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 | SGD | 0.8% | 0.6% | 0.3% |
| USD | 0.8% | 0.1% | -0.6% | |
| Global Portfolio Plus | SGD | 0.8% | 0.6% | 0.4% |
| USD | 0.6% | -0.1% | -0.8% | |
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.
Start a digiPortfolio, or top up an existing one
If you would like to start investing in a digiPortfolio, simply select an investment portfolio, choose your risk level and pick an investment amount, all in just 5 clicks and under 60 seconds.
We have now also introduced a top up feature to allow existing investors to conveniently increase their investment in an existing portfolio.
Only available on DBS iWealth®. Learn more about digiPortfolio.
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 | SGD | 7.4% | 10.4% | 13.5% |
| USD | 7.9% | 11.0% | 13.9% | |
| Global Portfolio Plus | SGD | 8.0% | 11.7% | 14.2% |
| USD | 8.4% | 12.2% | 14.9% | |
The above table is based on the Indicative Model Portfolio Gross of fees 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.
10 May 2019
digiPortfolio 1Q 2019 performance
In March 2019, we introduced digiPortfolio. Our latest innovation in robo-investing, combining human expertise and robo-technology. Since the launch, our Global Portfolio & Global Portfolio Plus have delivered encouraging performance across all risk levels.
| 1Q 2019 | Slow n Steady | Comfy Cruisin | Fast n Furious | |
|---|---|---|---|---|
| Global Portfolio | SGD | 5.2% | 7.9% | 10.2% |
| USD | 5.5% | 8.3% | 10.6% | |
| Global Portfolio Plus | SGD | 5.5% | 8.5% | 10.8% |
| USD | 5.8% | 9.0% | 11.4% | |
The above table is based on the Indicative Model Portfolio Gross of fees returns.
Individual performance may vary.
Rebalanced for resilience
At the start of 2Q, the DBS investment team evaluated the market and reviewed the holdings of all 12 digiPortfolios. Where necessary, the holdings of selected portfolios were modified to align with the views of the Chief Investment Office. ‘This ensures the portfolios remain resilient to market volatility and optimal in providing returns.’
To view the Investment Team’s commentary on the portfolios and rationale for rebalancing, log into iWealth®.
Start a digiPortfolio, or top up an existing one
If you would like to start investing in a digiPortfolio, simply select an investment portfolio, choose your risk level and pick an investment amount, all in just 5 clicks and under 60 seconds.
We have now also introduced a top up feature to allow existing investors to conveniently increase their investment in an existing portfolio.
Only available on DBS iWealth®. Learn more about digiPortfolio.
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