Model Portfolios Update Jan 7th, 2011

Finally, after a few technical hitches we are able to show up our model portfolios again. Of course, the chart is now also back on its extra page in the blog and will be updated regularly. It's a promise.

As you can see, our "downtime" in October and November, sticking with a risk averse outlook and - bonds -, resulted in the MSCI World catching up with our conservative portfolio.  Instead of MSCI World, we ought to say US stocks, which were about the only regional index that had a clear run up. The more risk oriented portfolios however, still are well above all benchmark and comparable funds.

You probably noted a sizeable correction mid-November.  That is when we have taken a first step back into equity, - and a large portion of high yield bonds.  We had to have patience to see a positive result, but we are slowly getting there. 

All portfolios showed positive returns for 2011, and are up since beginning of the year, too.  If you are conscientious in your observation of capital markets, you will accept that this result is - not as much as you and I would have wanted, but well "above average" in the overall return.  There aren't many mutual funds with a managed strategy, which produced positive returns in SGD. Average returns were about 3% for balanced funds and about 1% for absolute return funds.

Yes, in € or USD it's easy to show off.  But try in SGD, which is up over 10% against USD in 2010 or 22% since March 2009, and more like 25% against the € (Jan2010 till now). It's a tough game making money investing outside of Singapore, where currencies are getting weaker by the day. If you are risk averse you ought to think twice:  Check the risk versus reward.