This is another email from a reader enquiring about the bond component in the Singapore Permanent Portfolio. I will publish these emails as FAQs which I believe will be useful for other readers.

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Dear Alvin,

I have attended your talk in April 2013 concerning the Singapore Permanent Portfolio.

Would appreciate your advice concerning the following bond matter.

Concerning the Bonds portion of the portfolio, I remembered your recommendation is 30 year SGS Bonds. However I noted that the one currently available is NA12100N 420401 10 @ 2.75%. Currently this bond is selling in the market at around $95 or so and thus effective interest at most is 2.8% which is lower than the inflation rate in Singapore (inflation is around 3.5% to 4%?).

I also note that there is another bond issued by LTA which is paying 4.17% (LTAn4.17% 160510 10K. This bond ...