4Q2019 sealed in positive performance for the year
4Q19 saw a market upturn driven by the positive impact of global monetary stimulus and diminishing geopolitical risks. Global equities rose as Asia performance stood out while bond market prices were largely unchanged except for emerging market (EM) bonds that followed equity rally.
|4Q 2019||Slow n Steady||Comfy Cruisin||Fast n Furious|
|Global Portfolio Plus||SGD||1.8%||3.9%||5.5%|
The above table is based on the Indicative Model Portfolio gross of fees returns.
Individual performance may vary.
Entering 2020, we continue to stay globally diversified: our portfolio consists of high conviction mutual funds, whose holdings including both thematic, long term growth stocks and income yielding stable stocks and bonds. In equities, we favour the US because of its healthy economic backdrop, strong corporate profitability, and supportive monetary policies. We also like Asia equities for its higher growth and cheaper valuations relative to its developed markets (DM) peers. In fixed income, we stay moderately underweight duration as we expect a gradual steepening of the US treasury yield curve since the Fed has adopted a neutral stance. We favour taking credit risk as growth stabilizes and are invested mainly in DM and EM credits for yield pick-up.
07 Nov 2019
Portfolio resilience helps to weather 3Q market volatility.
digiPortfolio 3Q 2019 performance
Equity markets turned volatile in 3Q19 with concerns over escalating China-US trade tensions and slowing global manufacturing activities. This weighed on equities with the MSCI World Index dropping 6% in August. However, the strong global fixed-income performance offset the negative equities’ performance as investors sought safety in government bonds - even as yields were already low. As a result of a well-diversified portfolio, our portfolios eked out positive gains and limit losses amidst this recent global volatility spike.
|3Q 2019||Slow n Steady||Comfy Cruisin||Fast n Furious|
|Global Portfolio Plus||SGD||0.8%||0.6%||0.4%|
The above table is based on the Indicative Model Portfolio Gross of fees returns.
Individual performance may vary.
Stay invested and diversify risks.
We expect volatility to persist and to mitigate risks, we have maintained portfolios that are well diversified globally, through different themes and different investment styles. Our portfolios are constructed with preferred funds from our investment universe.
We prefer the US and China for their better growth potential in equities. In bonds, we like emerging market (EM) bonds for their better relative value compared to their developed market peers. We will continue to monitor the macro events and make changes to the portfolio where needed.
12 Aug 2019
digiPortfolio 1H2019 performance
In the second quarter of 2019, US-China trade tensions dominated market sentiment. Our CIO argued that unless a comprehensive trade deal could be reached, the market would not see new highs. Albeit the slow performance, the portfolios continue to generate steady returns through 2Q19.
Factoring in the portfolios’ performances in the first quarter, both Global Portfolio and Global Portfolio Plus have delivered good performance across all risk levels till date.
1H19 Portfolio Returns
|Portfolio Types||Slow n Steady||Comfy Cruisin||Fast n Furious|
|Global Portfolio Plus||SGD||8.0%||11.7%||14.2%|
The above table is based on the Indicative Model Portfolio Gross of returns.
Individual performance may vary
Rebalancing against portfolio drift
As our economic outlook remains similar to last quarter, so portfolios that were rebalanced to guard against portfolio drift (which is the deviation of each asset class from its target allocation weight).
For example, if the target allocation of equities in a portfolio is 50%, growth in the equity markets would see the proportion of equities in the portfolio grow beyond 50%. Likewise, a fall in the equity markets would see the proportion drop lower than 50%. A high drift may expose investors to more/less risk than intended, and rebalancing is required to correct this drift.
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