Comments:
The overall fund return rate for the month of August 2020 stands at a healthy +3.3%. This has also improved my overall IRR (annualised) rate to a respectable 6.2%. However after 5 months of solid gains, I have a strong feeling that a pull back is imminent.
The TA Global Tech Fund leads the way this month with a strong 9.5% return suggesting that big tech has been the main catalyst for this month's charge. This run is also strongly correlated to United Global (6% return) which also consists of mainly tech stocks.
Despite 'only' returning 4.8% this month, the United ASEAN actually did incredibly well compared to its ASEAN benchmarks during this COVID recovery. The TWR% of this fund (44.7%) thus very closely matches that of the darling TA Global Tech (49.3%), which says a lot.
Principal Greater China has returned a modest 2.8% this month. This fund actually did very well in the first week of the month but started to stumble due to the China-US tensions.
My worst performing fund, Manulife REIT, only gained 0.2% this month just due to the massive beating taken by real estate due to COVID19. That said, I have channeled most of my additional savings this month into this fund based on the "buy low, sell high" mantra.
My company stock suffered a minor pull back this month (-0.2%) which is likely caused by the overheated rally in the month of July alone (13%).
The TA Global Tech Fund leads the way this month with a strong 9.5% return suggesting that big tech has been the main catalyst for this month's charge. This run is also strongly correlated to United Global (6% return) which also consists of mainly tech stocks.
Despite 'only' returning 4.8% this month, the United ASEAN actually did incredibly well compared to its ASEAN benchmarks during this COVID recovery. The TWR% of this fund (44.7%) thus very closely matches that of the darling TA Global Tech (49.3%), which says a lot.
Principal Greater China has returned a modest 2.8% this month. This fund actually did very well in the first week of the month but started to stumble due to the China-US tensions.
My worst performing fund, Manulife REIT, only gained 0.2% this month just due to the massive beating taken by real estate due to COVID19. That said, I have channeled most of my additional savings this month into this fund based on the "buy low, sell high" mantra.
My company stock suffered a minor pull back this month (-0.2%) which is likely caused by the overheated rally in the month of July alone (13%).
Forward Strategy:
Some well performing funds like the United Global and StashAway were starting to fly off the handle due to its huge returns and constant DCA. In order to prevent it from happening further, I have decided to cease Dollar Cost Averaging (DCA) and instead deploy a Value Cost Averaging (VCA) method.
Basically, I have come up with a system whereby my cash savings for that month will be strategically distributed to each of my funds so they always maintain a fixed weightage. The weightage I have gone with is as follows; United Global Equity (22.5%), StashAway (22.5%), TA Global Tech (20.0%), United ASEAN (12.5%), Principal Greater China (12.5%) and Manulife REITS (10%)
No comments:
Post a Comment