What's my Asset Allocation Strategy?

As at 1st of February 2023, US Federal Reserve raises interest rate to 4.75%. Due to the strong US labor market, US is unlikely to fall into a Recession in 2023 hence there is a low possibility that there will be a rate cut in 2023. With the reopening of China's borders, global economic growth is expected to pickup this year. Recessionary fears will be receded. After taking into the account of 2022 and 2023 monthly energy prices so far, year on year inflation is expected to ease from middle of 2023 onwards. The effect of China's growth will provide support for energy prices.

Nevertheless, interest rates are likely to stay higher for a longer period of time and US Federal Reserve is expected to continue raising interest rates in 2023.

Taking into account of the above, bearing any unforeseen circumstances, this is how I will allocate my funds if I am flushed with cash in my Cash Management Trust Account.

20-30% Equity and Commodities

30-40% Corporate Bonds, Reits and Trusts

30-40% Phillip Money Market Fund, Government and Statutory Board Bonds(mid-long tenor) and Gold ETF/Mines

Asset Allocation is based on individual's risk appetite and profile. It will keep changing and evolving as our circumstances, needs and opportunities changes along the way.

Excess Cash can be parked in Phillip Money Market Funds to earn a better return compared to savings account. 

Funds in the Phillip Money Market account can be used automatically to take advantage of the volatility in the market without the hassle of transferring money to/from savings account. 

Same day withdrawal if online withdrawal form is submitted before 10am.

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Do contact me directly if you want to open an account with me.

Or should you have further queries, do contact me at lionellimtp@phillip.com.sg / +65 90400848.

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