Strategic Investment Horizon Bond Fund Recommended List

Strategic Investments can be held for the long-term, i.e. for greater than 12-24 months. The investment case for these investments needs to be reviewed on a quarterly basis for next 12 month period. Ideally suited for retirement planning or long term investment planning.

Below list is pulled from the broader shortlist of funds.

USD FOCUS LIST:

For Conservative Investors: iShares Intermediate Credit Bond ETF , iShares Core U.S. Aggregate Bond ETF , iShares 1-3 Year Credit Bond ETF , Natixis Loomis Sayles Investment Grade Bond Fund

For Balanced Investors: iShares iBoxx $ Investment Grade Corporate Bond ETF , Natixis Loomis Sayles Core Plus Bond Fund , iShares J.P. Morgan USD Asia Credit Bond Index ETF

SGD FOCUS LIST:

For Balanced Investors: United SGD Fund , United Asian Bond Fund

For Aggressive Investors:  iShares J.P. Morgan Asia Credit Bond Index SGD ETF

AUD FOCUS LIST:

For Conservative Investors: Russell Australian Select Corporate Bond ETF , iShares UBS Composite Bond ETF

For Balanced Investors: Vanguard Australian Fixed Interest Index ETF


 

PERFORMANCE DATA:

PERFORMANCE DATA  STRATEGIC 2 apr 16


 

USE OF LEVERAGE:

Leverage can enhance positive returns, while it can hurt more if investments post negative returns. Investors should take less leverage on more volatile investments like growth equities, convertible bonds and very long term bonds ; while safer investments like low volatility high dividend stocks and conventional bonds can be levered more as their price volatility is lower and hence risk of getting a margin call is lower.

We recommend Conservative Investors to not use any leverage.

For Balanced Investors maximum leverage of 1:1 is recommended [i.e. for every 1 dollar of equity, portfolio has 1 dollar of debt].

For Aggressive Investors maximum leverage of 2:1 is recommended [i.e. for every 1 dollar of equity, portfolio has 2 dollars of debt]

Below is an illustration of leverage effect on ROE (Return on Equity):

leverage effect.png