Tai Zhi
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  • Asked by Anonymous

    Tai Zhi
    Tai Zhi
    23 Answers, 30 Upvotes
    Answered on 10 Jul 2018
    FX Risks At present moment, FX hedging is very costly especially for portfolios below S$1m in size. We do not foresee FX hedging cost reducing to a cost-efficient level over the next few years. As and when hedging cost significantly reduces to a cost-efficient level, we will be more than happy to offer FX hedging option to our clients. You may also note that USD and SGD are major currencies and they tend to be relatively more stable compared to other emerging markets currencies. Therefore, while FX risk is material, FX risk is not significant. This is especially so for investors who have a medium to long term investment horizon. For example, the AutoWealth Balanced Portfolio (60% stocks, 40% govt bonds) achieved 15.7% returns net of fees on a USD basis over the last 26 months since inception. The same portfolio achieved 16.4% net of fees on a SGD basis over the same period. Therefore, the difference of 0.7% due to FX impact is relatively small. Tax Implications The U.S. imposes a withholding tax on dividend payments made out of U.S. listed securities. These are automatically deducted at source before the net dividends are credited into the client's custody account in his/her legal name. Despite a relatively higher withholding tax, 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.
  • Asked by Alan Seow

    Tai Zhi
    Tai Zhi
    23 Answers, 30 Upvotes
    Answered on 10 Jul 2018
    There are dividends on all the ETFs we purchase on behalf of clients. Dividends are credited directly into the client's custody account in his/her legal name. Dividends are automatically re-invested. The U.S. imposes a withholding tax on dividend payments made out of U.S. listed securities. These are automatically deducted at source before the net dividends are credited into the client's custody account in his/her legal name. Despite a relatively higher withholding tax, 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.
  • Asked by Anonymous

    Tai Zhi
    Tai Zhi
    23 Answers, 30 Upvotes
    Answered on 10 Jul 2018
    Unfortunately, AutoWealth only accept cash investments at this moment.
  • Asked by Anonymous

    Tai Zhi
    Tai Zhi
    23 Answers, 30 Upvotes
    Answered on 10 Jul 2018
    All clients and transactions data are encryted and stored separately in different databases whereby the unauthorised access to one database would (1) receive unreadable data and (2) have incomplete data, ie have access to price but no access to quantity.
  • Asked by Anonymous

    Tai Zhi
    Tai Zhi
    23 Answers, 30 Upvotes
    Answered on 10 Jul 2018
    Collective investment schemes, the legal term used by MAS, comprise of: (1) mutual funds (unit trusts) (2) real estate investment trusts (3) exchange-traded funds (ETFs). ETFs are different from mutual fund in the following ways: (I) listed and trades easily on the stock exchange as opposed to not being listed (II) fund manager typically do market benchmark-tracking as opposed to fund manager who actively engage in stock-picking and market timing
  • Asked by Anonymous

    Tai Zhi
    Tai Zhi
    23 Answers, 30 Upvotes
    Answered on 10 Jul 2018
    AutoWealth Fees (1) AutoWealth charges a 0.5% portfolio advisory fee per year on the assets under management and a flat platform fee of USD18 per year. Using a S$10,000 portfolio for illustration, this works out to be about S$74 in total. This would result in cost savings of about S$146 vis-a-vis a DIY investment. DIY ETF investments (1) There are one-off trading (brokerage) costs for transacting over the stock exchange to construct the investment portfolio of ETFs. Typically, a local brokerage like DBS Vickers or UOB Kay Hian or POEMS would charge minimum of S$20+ per trade. For a portfolio of 6 ETFs, it would cost between S$120 to S$150. For a discount international broker, this would cost about S$80. (2) There are recurring custody fees of about S$60 per year, charged by the custodian for holding the shares on your behalf. This is similar to how CDP charges you to hold your Singapore stocks on your behalf. (3) Portfolio rebalancing, for the purposes of (i) managing risk and (ii) capitalising on excessive market volatility to lock in extra value-add returns, would incur recurring trading (brokerage) costs of about S$160 for 5-7 rebalancing trades per year.
  • Asked by ZhanQing Koh

    Tai Zhi
    Tai Zhi
    23 Answers, 30 Upvotes
    Answered on 07 Jul 2018
    You may refer to our platform www.autowealth.sg where we have a section "What Makes Us Different". (1) Our investment performance is great! Our clients are very happy with our investment performance and we update our investment performance at the end of each quarter. See table: https://www.autowealth.sg/strategy.php (2) All client assets are held in legally segregated accounts under their own name through Saxo Capital Markets, our partnering custodian. This means that you and only you have any legal claims on your assets in all circumstances. (3) Regardless of your investment amount, whether you signed up digitally or face to face, you will have a dedicated wealth manager assigned to you. Advice is always one whatsapp away.
  • Asked by Anonymous

    Tai Zhi
    Tai Zhi
    23 Answers, 30 Upvotes
    Answered on 07 Jul 2018
    Yes, the robo-advisor will tailor an investment portfolio recommendation based on the unique client risk profile. The performance shown during the talk belongs to our most popular AutoWealth Balanced Portfolio (60% stocks, 40% govt bonds).
  • Asked by Anonymous

    Tai Zhi
    Tai Zhi
    23 Answers, 30 Upvotes
    Answered on 07 Jul 2018
    ETFs are effective and cost-efficient to replicate market returns. At this moment, we only recommend ETFs due to its outstanding benefits.
  • Asked by Anonymous

    Tai Zhi
    Tai Zhi
    23 Answers, 30 Upvotes
    Answered on 07 Jul 2018
    AutoWealth achieves cost-efficiency by (i) innovating investment processes to be more efficient and (ii) by capitalising on technology to do most of the work. The resulting cost savings are passed on to investors through lower fees.
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