Friday, July 8, 2016

June 2016 - Unit Trust Portfolio Update

Despite the volatility seen in June due to BREXIT, my unit trust portfolio seemed to ride the market without much drama. Headline news speculated that the smart money moved to gold and gold miners to hedge and protect their portfolio from the uncertainties.

In my opinion, gold and gold miners had been sold aggressively in the past few years. Many gold miners were trading at all time low until the earlier part of 2016. With the speculative excess removed, eventually price will move according to the long term balance of demand and supply. My United Gold and General Fund was up 41.41% by end June. I have no intention to take immediate profit, as I believe it will be a while before excess bubble starts to build up in gold again.

Allocation ratio as of end June was 40% equity, 10% high yield, 50% bonds. I received cash dividend of $190.31 in June. Since April, I had stopped re-investing dividend from unit trust back into this portfolio. Instead I accumulated the dividend to be re-invested into my low cost portfolio. For the 1st half of 2016, my unit trust portfolio was up 2.65%. XIRR since inception stood at 1.75%.

Link to Yaruzi's unit trust portfolio allocation as of June 2016


  1. Yaruzi,

    Cool right?

    It's good you have a real live case to compare active fund management versus passive low cost ETF investing.

    I'm especially interested in a severe bear market like 1997 or 2008, which would do better ;)

    1. Hi SMOL,

      I'm not sure I can call my "low cost" portfolio passive :-). It's rather mix at the moment. If 1997 or 2008 is to happen all over again, my gut feel is the low cost portfolio will -likely- outperform the unit trust due to it's lower cost nature. But the more important factor will be the allocation. I am making a big assumption, and I hope I'm right, that bond will not highly co-related to equity when the time of severe crisis comes.