building your wealth jack phang business development executive
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Building Your Wealth Jack Phang Business Development Executive. Ngee Ann Polytechnic Seminar 5 August 2010. DISCLAIMERS - PowerPoint PPT PresentationTRANSCRIPT
Building Your WealthBuilding Your WealthJack Phang
Business Development Executive
Ngee Ann Polytechnic Seminar5 August 2010
DISCLAIMERSThis presentation is provided to you for information only and does not constitute an offer or solicitation to subscribe for the units in the funds mentioned. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of you acting based on this information.
Unit trusts distributed by Phillip Securities Pte Ltd are not obligations of, deposits in, or guaranteed by, Phillip Securities Pte Ltd or any of its affiliates. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of the units and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in this presentation, are not necessarily indicative of future or likely performance of any unit trust.PSPL and its affiliates do not endorse and have no liability for any statements, opinions or information disseminated by the ETF issuers, which are not part of PSPL or its affiliates.
All applications for units in a unit trust must be made on application forms accompanying the relevant prospectus. You should read the prospectus before deciding to subscribe for units in the respective fund or invest in the respective ETFs. For unit trusts, a copy of the prospectus can be obtained from Phillip Securities Pte Ltd or online at www.eunittrust.com. For ETFs, a copy of the prospectus can be obtained from SGX or from the issuer.
The value of investments denominated in foreign currencies may diminish or increase due to changes in the rates of exchange. You may wish to seek advice from a financial adviser before making a commitment to purchase the investment products mentioned. In the event that you choose not to seek advice from a financial adviser, you should consider whether the investment product is suitable for you.
The illustrative example is meant for illustrative purposes only and should not be relied upon as advice.
The information contained in this presentation has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in this presentation are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in this presentation is subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages.
Any opinion or view herein is made on a general basis and is subject to change without notice. The information provided in this presentation may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of information provided in this presentation.
Intro to PhillipCapital
Building WealthRisk and Return
Online Fund Trading Platform
Overview
Intro to PhillipCapital
• PhillipCapital comprises a group of companies* who together offer a full range of quality and innovative financial services to individual, corporate and institutional customers
• Phillip Securities (the first member of PhillipCapital) was founded in Singapore in 1975
• Operates in financial hubs of 10 countries including Singapore, Malaysia, Thailand, Indonesia, Hong Kong, China, Australia, Japan, France and UK
• Extensive branch network with 2800 employees globally
• More than US$700 million in shareholders’ equity
* The companies in Singapore include Phillip Securities Pte Ltd, Phillip Capital Management (S) Ltd, Phillip Futures Pte Ltd, Phillip Private Equity Pte Ltd, Phillip Securities Research Pte Ltd, POEMS Pte Ltd, Phillip Credit Pte Ltd, Phillip Financial Pte Ltd, Phillip Trading Pte Ltd, Phillip Japan Fund Management Pte Ltd, CyberQuote Pte Ltd and IFS Capital Ltd.
An Elephant Never Forgets
Breaking Your Glass Ceiling
Income
– Expenses
----------------
= Savings
----------------
Income
– Savings
----------------
= Expenses
----------------
A budget allocates or distributes expected income to expected expenses and intended savings.
Budgeting
• What are Your Goals?
• How Do You Keep Records?
• How Much Do You Earn?
• How Much Do You Spend?
• Compare Income and Expenses
• Changing Your Spending Plan
• Stick to Your Plan
Save More? Spend Less? Start Investing?
Budgeting
• Cash (or Cash Equivalent) Treasury Bills; Savings Accounts; Money Market Instruments
• Equities Value or Growth Stocks; Large or Small Capitalization; Emerging Markets; Foreign or Domestic
• Fixed Income Bonds - Investment or Junk (High Yield) Grade ; Government or Corporate; Short-Term, Mid-Term or Long-Term; Domestic or Foreign; Emerging Markets• Real Estate Property
• Commodity Natural Resources; Precious Metals
• Foreign Currency
• Luxury Collectibles Art; Fine Wine; Automobiles
Source: www.wikipedia.com
Asset Classes
• Some consideration of Asset Allocation within a Portfolio:– Risk Tolerance → Low risk to high risk– Time Horizon → Longer horizon enables higher risk
taking
• All asset classes move in its own cycle. A well defined asset allocation makes your financial ride smoother
• Exact allocation differs and it depends on the risk profile
Asset Allocation
• Diversification
A risk management technique that mixes a wide variety of investments (via different asset classes and varying proportions of those asset classes) within a portfolio
• Rebalancing
The process of realigning the weightings of one's portfolio of assets
Source: www.Investopedia.com
Portfolio Building
Establish a balance between risk and return that you are comfortable with.
When establishing this balance, you should consider:
1. Your Risk Tolerance The amount of risk you are comfortable with and can afford to take.
2. Your Investment Time HorizonHow long will your assets be invested?
3. Your Overall Financial Situation How much money will you need to sustain your lifestyle during retirement? Do you have other assets set aside for retirement besides your CPF
savings? How are all of those assets invested? What are your financial commitments?
Source: www.cpf.gov.sg
How do I decide how to invest?
There is a close relationship between risk and return ie Risk vs Return trade-off
The greater the potential return one might seek, the greater the potential risk that one generally assumes
If it is too good to be true, chances are, it is not
T.I.N.S.T.A.A.F.L.
Risk and Return Risk and Return
“Risk comes from not knowing what you're doing.”
- Warren Buffett
Quote Quote
• Risk Tolerance Risk vs Return Tradeoff How would you describe your risk appetite? Aim to preserve capital OR maximize returns?
• Volatility How long can you hold? How would you react to a drop of 15% in your investment in a year? Change portfolio immediately or stay the course?
• Investment Horizon Short Term, Mid Term, Long Term How long do you intend to stay invested? Less than 3 years or more than 10 years?
Risk Profiling Risk Profiling
• Savings How much are you able to save as a percentage of net monthly income (excluding CPF)? Between 10% to 50%?
• Rate of Return What yearly returns do you expect from your investments? Less than 2%? More than 8%?
• Investment Asset Classes – ie Equity, Fixed Income, etc How familiar and experienced are you with investing?
Risk Profiling Risk Profiling
Risk Type Risk Preference Description Proposed Asset Allocation
Conservative
An investor who regards the need to minimize the chance of capital loss in any year as the most important consideration. He understands that this generally means less exposure to growth assets and will
mean lower real returns in the long term.
Balanced
An investor who seeks a balance between higher returns and the chance of avoiding capital loss. He accepts that this trade off lessens both long term returns and the chance of a loss in any year.
Aggressive
An investor who pursues higher returns in the longer term by investing in growth
assets. He fully accepts that investment returns will vary substantially from year to year and that there is a higher chance of
capital loss in any one year.
Conservative Portfolio
Balanced Portfolio
Aggressive Portfolio
Risk ProfilingRisk Profiling
Source: www.mas.gov.sg
Specialised Funds
(ie single country equities)
Global EquityFunds
Balanced Funds(Mix of bonds, equities and money market instruments)
Bond Funds
MoneyMarket Funds
Risk/Return Profile
Source: www.mas.gov.sg
Types of Unit Trust FundsTypes of Unit Trust Funds
Higher Risk And Return
Moderate Risk And Return
Lower Risk And Return
• Need a measuring yardstick or a basis of comparison• If it is good, how good?
Who do you see? Young Lady or Old Woman?
Comparison / Perspectives
Online Fund Trading Platform
New Navigation Bar with New Categories
Media Gallery
Price Alert
Keep Me Posted
Online Seminar Registration
Site Search Function
and many more…
Visit for more details
New FeaturesNew Features
New Navigation Bar / Site Search FunctionNew Navigation Bar / Site Search Function
For illustration only - This does not constitute a recommendation nor an offer, or solicitation to buy or sell, the funds mentioned herein.
Updates / Price Alert / Media GalleryUpdates / Price Alert / Media Gallery
For illustration only - This does not constitute a recommendation nor an offer, or solicitation to buy or sell, the funds mentioned herein.
Online Seminar RegistrationOnline Seminar Registration
For illustration only - This does not constitute a recommendation nor an offer, or solicitation to buy or sell, the funds mentioned herein.
We also distribute hedge funds for accredited investors
Aberdeen Asset Management Asia Limited HSBC Investments (Singapore) Ltd
AllianceBernstein (Singapore) Ltd ING Investment Management
Allianz Global Investors Singapore Ltd Legg Mason Asset Mgmt (Asia) Pte Ltd
APS Komaba Asset Management Pte Ltd Lion Capital Management Ltd
APS Asset Management Pte Ltd Phillip Capital Management (S) Ltd
AXA Wealth Management (S) Ltd PineBridge Investments (S) Ltd
BNP Paribas Asset Management (S) Ltd Prudential Asset Mgmt (Singapore) Ltd
DBS Asset Management Ltd Schroders Investment Management (S) Ltd
Deustche Asset Management (Asia) Ltd SFM Group Ptd Ltd
FIL Investment Management (Singapore) Ltd Amundi (Singapore) Ltd
First State Investments (Singapore) Ltd Singapore Unit Trusts Ltd
Fortis Investment Management Singapore Ltd Templeton Asset Management Ltd
Henderson Global Investors (S) Ltd UOB Asset Management Ltd
* as of 29 July 2010
You have access to one of the widest selections * of funds in Singapore
Unit Trusts
T- Bills CFD
Futures
Forex
Stocks Warrants ETFs
POEMS(Phillip’s On-line Electronic Mart System)
Manage your investment portfolio at a one-stop convenient portal
For illustration only - This does not constitute a recommendation nor an offer, or solicitation to buy or sell, the funds mentioned herein.
Fund Selection
1. Start a new POEMS online trading account and receive a free gift (while stocks last)
2. Start a new Unit Trust Regular Savings Plan (RSP) and receive a premium free gift (while stocks last)
What is a Unit Trust RSP?– A systematic investment plan – Dollar Cost Averaging concept– As low as $100 a month to get started – Minimum initial lumpsum investment
applies for certain funds
Promotions*
* Terms and conditions apply.
Visit us at our booth at todayTalk to our Investment Consultants to find out more
Thank You