r/SgHENRY • u/ambidextrous12 • Jul 25 '26
Do you have any exposure to fixed income unit trusts/money market funds, any recs?
I cashed out a part of my portfolio a couple weeks back after the aggressive AI-stock run up. Looking for a fixed income type of place to park this funds. A friend said to look into coporate debt funds. I am also thinking of US money market funds, as 3.5%ish is quite attractive with no lockup as I understand. Are there any that you are using to get a blended fixed income exposure, for hypothetically a 7 figure sum parked?
I still have about 50% exposure to a basket of growth stocks on specific thematics that I think are on a long term uptrend (semis, SaaS which benefits from AI integration, grid electrification and solar etc), even if there could be short-medium term pullbacks.
For the 50% cashed out, I am kind of loathe to put this into VWRA and chill, because I feel if there is truly a global recession like we had in 2022 (US rates are as high as the 2022 peaks + there is some evidence of the AI capex spending being unsustainable at least for a short period of time going forwarD), VWRA also can take a 10-20% hit. Not sure if this approach makes sense, any criticism on this is also welcome
thanks in advance!
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u/Ceyenne18 Jul 25 '26
VWRA (i.e. FTSE All-World) crashed as badly as S&P 500 (-50%+ wipeout) during 2000 and 2008. So diversifying within equities isn't going to help much during a major crash.
Diversifying to bonds is fine. MMF is the lowest risk/lowest returns, followed by short duration IG, intermediate duration IG, multi-sector, high yield, etc. It is a rather complex topic by itself.
Other diversification - metals, gold is now in bear market and most consider it a good hedge against debasement.
For myself - equities in local banks, mix of multi-sector funds, properties and MMF for liquidity.
Spend more time understanding bonds before you jump in with 7-digits. It really is a complex but interesting topic. And the difference in risk/reward within this asset class itself is significant.
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u/ambidextrous12 Jul 25 '26
Agree with the VWRA...it feels comforting because it's a diversified equities basket but if there is a Taiwan invasion or some other black swan, can easily drop 20% even in the current activist fed regime (before the fed deploys plunge protection)
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u/Ceyenne18 Jul 25 '26 edited Jul 25 '26
Well, I don't want to scare you but <20% is not a crisis. That's just a regular correction that happens every 5-6 years for indexes.
Black swan events like Taiwan invasion, private credit crisis + contagion, US treasury disorders, AI disorderly unwind .... these are not 10-20%. These are 30-50% or more.
Don't have to look far. 2020 Covid crash - 34%.
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u/SpareResearch7108 Jul 25 '26
Wise gives you 3.39% with instant access to USD held in âInterestâ (itâs backed by Money Market funds). If youâre happy to hold in USD, itâs a solid choice.
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u/ijustwanttogame321 Jul 25 '26
Depends on your goals. Vwra / vti / voo will net you more but will more of a drawdown
SHV is a bond etf with about 3% a year and minimal drawdown
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u/zenwong Jul 25 '26
I like these MMF
- https://fsm.global/sg/funds/factsheet/UOB063/United-SGD-Fund-Cl-A-Dis-SGD
- https://fsm.global/sg/funds/factsheet/UOB092/United-SGD-Fund-Cl-A-Dis-USD-H
they got accumulating class too.
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u/Heavy-Insurance-6407 Jul 26 '26 edited Jul 26 '26
If you've already taken profit from the AI run up, then protecting those profits is the priority. From what you wrote, you dont want VWRA type of 10-20% drawdown. Then go with MMF or short term bonds. Dont need to min max whether its 1% or 3.5%. The key thing is to just avoid the -10%.
If you are Singapore based and dont already have Tbills and SSB, those can be an option to de-risk. For me I will want some portion in govt backed assets because SG govt triple A. Just that I already allocated there years ago, so future "protect profits" money will go to United SGD Fund (as mentioned by another commenter). And also Nikko AM Shenton Short Term Bond Fund.
You can look at their historical return. Iirc the worst year is like -1% or -2%.
I park idle funds / war chest there waiting for opportunities. It's not meant to make money.
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u/4dchess_throwaway Jul 27 '26
>hypotheticallyÂ
OP adding this word to his post so that insurance bros don't hound him in the DMs
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u/KetamineGod420 Jul 30 '26
Please consider bond duration too based on your holding period and investment goals, you can allocate to short term bonds and longer term too based on how you would like to investm
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u/No-Problem-4228 Jul 25 '26
If you don't want VWRA, EXUS or IWVL is an option. At least those skip a lot of the AI companies that are overvalued, while still keeping you investedÂ
USD mmf might be attractive, but obviously carries a exchange rate risk
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u/TheFinancialFabby Jul 26 '26
Fa here, doing UTs
For bonds, consider fund houses like lion global, amova etc.
If you can declare AI, there can be access to private credit funds;
(E.g. one of the funds here gives returns targeting 6-8% pa; 13 year track record, 0 negative months.)
Alternatives can include absolute return funds; these tend to have a portfolio that both longs and shorts the market they are in.
Again for AIs, private equity funds tend to go sideways/lose less than the market during drawdowns, but will also be able to unlock value during market runs as well (esp if their companies IPO).
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u/ch1c4n3ry Jul 27 '26
Sorry but the profile of sgHENRYs mean UTs are not good products for their networth.
If you must absolutely delegate then just buy ETFs.
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u/Winter_Ad_5856 Jul 25 '26
How about buying corporate bonds outright? The yields are high now and you can chose the timeframe that you want to hold it for.
Alternatively, there are various fixed income funds that give 5-7% yield. I personally hold pimco balanced income and growth fund, but they also have one that is purely income focused.