The Right Portfolios:

In full transparency, we present projections in our robo platform net of all fees – even our advisory fee. Within equities, we allocate between global developed markets and emerging markets according to the proportions of the MSCI All Country World Index.

Advisory fees used in projection shown are based on standard rate of 0.6% p.a. You may be enjoying a lower advisory fee which means projected values would be higher than shown. Projected returns are also net of fund-level fees

Projected returns are based on the average historical 20-year rolling period returns of Dimensional Global Core Equity Index, Dimensional Emerging Markets Adjusted Large Cap Index, Bloomberg Barclays Global Aggregate (hedged to SGD) & FTSE World Government Bond Index 1- 5 Years (hedged to SGD) from 1994 to 2019. Please note that indices used are not representative of actual fund performance. Also, past performance is not a guarantee of future results.

Ongoing Annual Fees exclude Fund Total Expense Ratio (TER) of 0.28% to 0.32% for MoneyOwl portfolios. By comparison, this is lower than industry average TER of 1.35% to 1.89%.

We have selected four funds from Dimensional Fund Advisors to make up our portfolio. These funds fulfil the criteria of being broadly diversified, market-based and low cost. Dimensional manages these funds to capture long-term market return and does not time the market or select securities based on forecasts, but tilts towards observed dimensions of return.

In terms of currency exposure, equities are not hedged to benefit from diversification. For the bonds portion, however, it is important that bonds are hedged back to home currency, i.e., SGD; we should not take currency risk in bonds as currency fluctuations are larger than bond price fluctuations.

Dimensional Global Core Equity Fund (SGD, Accumulation)

Number of stocks: 7730
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Dimensional Emerging Market Large Caps Core Equity Fund (SGD, Accumulation)

Number of stocks: 1026
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Dimensional Global Short Fixed Income Fund (SGD, Accumulation, Hedged)

Number of stocks: 259
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(New!) Dimensional Global Core Fixed Income Fund (SGD, Accumulation, Hedged)

Number of stocks: 448
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All values are as of 31st August 2020

The blended Total Expense Ratios (TER) of our portfolios made up of Dimensional funds are low: 0.27%-0.44% p.a., or more than 75% lower than actively managed funds which have average TER of 1.35%-1.89% p.a.

MoneyOwl does not receive any trailer commissions from Dimensional.

As the Dimensional funds are structured as unit trusts, investors can own fractional shares and invest a small quantum.

In our opinion, Dimensional funds are currently the best funds available for retail investors in Singapore. Dimensional funds can only be accessed through financial advisers approved by Dimensional.

We rebalance portfolios to strategic asset allocation every quarter. Rebalancing helps to keep the volatility of the portfolio within the risk appetite of the client.

We review the strategic asset allocation (SAA) of our portfolios at least once a year, but we do not expect to make major changes often, barring major strategic shifts that affect our fundamental investing assumptions.

But neither MoneyOwl nor Dimensional will make any tactical portfolio adjustments based on:

• Forecasts of any kind (macro, market direction, earnings)
• Assumption of superior individual skill

This means:

• No market timing
• No tactical asset allocation calls due to macro or market outlook
• No sector or stock-picking based on forwarding earnings

Instead, we let markets and asset allocation do their work.