Annual Investment Audit 2020
Posted In: Key Investment Ideas

Our annual investment audit 2020 is here! Investing in 2020 was about being resilient, resisting the urge to sell, looking for opportunities, and rebalancing after things have calmed down. We believe that 2021 will be about going global as sectors and markets affected by lockdowns start to revive.

At the same time, as we advance into the future, we have eyes on the long term. We will look to work with portfolio managers who invest with exposure to the disruptors that make our world more digital and sustainable through alternative energy, fintech, healthcare, and 5G.
Let us work together to help shape your portfolio for the future.

Our 2021 outlook and investment recommendations:

Annual Investment Audit 2020 results:

For Advanced/Aggressive Portfolio (100% Equity):

We recommend Dynamic Global Equity Private Pool.  It outperformed its private pool peers on year to date, one, three, and five-year basis. Its risk-adjusted returns are higher than its peers. The investment management fee is 1% (lower than its peers).  Depending on the market conditions, the management team will hedge 40 to 70% of the portfolio to address currency risks.  You can review the full comparison here.

For Balanced Portfolio (60% Equity/40% Fixed Income):

We recommend Dynamic Global Yield Private Pool. It has outperformed since inception, 3-year and 5-year rolling return.  In March 2020, the markets dropped 35%.  All income, yield, value plays were hit the hardest during the pandemic.  They just started to recover back to pre COVID-19 levels in the last two months.  Global Yield is a balanced portfolio, and the equity side is mostly value.  As more positive vaccine updates come out, we anticipate global GDP, earnings, and valuations to improve into 2021, which is good for value stocks.  You can review the full comparison here.

For Moderate/ Conservative Portfolio (20% Equity/80% Fixed Income):

When it comes to conservative portfolios, their performance is within the same range for the pension/investment management companies we audited.  They all hold majority traditional high grade, fixed income (Government, Federal, Corporate) bonds and 10-30% allocation to large-cap dividend-paying stocks. The window is very narrow. Dynamic Conservative Yield Private Pool still managed to outperform on 1,3,5-year bases. Alternatively, others look good but we feel Dynamic is positioned to be consistent into 2021.  You can review the full comparison here.

Alternative noteworthy investment option:

Russell Investments ESG Global Equity Pool: 9.37% year-to-date return

Fidelity Global Innovators® Class: 85.03% year to date return

Important Note: Past performances do not dictate future performances.  We design your portfolios accordingly to your goals, values, financial personalities, and risk tolerance.

Noteworthy Newcomers:

Dynamic Energy Evolution: focuses on finding and investing in the renewable energy leaders of today and the innovators of tomorrow.

Fidelity Womens Leadership Fund: invests in a core US equity strategy.  It focuses on companies that prioritize and advance women’s leadership and development across their organization.

E&OE 2020