Lion Global Investors (“Lion Global”) – one of Asia’s leading asset management companies, has recently announced the launch of their latest managed portfolio –LionGlobal Dynamic Growth: Asian Perspective, exclusively available through Saxo Markets’ platforms.
This post was originally posted here. The writer, Brian Halim is a veteran community member and blogger on InvestingNote, with a username known as @3Fs and has 2,000+ followers.
Led by experienced professionals and portfolio managers, the Lion Global Investors’ Curated Portfolios team has curated a globally diversified multi-asset portfolio designed with an Asian lens. This means the portfolio retains its global characteristics but provides an additional strategic exposure to China, broad Asia and the Emerging Markets as key sources of future yield and growth potential.
Previously, Saxo Markets’ other managed portfolios were created with other industry leading names such as BlackRock, Nasdaq Dorsey Wright, Morningstar and Brown Advisory.
The new portfolio is suitable for investors who are looking to achieve superior risk-adjusted returns ensuring risks taken are commensurate with potential returns, particularly in industry and geographical sectors that will be booming in the next few years.
In this article, I have listed 5 reasons why the LionGlobal Dynamic Growth: Asian Perspective portfolio might be suitable for you:
1.) Globally Diversified Portfolio With Targeted Exposure to Asia and the Emerging Markets
The portfolio comprises of nine best-in-class mutual funds and low-cost ETFs and is managed dynamically by investment professionals so its composition can change and respond to market events.
The Curated Portfolios team uses open architecture when selecting funds. Therefore, they can select any fund available on Saxo Markets’ platform. Lion Global does not receive trailer fees from any of the fund managers of funds selected in the portfolio and this allows them to remain objective in their fund selection process.
The portfolio is well diversified across major asset classes (Equities/Fixed Income/Commodities) and Regions (Developed markets/Emerging markets/US/Europe/Asia). Leveraging on Lion’s Global’s expertise in Asian markets, the Asian lens means there is additional strategic exposure to China, broad Asia and the Emerging Markets as key sources of future yield and growth potential compared to a typical global portfolio that may have less weighting to these regions as they tend to lean more towards the US and European equities and fixed income.
Unless it is not ideal to do so from an investment perspective, the portfolio will be rebalanced on a quarterly basis. Rebalancing means either the exposure of each mutual fund/ETF in the portfolio is increased/decreased or, if necessary, mutual funds/ETFs can be added or removed.
This helps the portfolio strike a balanced allocation for optimal return and risk management.
Geographically, this will cover the major markets such as exposure to US, Europe, China, Japan and Indonesia with targeted exposure in various growing sectors such as Electric Vehicles, 5G Communications and Emerging Market equities.
In essence, Lion Global and Saxo Markets have created a premium private-banking type investment solution, managed by investment professionals that offer the best possible asset allocation, fund selection, portfolio monitoring and quarterly rebalancing and made it simple and easy to access for the retail investor.
2.) Past Performance Returns Based on Back-Testing Strategy
A back-testing strategy was performed to see how the portfolio would have performed if it were incepted 5 years ago.
While the product has only been recently launched in February, past simulated returns based on the back-testing strategy have been nothing less than impressive.
Each of the mutual funds/ETFs in the portfolio has its own live track record. The performance return of the portfolio is simulated by using the past 5-years live track records of each mutual fund/ETF in the portfolio according to their respective exposures (i.e pro-rata exposure) within the overall portfolio.
- YTD: 2.38%
- 2020: 25.61%
- 2019: 23.49%
- 2018: -7.72%
- 2017: 24.79%
Note: Past-performance simulation is not indicative of future performance.
3.) Expense Ratio and any other costs involved
A service fees is charged at 0.25% per annum.
The service fee is an annualized fee that is paid for having the portfolio managed and actively rebalanced as necessary.
It is charged to the portfolio at the end of each quarter based on the daily value of the portfolio and calculated on a daily pro-rata basis.
There are no other hidden costs involved such as platform or commission fees.
Expected ETF Costs: If your portfolio invests into ETFs, you should know that the ETF manufacturer takes their charge from within the ETF. This is convenient as it means there are no cash transactions (to the ETF manufacture to cover costs), costs are simply reflected in the performance of the ETF.
4.) No Lock-in Period
There is no lock-in period.
What this means is that as investors, you are able to exit your positions at any point in time if, for instance, you want to realize your profits, or you need your funds urgently without any penalty.
However, do note that the managed portfolio is designed for investors who are looking for mid-to long-term investing so it is best to align your perspective before investing.
5.) How Much (Minimum) Can I Invest?
The minimum investment for the USD denominated portfolio is a lump sum of USD10,000.
There is also a Regular Savings Plan (RSP) option for the SGD denominated portfolio which starts from an initial investment as low as SGD2,000, and then regular monthly contributions will start from a minimum of SGD100 subsequently.
The RSP has its own distinct advantages in that it allows you to start small and then slowly work your way up through accumulation over time.
You will also benefit from the time value of dollar-cost averaging – a concept I have written about in my past articles.
I find the LionGlobal Dynamic Growth: Asian Perspective portfolio an investment solution that is suitable for investors who are looking to invest in several high growth markets in one portfolio and who would like to leave their investments in the good hands of a professional.
It is also suitable for investors who may feel there are too many funds and ETFs out there for them to research, analyze and rank by themselves efficiently and who would like a professional investor to do it for them so they can free up their time for other things.
While there is one small cost, a service fee of 0.25% per annum (for example, a $10,000 investment would attract a service fee of only $25 per annum), this is relatively small change as compared to the amount of time and effort you would have to put in on your own with a DIY portfolio.
As with all investment risks, do note the risks involved before you make your own decision regarding your investments.
For those of you who are interested in opening a Saxo account, simply use this quick link.
Disclaimer: This is a collaboration article with Saxo Markets.
Thanks for reading.
Once again, this article is a guest post and was originally posted on Brian Halim‘s profile on InvestingNote.
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