Investment Review 30th Sept 2020

I last posted my Annual Investment Review in January 2017, looking back on 2016.

Since then I’ve stopped investing in single stocks and continued on a diversified plan. I thought I’ll look back on my investment performance since it’s been awhile.

Before I dive into the investments, note that I have dabbled in new Fintechs such as Stashaway, Mytheo, Funding Society and Luno. But the proportions is still quite small ~0.6% as I evalutate it.

The breakdowns of my investment:

In tree form:

Individually I owned about 14 separate investments. Some of which are single funds and some are special purpose portfolios, meaning a group of funds put together for a purpose. Overall I might have 20 different Fund managers investing over different regions and sectors.

The returns of each individual investments range from 2.4% to 106% annualised returns (annualised over 3 years). Again this is the nature of single specific region/sector investment. The returns are wildly divergent.

For my returns, it is an averaging over Malaysian, Asian and Global investments:

One thing to note is that not all my money is invested upfront as I’ve continued to save and accumulate throughout the 3 years. Therefore the Overall returns of 5.78% takes into account the cash inflow dates, and is not a simple averaging formula.

I’m comparing to a benchmark of 34% MSCI World, 33% MSCI Asia ex-Japan and 33% KLCI because this is not a ‘Barbell’ investment which invests into both extreme ends of ‘Very safe FDs’ and ‘Very Risky Assets’. This is an Anti-Fragile Investment which is never overly optimistic or bias towards one particular asset class.

One thing for sure is that the returns sure beat putting into FDs. Another thing is that I’ve not worried about my investments and market timings ever since I’ve started on this approach. Some veteran investors had to back track after betting on airline stocks after it declined sharply during the Covid pandemic. It is always humbling when a crisis showed what you thought to be solid industries like tourism and rentals take a hit. It should remind us that we can’t really put all our eggs into one basket or that we are rally clever and can predict the market.

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