Sunday, August 3, 2014

31 July 2014

STI rose 118.39 points, or 3.64% in the month of July, although the trading volume was not high. Market seemed to be unfazed by the regional conflicts in Ukraine and Middle East. Poll results from Indonesia did not affect the market badly, neither did the aviation accidents happened in July.

My portfolio did not perform as good as the STI. Its value rose only 1.56% in the month. Perhaps it was due to the fact that many counters went XD towards the end of the month.

I bought some Ascendas H Reit shares this month. I also received some Noble shares via scrip dividend scheme. I bought into 3 more Unit trusts: Allianz INcome & Growth Fund, BGF European Equity Income Fund and UBS Bond Fund Euro High Yield Portfolio. I received a total of S$3,980 in dividend this month.

Towards the end of the month, market showed some weakness. This may present some buying opportunities in August. This will be good as I will be able to re-invest the dividend coming next month.

Below are my 30 top holdings as at 31 July. There is not much change in the list, except some counters swopped positions.

1.   SPH
2.   ComfortDelGro
3.   DBS
4.   OCBC Bank
5.   SP AusNet
6.   Sembcorp Ind
7.   ST Engineering
8.   Starhub
9.   Frasers Comm Tr
10. SGX
11. CapitaLand
12. Metro
13. CitySpring Trust
14. CapitaComm Tr
15. AIMSAMP Cap Reit
16. Sembcorp Marine
17. Nikko AM STI ETF 100
18. United Engineers
19. Lippo Malls Tr
20. Keppel Corp
21. Ascendas Reit
22. Mapletree Log Tr
23. Sing Inv & Fin
24. Global Inv
25. SingTel
26. YZJ Shipbldg SGD
27. PanUnited
28. SATS
29. SIA
30. Sabana Reit

Wednesday, July 9, 2014

Leveraging by Pledging My Existing Investment Portfolio

Over the past 2~3 years, I have built up a "sizeable" unit trust investment portfolio with a bank. The funds I invested are mostly of moderate risk. While the prices did not appreciate very much, I have collected good dividend amounting to 4~5% steadily.

Two weeks ago, my RM from the bank asked one of the financial consultant to run a "crisis simulation test" on my existing portfolio. The test was to see how my investment would have been affected by "Sub-prime crisis", "SARS crisis" and "Global Financial Crisis". It turned out that my portfolio was quite resilient and would have withstood the various crisis. In all 3 tests, the value would have dropped less than the benchmark, and recovered quickly after the crisis. In the worst case the portfolio dropped by 25% but soon recovered after 6 months.

My RM then told me that I could let my money work harder. Noticing that I am quite a "passive" investor and prefer to hold my investment in longer term, she suggested that I could "pledge" a portion of my portfolio to the bank and get a loan to buy more funds. The current interest rate for such a loan is 1.2~1.5% p.a. So if my investment can get my 4~5% dividend, I would have a net profit of 2.5~3.8%. There are no other admin or handling charges besides the interest.

The loan is a kind of flexible type which I only pay interest when I draw down the loan. And any time I could sell the unit trust and pay back the loan, without any penalty. To buffer the risk of price fluctuations, I should only pledge part of my portfolio and not drawdown the full sum. So there would be little risk of margin call.

Sounds good with most of the thinkable risk mitigated. Should I get into this?

Monday, June 30, 2014

30 June 2014

School holidays plus football world cup, the result is a sleepy market. STI retreated in quiet market for the month, due to tensions in Iraq and Eastern Europe. STI ended for the first half of the year at 3255.67, dropped 1.22% or 40.18 points compared to last month.

Surprisingly, my portfolio performed much better than the STI. Its value dropped only 0.04% in the month, thanks to some defensive counters.

I did not make any purchase from open market this month, but received some shares from MapletreeLog Trust, Mapletree Industrial Trust, Cambridge Trust, DBS and OCBC Bank via Scrip Dividend Scheme. I sold all my Pteris this month. This has been one of the non-performing stocks in my portfolio without dividend. So when they announced the consolidation of the shares, I decided to part with the shares.  As a result of the sales there was a negative investment this month.

For the first half of the year, STI rose 2.79%. My portfolio value rose 3.92% (portfolio value minus fund injected last 6 months), slightly better.

Total dividend collected this month was S$6,866.00 from shares and UT. Below are the top 30 holdings as at 30 June 2014. There isn't much change in the list, lest some position swops, which reflects the quietness of the stock market.

1. SPH
2. ComfortDelGro
3. DBS
4. SP Ausnet
6. SembCorp Ind
7. ST Engineering
8. Starhub
9. Metro
10. Frasers Comm Tr
11. SGX
12. CapitaLand
13. CapitaComm Tr
14. CitySpring Tr
15 AIMSAMP Cap Reit
16 SembCorp Marine
17. Nikko AM STI ETF 100
18. United Engineers
19. Lippo Malls Tr
20. Keppel Corp
21. Ascendas Reit
22. Sing Inv & Fin
23. Mapletree Log Tr
24. Global Inv
25. SATS
26 YZJ Shipbldg SGD
27 Pan United
28. SingTel
29 Sabana Reit
30 SIA