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%
Of which Developed Market Equities
88% 70% 53% 35% 18%
Of which Emerging Market Equities
12% 10% 7% 5% 2%
Global Bonds
20% 40% 60% 80%

Projected Long-Term Average Returns (Annualised) 

Equity
Growth
Balanced
Moderate
Conservative
Gross of all fees
7.8% 7.1% 6.3% 5.3% 4.2%
Net of Fees
6.8% 6.2% 5.3% 4.4% 3.3%
Standard Deviation
13% 10.3% 7.6% 5.0% 2.5%

Projected net of all fees. 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 based on the average historical 20-year rolling period returns of Dimensional Global Core Equity Index, Dimensional Emerging Markets Adjusted Large Cap Index & FTSE World Government Bond Index 1- 5 Years (hedged to SGD) from 1994 to 2019. Please note that 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%.

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 & FTSE World Government Bond Index 1- 5 Years (hedged to SGD) from 1994 to 2019. Please note that past performance is not a guarantee of future results.

Fit-for-purpose Funds to Build Portfolios

We have selected three 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: ~7,500
Download Product Highlights Sheet

List of Countries in Global Core Equity Fund

United States Germany Sweden Finland New Zealand
Japan Australia Spain Belgium Austria
United Kingdom Switzerland Italy Norway Portugal
Canada Hong Kong Denmark Ireland
France Netherlands Singapore Israel

Regional Allocation (%)

North America
64.80
Europe
21.08
Asia Pacific
13.89
Middle East
0.22
Africa
0.00

Sector Allocation (%)

Financials
15.59
Industrials
13.17
Info Technology
13.04
Consumer Disc
11.69
Health Care
10.77
Consumer Staples
7.31
Comm Services
7.24
Materials
6.23
Energy
5.57
REITs
4.31
Utilities
3.85
Real Estate
1.24

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

Number of stocks: ~900
Download Product Highlights Sheet

List of Countries in Emerging Market Equity Fund

China (Local) South Africa Russian Columbia
Korea Mexico Poland Hungry
Taiwan Thailand Chile Peru
Brazil Indonesia Philippines Czech Republic
India Malaysia Turkey Egypt

Regional Allocation (%)

Asia Pacific
75.58
Latin America
13.54
Africa
6.37
Europe
3.67
Middle East
0.83

Sector Allocation (%)

Financials
21.64
Info Technology
15.47
Energy
10.74
Comms Services
8.60
Consumer Disc
8.36
Industrials 8.10
Real Estate 6.55
Consumer Staples 5.23
Utilities 1.95
Health Care 1.45
REITs 0.05

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

Number of stocks: ~180
Download Product Highlights Sheet

List of Countries in Bond Fund

United States Netherlands Finland Singapore
Supranational Sweden Japan United Kingdom
Canada Australia Denmark
France Belgium Norway
Germany Austria Switzerland

Regional Allocation (%)

Europe
53.24
North America
25.29
Supranational
12.55
Asia Pacific
8.93

Credit Rating Allocation (%)

AAA
21.0
AA
57.3
A
21.7
The blended Total Expense Ratios (TER) of our portfolios made up of Dimensional funds are low: 0.31%-0.37% 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.