What to invest in using CPF OA ?

Please note I’m not a financial advisor and this is not investment advice. 

In early March, I decided to invest a portion of my CPF OA funds. To make an informed choice, I researched various brokerage options and watched several YouTube videos. After careful consideration, I opted for POEMS, primarily because it provides access to funds with global equity exposure—something CPF funds cannot be used for when investing in individual foreign stocks. While I also considered Endowus, which I already use for my SRS investments, POEMS seemed like the better fit for this purpose.

For those looking to explore CPF investment platforms in depth, I highly recommend checking out Chris @HoneyMoneySG. His YouTube videos offer a comprehensive analysis of the different options available.

Once my account was set up, the real challenge began—deciding where to invest. I had already settled on investing in ETFs or mutual funds but wasn’t sure how to structure my portfolio. Eventually, I landed on a simple allocation: two ETFs and two mutual funds, each comprising roughly 25% of my investment.

My CPF investment strategy was straightforward—outperform the 2.5% OA returns without taking excessive risks with what I consider my “coffin money.” With this in mind, I allocated the first 25% to the NikkoAM SGD IGBond ETF (Ticker MBH). This ETF is designed to mirror the performance of SGD-denominated investment-grade non-sovereign bonds and carries a total expense ratio of 0.26%. Its top holdings consist mainly of bonds issued by large, reputable financial institutions. As of June 7, 2025, it offers a yield of approximately 3.25%.

Source: Nikko Asset  Management

The next 25% of my CPF investment was allocated to NikkoAM-STC Asia REIT (Ticker CFA), a REIT ETF with a total expense ratio of 0.55%. Most REIT investors should be familiar with many of its top holdings, as several are listed on the SGX. LINK REIT, based in Hong Kong, is the largest REIT in Asia by market capitalization, while Embassy Office Parks REIT holds the distinction of being India’s first publicly listed REIT.

As of June 7, 2025, the ETF offers a yield of approximately 5.98%. Both investments were made via FSMOne, which charges a flat fee of $3.80 for SGX ETF transactions, including those funded through CPF.

Source: Nikko Asset  Management

For the remaining 50% of my CPF investment, I chose two Amundi funds that track the MSCI World Index and MSCI Emerging Markets Index. These funds provide exposure to a diversified portfolio of global stocks while maintaining relatively low management fees.

The breakdown of the respective holdings is shown in the table below:

Source: Amundi Factsheet for MSCI World Index

Source: Amundi Factsheet for MSCI Emerging Markets

The table below summarizes the three funds, highlighting their fees and performance. Based on these factors, Amundi Prime US Fund appears to be the better choice.

My decision to invest in the World and Emerging Markets indexes was driven purely by diversification. However, it’s worth noting that the top 10 holdings of the MSCI World Index remain predominantly large-cap U.S. stocks. 

Fund	Amundi Prime USA	Amundi Index MSCI World	Amundi Index MSCI Emerging Markets
Expense Ratio (TER)	0.05%	0.10%	0.18%
1-Year Performance	8.65%	8.56%	7.65%
3-Year Performance	12.11%	10.90%	2.86%
Underlying Index	Solactive GBS USA Large & Mid Cap	MSCI World Index	MSCI Emerging Markets Index
Geographic Focus	United States only	Developed markets globally	Emerging markets globally
Market Coverage	Large & Mid Cap US stocks	Large & Mid Cap developed market stocks	Large & Mid Cap (~85% of free float market cap)

Source: Endowus

So this is the thought process for my CPF investments, no frills, no overthinking, just keep it nice and simple.

Missed Opportunities: Reflecting on Two Overlooked Stocks

This post reflects on two investing opportunities that slipped through my fingers—OKP Holdings and Centurion Corporation. Pls note this is not investment advice to buy or sell stocks, so pls do your own diligence when investing.

1. OKP Holdings: A Resilient Comeback

OKP is a well-known construction company in my field. They gained notoriety in 2017 when a viaduct they were constructing (linking Tampines Expressway to PIE and Upper Changi Road East) collapsed, causing their stock price to plummet. However, the company has staged an impressive recovery.

Recently, OKP secured a S$258.3 million contract from the Land Transport Authority (LTA) to build cycling path networks in eastern Singapore, boosting their total order book to S$735.8 million. In fact, they’ve been consistently winning LTA contracts for cycling paths infrastructure—something I noticed firsthand while walking past their construction sites. Unfortunately, despite observing this trend, I failed to track the stock, and the opportunity passed me by.

2. Centurion Corporation: Riding the Post-COVID Demand Wave

I came across Centurion while screening local stocks. The company specializes in purpose-built worker and student accommodations, and its stock has also been on an upward trajectory.

As COVID-19 restrictions eased, Singapore’s delayed construction projects surged back to life, driving demand for foreign worker accommodation. Additionally, with the resumption of Terminal 5 (T5) development, the need for worker accommodations is set to grow further. Once again, I recognized the trend but hesitated to act.

Key Takeaways

Famous investors like Warren Buffett and Peter Lynch advocate investing in what we know best—opportunities we observe in our daily lives and work environments. However, my focus on the US market blinded me to these local prospects.

Hindsight is always 20/20, and even when we spot potential investments, conviction is crucial. Moving forward, I’ll strive to act on such insights—backed by thorough research and confidence in the companies I choose.

Golden Opportunity now ? Buy gold or not ?

Been wanting to buy some gold lately even though gold prices have been on a tear in 2025 and it's currently trading around $3300 USD, up by more than 20% since the start of the year. Since I had some free time on my own last week, I recently decided to drop by Bullion Star and decided to buy a 2.5g Pamp gold bar

I started investing in gold bullion in 2023 by buying gold coins (0.1 Oz). The only reason I chose coins instead of bars that time was purely due to aesthetics reasons as the design of the coins look more attractive. But I have since purchased only PAMP gold bars (2.5g or 5g) as it's more cost effective. I know some prominent investors like Warren Buffet hate investing in gold as it's not a productive asset. But I decided to take a leaf out of Robert Kiyosaki’s advice by investing some money into “God’s Money”, even though I’m not a particular fan of his. 

My philosophy towards financial independence is to take the wisdom of different investors and adjust them towards my risk appetite and personality. I’m not sure how you guys feel, but I just feel the world just seems to be getting crazier with Trump being the current US president and all the conflicts that are happening around us. Hence it is not surprising that central banks around the world have also been significantly increasing their gold purchases, where 1045 tonnes of gold were added to their reserves in 2024. 

My target now is to achieve a gold portfolio of about $10,000 but currently I'm not even at the halfway mark 😂. It will take some time before I can reach the target but it's ok. With regards to my gold investment, I shall take one small step at a time and buy in greater bulk when there is a pullback in gold prices.