October 2015 - Unit Trust Portfolio Update

With market rebounded in October, my unit trust portfolio was back in black. YTD return swung from -1.51% to +1.61%. I'd been increasing my equity allocation during the market turbulence that started as early as May. As I had reached my targeted allocation of 60% equity+high yield back in September, my plan was just to sit tight and adjusted the allocation after market reached or broke certain key level. I received a bumper dividend of $1,103.28 in October.

I also noticed that USD kept strengthening against other currencies, especially Asian and emerging market. In my view, this trend would persist in the next few years as US FED was expected to increase interest rate gradually. So I did some re-balance to reduce my exposure to SGD hedged high yield fix income, but increase USD exposure.

Also Fullerton Short Term Int Rt C S$(SGD) had re-opened for new subscription, so I switched all my LionGlobal Short Duration Bond Fund (SGD). I bought LionGlobal Short Duration Bond Fund (SGD) before because Fullerton Short Term Int Rt C S$(SGD) was closed for new subscription, and I bought Fullerton Short Term Int Rt C S$(SGD) to avoid concentration on United SGD Fund.

Below were the summary of my transactions in October 2015:

1. Bought

Aviva Inv Glb HY Bd Am USD(SGD) $2,706.80

2. Sold

Eastspring Investment MIP A (SGD) $3,087.12

Allianz US High Yield AM Dis H2-SGD(SGD) $3,703.24

Legg Mason WA Global HY Fd A SGD H (mdis) plus(SGD) $5,232.31

3. Switch

LionGlobal Short Duration Bond Fund(SGD) to Fullerton Short Term Int Rt C S$(SGD) $11,079.14

As I grew more comfortable with my low cost portfolio, I planned to liquidate some of my unit trust portfolio and shifted $60-70K to my low cost portfolio in the next few months. I had been pondering on this as I hated the blood sucker platform fee and annual management fee of unit trust. This would bring my unit trust portfolio to around $200K, as I grew my own low cost portfolio.

Link to Yaruzi's unit trust portfolio allocation as of Oct 2015