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:
SGD FOCUS LIST:
For Aggressive Investors: iShares J.P. Morgan Asia Credit Bond Index SGD ETF
AUD FOCUS LIST:
For Balanced Investors: Vanguard Australian Fixed Interest Index ETF
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):