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Tai Zhi

Chief Investment Officer at Autowealth

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Chief Investment Officer at Autowealth

Tai Zhi

Chief Investment Officer at Autowealth

24Upvotes
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Seedly PFF 2019

Tai Zhi
Tai Zhi, Chief Investment Officer at Autowealth
Level 4. Prodigy
Updated on 16 Jun 2019
Dividends and bond coupons of U.S.-listed ETFs will be subject to a 30% U.S. federal withholding tax in line with tax regulations of the U.S. Internal Revenue Service. Nevertheless, U.S.listed ETFs are still preferred over ETFs listed in other countries like the U.K. after taking into consideration factors including liquidity, bid-ask spread, expense ratio, ETF fund size amongst other factors. You may want to consider investing through a robo-advisor for better tax efficiency. For example, AutoWealth works with our partnering custodian to seek partial reimbursement of the withholding taxes from the U.S. Internal Revenue Service. This would reduce the withholding taxes applicable. You may check out this url to learn more from frequently asked questions by other investors: https://www.autowealth.sg/faq.php

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Tai Zhi
Tai Zhi, Chief Investment Officer at Autowealth
Level 4. Prodigy
Updated on 07 Jun 2019
Yes, I certainly agree with Gabriel and Hariz. Let me share with you my observation during the 2008 GFC. During that period I was still in the sovereign wealth fund GIC. Investment professionals were split in opinions on whether a crisis is about to unfold. Even professionals with decades of experience cannot time the market, so I would really suggest individual investors not to fall for the disillusion of timing markets. We are just not as sharp as gurus like George Soros, unfortunately. Secondly, many investment professionals were way pessimistic or conservative way too early. They held high allocations to cash and tend to miss the run-up. When the crisis finally develop, they panic thinking it would be the end of world stock markets ("this time is different" phenomenon) and did not buy into the discount, thereby squandering away a precious market opportunity. Therefore, in conclusion, its more discipline to maintain a consistent risk profile throughout. Astute investors would have always set aside emergency funds. If there are no foreseeable need for the emergency funds, you may utilise part of it to take advantage of market corrections that presents itself from time to time to improve your investment returns. Do replenish the utilised portion when you receive your subsequent months of wages though.

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Tai Zhi
Tai Zhi
Level 4. Prodigy
Updated on 07 Jun 2019
Dividends and bond coupons will be subject to a 30% U.S. federal withholding tax in line with tax regulations of the U.S. Internal Revenue Service. Nevertheless, ETFs listed in the U.S. are still preferred over ETFs listed in other countries like the U.K. after taking into consideration factors including liquidity, bid-ask spread, expense ratio, ETF fund size amongst other factors. AutoWealth works with our partnering custodian to seek partial reimbursement of the withholding taxes from the U.S. Internal Revenue Service, where applicable.

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Autowealth

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Tai Zhi
Tai Zhi, Chief Investment Officer at Autowealth
Level 4. Prodigy
Updated on 07 Jun 2019
Yes, AutoWealth helps you to take advantage of excessive market volatility to lock in extra returns from selling high and buying low through portfolio rebalancing. Read on to know more... Significant market movements may cause portfolio assets to deviate from their original intended allocation weightage. AutoWealth rebalances clients’ investment portfolios timely to realign the allocation weightage of portfolio assets to maintain a consistent risk profile for all our clients and for robust risk management. For example, the escalated U.S.-China trade tensions in 4Q 2018 caused Emerging Market Stocks to decline materially and U.S. Government Bonds to rise materially causing an underweight in Emerging Market Stocks and an overweight in U.S. Government Bonds. In this case, AutoWealth will sell and take profit on some U.S. Government Bonds whilst using the sales proceeds to buy some Emerging Market Stocks at the market discount to realign the allocation weightage of portfolio assets. In another example, the eased U.S.-China trade tensions in 1Q 2019 caused Emerging Market Stocks to rise materially and U.S. Government Bonds to rise by a smaller margin causing an overweight in Emerging Market Stocks and an underweight in U.S. Government Bonds. In this case, AutoWealth will sell and take profit on some Emerging Market Stocks whilst using the sales proceeds to buy some U.S. Government Bonds to realign the allocation weightage of portfolio assets. Our portfolio rebalancing is supported by well-established research, including those documented in “Pioneering Portfolio Management David F. Swensen, CIO of Yale Endowment Fund”. The research concluded that threshold-based rebalancing statistically generates extra investment returns by exploiting excessive price volatility.

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Tai Zhi
Tai Zhi
Level 4. Prodigy
Updated on 07 Jun 2019
Hi friend, Below is a guide "What to consider when choosing a Robo-Advisor". The guide is designed to be objective and free from bias. It summarises important factors to consider when choosing a Robo-Advisor. https://www.autowealth.sg//blog//how\to\choose\a\robo\advisor\infographics.php Disclaimer: I work for AutoWealth and would be happy to take your feedback, if there is any!

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MoneyOwl

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Robo-Advisors

Tai Zhi
Tai Zhi, Chief Investment Officer at Autowealth
Level 4. Prodigy
Updated on 24 May 2019
Here's a summary of how we see Dimensional Funds vs ETFs and what is unique about AutoWealth: Dimensional Funds vs ETFs AutoWealth uses (1) Structure - Dimensional Funds are Unit Trusts whereas the ETFs AutoWealth uses are listed and quoted on stock exchange (2) Expense Ratio incl management fees and custody fees etc - Dimensional Funds expense ratio ranges from 0.36% to 0.50% whereas the expense ratio of the ETFs AutoWealth uses are about 0.15% (based on our most popular AutoWealth Balanced Portfolio of 60% stocks and 40% govt bonds) (3) Bid-Ask Spread & Transaction Costs - units of Dimensional Funds are created and redeemed inhouse by the unit trust provider Dimensional at whatever price and transaction cost Dimensional dictate whereas AutoWealth execute ETF trades over the exchanges during the pre-market phase with zero bid-ask spread and all transaction costs are absorbed by AutoWealth (4) Liquidity - Dimensional Funds liquidity are provided by Dimensional through their inhouse creation and redemption process whereas liquidity for the ETFs AutoWealth uses are transparent and shown on the stock exchange with the option of executing large sizes through authorised market makers (5) Withholding taxes on dividends - Dimensional Funds are domiciled in Ireland for efficient tax whereas the ETFs AutoWealth uses are all listed and quoted in U.S. stock exchanges. Despite the slightly higher taxes, the ETFs listed in the U.S. are still preferred by AutoWealth after taking into consideration factors including liquidity, bid-ask spread, expense ratio, ETF fund size amongst other factors. AutoWealth's Value Proposition (1) Superior Returns - Our market-returns investment strategy has proven to outperform all 20 unit trusts available in Singapore with a similar investment mandate (pls see https://www.autowealth.sg/strategy.php for our actual returns vs the 20 global balanced unit trust), not all players publish their returns, pls discern for yourself why they don't publish (2) Low Fees - 0.5% portfolio fee per annum on the assets under management + USD18 platform fee per annum (3) Hassle-free - Just go to www.autowealth.sg and you can get started and track the performance real-time 24/7 anywhere AutoWealth's Other Differentiating Factors (1) Personal Seggregated Custody - your assets and monies are held in personal seggregated custody account in your legal name for your legal benefit only, its your hard-earned wealth and therefore we safeguard them properly, this is different from unit trusts or other robo-advisors where your assets and monies are held in commingled custody account together with other clients' assets and monies (2) Dedicated Wealth Managers - our friendly wealth managers are always just one whatsapp away and you may arrange to meet them for portfolio review if necessary, some robo-advisors provide this some others don't

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Autowealth

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Tai Zhi
Tai Zhi, Chief Investment Officer at Autowealth
Level 4. Prodigy
Updated on 09 May 2019
Since 2001 when world data was first available. This would have covered many market cycles and crises including the 2001 Dot-Com bubble, 2003 SARS epidemic, 2008 GFC, 2010 Euro Debt Crisis I, 2011 Euro Debt Crisis II, 2015/16 China meltdown. The backtesting is carried out to provide scientific basis for our return & risk projections. That said, we strongly urge you to assess our actual investment returns which are published and updated on our website https://www.autowealth.sg/strategy.php This practice of publishing investment returns is a reflection of our confidence to deliver superior returns and also a reflection of our values to provide transparency. We note that we are the first in the robo-advisory space and the only one to do this.

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Tai Zhi
Tai Zhi, Chief Investment Officer at Autowealth
Level 4. Prodigy
Answered on 09 May 2019
I will use iShare Core Moderate Allocation ETF (AOM) to illustrate. 1. Selection of portfolio assets AOM holds and uses IUSD, IVV, IDEV, IAGG and IEMG, each of them a Blackrock iShare ETF. AutoWealth for one uses Vanguard ETFs for stocks allocation because we believe Vanguard ETFs represent the best solution for stock allocation (vis-a-vis Blackrock iShares and many other ETF providers). Note also that AOM uses IUSD which is not entirely a government bond ETF (only 33%). At AutoWealth, we believe government bond offers the best protection for you especially in a bad market crisis and we therefore allocate 100% of our bond allocation to government bonds. Therefore from a selection perspective, we are able to build the best portfolio using the best ETFs for you. Whereas iShares obviously uses their own products which may not always be the best in class. 2. Ability to rebalance and manage risk and improve returns AOM portfolio construction for stocks is Developed vs International vs Emerging Markets. This restricts the ability to effectively rebalance against major geographical regions like U.S., Europe, Asia Pacific and Emerging Markets. For example, U.S. and Europe both belong to Developed Markets but the two have a very different market movement from time to time. Europe experienced Euro Debt Crisis and Brexit (independent of U,S.) whist U.S. experienced trade war with China (independent of Europe) and their market movements are divergent from time to time. At AutoWealth, we intelligently hold one ETF each for each of the various geographical regions. This allows us to sell and take profit on particular regions and buy particular regions whilst they are at a discount. Portfolio rebalancing is carried out primarily to maintain a consistent risk profile and manage risk. But the secondary effect is that we take advantage of excessive market volatility to generate extra returns for you. 2. Fee/Cost Perspective AOM expense ratio is 0.25% and its top 5 holdings are IUSD, IVV, IDEV, IAGG and IEMG. Each of these are ETFs with another layer of own fees. So they are not really as cost efficient as you think.

Investments

Robo-Advisors

Autowealth

Stashaway

Tai Zhi
Tai Zhi, Chief Investment Officer at Autowealth
Level 4. Prodigy
Updated on 09 May 2019
Yes, dividends and bond coupons will be subject to a 30% U.S. federal withholding tax in line with tax regulations of the U.S. Internal Revenue Service. Nevertheless, ETFs listed in the U.S. are still preferred over ETFs listed in other countries like the U.K. after taking into consideration factors including liquidity, bid-ask spread, expense ratio, ETF fund size amongst other factors. AutoWealth works with our partnering custodian to seek partial reimbursement of the withholding taxes from the U.S. Internal Revenue Service, where applicable. The last reimbursement was done in Sep 2018 for 2017 withholding taxes. You may wish to check out our other FAQs at this url: https://www.autowealth.sg/faq.php

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Autowealth

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Tai Zhi
Tai Zhi, Chief Investment Officer at Autowealth
Level 4. Prodigy
Updated on 07 May 2019
You can use Seedly2019 to enjoy a S$20 top-up when you start and fund an AutoWealth account. How to use the promo code 1. Visit www.autowealth.sg and click “Get Started” 2. Complete the application process & indicate Seedly2019 under the "referrer code" on the last page before submission Terms & Conditions 1. The promotion is only applicable to accounts that are funded within 2 weeks of account activation 2. The S$20 reward is subject to a "claw back" if the participating accounts are closed in less than 3 months 3. You understand that your capital is always at risk when invested
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