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Hey savvy investors! As we step into 2025, I’ve been reflecting on what turned out to be a fascinating and challenging year for my portfolio.

2024 was truly a year full of surprises. The long-awaited REIT rallies that seemed poised to deliver fizzled out, pulling down the overall performance of my portfolio. Meanwhile, another critical part of my portfolio delivered surprisingly strong performances, managing to rescue my overall portfolio for the year. It was a rollercoaster year for me, filled with highs and lows.

Amidst the disappointments and unexpected twists, I ventured into a completely new asset class, marking one of the biggest changes to my investment approach in years! What is it, and why did I decide to take that step? I’ll be sharing all the details, including how my portfolio is allocated for 2025.

Whether you’re here for inspiration, ideas, or simply a bit of investing chit-chat with your friendly neighborhood uncle, I hope this post gives you some fresh perspectives for the new year.

Of course, let me remind you that this post is for informational purposes only and not financial advice. The investments and portfolio allocations I discuss are based on my personal circumstances, risk tolerance, and financial goals, and may not suit everyone. Past performance is not indicative of future results. Always consult a licensed financial adviser for advice tailored to your needs.

Alright, let’s dive in and see how my portfolio performed, and what changes I have planned for 2025!

Portfolio Performance in 2024

Let’s start with how my portfolio performed in 2024. If you recall my sharing last year, my portfolio consists of four key asset classes: REITs, Dividend Stocks, Fixed Income, and Growth Stocks. Each of these plays an important role in achieving a balanced portfolio, suitable for my risk tolerance and personal circumstances. As always, diversification is at the heart of my approach, helping me weather market volatility and pursue both income and growth opportunities.

Now for the moment we’ve all been waiting for: my portfolio delivered a 5.4% return in 2024. But wait, didn’t the massive rallies in the S&P 500 and Straits Times Index hint at spectacular returns for the year? Unfortunately, the challenging environment for REITs and shifting market conditions created a drag on overall performance.

Here’s how each asset class performed, along with the top performers in the asset class. But please note that these examples should not be taken as endorsements or recommendations for your portfolio.

REITs: A Tough Year with a -7.7% Return

2024 was another rough year for REITs, weighed down by rising interest rates and ongoing sector-specific challenges. Despite these headwinds, a few REITs stood out.

Among the performers, Manulife US REIT delivered a 16.7% gain, benefiting from improving office occupancy rates in the U.S. Next, Stonewag European REIT, formerly Cromwell European REIT, returned 17.1%, supported by strong demand for logistics and office properties in Europe. And finally, there is Parkway Life REIT, with its defensive healthcare properties, returned 17.7%, proving its resilience during uncertain times.

Despite having these 3 top performers, the rest of the REITs in my portfolio ended the year in the red. This broad underperformance highlights the challenging landscape for REITs in 2024. On the list of the worst performing REITs, CapitaLand China Trust struggled with the sluggish recovery in China, including the concerning logistics market, dropping -17.1%. Acrophyte Hospitality Trust, formerly ARA US Hospitality Trust, facing challenges with high interest expenses and in the U.S. hospitality sector, declined -28.0%. Finally, CDL Hospitality Trust, despite a post-pandemic recovery in tourism, fell -19.7%, weighed down by rising interest costs as it was one of the few REITs which deliberately ruled out having substantive hedges for its debt.

This mix of strong and weak performers reflects the broader challenges faced by the REIT sector.

Dividend Stocks: A Strong and Steady Performer with +8.7%

Dividend stocks had a solid year, delivering a credible 8.7% return in 2024, with several standout performers.

Starting with the STI ETF, this ETF tracks Singapore’s Straits Times Index, and its 19.8% return this year reflects the strong outperformance of Singapore’s benchmark index, which hit 17-year highs. The surge was largely driven by the stellar performance of Singapore’s banks, which delivered both strong dividends and capital appreciation, giving the STI a significant boost.

Singtel had an impressive year as well, climbing 27.8%. This has been a stock I’ve patiently accumulated over the years, especially during its down years. While its share price struggled for a while, Singtel continued paying solid dividends, which provided income while waiting for its recovery. This year, my patience finally paid off as it rebounded strongly as optimism returned for its businesses.

Finally, ST Engineering has proven to be one of the most consistent performers in my portfolio, delivering a 21.9% return in 2024. With its strong demand fundamentals, steady dividend payouts, and reliable capital appreciation, it’s been a core holding that continues to meet both income and growth objectives, demonstrating resilience even in more challenging years.

Fixed Income: Reliable Returns at +4%

My fixed-income investments offered predictable and stable returns, with a 4% gain for the year. This included diversified bond funds, such as Endowus Fixed Income portfolio, and Singapore Savings Bonds. While fixed income isn’t flashy, it certainly serves its purpose by providing stability to my portfolio during turbulent times.

Growth Stocks: The Star Performer and Saviour at +15.9%.

Growth stocks stole the show in 2024, powered by the U.S. tech rally and the ongoing surge in AI-driven innovation, ultimately saving my overall portfolio from deeper disappointment.

Among my top-performing growth stocks is Shopify, an online platform helping businesses, especially SMEs sell their products. It delivered an impressive 58.1% gain in 2024. My journey with Shopify hasn’t been smooth, though. Over the past few years, I’ve been steadily building my position, even as the stock faced significant volatility along the way.

However, patience truly paid off this year, particularly in the last quarter, when Shopify surged, driven by strong earnings and growing optimism about its future in e-commerce.

Nvidia delivered an impressive 43.5% gain in 2024, and it’s been a rewarding addition to my growth portfolio. I invested in Nvidia despite its higher valuations last year, believing in its immense potential for growth, especially in areas like AI, and data centers.

That said, it hasn’t been a smooth ride. The year was marked by volatility, with Nvidia’s stock experiencing significant ups and downs. But staying the course and holding on through the turbulence paid off, reinforcing the importance of focusing on long-term potential rather than short-term market noise.

Lululemon is another standout in my growth portfolio, which delivered a stunning 54.9% gain in 2024. Earlier in the year, Lululemon faced a significant dip when it missed lofty growth expectations, causing its share price to plunge more than 50%.

I saw this dip as an opportunity and initiated a position, believing in the brand’s long-term strength and potential for recovery. Fortunately, my conviction paid off as the stock bounced back, recovering much of its losses and rewarding investors who stayed the course.

Moving to the funds I invested in for my passive growth investments, there are also exceptional performers.

First up, my selection of several Dimensional funds from Endowus, which I invest my Supplementary Retirement Scheme or SRS money. With its globally diversified focus and value slant, the funds rose 17.5%. Next up, Vanguard FTSE All World ETF or V.W.R.D., a global equity ETF, delivered 18.9% while the iShares Core S&P 500 ETF or C.S.P.X., buoyed by the U.S. tech rally, climbed 26.1%.

Wrapping up, my portfolio performance in 2024, while modest, is a reminder that staying disciplined and diversified can yield steady progress, even during uncertain times.

Portfolio Allocation for 2025: My Next Move

Looking ahead to 2025, my portfolio allocation has shifted compared to the start of 2024. REITs, Dividend Stocks, Fixed Income, and Growth Stocks, each making up about 25%.

But after a year of uneven performance across these sectors, my current allocation has changed significantly. REITs now make up a lesser 20.9% of my portfolio, with a market value of approximately $301,000. Dividend Stocks represent 19.0%, at around $273,000, and Fixed Income represent 22.8%, or $328,000.

Growth Stocks, on the other hand, have become the largest segment, now accounting for 30.7%, or $443,000. Growth stocks have performed exceptionally well in 2024. While this might seem like a course for celebration, it’s also a reminder of the higher risks involved. Growth stocks might deliver great rewards, but they can be unpredictable, and this higher concentration means my portfolio is now exposed to greater volatility. In addition, the valuations of U.S. stocks, especially tech-related ones, are currently at historic highs as reflected by the Shiller’s PE ratio.

However, as I still believe there’s still potential for rewarding opportunities in this segment in 2025, I’ve decided to rebalance my portfolio by adding to asset classes that help reduce overall risk. This includes boosting my fixed income investments and, for the first time, venturing into hedge funds.

My Next Move

Now, hedge funds may sound intimidating, but I’ve chosen the easy way out as a first step. I’ve started a position in a fund of hedge funds through Endowus. Investing in a fund of hedge funds means that my money is spread across nine different hedge funds, each managed by some of the most prominent names in the industry such as Millenium and Point72. This investment accounts for 6.9% of my portfolio, at around $100,000.

What’s special about these hedge funds? They target absolute returns, essentially aiming to deliver consistent performance regardless of whether the markets are going up or down, which makes them a useful addition for balancing out the riskier growth portion of my portfolio. Think of hedge funds as the anchor keeping my ship steady during choppy seas.

The important objective I have set for my portfolio here is that diversification isn’t just about holding multiple asset classes, it’s about balancing risk and reward. While Growth Stocks remain a significant driver of my portfolio, adding Fixed Income and Hedge Funds helps ensure that I’m prepared for whatever 2025 might bring, whether it’s a continued bull market or a more challenging environment.

So there you have it, the ups and downs of my portfolio in 2024 and how I’m positioning for 2025. It’s been a year of lessons, surprises, and adjustments, and I’m optimistic that the changes I’ve made, like diversifying further and venturing into hedge funds, will help me weather whatever 2025 throws our way.

Remember that investment decisions should always align with your individual financial situation and goals. My portfolio and strategies are personal and not intended as recommendations. Always seek professional advice when in doubt.

I’d love to hear from you! How did your portfolio perform in 2024? Are you making any changes for 2025? Let me know in the comments below so we can learn from each other. And if you’ve found this post helpful, don’t forget to give it a like and subscribe to the channel for more insights and portfolio updates. Here’s to a successful and rewarding 2025! Happy investing!