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My current asset allocation

My current asset allocation

I was speaking at a seminar to an engineering professional body and one of the attendees asked me – “What is your current asset allocation and why?”
It was an interesting question (trust an engineer to ask such a question!) – and one which I don’t think I have ever been asked before after 36 years in the financial services profession.

I don’t really keep score

Actually, I do not keep very good records or keep track of my assets.

I used to in my early years – keeping detailed records and calculating diligently the increase (or decrease) in my assets and the annualised rate of return at the end of every year.

Why did I stop doing this? I guess perhaps the best explanation is to use an analogy

After playing tennis for 50 years – I don’t really listen to or care about the score anymore.  I just enjoy myself – play the game and focus on improving my repertoire of strokes.

My asset allocation

So, to answer the original question – here’s an approximation of my asset allocation.

… 50 per cent in property (I’m like the typical Singaporean!)

… 10 per cent in cash (S$, Sterling, US$, Canadian $, NZ$, A$, HK$). My S$ are all sitting in savings accounts earning just 0.1 per cent per annum, as I like to be “ready for action” when an opportunity arises.

I do not normally keep much cash, as I am a believer of being “fully invested”. After all, I have about 10 free lines of credit “just in case”.

… 10 per cent in commodities.  Commodities have been down for so many years (my worse current asset in performance). Hopefully, the notion that the more and the longer an asset class has been down – the higher may be the probability of it going up, works for this.

… 10 per cent in fixed income. I am not optimistic about the prospect of a rise in interest rates.

… 20 per cent in equities.  I am not currently optimistic as the equity markets have been bearish.Oh I almost forgot.  I have about 2 per cent invested in movies. I am one of the executive producers of Ilo Ilo (40 international awards).

And just in case you are wondering – I rarely borrow to invest.

 
Leong Sze Hian
Leong Sze Hian

Leong Sze Hian is the Past President of the Society of Financial Service Professionals, an alumnus of Harvard University, has authored 4 books, quoted over 1500 times in the media , has been host of a money radio show, a daily newspaper column, Wharton Fellow, SEACeM Fellow, acting managing editor and columnist for theonlinecitizen, columnist for Malaysiakini, a Member on the CIFA International Advisory Board, executive producer of the movie Ilo Ilo (40 international awards), treasurer of Maruah, and invited to speak more than 100 times in more than 25 countries on 5 continents. He has served as Honorary Consul of Jamaica and founding advisor to the Financial Planning Associations of Brunei and Indonesia. He has 3 Masters, 2 Bachelor's degrees and 13 professional qualifications.