My 2023 Asset Allocation

2023 asset allocation

In this 2023 asset allocation article, I will share my year-end allocation in both Malaysia and foreign markets.

Target asset allocation

Malaysia

My target allocation is 10% P2P lending and 90% stock.

I am only considering equities, mutual funds and peer-to-peer (P2P) lending.

Foreign

My current target allocation is 20% in bonds, 74% in equity and 6% in alternative assets. It was changed from 20% bonds, 78% equity and 2% cryptocurrency previously.

My investment assets in foreign markets are made up of exchange traded funds (ETFs) and mutual funds. A portion of these investments is on the robo-advisor platform, MYTHEO. My investment on MYTHEO consists of three portfolios, namely growth, income and inflation hedge. For simplicity sake, I am going to group income and inflation hedge into bonds.

Malaysia vs foreign

My target allocation between the local and overseas markets is 70% and 30%.

2023 asset allocation

Malaysia

My investments in Malaysia are divided into P2P lending (7.68% vs 1H2023: 8.91%) and stock market (92.31% vs 1H2023: 91.09%).

My top three holdings are MAYBANK (24.79%), PAVREIT (12.76%) and UCHITEC (12.45%).

This is still my ideal allocation as I have given myself a leeway of ±5%.

Foreign

My investment assets in foreign markets are 19.30% bonds (1H2023: 21.26%), 76.23% equities (1H2023: 77.48%), and 4.47% in alternatives (1H2023: 1.26%). I consider this allocation to be within my target as I have given myself a leeway of ±5%.

The table below shows the countries that I have equity exposure with their percentages in my foreign portfolio (including mutual funds on Fundsupermart and and ETFs on Firstrade but excluding my portfolios on MYTHEO).

StockPercentage
Cash7.60%
China15.61%
India11.01%
Indonesia4.63%
Singapore15.23%
US23.80%

Current asset allocation between Malaysia and overseas

As on 31 December 2023, I have 77.04% (1H2023: 77.87%) of my total investment assets in Malaysia and 22.96% (1H2023: 22.13%) in the foreign markets. I have moved closer to my target allocation [70% (Malaysia)/30% (foreign markets)].

Conclusion of 2023 asset allocation

I still have not attained my ideal allocation between local and foreign markets yet. As I focused primarily on the foreign markets last year, my foreign markets allocation has increased. I will continue to invest more money into the foreign markets in 2024.

Asset allocation is an important determinant of the eventual return of a portfolio. I hope that my allocation will give me the return that I target, which is at least 7% per annum. I have achieved this target in 2023. Let’s see if my portfolio will be able to achieve this in 2024.

Invest and prosper!

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