top of page
Writer's pictureAllQuant

You can now build an “Auto-Pilot” portfolio that can snowball into some serious money

Updated: Aug 1, 2021

Investing is a serious business. Not only do you require in-depth knowledge about the markets, but you also need to set aside a considerable amount of time. Time for tracking macro market trends, economic developments, monetary policy directions, geopolitical climate, portfolio performance … The list goes on.


The challenge here is that most people are NOT FULL-TIME investors. They are ordinary folks who have their own jobs, families, friends, and interests to pursue. If you are nodding your head reading this, you are not alone. With only 24 hours a day, it is indeed an uphill task to manage your own investments amidst all these commitments.


As an alternative, many look outside for professional investment solutions. Unfortunately, what is mostly available to retail investors are traditional products that also join the markets in roller coaster rides. And after enduring all the emotional upheavals, you still have to settle for sub-optimal performance.


AllQuant brings to the table a new solution for busy professionals. We put all our 30 years of joint experience across asset management, banking, proprietary trading, and hedge fund to work. And we designed an actively managed portfolio that is resilient enough to weather through different market conditions. For those who enrolled in our courses, read our blog posts, or attended our webinar, you would have an idea of our philosophy and the basics of some of our strategies.


Investment Management Service - Introducing iFAST Global Markets


From June 2021 onwards, you can build such a portfolio through iFAST Global Markets without lifting a finger. In this collaboration, we are combining AllQuant’s expertise in hedge funds and iFAST’s advisory capabilities and bringing it to your doorstep.


iFAST (Ticker: AYI.SI) is a long-standing brand well recognized in the financial services industry with its online platforms FSMone, iFAST Central, and iFAST Global Prestige. Headquartered in Singapore, it was listed on the Singapore Exchange Mainboard in December 2014. They are also present in Malaysia, Hong Kong, and China. iFAST Financial Pte Ltd (Singapore) holds a Capital Market Services Licence and Financial Adviser Licence in Singapore and is also a CPFIS-registered Investment Administrator.


Investment Management Service - How Does It Work?


If you are a non-US citizen and do not pay US taxes, you can open an advisory account with iFAST and they will implement a specially curated quantitative strategy for your portfolio, depending on the size of your account. Each trade will require approval from you before execution.

For smaller accounts below USD 100K, iFAST will run a strategy that involves switching between US stocks and bonds based on inputs from expert quantitative models developed by AllQuant. iFAST will also run a volatility trading strategy that can act as a potential hedge during crisis periods.

For large accounts with at least USD 100K, iFAST will run a multi-strategy approach that is well diversified across geographies and asset classes.


Only exchange-traded funds or products will be used in these portfolios.


And yes, there will be fees. But not to worry, everything will be disclosed before you open the account.


Here's how a typical large account would have performed in the past since 2006. All fees are factored in. Note that this period covers the Great Financial Crisis in 2008 as well as the recent COVID-19 crisis in 2020.

The portfolio yielded an average annual return close to 12% with a lot less risk. The month-on-month moves are much more stable and losses are much lower than say a pure investment in the stock market.


A good investment strategy is an important element. But time in the market is no less critical. The longer you are out of the market, the shorter a timeframe you have to compound your returns into serious money. So take action and start investing now.


Building Perpetual Income


You can use this service to build a perpetual income that you can start to collect in your retirement years. Depending on your stage in life, you may relate to one of the three examples below.


John, 30 years old, looking to retire in 20 years


John invested USD 40K upfront at the beginning of November 2020 and he contributed USD 500 every month subsequently. As of the end of May 2021, he has contributed USD 43K and he is currently sitting on some comfortable profits of USD 7K. If he sticks to his plan, he can expect to withdraw USD 7.5K every month when he retires in 20 years without ever depleting his retirement nest egg.


Paul, 50 years old, looking to retire in 10 years


Like John, Paul invested USD 40K upfront at the beginning of November 2020. However, he knows he has a shorter runway than John to compound his portfolio. The good thing is that he has a higher income than John so he contributes USD 4K every month subsequently. As of the end of May 2021, he has contributed USD 64K and currently sits on some comfortable profits of USD 9K. If he sticks to his plan, he can expect to withdraw USD 9.5K every month when he retires in 10 years without ever depleting his retirement nest egg.


Sam, 65 years old, already retired


Unfortunately for Sam, he doesn’t have any runway to compound his wealth as he is already retired. Fortunately for him, he has accumulated USD 1M of savings which are sitting in cash. He would like to see how he can generate perpetual income from this USD 1M which is otherwise earning nothing in this low-interest-rate environment. He invested the money upfront at the beginning of November 2020 and started to draw USD 10K every month. As of the end of May 2021, he has already drawn a total of USD 70K but his portfolio is still worth USD 1.1M. In fact, he can expect to continue drawing USD 10K every month while his portfolio value remains about the same. This is a 12% withdrawal rate in a retirement account that never depletes. Talk about passive income!



467 views0 comments

Recent Posts

See All

Comments


JOIN OUR MAILING LIST!

Thanks for submitting!

bottom of page