Introducing DragonFi’s Flagship Fund Portfolios | The Long Game Podcast
DragonFi introduces five age-based flagship fund portfolios designed to match investors' life stages, ranging from the high-growth Starter Era portfolio (80-90% equities for those in their 20s) to the income-focused Retirement Ready portfolio (70% bonds/money market for those 70+). The strategy emphasizes global diversification through equity feeder funds for capital growth while leveraging Philippine stocks for high-dividend yields (7-10%), combined with monthly-paying income funds as investors age.
Summary
Franco and Jared from DragonFi present their new flagship fund portfolios, designed for age-based investing across five life stages. They begin by establishing the case for global diversification, noting that the Philippine Stock Exchange (PSE) has been largely flat over the past decade while global indices—the S&P 500 (up 8.55% YTD), Nikkei (up 37%), and Taiwan Exchange (up 52.5%)—have significantly outperformed. They argue this underperformance stems partly from the PSE's lack of a technology sector.
The hosts propose a hybrid investment strategy: use Philippine stocks for their exceptional dividend yields (7-10% from companies like PLDT, Metrobank, and LTG), which allow investors to withdraw income without selling shares, while pursuing capital growth through global equity feeder funds. This approach enables investors to reinvest Philippine dividends into global funds for wealth compounding.
The five portfolios are tailored by life stage:
1. **Starter Era Portfolio (20s)**: 80-90% equities, emphasizing maximum growth with time as an advantage. It allocates 40% to the Manulife Global Semiconductor Opportunities Fund (offering concentrated exposure to semiconductor and equipment companies like Intel, Marvell, and Credo Technologies) and 40% to the BPI US Equity Feeder Fund (S&P 500 tracking with top holdings like Nvidia, Apple, and Microsoft). The remaining 20% goes to global bond funds.
2. **Wealth Builder Portfolio (30s)**: 70% equities, 30% bonds. As financial responsibilities increase (family, home, car purchases), concentration in semiconductors reduces. The Global Tech Fund replaces the Semiconductor Fund to provide broader technology exposure while maintaining core US equity exposure.
3. **Balanced Wealth Portfolio (40s)**: 60% equities/multi-asset income, 40% fixed income/money market. This portfolio introduces the Global Multi-Asset Diversified Income Feeder Fund (JIMA D), a monthly-paying fund offering 5.5% annualized yield with a 50% fixed income, 50% equities composition. It represents a shift toward passive income generation.
4. **Capital Preserver Portfolio (50s-60s)**: At least 50% equities, up to 50% fixed income/money market. This portfolio introduces the Preferred Income Feeder Fund (monthly dividend payer at 5.4% annualized), which combines bond-like stability with stock-like tradeability. Three of the four funds now pay monthly income.
5. **Retirement Ready Portfolio (70+)**: 30% income-paying equities, 70% bonds/money market (heavily weighted toward money market for liquidity). The US equity component is removed entirely to eliminate stock market crash risk to retirement savings. All funds except the money market pay monthly income, providing a stable income stream for retirees.
The hosts note these are initial compositions subject to change as new funds become available on the DragonFi platform. They mention potential future launches of peso-based versions of these portfolios, pending more Philippine fund options.
About this episode
In this episode of The Long Game Podcast, DragonFi Research Analysts Franco Fernandez and Jarrod Tin pull back the curtain on the next phase of Signature Portfolios: the Flagship Fund Portfolios, built for age-based investing. They walk through the composition and allocation of each fund, from growth-focused strategies for younger investors to capital preservation strategies for those nearing or already in retirement, giving you a clear picture of how each portfolio is built and who it's designed for. Share your story with us. Tell us about your investing journey, your wins, challenges, successes, and lessons learned along the way. We will feature real stories from our community to educate and inspire fellow investors. Submit your mailbag questions and stories using the link below. https://bit.ly/dragonfimailbag
Key Insights
- The PSE has been flat over the past decade while global indices significantly outperformed—the S&P 500 is up 8.55% YTD, the Nikkei 37%, and Taiwan Exchange 52.5%—largely due to the PSE's absence of a technology sector.
- The Manulife Semiconductor Fund deliberately avoids mega-cap semiconductor stocks like Nvidia and AMD in favor of value plays (Intel, Marvell, MaxLinear, Credo Technologies) that will benefit from AI development.
- Philippine dividend yields (7-10% from PLDT, Metrobank, LTG) allow tax-efficient income withdrawal without selling shares, compared to S&P 500's average dividend yield of just 1%, making the PSE superior for passive income despite global markets' superior capital growth.
- Global multi-asset income feeder funds like JIMA D are structured as balanced funds (50% fixed income, 50% equities) that pay monthly yields (5.5-6.1% annualized) and have produced new all-time highs, making them suitable for intermediate investors seeking stability with income.
- The recommended strategy sequence is: build equity exposure heavily when young using the rule of 110 (110 minus age equals equity allocation), gradually shift toward monthly-paying income funds in middle age, and eliminate all stock market exposure in retirement to protect purchasing power.
Topics
Transcript
[0:00] Welcome back to the long game. My name is Franco. >> And I'm Jared. Today's episode is a good one. We'll be revealing the next phase of our signature portfolios, the flagship fund portfolios >> built for age-based investing. So, we'll be walking through each one, the composition of each fund, and how each fund uh each uh fund has their own specific allocation. So, let's get right into it. >> Okay, so first let's talk about why you need to diversify with funds. So, [0:32] the main point is the PSEI has been very tough, right? If you notice uh over the past decade, the PSEI has been flat, and uh we have not been outperforming at all,…
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