Sam Phoen - 31 Oct

PERSONALITY-DRIVEN PORTFOLIO

Personality Driven Portfolio looks at how retail investors can do better by adopting investment styles that play best to their personality types. Instead of proffering impersonal one-size-fits-all advice, the author advocates an approach to long-term investment success that recognises who we are as unique individuals and how we can tilt the odds in our favour despite behavioural biases driven by our innate attitudes towards risks and rewards. A refreshing addition to the literature on smart personal investing.

DR SUNG CHENG CHIH, CEO, Avanda Investment Management Pte Ltd

This book is particularly suitable for investors who despite having a good knowledge of financial instruments are not quite able to enjoy their investing journey. The missing element is often not factoring your personality into your investment process. Sam has done a good job in summarising the main personality types and he will show you how to match your personality to your portfolio construction. You should be able to see a distinct change in the quality of your journey after reading his book.

GERARD LEE, CEO, Lion Global Investors (a member of the OCBC Group)

2018 Sam Phoen and Marshall Cavendish International (Asia) Pte Ltd

Published in 2018 by Marshall Cavendish Business

An imprint of Marshall Cavendish International

All rights reserved

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All examples and analysis in the book are provided for illustration purposes only and should not be considered as specific investment advice. Investment in securities involves the risk of loss. Past performance of investment products is not necessarily a guide to future performance. Any reliance placed on the information herein is strictly at the readers own risk. The author will not be held liable for any losses arising out of the use of the information.

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National Library Board, Singapore Cataloguing-in-Publication Data

Names: Phoen, Sam.

Title: Personality-driven Portfolio: How to invest right for your style / Sam Phoen.

Description: Singapore : Marshall Cavendish Business, 2018.

Identifiers: OCN 1039708191 | eISBN 978 981 4828 90 1

Subjects: LCSH: Investments. | Portfolio management.

Classification: DDC 332.6dc23

Cover design by Lorraine Aw

Printed in Singapore

IT FEELS LIKE a long time since my first book, High Net Worth Investing: How to Grow your Wealth through Practical Asset Allocation, was published. That book was written to share my experiences from three different perspectives that of a banks Relationship Manager, an Investment Product Structuring Specialist, and a High Net Worth customer.

I had these different perspectives as I was fortunate enough to be involved directly or indirectly in several functions in a bank, a hedge fund, a sovereign fund, as well as being a customer of several priority and private banks.

Besides sharing my experiences, that book was written with the hope of raising the financial literacy levels of high net worth retail investors. Two months after publication, the book launched an interesting path for me as a trainer/coach. I started coaching on topics like Asset Allocation for individuals, how to feel investment products from a retail investors angle, and soft skills for dealing with challenging conversations.

As I coached and shared more in courses and seminars, I became more intrigued by what retail investors really need.

With increasingly rich and volatile markets after long periods of steady rises, investors are finding timing the markets to be especially challenging. They are warming to the idea of Asset Allocation to diversify their risks, and starting to ask how to construct portfolios beyond just punting in the markets. As for those investors who have already put together portfolios of their own, I see some of them struggling with portfolios that although seemingly suited to their basic profile, are simply not compatible with their investment personality.

This book is inspired by these investors.

In writing this book, I have again used my experiences from three different perspectives. This time the three perspectives are that of Long-Term Investor from my experiences in GIC, that of an active Short-Term Trader from my experiences in a hedge fund, and that of a Retail Investor from my personal experiences as one!

From these perspectives, I have formulated a practical portfolio construction process thats suitable for most retail investors to tailor to their own unique investment personality.

I am grateful to many people for their help. I would like to thank my friend Pang Cheng Duan for his valuable feedback on Fixed Income portfolio construction. Thanks also to Lisa, Stanley and team from Phillip Securities for providing me with the beautiful stock price charts for illustrations. Special thanks to my family and friends who have never stopped supporting me in whatever I do.

It is my sincere hope that this book will set investors on the right path to constructing customised portfolios that can stand the test of time.

CONSTRUCTING A PORTFOLIO is easy. Just open a trading or brokerage account, then start buying what you like with the money you have set aside. Done!

If only it was so simple.

How to build the perfect investment portfolio thats a headline thats seen in so many personal finance and self-help articles. But building an investment portfolio is hard enough; is there really such a thing as the perfect investment portfolio?

At the CFA-Singapore Exchange Portfolio Construction Conference held on 24 February 2018, the audience was asked in a live poll for their views on the biggest investment challenges they faced. Here are the responses they gave: