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CONSERVATIVE PORTFOLIO
PORTFOLIO OBJECTIVE
This portfolio targets to achieve long term capital appreciation with a “conservative” positioning.
Suitable for
Investors seeking to accumulate and grow their wealth over the long term with a more “conservative”
investment positioning, and who have limited starting capital.
Start with $500
Investors should be able to follow the target allocation listed in the factsheet via a S$500 monthly
RSP. The research team at iFAST will be providing the portfolio review on a monthly basis at the start
of each month.
PORTFOLIO STRATEGY
The portfolio aims to achieve long term capital appreciation by investing 80% into fixed income funds and 20% into equity funds.
This target allocation may change with our views on financial markets.
The portfolio takes the form of a monthly RSP, with the aim of addressing the needs of “newbie” investors who have limited starting
capital, but would like to embark on a long term process of accumulating and growing their wealth.
The portfolio construction process adheres to the core principle of diversification, with the portfolio expected to have exposure to
both fixed income and equities (asset class diversification), while also being diversified across various regional markets and fixed
income segments (diversification by geography and sector) where possible.
In the selection of funds for the portfolio, we remain cognisant of currency risks, and will choose appropriate funds in the aim of
maximising portfolio returns in SGD terms, that is, the portfolio is managed from the perspective of a Singapore-based investor.
Fund selection
considerations
We have deliberately kept the number of funds small to make it easier for investors to manage and
to cater to new investors who may have limited funds to invest. Also, the funds are selected from the
RSP Special List which allows investors to start investing via an RSP without making a prior
investment in the fund. We may make changes to the funds for the monthly RSP as appropriate to
achieve the portfolio’s long term objective.
Interpreting the Factsheet
“Total Investment”
This represents the total investment amount added to the portfolio since inception (8 June 2010).
“Portfolio Return”
This is calculated on the basis of the latest valuation of the portfolio, with respect to the total
investment amount since inception. This return is calculated on a “total return basis”, and is not
annualised.
“Annualised Internal Rate
of Return”
This is a return measure which takes into account the timing of cash-flows into the portfolio;
mathematically, this is the discount rate which makes the net present value of the investment zero.
The rate is annualised.
“Portfolio Value”
This represents the latest valuation of the portfolio’s holdings.
“1 Month”, “6 Months”,
“1 Year” ...“Since
Inception”
These returns represent the returns of the portfolio strategy, rather than the actual portfolio return
itself. These returns correpsond to the portfolio’s returns if the investment was initially made as a
lump sum investment upon inception, without any new cash-flows along the course of the entire
investment horizon. Also, these return figures would correpond to the performance chart for the
portfolio, which displays the historical returns of the portfolio strategy since inception.