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The 13% p.a. Singapore Stocks Model

If you are a Singaporean, you may have heard from many local investors that the Singapore Straits Times Index (STI) is dead. If you do not understand why, just take a look at the chart below.

STI performance versus S&P 500
STI performance versus S&P 500

While the S&P 500 has made the 2008 Great Financial Crisis look like a blip as part of a secular bull market, the STI has gone nowhere and has failed to recover the high made before the crisis. The saving grace for the STI is that its dividend yield is relatively high. You can refer to the link below for STI's dividend yield over the years.

But even after factoring in dividends, the STI's compound average growth rate (CAGR) over the years is still very low.

STI performance with and without dividends
STI performance with and without dividends

All Is Not Lost

What is a local investor to do if he wants to invest in local stocks? You can still earn a double-digit CAGR if you pick the right stocks and use a good strategy to manage risk. We have worked with Ou Da Wei (iFAST senior investment advisor) to come up with a strategy to achieve that. This strategy is a combination of trend-following applied to selected stocks that pay good dividends and a stock rotation strategy applied to selected local REITs. For lack of a better name, let's call this strategy SGP Stocks. The performance is shown below.

SGP Stocks performance versus STI total return
SGP Stocks performance versus STI total return

As this is a 100% stock-focused strategy, the risk-adjusted return is not as attractive as our AQ Multi-Strategy model which is diversified across multiple asset classes. The yearly returns are also more wide-ranging. But the good thing about it, is you are not exposed to currency risk as the stocks are all in SGD. And if you love dividends, you'll love this portfolio as all the stocks pay decent dividends.

NOTE: Performance shown is model performance and does not include wrap fees charged by iFAST Global Markets.


Find out more about this SGP Stocks strategy through a coffee session!

AllQuant brings to the table a new solution for busy professionals. We put all our 30 years of joint experience across asset management, banking, proprietary trading, and hedge fund to work. And we designed an actively managed multi-strategy model portfolio that is resilient enough to weather different market conditions.

You can now build such a portfolio through iFAST Global Markets without lifting a finger. In this collaboration, we are combining AllQuant’s expertise in hedge fund strategies and iFAST’s advisory capabilities and bringing it to your doorstep.

Ready to start your investment journey? Chat with us over a cup of coffee through a session facilitated by iFAST Senior Investment Adviser, Ou Da Wei, to find out more.

Disclaimer & Disclosure

We are not financial advisers or fund managers. The information published on this Site is provided for informational purposes only. It is not intended to be, nor shall it be construed as, financial advice, an offer, or a solicitation of an offer, to buy or sell an interest in any investment product. Nothing on this site constitutes accounting, regulatory, tax, or other advice.

Any performance shown on this Site is model performance and is not necessarily indicative nor a guarantee of future performance. You should make your own assessment of the relevance, accuracy, and adequacy of the information contained on this Site and consult your independent advisers where necessary.

AllQuant is carrying out introducing activities for iFAST Global Markets (Singapore) as an independent entity and is NOT an agent, servant, employee, representative, or in partnership with iFAST Global Markets (Singapore). AllQuant will be receiving remuneration or introducing fees from iFAST Global Markets (Singapore).

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