017. MYR vs SGD vs USD: (4) UT Story

After looking at the FD rate, I want to explore into unit trust investments in Singapore. Now, I must admit I do not know about the unit trusts in Singapore. So, I have to refer to one of Phillip Capital's investment product in Singapore - Phillip Global Wrap Account Dwrap Ute (PGWS Dwrap Ute).

The latest Dwrap Ute report is dated Oct 2014.

I want to use the funds in the report as reference investment, and see their results.
Aberdeen Pacific Equity Market
Fidelity Global Consumer Industries
Fidelity Indonesia
First State Regional China
First State Dividend Advantage
Franklin US Opportunities

The repor only shows return for 3 years only. So, I will refer to MorningStar Singapore to see their long-term performance.

Aberdeen Pacific Equity Market

Fidelity Global Consumer Industries

Fidelity Indonesia

First State Regional China

First State Dividend Advantage

Franklin US Opportunities

As we can see, all the funds can give 10-years annualized return of more than 8%. Looks like we can hedge inflation using uni trust.

Let's put things together.
Inflation rate:- 3%
Currency appreciation:- 1.54%
FD rate:- 0.75%
Unit trust:- 8%

I mentioned that I am not familiar with unit trust in Singapore, and I can't go there to buy one. So for me, investing through PGWA Dwrap Ute seems like the only viable way.

Now, do we dump all money in PGWA Dwrap Ute since it can beat inflation. No! We have to perform asset allocation based on risk appetite. A combination of cash and unit trust, or other investments, are advisable. The combination needs to be adjusted according to the distance of goal objective. The nearer it is to goal, the more conservative the combination to be.

Agree?