Asset breakdown as of end June / early July:
| Asset Classification | SGD | % |
| US Equities | 23,950 | 41.7% |
| Cash | 12,236 | 21.3% |
| Accounts Receivable | 12,243 | 21.3% |
| CPF Med | 3,986 | 6.9% |
| CPF OA | 3,882 | 6.8% |
| CPF SA | 1,081 | 1.9% |
Total AuM: $57,377
Reliable AuM: $48,428
Notes:
A. US equities: My portfolio is heavy on finance (33%) and tech (31%). Frankly speaking it’s definitely pretty risky. Albeit I have no immediate need for this pot so I hope I’ll be fine in the long run. Depending on how things look I may reduce further allocation into tech.
B. Accounts receivable: Include fees plus commission for consulting work done over May/June, plus other miscellaneous loans, incoming revenue from alternative income sources, and holdings outside of my portfolio.
C. Cash buildup: Currently building up cash for housing deposit, so will likely put more in equities thereafter. The idea is to finance the mortgage through CPF OA as much as possible. I am not a fan of investing in property — the IRR does not justify such illiquidity.
A. Run rate ahead of annual projection: I am lightly ahead of the personal target set (reliable AuM $48,428 vs expectation of $40,000). Albeit, A/R might be written down by $5,000 or so. I am in no hurry to convert these into cash.
B. Possible downside risk in US equities over 2H 2023: SP500 has been up 16% over 1H23, largely attributed to rising tech. Expecting some market correction here — just a guess; haven’t looked into this much.
C. My outlook on risk remains relatively high: At this point in life, I could afford to take on more risk and allocate more into equities. Preferably US stocks – Singapore stocks are lacklustre in my humble opinion.
D. Housing considerations: Notwithstanding the earlier point, I’m setting aside cash and CPF for a housing deposit, so will likely put more in equities thereafter. The idea is to finance the mortgage through CPF OA as much as possible. I am not a fan of investing in property — the IRR does not justify such illiquidity.
I consider reliable AuM to be total AuM less CPF. I belong to the school of thought where CPF is ‘useless’. My litmus test is that one cannot use CPF as collateral to take on any form of loan (except the CPF Personal Loan which pretty much is a nothing burger). The only way to convert CPF into reliable AuM is to pay off the mortgage via CPF OA – though there would presumably be an A/P liability moving forward.
Original plan for the year was c.70k in reliable AuM when I turned 27 in Feb’24. Let’s see if I can make $75 before the year ends.
Assets under Mismanagement 