My 2014 Passive Income Playbook – Diversification ?

In my last article, I shared that I started to classify my investment into sectors to be more mindful of it’s distribution. During this exercise, I was pleasantly surprised that bulk of my shares belongs to STI30.

This discovery triggered me to start exploring how other STI ETF fund managers allocate their portfolio. The table below is a comparison between my portfolio vs SPDR, Nikko and iShares.

Comparison

Comparison II

The top 3 sectors that fund managers invest in are namely

1) Bank & Financial Services

2) Real Estate Investments

3) Mobile Telecommunications.

spdr-nikko-ishares-sector-2013

Interestingly, my top 3 sectors are also

1) Mobile Telecommunications

2) Real Estate Investments

3) Bank & Financial Services

ladyyoucanbefree-sector-2013

With this insight, I am excited to see how my portfolio would look like at the end of this year ! 🙂

Check out my other 2014 Passive Income Playbook series :

My 2014 Passive Income Playbook - SGD 65K achievable ?.

References :

SPDR Straits Times Index ETF.

Nikko AM Singapore STI ETF.

iShares MSCI Singapore ETF.

 

 

  1. Hope you can beat these fund managers and give them a run for their money!
    I never believe in fund managers and believe that everyone, no matter how busy you are, can have a successful portfolio. Why let other play with your money?

    Regards,
    Gerald
    SG Wealth Builder (www.sgwealthbuilder.com)

    • Lady, You Can Be Free

      Hi Gerald,
      I don’t intend to beat these fund managers ;-). Opps that wasn’t the intention of this article.
      I thought it’s good reference to understand how others diversify their portfolio and what they have selected in their portfolio.

  2. Any reason why it is more heavily tilted towards the telco namely Starhub ? Perhaps you can share more on why is the breakdown in this manner ?

    • Lady, You Can Be Free

      Hi Alex, no reason on why it’s heavily tilted towards the telco, in fact, I am in the process to learn how I can better diversify my portfolio. I accumulated Starhub then because they were increasing YOY in the good old days and they actually commit to the dividends that they will pay for the next year in their annual results. They have been consistent with their promise. So I liked them then. Now, I am more cautious about them due to the competition and disruption happening in the telecom scene.

  3. There are a lot of different type of funds. As for STI ETF, they are not meant for beating the market. They are meant for tracking the market, in this case STI.

    This give investors an option to buy a stock that has it risk spread among the index members without needing to manage one yourself. The cost are low, about 0.3% which is fully covered by your dividend.

    The are popular option for building a diversified portfolio.

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