Out of curiosity, we asked ChatGPT (free version) to review our Bedokian Portfolio, after reading up online on what other investors had done. With the exception of removing our holdings list, the answers were “as is” from ChatGPT (though from the replies you could catch a glimpse of what we are holding).
Picture generated by ChatGPT
The prompted question was: Please analyse the following portfolio. Numbers denoting quantity of securities of the ticker. Only the counter names and number of securities were provided to ChatGPT.
I will give my take at the end of the post. Meanwhile, enjoy the ChatGPT review!
Below is a structured, portfolio-level analysis based on your holdings and quantities. I’ll focus on asset allocation, concentration, risk profile, income vs growth balance, and key strengths/risks, then end with practical suggestions(not advice).
1. High-Level Asset Allocation (by asset type, not market value)
Because prices aren’t provided, this is qualitative weighting based on number of holdings and intent.
🏢 REITs & Property (Very Heavy)
~30–40%+ of portfolio (likely more by value)
Observations
- Strong Singapore REIT bias
- Diversified across industrial, retail, office, and data centres
- Heavy reliance on interest-rate direction and refinancing risk
Pros
- Stable income
- Inflation-linked rents (partial hedge)
- Familiar regulatory environment (SG)
Risks
- Rate-sensitive
- Geographic concentration (Singapore-centric)
- Structural office risk (Suntec, Lendlease)
📈 Equities – Growth & Quality
~25–35%
Observations
- Strong tilt to US mega-cap tech
- Nvidia + ASML = high semiconductor cycle exposure
- Berkshire adds stability and capital discipline
Pros
- Long-term growth engine
- Currency diversification (USD exposure)
- High-quality franchises
Risks
- Tech valuation cyclicality
- Concentration risk (AI/semiconductor theme)
🇸🇬 Singapore Equities (Non-REIT)
~10–15%
Pros
- Defensive, cash-generative businesses
- Dividends and balance-sheet strength
Risks
- Slower growth
- Small-cap liquidity (YHI)
💵 Fixed Income / Bonds (Very Strong)
~25–30%
Observations
- Excellent capital preservation sleeve
- Laddered duration via SSBs
- High credit quality overall
Pros
- Stability
- Income buffer during equity drawdowns
- Strong SGD base
Risks
- Reinvestment risk if rates fall
- Lower real returns long term
🌱 Thematic / Satellite ETFs
~5–8%
Pros
- Optionality and upside themes
- China exposure via A-shares (policy levered)
Risks
- Volatility
- Policy and regulatory risk (China, clean energy)
🪙 Commodities / Hard Assets
~3–5%
Pros
- Inflation hedge
- Crisis insurance
Risks
- No yield
- Silver volatility
2. Portfolio Characteristics Summary
Dimension | Assessment |
Income Generation | ⭐⭐⭐⭐⭐ Very strong |
Capital Preservation | ⭐⭐⭐⭐½ |
Growth Potential | ⭐⭐⭐⭐ |
Geographic Diversification | ⭐⭐⭐½ |
Interest Rate Sensitivity | ⚠️ High |
Currency Diversification | Moderate (SGD + USD heavy) |
3. Key Concentration Risks to Watch
🔴 1. Singapore REIT + SGD Risk
- REITs + SGD bonds + SG equities = macro concentration
- If SG property or rates move adversely, multiple assets correlate
🔴 2. Interest Rate Sensitivity
- REITs + bonds move inversely to yields
- A sharp rate spike would pressure both income sleeves
🔴 3. AI / Semiconductor Cycle
- Nvidia + ASML + S&P 500 exposure
- Fantastic upside, but cyclical drawdowns can be severe
4. Strengths of This Portfolio
✔ Well thought-out income + growth barbell
✔ Strong use of ETFs for efficiency
✔ Conservative bond allocation cushions volatility
✔ Real assets + equities + bonds = true multi-asset structure
✔ Suitable for long-term wealth preservation with income
5. Optional Refinement Ideas (Not Advice)
You may consider:
- Reducing REIT concentration over time and reallocating to:
- Global infrastructure
- Global dividend ETFs
- Adding non-US developed equities beyond EAFE (e.g. factor or dividend tilt)
- Monitoring duration risk if rates fall sharply (bond reinvestment strategy)
- Rebalancing AI exposure periodically due to valuation swings
Bottom Line
This is a mature, income-anchored, institution-style portfolio with:
- Strong downside protection
- Sensible growth engines
- Some macro concentration risk that is manageable with rebalancing
The Bedokian’s Take
We were somewhat surprised by ChatGPT’s analysis, yet we also found the results fairly consistent with our portfolio construction. Reviewing point 2, Portfolio Characteristics Summary, ChatGPT awarded a 5-star rating for income generation, a 4½-star rating for capital preservation, and a 4-star rating for growth potential. When considering the portfolio strengths mentioned in point 4, it became clear that our current Bedokian Portfolio aligns well with our expectations.
Looking at the drawbacks, the main issue was the portfolio's high sensitivity to interest rates. This had been anticipated since the Bedokian Portfolio allocates a significant portion (20% to 40%) to REITs. Although REITs serve as valuable sources of income, they are notably sensitive to interest rate changes—a trend we have observed from early 2022 to recent months.
In addition to the Singapore Dollar bias that ChatGPT identified (without prior information about its focus on Singapore-based investors), another risk highlighted was the considerable exposure to artificial intelligence and semiconductor sectors. This aspect of our Bedokian Portfolio includes stocks like ASML, Nvidia, Apple, Alphabet, and is further influenced by the technology-heavy S&P500 index. Such a composition was purposefully chosen for growth, as explained in this post, and to capture extra alpha as detailed in my previous blog entry.
Overall, this exercise was insightful and confirmed several objectives we set for the Bedokian Portfolio. We may consider providing more data to ChatGPT and other AI tools to gain further views on our investment approach.
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