The Right Portfolios:

Putting it together

How MoneyOwl Gives You

A Successful Investment Experience

Our 5 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.

Asset Allocation

Equity
Growth
Balanced
Moderate
Conservative
Global Equities 100% 80% 60% 40% 20%
Dimensional Global Core Equity Fund
88% 70% 53% 35% 18%
Dimensional Emerging Large Cap Core Equity Fund
12% 10% 7% 5% 2%
Global Bonds 20% 40% 60% 80%
Dimensional Global Core Fixed Income Fund
20% 30% 30%
Dimensional Global Short Fixed Income Fund
10% 30% 80%

Projected Long-Term Average Returns (Annualised)

Equity
Growth
Balanced
Moderate
Conservative
Gross of advisory fees
7.5% 7.0% 6.3% 5.3% 3.9%
Net of advisory fees
6.9% 6.4% 5.6% 4.7% 3.3%
Standard Deviation
13.0% 10.3% 7.7% 5.2% 2.5%

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.

Keep All-in costs Low

Below are the all-in fees a client pays for investing with MoneyOwl, in comparison to the typical charges in the industry.

Fee Comparison

One-off Charge
Industry
MoneyOwl
Sales Charge
2.0% No sales charge
Annual Charges
Equity
Growth
Balanced
Moderate
Conservative
Advisory/ Wrap Fee
1.0% 0.50% to 0.60%
Custodian/ Platform Fee
0.22% 0% (waived)
First Year Charge
3.2%
0.50% to 0.60%
Ongoing Annual Fees
1.2%

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%.

Fit-for-purpose Funds to Build Portfolios

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
Download Product Highlights Sheet

Top 5 Country Allocation (%)

United States
65.2
Japan
8.3
United Kingdom
4.5
Canada
3.4
France
2.8

Sector Allocation (%)

Information Technology
18.7
Industrials
13.4
Consumer Discretionary
13.1
Financials
12.2
Health Care
11.2
Communication Services
7.8
Consumer staples
7.3
Materials
6.3
Energy
3.2
REITs
3.1
Utilities
2.8
Real Estate
1.0

Dimensional Emerging Market Large Caps Core Equity Fund (SGD, Accumulation)

Number of stocks: 1026
Download Product Highlights Sheet

Top 5 Country Allocation (%)

China
40.7
Taiwan
14.4
Korea
12.6
India
8.2
Brazil
6.0

Sector Allocation (%)

Information Technology
18.8
Financials
16.5
Consumer Discretionary
11.3
Communication Services
10.0
Energy
9.6
Materials 9.10
Consumer Staples 7.0
Real Estate 6.7
Industrials 6.5
Health Care 2.7
Utilities 1.9
REITs 0.0

Dimensional Global Short Fixed Income Fund (SGD, Accumulation, Hedged)

Number of stocks: 259
Download Product Highlights Sheet

Credit Rating (%)

AAA
28.9
AA
57.3
A
13.8

Credit Exposure (%)

Euro
53.2
British Pound
15.6
US Dollar
11.1
Canadian Dollar
11.1
Australian Dollar
5.3
Swedish Krona 3.0
Norwegian Korne 0.8

Maturity (%)

0-1 year
46.0
1-5 years
54.0

Sector (%)

Government Related
62.2
Corporates
37.8

(New!) Dimensional Global Core Fixed Income Fund (SGD, Accumulation, Hedged)

Number of stocks: 448
Download Product Highlights Sheet

Credit Rating (%)

AAA
10.1
AA
26.3
A
26.3
BBB
35.0
BB/B
2.3

Credit Exposure (%)

US Dollar
51.4
Euro
15.9
British Pound
12.4
Canadian Dollar
10.5
Australian Dollar
5.3
Japanese Yen 4.5

Maturity (%)

5-10 years
63.6
10+ years
24.0
1-5 years
12.4

Sector (%)

Government Related
29.6
Corporates
6.0
Treasury
1.5

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.

Portfolio Management

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.