How the LGI-iFAST Trigger Point Investment Strategy Solves Singapore’s Investment Challenges

Discover how the LGI-iFAST Trigger Point Investment Strategy helps Singaporean investors overcome market volatility with a disciplined, rules-based approach.

Investment Challenges for Singaporean Investors

Investors in Singapore face persistent hurdles when managing their portfolios. Common challenges include:

1. Market Timing Difficulties: Successfully identifying the best times to buy or sell is a major struggle, leading many to miss critical opportunities or lock in losses.
2. Inconsistent Rebalancing: Without a clear, disciplined process, portfolios can become overexposed to risk or fail to capitalize on market shifts.
3. Emotional Investing: Fear-driven selling during downturns or greed-driven buying during peaks often undermines returns.
4. Insufficient Diversification: Many investors focus too heavily on local or sector-specific markets, increasing their vulnerability to downturns.
5. Static Investment Approaches: Strategies like buy-and-hold or dollar-cost averaging lack adaptability, leaving investors unprepared for market changes.

These issues highlight the need for a systematic, data-driven solution that removes guesswork and ensures disciplined investing.

The LGI-iFAST Trigger Point Investment Strategy: A Game-Changer

The LGI-iFAST Trigger Point Investment Strategy addresses these investment challenges head-on. This rules-based, quantitative strategy uses market valuations to guide investment decisions, ensuring that portfolios remain dynamic and aligned with long-term goals.

What Makes the LGI-iFAST Trigger Point Investment Strategy Unique?

1. A Data-Driven Approach Using P/B Ratios

The strategy relies on price-to-book (P/B) ratios to measure the market value of assets. By comparing current valuations to historical norms, the strategy identifies when to buy or sell:

• Low P/B Ratios: Increase equity allocation to seize undervalued opportunities.
• High P/B Ratios: Shift to safer assets like bonds to lock in profits.

This systematic use of P/B ratios ensures a disciplined, objective approach to investing, avoiding the emotional traps of greed-driven buying or fear-driven selling. If you’d like to dive deeper into how P/B ratios work and why they are integral to this strategy, check out our detailed article on what makes the LGI-iFAST Trigger Point Investment Strategy unique.

2. Trigger-Based Rebalancing

Predefined trigger points prompt automatic rebalancing, ensuring portfolios adapt to market conditions:

• Equity weight increases in undervalued markets.
• Equity weight decreases in overvalued markets.

3. Dual Investment Plans for Flexibility

• Wealth Accumulation Plan (WAP): Designed for long-term growth with diversified investments across America, China, Europe, and other developed markets.
• Automatic Payout Plan (APP): Focuses on generating consistent retirement income, targeting a 5% annual payout.

4. Emotion-Free Decision-Making

By automating buy and sell decisions, the strategy removes the emotional pitfalls of panic selling or speculative buying.

If you’re keen to explore deeper into the challenges of emotional investing and learn actionable strategies to overcome them, check out our article on how to overcome emotional investing for practical tips and insights.

5. Adaptability to Volatility

Unlike static strategies, the LGI-iFAST Trigger Point Investment Strategy thrives on market volatility, leveraging fluctuations to enhance returns.

How the LGI-iFAST Trigger Point Investment Strategy Works

1. Daily Market Monitoring

LGI, the sub-adviser, tracks P/B ratios of key indices, such as MSCI World and MSCI Emerging Markets.

2. Trigger Point Activation

When valuations deviate from historical averages, the system signals a rebalance.

• Undervalued Markets: Trigger buys to increase equity exposure.
• Overvalued Markets: Trigger sales to reduce equity exposure.

3. Portfolio Rebalancing

iFAST executes rebalancing automatically, reallocating assets to align with the updated strategy.

4. Dynamic Allocations

Depending on market conditions, portfolios can shift from 100% equities to 100% bonds.

5. Investor Transparency

Investors can monitor individual portfolios or consolidated performance via the iFAST platform.

Why Singaporean Investors Benefit from the LGI-iFAST Trigger Point Investment Strategy

1. Optimized for Market Volatility

The strategy reacts dynamically to market changes, making it ideal for Singapore’s open economy, which is often influenced by global financial shifts.

2. Broad Diversification

With exposure to key markets across the U.S., Europe, and Asia, the strategy minimizes risks associated with over-concentration in single regions or sectors.

3. Long-Term Focus

Whether accumulating wealth or planning for retirement, the strategy aligns with varying financial objectives while maintaining discipline.

4. Cost-Effective Entry

The LGI-iFAST Trigger Point Investment Strategy is accessible to retail investors, with manageable minimum investment requirements and competitive fees.

Benefits of the LGI-iFAST Trigger Point Investment Strategy

1. Eliminates Emotional Bias: Investments are guided by data, not emotions, ensuring rational decisions even in volatile markets.
2. Automatically Adjusts Allocations: Trigger points ensure portfolios adapt to changing market conditions.
3. Diversified Across Major Markets: Investments are spread globally, reducing risks tied to single regions or sectors.
4. Efficient Capital Allocation: Shifts between equities and bonds are made at the right time, maximizing returns and minimizing risks.
5. No Keyman Risk: As a rules-based system, the strategy ensures consistency and continuity.

Potential Limitations

While the LGI-iFAST Trigger Point Investment Strategy is robust, there are considerations:

• Flat Markets: In periods of low volatility, the strategy may generate fewer opportunities for rebalancing.
• Tech Sector Valuations: P/B ratios may undervalue industries like technology, where intangible assets dominate.

Despite these nuances, the strategy remains highly effective in dynamic and volatile market environments.

Conclusion

For Singaporean investors grappling with market timing, emotional investing, and portfolio management, the LGI-iFAST Trigger Point Investment Strategy offers a disciplined, data-driven solution.

By leveraging price-to-book ratios, trigger-based rebalancing, and a rules-based framework, the strategy eliminates guesswork and positions portfolios for long-term success.

Whether your goal is wealth accumulation or retirement planning, the LGI-iFAST Trigger Point Investment Strategy ensures that your investments are aligned with market realities and personal objectives.

Join the LGI-iFAST Trigger Point Strategy Client Seminar to gain a comprehensive understanding of how this strategy can elevate your investment journey.

Seminar Details:

• Weekend, 3:30 PM – 5:00 PM (Refreshments provided)
• Weekday, 7:30 PM – 9:00 PM (Dinner provided)
• Location: iFAST Financial Office
  10 Collyer Quay
  #26-01, Ocean Financial Centre
  Singapore 049315

This event is held twice a month, offering a convenient way to stay informed. 

To secure your spot or stay updated on future dates, simply fill out the form through the event link.

We look forward to seeing you there!

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Disclaimer:

This information is intended for educational purposes and should not be construed as financial advice. Please consult with a professional advisor before making any investment decisions.

Note: The investment described aims to protect your principal from market losses due to its structure. However, ongoing charges and fees may affect the overall performance, and there is a possibility that the investment value could decrease. It’s important to understand all terms and conditions before proceeding.