Singapore funds invested in India are performing well

when singapore markets are faltering and losing their luster amongst regional markets, it is important for singaporean investors to be more well-rounded.

sauce

Singapore-based hedge funds outperformed Asian rivals during the first seven months of the year thanks to a greater focus on India and global markets, according to data provider Eurekahedge Pte.
Funds headquartered in Singapore returned 2 percent through July, while Hong Kong-based funds declined an average 2.3 percent, Eurekahedge said in a report Tuesday. Funds based in Australia rose 1.9 percent, while Japan-based funds declined 2.5 percent, the report said.

A selection of Singapore Bond funds

https://secure.fundsupermart.com/main/fundinfo/generateTable.svdo?

select risk rating 1.

and shortlist to display.

comments on Surrendering My AIA Prime Life Policy

comments on http://www.turtleinvestor.net/surrendering-my-aia-prime-life-policy/#comment-166284

the NTUC policy has no cash value. 

"For AIA, I’m paying $73.17 monthly for $50k coverage with some riders on it. In comparison, my NTUC Income policy has $200k TPD/CI coverage at $68.90" 

inaccurate calculation. at $73.17 monthly for 20 years, if you assumed the insurance costs was free, the yoy annual rate is about -0.67% 

"Yah ! for the past 20 teays,, you are just getting half of the return if you just invest in STI ETF ,, IRR just around 3.5 % ,,, with your own control ,, money shall double than that in enxt 20 years !!" 

http://shiohmekiah.blogspot.sg/2016/08/comments-on-assi-whole-life-insurance.htmlhttp://singaporeanstocksinvestor.blogspot.sg/2014/09/whole-life-insurance-universal-life.htmlkenneth chua's comment is particularly insightful.
kevin's policy IS from 1997. 

"We all know that the benefit illustration 20+yrs ago is flawed and XIRR based on my surrender value is about 2.6%. However, bearing in mind that I was 13 then and my parents are not financially savvy – they just hope to give me some form of savings when I grow up, I can live with it. If XIRR can increase to 3% when I reach the 30th policy year, coupled with the insurance coverage, – I will be contented." 

always a good habit. I do so for mine too. 

"At the halfway mark in 2008 when I started working, I began collecting these annual letters as much as I could, and I can see that the projected surrender value was revised downwards." 

freaking ****!
the plague of one size fits all.
freaking employee fund manager mentality! just protect his own rice bowl! 

"72% in fixed income20% in equities3% in real estate3% in other assets2% in loans" 

looks about right but that 2012 to 2016 is just wrong.
see above comment. 

"Year 1997 : $21,385Year 2008 : $17,544Year 2010 : $15,718Year 2012 : $16,448Year 2016 : $16,449" 

good timing now though if it is 72% fixed income! 

"I was told have to wait to next year, because the value at that point in time can fluctuate according to the underlying fund returns. Oh well."

comments on assi - Whole life insurance, universal life insurance and investing

comments on http://singaporeanstocksinvestor.blogspot.sg/2014/09/whole-life-insurance-universal-life.html

that kenneth chua comment in 2014 is a very perceptive and insider comment.
I made extensive and intensive studies on my own whole life policies so I know that was a very good important comment. and most people won't understand it.

universal life insurance as it is marketed in Singapore, in this environment, is poison.
and ak, his question is not what you think it is.
"I don't think Universal Life Insurance is well known in Singapore and to me, it is just a more flexible form of Whole Life Insurance. "

kenneth chua's comments in 2014:

Kenneth Chua said...

Hi AK,

I chanced upon your blog this year and is impressed by your insights into the various financial topics. (Errh on oats as lunch occasionally yes, but not everyday..its quite filling :)

What works in the past for traditional whole life and endowment policies are not achievable now in the low interest rate environment. Your policy and mine are of different series of the same product (Prime Life). Thus, surrender value differs by about 15K. Life coverage is high with corresponding low premiums in the past. It was a struggle especially in early years paying the premiums for multiple policies. Hence, at age 65, it will be nice to surrender one or two policies at highest surrender value. However, it will be good too to keep these policies for your descendants as a gift.(Properties are a more preferable choice obviously..hehe..).

Current whole life policies offered don't even meet the inflation rate. The worst advice received is to purchase ILPs in order to increase the returns with wrong objective of insurance coverage vs investment returns. Thus, I don't encourage anyone to purchase whole life policies nowsaday.

20 Aug '2016

AK71 said...

From my FB account:

Reader:

Hi AK,

A friend recently suggested getting Universal Life Insurance policy, taking a loan to pay part of the premium & service the interest only of the loan. The benefits highlighted is akin to getting high value Term Insurance coverage but with added benefit of cash value growth (i.e. form of wealth accumulation). Would you have a conversation with yourself on the value/risk of Universal Life policy and the circumstance that it might be suited for?

Thank you in advance 🙂


AK:
I don't think Universal Life Insurance is well known in Singapore and to me, it is just a more flexible form of Whole Life Insurance.

"You have the liberty to reduce or increase your death benefit and also to pay your premiums at any time and in any amount (subject to certain limits) after your first premium payment has been made." INVESTOPEDIA

It is still more costly than term life insurance as it includes elements of savings and investment. So, if you believe in not mixing up insurance and investment, this is not going to fly. 😉

USO not the way to trade oil unless short term

stolen somewhere.

Spot Crude Oil: +26.2%

Crude ETF: -0.1%

see more: roll yield and more roll yield.

"The US Oil Fund (Ticker: USO) holds long positions in West Texas Intermediate crude oil futures contracts, and rolls these contracts forward each month. Like most futures traders, USO buys futures with leverage, putting up a small portion of the money to buy the contracts. The rest of the money is invested in Treasuries, which generates interest income for the fund.
Three factors play a role in determining the performance of USO: 1) changes in the spot price of crude oil, 2) interest income on un-invested cash, and 3) the 'roll yield'. The first two factors are easily understood, but the third factor, 'roll yield' should be examined further in order to determine the extent, if any, to which traders of USO will be surprised by its performance in relation to spot crude oil.
First some background: Oil futures are available for each month of the year, so you can buy a futures contract right now which gives you the right to buy oil in February 2009, March 2009, April 2009, and so on. Currently, the price of oil in February 2009 is less than the price of oil in April 2009, a condition which is referred to as 'contango'. (If the opposite were true, the market for crude oil would be in backwardation.) Most commodity funds, including the US Oil Fund (USO) buy what is called the 'near month' contract and, because they do not want to take physical delivery of the commodity, they sell the current month's contract before it expires and buy into next month's contract. This process is called 'rolling forward', and it can result in the ETF paying up if the forward month contract is higher than the current month (contango), or cashing out if the opposition condition exists (backwardation).
good read: http://www.marketfolly.com/2009/01/how-contango-affects-crude-oil-etfs-and.html#ixzz4HethZYLI