It is April, time to do my semi-annual fund contribution ritual. After a few times, it has been quite a routine. Open portfolio spreadsheet, update price, add fresh fund and restore the equity/fixed income ratio to 75/25, allocate fund within equity and fixed income to asset classes that fall below target allocation, then lo and behold, it says I need to top up the following asset classes (fund name in brackets):
- Europe (iShares DJ STOXX 50 ETF)
- Japan (Lyxor Japan (TOPIX) ETF)
- REIT (REIT stocks in SGX)
- SG fixed income (FSM Cash Fund)
SG fixed income is supposed to be SGS bond ladder, but 5-year SGS yield is comparable to FSM cash fund and I am busy to go to bank to submit the application form, so I choose to leave it with FSM cash fund till the next auction.
All seem easy, but there is a problem. My fresh fund is held in many different accounts: POEMS, DBSVonline, FSM cash fund, and I need to consolidate them before buying the funds. Although transferring money to one account is as easy as a few mouse clicks, and digits travel over the wire in lightning speed, the actual time taken is quite long. It took about 2-3 business days for the fund to reach my savings account, and another 2-3 business days to fund the broker. To help me managing and tracking multiple fund transfers, I draw it on a piece of paper.
Once the fresh fund is in place, purchasing fund is quite fast. For REIT, I bought at buyer’s price as the trading volume was high. For Lyxor Japan ETF, the trading volume was low, so I bought at seller’s price as the spread was very small. For iShares DJ STOXX 50 ETF, as it has just announced that April 30 as ex-date and pending my plan to consolidate all of my ETF shares, I am holding off this purchase.
From rebalancing on spreadsheet to fund transfer to fund purchase, it took over two weeks for the dust to settle. Two weeks is quite inefficient. It would be nice to be able to move fund using drag-n-drop on my desktop. I believe the technology today is able to do it, but I have not seen such product in the market. I still have some transactions to record in the spreadsheet but at least the portfolio storm is over. Phew!