On Friday, my bank confirmed the execution of $439,000 into two different funds. It’s a fairly significant sum, and I haven’t deployed this amount of money for quite some time.
Capital is from the sale of my Temasek bond and a cash injection of ~$30,000. Had sold Temasek mostly due to its likely decline in pricing as it ages and thus the loss of my capital appreciation. This latest move can be seen an re-organisation and re-optimisation of my existing funds and credit line, increasing both risks and returns.
Allianz Income and Growth
$219,000 was deployed into Allianz Income and Growth, at a price of $9.86. Financing provided was $114,000, and $105,000 was paid in cash. Total loan-to-value was about 52%, with leveraged yield at ~13.5%.
The Allianz fund is made up of about 30% American equities, 30% high-yield bonds, and 30% in convertible bonds. I consider this as a riskier investment as the stock market has been going up fairly relentlessly