Endowus - May 2020

Endowus made a pretty big change recently and you can read about it in detail here - Endowus launches low-cost Cash and SRS portfolios with systematic & passive index funds from Vanguard, Dimensional, PIMCO. I will briefly capture the important points below.

This is not exactly a re-optimization of its portfolio but a complete change to a newer and better (more diversified) one at no additional or lower fee.

If this is your first time coming across the efficient frontier chart/graph, you can read more about it here. In theory/reality, we want the highest return for a specific level of risk. Standard deviation measures the risk/uncertainty, hence the lower the better and you can read in detail here. In this case, Endowus's portfolios are shifting up (higher returns) and shifting left (lower annualized standard deviation) which means for the better! This is what the fees are for, portfolio optimization.

Is it possible to shift higher and more left using other funds? Possible but so will the fees. Increasing the fees is a hard pill to swallow for any investors as returns are not guaranteed but the fees are. Hence, I believe this is probably the best portfolio they can come up with at the current moment and such a complete change of portfolio shouldn't happen again in the near future.

Anyway, to trigger the rebalance, you will have to review and accept it under your notification (click on the bell icon). I missed it a couple of times when I logged in using my laptop and only saw it when I was using my mobile.

Risk Profile
Goal type: General wealth accumulation
Risk tolerance: Maximise returns (loss tolerance -60%)

Monthly investment using SRS: $700

Account Summary

Capital: $5,950.00
Current: $5,797.36 (-10.13%)

There are quite a few differences as compared to StashAway. Firstly, all the cash has been invested while StashAway keeps 1% of the portfolio in cash. Secondly, the fees are not deducted on a monthly basis. The Access Fee charged by Endowus will be deducted at the end of each quarter as stated in their FAQ.

Asset Allocation

This was in the midst of the rebalance where Endowus had to first sell all the Dimensional World Equity Fund, hence there was no asset/investment in my portfolio. Having said that, I believe that this might be a bug since the sell transaction only happened on 1st June.

Not much of an issue since the total number of units is correct. Anyway, you can see the rest of the transactions in advance.

Transactions

Bought 35.5690 shares of Dimensional World Equity Fund @ $19.68!

That's all! Overall, I think the statement is pretty straightforward and easy to read.

If you are interested in Endowus, do use our referral link for our readers! You will get S$10,000 managed free for 6 months ($20 equivalent) and we will get $20 too!

You might be interested in previous months update too:
- Endowus CPF/SRS Review
- Endowus - January 2020 - $3,692.02
- Endowus - February 2020 - $3,704.57
- Endowus - March 2020 - $4,153.50
- Endowus - April 2020 - $4,849.67
- Endowus - May 2020 - $5,797.36

Do like any of the following for the latest update/post!
1. FB Page - KPO and CZM
2. Twitter - KPO and CZM
3. Click here to subscribe using email :)
4. Instagram - KPO_and_CZM (Did you see those delicious food photos to the right --> Unfortunately, you can't see it on mobile.)

Syfe - May 2020

It has been a month since I blogged about Syfe REIT+ (100%) Review and its statement is finally out! Let's take a look!

Our Syfe REIT+ Portfolio
Composition: 100% REITs
Dividend: Reinvest
Monthly Investment: $1,000

Account Statement (Lifetime)

Our current tier is Blue (<$20,000). This is determined by the size of the portfolio which in turn determines the fees to be charged. The return for the month is $135.43 which includes a $40 referral bonus. Thanks to our readers for using our code!

Account Statement (May 2020)

The account summary for the month of May is going to be identical to the lifetime view as we just started the investment.

As of 9 June 2020, this is our portfolio performance:

Capital: $1,000.00
Current: $1,371.15 (14.34%)

Transaction Breakdown

There's too many so I will just share the first page. Anyway, if you want to extract the transaction information from Syfe, do take a look at this article - Syfe Transactions Parser.

After parsing them into a csv file, I pivoted the data to get the following view.

Management Fee

The management fee can be obtained by $792.83 x 0.65% / 366 * 31 ~ $0.42 (pro-rated for first month).

StocksCafe

Looking at the time-weighted return (14.28%) for this year, we can see that Syfe REIT+ 100% is outperforming the STI ETF (including fees). In addition, if we were to look at the projected dividends till the end of the year based on the existing investment, we can expect $34.54 of dividends or $2.88 per month. Since the dividends >> fees, this is a pretty sustainable portfolio assuming if there's no capital loss.

If you are interested in signing up, do use our referral code (KPOBONUS) for some cash incentive! Invests $500 and more and we will receive a $10 bonus each. Invests $10,000 and more and we will receive a $50 bonus each. Invests $20,000 and more, we will receive a $100 bonus each!

If you are interested in the smart portfolio tracker (StocksCafe) which I am using as shown above, sign up using my link for a longer trial period :) Refer to our Referrals page for more information.

You might be interested in previous months update too:
- Syfe - May 2020 - $1,135.43

Do like any of the following for the latest update/post!
1. FB Page - KPO and CZM
2. Twitter - KPO and CZM
3. Click here to subscribe using email :)
4. Instagram - KPO_and_CZM (Did you see those delicious food photos to the right --> Unfortunately, you can't see it on mobile.)

StashAway - May 2020

The market has recovered quite a bit and honestly, I am pretty impressed with the performance of our StashAway portfolio. Comparing it to a few months ago where all of them were losing money, they all have >15% time-weighted return now. Hence, we will be increasing our monthly contribution to StashAway.

Anyway, we have 3 portfolios on 2 accounts now due to our new strategy - New Strategy: StashAway + Supplementary Retirement Scheme (SRS):
KPO and CZM Cash - StashAway Risk Index 22%

KPO SRS - StashAway Risk Index 36%

CZM SRS - StashAway Risk Index 14%

1. PORTFOLIO SUMMARY (as of the last day of the month)

KPO

CZM

Based on the statement (31 May 2020), our total investment is ‭$37,298.09‬! KPO gains $921.36 and CZM gains $‭‭‭102.29 for the month.

As of 2 June 2020, these are our portfolio performance:

KPO and CZM Cash - StashAway Risk Index 22%: $‭26,957.82‬ (21.85% - Capital: $23,500)

KPO SRS - StashAway Risk Index 36%: $6,350.17‬ (15.63% - Capital: $5,950)

CZM SRS - StashAway Risk Index 14%: $4,026.42 (18.22% - Capital: $3,750)

From here, you can see the difference in volatility/losses based on both our SRS accounts which started around the same time but with vastly different risk.

2. PORTFOLIO DETAILS 
Note that these are reported in USD.

KPO and CZM Cash - StashAway Risk Index 22%

KPO SRS - StashAway Risk Index 36%

CZM SRS - StashAway Risk Index 14%

3. FEE CALCULATIONS

I referred StashAway to 2 friends. Hence, the fee stated is based on the monthly-average assets SGD $11,714.25 x 0.8% / 366 days * 31 days = $7.94. Otheriwse, it would have been SGD ($25,000.00 x 0.8% + $6,714.24 x 0.7%) / 366 days * 31 days = $20.92.

The fee stated is based on the monthly-average assets SGD $3,760.16 x 0.8% / 366 days * 31 days = $2.54. We used Grab points to redeem for StashAway credits last year (1,200 points for $5 credit) but I believe it is no longer available.

StocksCafe

Looking at the time-weighted return (1.64%) for this year, we can see that StashAway Risk Index 22% is outperforming the STI ETF (including fees). If we compare across the years, StashAway's portfolio is winning by a huge margin (23.34%). In addition, it has a lower max drawdown but with slightly higher volatility for this year.

Similarly, StashAway Risk Index 22% is also outperforming the SPY (SPDR S&P 500 ETF Trust) with much lower volatility and max drawdown for this year.

Which is the best? Only time will tell :)

Anyway, if you are interested in signing up for StashAway, do use our referral link - KPO and CZM Referral Link. You will get $10,000 free management fees for 6 months and we will get $16!

If you want to extract those transactions information from StashAway, do take a look at this article - StashAway Transactions Parser.

If you are interested in the smart portfolio tracker (StocksCafe) which I am using as shown above, sign up using my link for a longer trial period :) Refer to our Referrals page for more information.

You might be interested in previous months update too:
- StashAway - January 2020 - $31,742.42
- StashAway - February 2020 - $31,499.69‬
- StashAway - March 2020 - $30,934.95‬
- StashAway - April 2020 - ‭$34,830.73‬
- StashAway - May 2020 - $37,298.09‬

Do like any of the following for the latest update/post!
1. FB Page - KPO and CZM
2. Twitter - KPO and CZM
3. Click here to subscribe using email :)
4. Instagram - KPO_and_CZM (Did you see those delicious food photos to the right --> Unfortunately, you can't see it on mobile.)

Portfolio - May 2020

Time to share the good news! CZM is pregnant and the estimated date of delivery (EDD) is the first week of December! We were pretty surprised when we first found out and even took 2 pregnancy tests on different days just to double confirm. lol. All of a sudden, we had to start researching and read up on various pregnancy related things. Information overloaded! It is also very fascinating to witness and follow the growth of the baby. This has become our favorite site - What to Expect. Honestly, we don't even feel like we are ready to be parents but I guess we will manage it somehow. Lots of expenses coming up but our journey to financial freedom shall not stop! Hahahaha.

Baby Ong at week 10/11

Our portfolio reached a new high for the year with an increase of 2.53% to $470,665 - $2,291.10 of capital injection and $9,337.18 of capital gain. This includes $29,369 of leverage/debt (gearing ~6.7%).

If you prefer to look at numbers, this is the raw data used to generate the above bar graph. These numbers are as of the last day of the month.

"Cash Flow" is the amount of money being injected/withdrawn from the portfolio (buying stocks = +ve cash flow while selling stocks and collecting dividends = -ve cash flow)

Leverage decreases because the dividends from some of the stocks that were pledged were automatically transferred/paid back to the overdraft account.

SOLD
None

BOUGHT
- IWDA (12 units) @ US$57.60

Similar to last month's update, it still didn't feel right to buy anything but I have "force" myself to buy $1,000 SGD worth of IWDA. We have also decided to set some rules for the monthly IWDA investment:
- If the market price is above our average price, buy $1,000
- If the market price is below our average price, buy $2,000
- Must buy by last trading day of the month

As an introduction, IWDA (iShares Core MSCI World UCITS ETF) is an accumulating (does not distribute dividends) world ETF managed passively by iShares. This has multiple purposes:
1. Capital Growth - Determine if simply buying a diversified world ETF will outperform StashAway/Endowus
2. Leverage Collateral - It has 70% LTV which will increase eventually increase our ability to borrow more or prevent a margin call

Anyway, IWDA is highly recommended by ShinyThings from HWZ. You can refer to this summarized version here.

I have also decided to increase my SRS contribution to $1,400 per month with the intention of maxing it by year-end.

Monthly DCA - $3,150
$500 Cash - StashAway Risk Index 22%

$700 KPO's SRS - StashAway Risk Index 36%

$250 CZM's SRS - StashAway Risk Index 14%

$700 KPO's SRS - Endowus Loss Tolerance -60%
$1,000 Cash - Syfe REIT+ (100% REIT)

Dividends
The total dividends collected this month is $1,293.13. The breakdown is as follows:

Company	PayDate	Shares	Total
SSB May 2018	1-May-20	500	$4.87
Soilbuild Business Space REIT - Units	22-May-20	30,000	$264.89
DBS Group Holdings Ltd	26-May-20	900	$597.00
Suntec Real Estate Investment Trust - Units	28-May-20	5,000	$88.00
Frasers Commercial Trust - Units	28-May-20	9,000	$249.22
Mapletree Commercial Trust	29-May-20	2,500	$22.75
Parkway Life Real Estate Investment Trust - Units	29-May-20	2,000	$66.40

Total dividends collected for 2020: $6,205.88
Average dividends per month for 2020: $1,241.18

StashAway

KPO

CZM

Capital: $33,200‬.00
Current: $‭‭‭‭37,298.07

If you are interested in StashAway, do use our referral link. You get $10,000 free management fees for 6 months and we will get $16!

If you want to extract those transactions information from StashAway, do take a look at this article - StashAway Transactions Parser.

Endowus

Capital: $5,950
Current: $‭‭‭5,797

If you are interested in Endowus, do use our referral link for our readers! You will get S$10,000 managed free for 6 months ($20 equivalent) and we will get $20 too!

Syfe

Capital: $1,000.00
Current: $‭‭‭1,135.43

If you are interested in signing up, do use our referral code (KPOBONUS) for some cash incentive! Invests $500 and more and we will receive a $10 bonus each. Invests $10,000 and more and we will receive a $50 bonus each. Invests $20,000 and more, we will receive a $100 bonus each!

If you want to extract those transactions information from Syfe, do take a look at this article - Syfe Transactions Parser.

You might be interested in these blog posts too:
- Portfolio Performance in 2019
- 2019 Net Worth
- Portfolio - December 2019 - $463,297
- Portfolio - January 2020 - $455,071
- Portfolio - February 2020 - $442,216
- Portfolio - March 2020 - $415,071
- Portfolio - April 2020 - $459,037
- Portfolio - May 2020 - $470,665

Do like any of the following for the latest update/post!
1. FB Page - KPO and CZM
2. Twitter - KPO and CZM
3. Click here to subscribe using email :)
4. Instagram - KPO_and_CZM (Did you see those delicious food photos to the right --> Unfortunately, you can't see it on mobile.)