Three changes I have made to my portfolio asset allocation plan. The first two are already explained in my March post HERE, so not going to repeat the reason. The third is to remove an asset class that I am still not familiar with hence not comfortable to own. All three changes are made not due to current market condition, but to simplify portfolio management and tune it to my risk appetite.
Use Lyxor ETF Asia Pacific Ex Japan listed at SGX (symbol: AEJ) to replace VWO and to represent Emerging Market (EM) asset class.
Change the core equity allocation for Japan from 8% to 10%, and the core equity allocation for Emerging Market from 17% to 15%.
Remove asset class “Commodities Futures” and redirect its allocation (5%) to REIT, thereby increasing REIT allocation from 10% to 15% within the equity portfolio.
The Portfolio page has been updated and the old version is archived below.
- Saving for retirement
- 25-30 years
- I’m comfortable with 75% Equity and 25% Fixed Income.
- 75% Equity
10.20% Emerging markets
03.75% SGX stocks
- 25% Fixed Income
10.00% Global fixed income
05.00% Asia fixed income
10.00% Singapore fixed income
The fractional percentage numbers are due to the ratios I use below.
- Equity Asset Allocation Ratio
Core : Supplementary = 80 : 20 = 100%
Core = US : EU : JP: EM = 45 : 30 : 8 : 17 = 100%
Supplementary = REIT : SGX : Commodities = 10 : 5 : 5 = 20%
- Fixed Income Asset Allocation Ratio
Global : Asia : SG = 40 : 20 : 40 = 100%
Using Cash and CPF-SA. Prefer one fund per asset class for simplicity.
US – Vanguard Total Stock Market ETF (VTI)
EU – iShares DJ STOXX 50 ETF (EUN)
JP – DBS Japan Growth Fund
EM – Vanguard Emerging Market ETF (VWO)
REIT – REIT stocks in SGX
SGX – <Few old holdings from the past. Stop adding currently>
Asia fixed income – ABF Pan Asia Bond Index ETF
SG fixed income – CPF-SA money
- Not confirmed
Global fixed income