Tuesday, 29 April 2025

FSMOne: MMF is better than ELF better than Autosweep account?

 


I have previously talked about how I have parked some cash in the FSMOne S$ autosweep account only to find that I am charged a "Management Fee" for the Autosweep account.

When you dig deeper into the Autosweep account, you learn that the autosweep account invests 90% of the funds in the iFAST Enhanced Liquidity Fund (ELF) with the remaining 10% in a cash account.

https://secure.fundsupermart.com/fsmone/article/rcms323940/ifast-enhanced-liquidity-funds-higher-returns-with-same-day-access


When you look at the ELF, you learn that FSMOne classifies it as a Short Duration Fixed Income fund (and not a money market fund) with an expense ratio of 0.31%. And guess what the fund holds - a lot of Money Market Funds (MMF), together with some sovereign debt and bank fixed deposits







I am not exactly sure if this kind of portfolio is worth the 0.31% expense ratio. There is also nothing that says that they receive a management fee rebate from Fullerton or LionGlobal whose MMFs are inside the portfolio, which means that this expense ratio should be in addition to the expense ratio of the underlying funds. One possible reason investors may prefer the ELF rather than buying the MMFs directly is that ELF, being an iFAST product, offers T+0 settlement (sell before 10am, credited end of business day). But to me that's neither here nor there for me, since it doesn't get credited fast enough to buy stocks during HK/SG trading hours.

Since I am on Diamond+ tier and do not pay platform fees for unit trusts (such as the ELF or MMF), it makes more sense for me to buy MMFs and to leave whatever is needed for ETF purchases. 

The autosweep account can be used to fund RSP of ETFs which is a great thing since you get above average interest while the funds are parked there. Since the interest rate is decent but not as high as an MMF (for the reasons shown above concerning expenses), I don't mind leaving enough for a few months' worth of RSP (versus trying to 'optimise' by moving funds into the autosweep account 4 times a month for the RSPs - another advantage of RSP is that it can happen 4 times a month, which probably reduces the impact of predatory algorithms frontrunning FSM's market orders on RSP days).

Conclusion
Rather than leaving a whole bunch of cash in the Autosweep account, I am moving them to
(i) Fullerton and Lionglobal MMF (0.17%/ 0.31% expense ratio)
(ii) LionGlobal All Seasons fund (standard) which is a 30/70 balanced fund with 0.48% expense ratio. This is pretty competitive considering what the All Seasons fund holds, compared to LionGlobal's own MMF.






Monday, 28 April 2025

Frasers Centrepoint Trust Preferential Offering

 


Due to the legacy reasons, I have FCT holdings scattered amongst CPFIS, CDP, and SCB.

Recently, there was a preferential offering of FCT at $2.05. At the time this was announced, there was a tariff related market crash and the share price dipped dangerously close to $2.05. This was good news to those that applied for excess rights, because the market crash meant less interest in the rights.

As a result, I got all the excess rights I applied for:


Entitled: 2295

Excess: 4205

Total: 6500


Since the price of the preferential offering was $2.05 per share, and the price is currently $2.25, this was basically 'free money', $1300 to be exact.



Sunday, 20 April 2025

Back from holiday

 



Back in Singapore after a short break. LSE is closed for trading on Monday but NYSE will be open. Looking forward to buying more stocks. 

One piece of good news, there appears to be a new lounge in KIX and SQ is no longer using the JAL Sakura lounge which was too cramped. The new lounge is pretty large as this photo shows and so it was pretty empty in some areas (its more crowded nearer the food.... ) and I can sit quietly and relax.

Friday, 11 April 2025

Short break from trading (Krisflyer Gold isn't that bad)

 



I probably won't be trading for the next few days (though technically nothing preventing me from logging into my trading account) as I'm taking a short break.

I'm flying economy this time so I get to visit the Krisflyer Gold lounge. While it was perhaps a bit more crowded than the Silverkris lounge, I could still find a seat and it was overall a pleasant experience.

More importantly, the Chwee Kueh in the Gold lounge tastes just as good as the one in the Silverkris lounge. I notice that it was only the locals that take the Chwee Kueh and the Westerners just go for the more boring stuff. Anyway, I don't stuff myself with food when I visit the lounge, so an extra round of Chwee Kueh after finishing the first plate is more than enough for me.


Wednesday, 9 April 2025

10 Apr 25

 


10 April. I bought VUSD and NVO last night and went to bed. Market was red. Woke up this morning and saw all green....

Tuesday, 8 April 2025

9 Apr 2025

 


Woke up this morning (9 Apr) and saw S&P500 reversed and went down 1.57%. Current pre-market is another 1.58% drop, so there is an orderly retreat as institutions and investors trim their position. I plan to continue buying when market opens.


Monday, 7 April 2025

7 Apr 2025: Buy LSE ETFs before US market open.

 




I posted on Sunday that my strategy was Monday was to buy ETFs soon after the LSE opened, but before the US market opened but there might be a sudden reversal that usually follows sharp dips. As the 1D Monday S&P500 chart shows, there was something of a reversal and the S&P500 closed slightly higher than its opening price.

When LSE opened, there was a temporary volatility halt for various ETFs including VWRD and VUSD. The first time I've seen such a halt. After trading resume, I quickly bought some VWRD and VUSD.  VWRD was $118 and later than night, there were signs of reversal and so I bought a more at $120.  

Also managed to fill orders for VDPX, NKE, UA, NVO. LULU shot up a lot so not buying more. Bought VDPX because its biggest holding is Australia and there was a big correction in the ASX200 on Monday as well.

Friday, 4 April 2025

4 April 2025

 


Haven't seen a downturn like this for a long time. But at least I've seen a few. There are some investors who have never experienced a bear market, so good first experience for them I guess. On Friday, I bought some VWRD, VUSD, LULU and NVO.

Thursday, 3 April 2025

3 April 2025 Tariffs: "I was here when it happened"

 

CNBC before I went to bed



CNBC when I woke up this morning

This blogpost is to record for posterity, what I was doing when US tariffs against the rest of the world were announced. 

Bought VWRD, VUSD, NKE, UA, NVO. Initiated position in LULU.

Wednesday, 2 April 2025

Dividends Collected: March 2025

 





Slight drop in dividends vs 2024. Some Vanguard ETFs that paid dividend in March 2024 are now paying in April 2025.