Tuesday, May 09, 2006

I moved to Global Equity

I have $120,000 of my CPF savings invested in the Combined Fund (Growth) and Singapore Equity Fund. I have just decided to switch these investments into the Global Equity fund.

Here are my reasons.

1. The forecast PE ratio of USA and UK are expected to drop by about 15% to below 16 times. This suggest that earnings may increase by 15% during the next 12 months.

2. The forecast PE ratio of Singapore is likely to increase by 15% to above 16 times. This suggest that the earnings of Singapore companies may drop by 15%.

3. The Singapore market has done very well up to now. It is moving up further, after the general election. I decided that it is time to make a switch.

I continue to have other investments in the Combined Fund (Growth) and in other funds that are invested in Singapore equities.
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10 comments:

Aragorn said...

Good blog.

I enjoy the comments on investment.

I invested my CPF-OA in the following markets:

1. ASIA ex JAPAN - about 40%
2. USA - about 30%
3. EUROPE - about 20%
4. JAPAN - about 10%

I treat my SA as the "bond" portion.

Investment time horizon: 30 years.
Investment Goal: Retirement Funds.

May 09, 2006 9:18 AM
Tony said...

I know its not a good advice to time the market, but with many stock market reaching peaks, and the cyclic behaiour of the stock market, should we exit the market and wait for it to crash? Seems like every 10yrs it will crash. 1987, 1997...2007?

When there is panic selling then its time to go into the market to snap up quality blue chip.

I just have a feeling that all the 'big boys' are exiting the market. letting the aunties and uncles accumulating over priced stocks.

May 09, 2006 1:04 PM
VivaRevolution said...

Tan K L, I am surprised that you are suggesting switching of funds.

I was at one of the Malls last few weeks and your agents at the booth spoke to me and so I sought some advice on my Income Bond funds that have not performed. I wanted to switch but your agent told me that switching is a bad practice and that you yourself have encouraged them to tell consumers not to switch funds.

Of course I am an educated person and so I know that such advice is nonsense! So I demanded for information as to how they came to such a conclusion that fund swtiching is not encouraged by NTUC Income.

Now you are advocating fund switching? I am very surprised.

May 16, 2006 12:37 AM
Tan Kin Lian said...

Here is my reply to vivarevolution.

I have given my reasons for my decision to switch my investments. If the agree with the reasons, you can follow me.

You should take a long term view, when you make this switch. We discourage policyholders from making frequent switches to time the market.

If you are invested in a well diversified fund, such as our combined fund, it is usually not necessary to switch your investments. Unless, you have a specially good reason.

If you wish to consider making a switch, you should talk to your insurance adviser, or our consultant in our business center.

May 16, 2006 1:14 AM
VivaRevolution said...
This comment has been removed by a blog administrator.
May 17, 2006 8:44 PM
VivaRevolution said...
This comment has been removed by a blog administrator.
May 17, 2006 10:48 PM
VivaRevolution said...

Tan K L, I suppose you do not wish to hear of this subject again. In any case it will be last time I am going to bring it up : Your fund webpage is NOT working again. I don't mean to be nasty but this is ridiculous.

Do not worry, this is the last time I am going to inform you about this - after all it should your managers in-charge who are on your payroll who should be doing this!

Actually, I noticed this problem months ago - but nobody at your company seems to bother! As your policyholder I am very disappointed.

May 19, 2006 10:48 PM
VivaRevolution said...

On the matter of yr 2 bond funds, I think an explination for underperformance is expected from your company. I have attended your talk before. You said if fund manager consistently do not perform you are going to remove them. Why have you NOT kept your word?

Now it has been 3 years of underperformance - you are still going to keep them? Or are you going to do the right thing for us policyholders who have entrusted our money to you? Where is the accountability then?

Customers expect swift and robust action to correct this problem!

May 19, 2006 11:04 PM
Justin Lim said...

Hi vivarevolution,

I totally agree with you on the fund switch matter.

I think it is definitely not the smartest of all moves to just invest in 1 fund for 20 years (if that's the time horizone) and leave it to be subjected to market fluctuations.

Different Fund move in different direction. When Equity Funds are doing well, it would probably be safer to be in those funds compared to a bond fund.

While it is my believe to be invested for the long term, reviewing and switching funds once in a while would give your returns that little push.

As for the agents at the roadshow, forget about him/her. Just imagine, like what Mr Tan says, NTUC Incomes gives moderate commission to their agents. As such, each time you do a switch, they have to work. Since swtching is free, who is going to pay them to do all the paperwork.. hee hee. No commission, who wants to work? Worse still, investing is for long term. What kind of good service can you expect? Unless you con't to buy policies from them, lor =D

May 23, 2006 10:40 PM
snowbear said...

Mr Tan
Can I have your advise for a regular saving plan of $200 monthly over a 20 years investment period,into Combined Fund or Global Equity ? Since you did mention that these 2 funds are good. But which one is better if you would like to invest this much over a 20 years period ? Thanks!

May 27, 2006 9:51 AM

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