Omakase Income Portfolio
- Monday, 17 August 2020
- Written by Marc Chow, Head of Business Development & Partnerships of GAX MD
This article talks about our Omakase Income portfolio. This could not have come at a more strategic time as the world reels from the effects of COVID-19 , continual political and social uncertainty that are affecting investors from every walk of life today. The Omakase Income portfolio provides stability to our investors who look to invest in a portfolio that has a stable long-term outlook with regular returns amidst times of global market uncertainty.
What is Omakase Income?
Omakase Income is simply a portfolio made up of a 100% allocation into our Income functional portfolio (refer to image below). By selecting our Omakase Income portfolio, you will be invested into our shortlisted range of Income ETFs. Further information of these ETFs can be found here.
Why Omakase Income?
Our Omakase Income portfolio is suitable for investors:
- Seeking investment returns via regular income
- Seeking downside protection during times of global market uncertainty
- Who wish to receive potentially higher returns than those of cash deposits*
*Based on our back-tested performance, our 100% Income portfolio returned 5.9% p.a. from July 2007 – June 2020.
We have realised that during such times of global market uncertainty, some investors have chosen to withdraw from their portfolios and hold cash to wait out the uncertainties. Given the current low interest environment, holding cash or saving in cash deposits may prove counter-productive against inflation, as such, the Omakase Income portfolio aims to address this by investing only in fixed-income instruments aimed at generating a steady stream of return with slightly lower risk characteristics. As such, the investor is not exposed to the volatility of the equities as well as the commodities market. However, buyer beware, as the investor is still exposed to existing currency exchange risks between the USD and MYR.
Below are some performance comparisons of our Omakase Income portfolio vs a 12-month MYR Deposit.
How to set up an Omakase Income Portfolio?
- The Omakase Income portfolio is merely a 100% Income Portfolio. Investors can generate it by manually sliding the Income weightage to 100% in the Edit Portfolio function or the Create a New Portfolio function, as MYTHEO allows each investor to have up to 6 different portfolios.
- Investors can also opt to switch into the Omakase Income Portfolio via our Switching function within the app.
- Lastly, investors who wish to withdraw funds from their portfolio will also receive a pop-up notification on whether they would like to switch into ‘Omakase Income’ instead.