Tuesday, February 10, 2015

Q&A with Fellow Investor in FSM Forum

Hi Yaruzi,

I m Prince MK from Kuala Lumpur invested via FMS Sg. I m also invested in Allianz US High Yield AM Dis H2-SGD(SGD) too and the dividend rate is 6 cents. What do you think of others Fixed Income funds? Would you consider abt United Asian High Yield Bond Fund? I see the dividend rate is quite attractive too. How long you keep the United SGD Fund ?? Mind to share ?

Besides that, I also see Allianz Income and Growth is giving a very attractive dividend rate too. Any comments?


Hi Prince MK,

Nice to know you through this forum.

To answer your questions:

1. In regards to Asian High Yield Bond fund, I prefer Fidelity over UOBAM because of bigger fund size, lower cost ratio, and longer track record. I just bought an initial position in Fidelity Asian High Yield in January after taking profit on some of my equity funds and gold mining funds. Check my blog for my portfolio allocation as of 30 Jan 2015.

2. In regards to United SGD Fund, I have invested in it ever since I started investing in FSM two and a half year ago. I have added to this fund gradually with my monthly contribution. This will be the fund that hold most of my allocation, when I don't see good buying opportunity. I will always hold some allocation in this fund and will use it to buy when a crisis strike or major correction happens.
Fullerton Short Term Int Rt C S$ is also a good short duration bond fund, but unfortunately it is not receiving fresh fund at the moment as it has reached the fund max capacity. Also geographically it invested globally as opposed to just Singapore focus (better diversification).

3. Allianz Income and Growth does offer a very attractive income yield, however it's not a pure fixed income fund. It has 1/3rd of it's asset invested in equity, and geographically it's focusing on US only. With US market priced higher relative Asia and Europe, I'm concerned upside may be limited and income yield is not sustainable. Short track record is also a major concern for me to consider this as a core income fund in my portfolio.

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