Portfolio Pulse Dynamic (Cheque) Version 8.3

Q4’21

14 October 2021

Contents

Portfolio Commentaries ................... 3

Portfolio Movements ........................ 4

Portfolio Pulse

Q4’21

Portfolio Pulse

Portfolio Commentaries

Fundamentals remain strong

and a cascade of positive news

will improve sentiments.

IPP Financial Advisers Pte Ltd 78 Shenton Way #30-01 Singapore 079120 | Tel: +65 6511 8888 | enquiry@ippfa.com | www.ippfa.com | @ippfa

Our Dynamic (Cheque) suite of portfolios performed in

line with the market in 3Q21. The YTD performances of

our Conservative, Moderate, Aggressive and Very

Aggressive portfolios are -0.1%, 2.3%, 4.9% and 8.0%,

respectively.

Since our last rebalancing in mid Jul’21, markets fell and

had a negative third quarter. Markets initially rose, with

U.S. and European markets recording fresh highs during

the quarter as corporate earnings beat estimates, while

steady inflation data in the U.S., the FDA giving full

approval to the Pfizer Covid-19 vaccine and the

advancement of a Democrat USD3.5 trillion

reconciliation bill boosted risk sentiment. However, gains

were pared during the last month of the quarter. The

regulatory intervention from the Chinese government on

the Chinese tech sector, the impending default of the

second largest property developer in China, the Fed’s

more hawkish pivot, with asset purchases set to taper

sometime in 4Q’21 and interest rates expected to be

hiked from end-2022 all weighed on risk appetite. Also,

bond yields spiked again, weighing especially on long-

duration growth stocks.

On the Covid-19 vaccination front, significant progress

has been made globally. 34% (8.1% as of start of Q3’21)

of the global population are fully vaccinated with 12%

(15% as of start of Q3’21) partially vaccinated.

Regionally, the U.S. leads the pack with 55% (46% as of

start of Q3’21) fully vaccinated and 8.8% (7.7% as of start

of Q3’21) partially vaccinated, though progress in the

U.S. has stalled due to lack of demand. Europe has 53%

(28% as of start of Q3’21) fully vaccinated and 4.4% (13%

as of start of Q3’21) partially vaccinated and Asia 37%

(3.4% as of start of Q3’21) fully vaccinated and 15% (20%

as of start of Q3’21) partially vaccinated. Emerging

markets have started to catch up in the roll out of

vaccinations.

We continue to hold our neutral portfolio allocation and

follow the market. The equity/bond percentage

allocations are at 20/80, 40/60, 60/40 and 80/20 for the

Conservative, Moderate, Aggressive and Very

Aggressive portfolios, respectively.

Geographically, we take profit from Europe and move

back to neutral, trim Asia but maintain a slight

overweight and move the U.S. closer to neutral but still

slightly underweight. Our revised geographical

allocation for the U.S., Europe and Asia are 59%, 19% and

22%, respectively.

On the fixed income side, we maintain our allocation of

25% Asian high yield, 25% global high yield, 25% short

duration bonds and 25% securitised/investment grade

bond.

DISCRETE PERFORMANCE

Portfolio Pulse

Portfolio Movements

Minimum Investment: $2,000

Subscription Mode: Cheque

Key Features and Considerations:

Portfolio is designed to reflect IPP’s investment

recommendations. There will be 4-6 funds in the portfolio. The allocation (weightage of the funds) and composition of the portfolio will change according to recommendations made by IPP. The portfolio has CPFIS friendly version. Portfolio is designed for clients who require their advisers to implement IPP’s recommendations.

Depending on the risk profile, the targeted volatilities and returns are between 8% - 16% and 5% - 9% respectively. The target volatilities and returns ARE NOT

GUARANTEED.

IPP Financial Advisers Pte Ltd 78 Shenton Way #30-01 Singapore 079120 | Tel: +65 6511 8888 | enquiry@ippfa.com | www.ippfa.com | @ippfa

*Inception Feb 2015

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Conservative Moderate Aggressive Very Aggressive

Yr 2015* Yr 2016 Yr 2017 Yr 2018 Yr 2019 Yr 2020 YTDAnnualised Performance

(Feb’15 – Sep'21)

Annualised Volatility

(Feb’15 – Sep'21)

Conserv ativ e 4.1% 4.3% 5.5% -2.5% 11.8% 7.1% -0.1% 4.4% 6.4%

Moderate 5.8% 3.3% 8.7% -4.3% 15.7% 12.7% 2.3% 6.4% 7.7%

Aggressiv e 7.2% 5.1% 11.3% -5.6% 19.2% 17.0% 4.9% 8.6% 9.1%

Very Aggressiv e 12.3% 2.9% 15.1% -6.1% 22.0% 21.4% 8.0% 10.9% 10.9%

ASSET

ALLOCATION

Portfolio Pulse

IPP Financial Advisers Pte Ltd 78 Shenton Way #30-01 Singapore 079120 | Tel: +65 6511 8888 | enquiry@ippfa.com | www.ippfa.com | @ippfa

Conservative

(Δ from Q3’21) Moderate

(Δ from Q3’21) Aggressive

(Δ from Q3’21) Very Aggressive (Δ from Q3’21)

Bonds 67% (+0%) 44% (+0%) 27% (+0%) 7% (+0%)

Equities 0% (+0%) 16% (+0%) 40% (+0%) 60% (+0%)

Balanced 33% (+0%) 40% (+0%) 33% (+0%) 33% (+0%)

Money Market 0% (+0%) 0% (+0%) 0% (+0%) 0% (+0%)

Nikko AM Shenton

Global Opportunities

SGD

8.0%

Allianz Best Styles

Global Equity Cl ET

Acc H2-SGD

8.0%

FTIF - Franklin US

Opportunities A Acc

SGD-H1

12.0% 18.0%

Allianz US Equity Cl AT

Acc SGD 11.5% 17.5%

Threadneedle (Lux)

Pan European Small

Cap Opportunities

ASH Acc SGD-H

7.5% 11.5%

Fidelity Pacific A-SGD 6.5%

Schroder Asian

Growth A Dis SGD 9.0% 6.5%

Phillip Global

Opportunities SGD 33.0% 40.0% 33.0% 33.0%

Schroder ISF Global

High Yield A Dis SGD-H 17.0% 11.0% 7.0% 7.0%

Eastspring Investments

- Asian High Yield

Bond ASDM SGD-H

16.5% 11.0% 6.5%

PIMCO Income Fund

Cl E Inc SGD-H 17.0% 11.0% 7.0%

LionGlobal Short

Duration Bond Cl A

Acc SGD

16.5% 11.0% 6.5%