Tag Archives: Financial Planning

Investment strategies – buying into US high yields but hedging against USD depreciation

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One of the problems with my previous investment strategy was that I was investing local currency (SGD/BND) into US dollar denominated investments. Not normally a bad idea, but when the USD has been sliding south, the capital appreciation in my investments was being hit by the forex depreciation. Not ideal.

Part of my research into countering this is to look into ways to reduce my currency risk, while still maximising the power of earning in SGD but investing in other global currencies. One particular product caught my eye, and I wanted to blog about this product by Allianz Global Investors (Allianz GI).

Their “US High yield SGD Hedged” fund is launching next month with some pretty attractive targets – annualised yield of 7.2% a unit, but hedged against further depreciation of the USD. This fund will allow investors to get in on high-yielding US “junk” bonds.

The prospectus and further information is available on Fund Supermart.

Financial planning, the TAP 2009 dividend and the BIBD Al-Kauthar fund series #brunei

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Brow furrowed in concentration. Pic courtesy of @PgEmran

As of late, I have been updating my personal financial plans, taking into account our move to Singapore. I’m updating my investment strategy to ensure full compliance with the Firm’s independence requirements. In summary, we as auditors and professional advisors must guard ourselves to ensure there is no tarnishing of our independent opinion, or that there is a perceived threat to our independence. This basically means we cannot be shareholders in the clients of the Firm.

I was quite pleased when one of our LegCo members brought up the topic of personal finances during the Monday session I attended. I think it would be quite Relevant to blog about personal financial planning while it is on the general Bruneian psyche, and I have some interesting facts to share with you all.

Because our LegCo member suggested that the Government should introduce authorised investment schemes for the public. Coincidentally – BIBD ran a roadshow this week to give investors a sneak peek at their BIBD Al-Kauthar Fund Series. Bearing in mind that TAP FY2009′s dividend was 0%, I thought I should share some of my current thoughts for personal financial planning.

DISCLAIMER: This blog post should not be construed as advice. All investments carry a certain risk profile. Investors are advised to fully understand the contents, terms, conditions and risks associated with their investments.

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