF, I will start to use the LSE-listed iShares Citigroup Global Government Bond (IGLO) and iShares Global Inflation-Linked Bond (IGIL) that are now available for trading in Saxo stock broker.
As always, stay the course and tune out financial news.
