Thursday, July 30, 2015

SRS Withdrawals - No Longer Need to Cash Out and Reinvest

According to the MOF website, SRS members no longer need to liquidate their investments when they withdraw their savings from SRS account. Instead they can have their investment "transfer" out. Please read:

From MOF website: http://www.mof.gov.sg/MOF-For/Individuals/Supplementary-Retirement-Scheme-SRS

SRS Withdrawals in the form of investments

Previously, all SRS withdrawals must be made in cash. Where savings in an SRS account have been used to acquire investments, the investments must be liquidated before the sales proceeds can be withdrawn in cash from the SRS account.
 
From July 2015, SRS members will be able to apply to their SRS operators to withdraw investments from their Supplementary Retirement Scheme (SRS) accounts without having to liquidate their investments. This is applicable for the following types of withdrawals, which qualify for the 50% tax concession:
a. withdrawal on or after the statutory retirement age prevailing at the time of an SRS member’s first contribution (prescribed retirement age);
b. withdrawal on medical grounds;
c. withdrawal in full by a foreigner who has maintained his SRS account for at least 10 years from the date of his first contribution; and
d. actual withdrawal made by an SRS member or his legal personal representative (if he is deceased) from his SRS account, after the SRS investment that is to be withdrawn had earlier been deemed withdrawn upon death or after the expiry of the 10-year withdrawal period.1
 
For a withdrawal of type a, b or c above, an SRS investment that is withdrawn will be valued by the SRS operator or the financial product provider (where applicable) and its value will be brought to tax. This is similar to the treatment for cash withdrawn from an SRS account. For a withdrawal of type d above, the earlier deemed withdrawal would have already been subject to tax.
 
This change allows SRS members to hold their SRS investments outside of the SRS scheme without having to incur the transaction costs to first liquidate their SRS investments (so as to withdraw cash from their SRS accounts) and thereafter re-purchase the same investments outside of the SRS scheme. More information can be found in Q25 to Q48 of the SRS booklet.
 
 
 

Tuesday, June 30, 2015

Portfolio Update - 30 June 2015

Singapore stock market continues to move downwards  this month. Investor sentiment is dented by the impending rate hike from US, the volatile movement of China shares (there were days when the Chinese Index dropped 7~8%, and many stocks dropped till 停板, which means trading halt), and the Grexit crisis entering the final home run stretch. Market will continue to be jittering and volatile until at least this coming Sunday, when the referendum to decide if Greece will accept the terms set by its lenders. Though STI recovered most of its loss today, I feel that this re-bounce may be due to covering of over sold position and some window dressing due to 2nd quarter ending.

STI was in negative territory (compared with May closing) the whole month. The index closed today at 3,317.33, down 74.78 points from last month-end, or 2.20%. My Portfolio value was down 2.46% (net of all new investment) compared to last month, so it under performed the index in June.

This month, I bought into Hotung Inv, SembCorp Ind, KepCorp and Nam Lee. I also received some Mapletree Ind Tr, Cambridge Ind Tr, DBS, Keppel Inf Tr, QAF, OCBC shares via Scrip Dividend Scheme or Preferential Offer. I sold all my KS Energy shares. Net cash injection into the portfolio (incl. dividend reinvestment) is S$31,158. Total passive income this month was S$11,318.75.

Below are the top 30 holdings as at 30 June 2015. KepCorp re-appeared in the list due to new investment, replacing SembCorp Marine. SATS moved up due to price appreciation.

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

Since this is the closing of the first half-year, lets take a look on the year-to-date performance. STI was down 47.82, or 1.42% for the half year, without considering the dividend payout of individual stock. If we assume an average dividend yield of 3%, then STI would have a marginal return of 0.08% for the half year.

My portfolio value, minus fund injected since 1/1/15, moved up 0.11% from beginning of the year. Take the dividend received from shares into consideration, then the portfolio has a return of 2.87%, which out performed the index.

Total dividend income from both shares and UT for the past six months was S$72,471.99 (including those I opted to received shares instead of cash). Looking at this number, I think I am on track to meet or even exceed the dividend target set for the year (S$120,000), unless something very drastic happens.

Wednesday, June 24, 2015

My Mistake? or SingPost's Mistake? or AimsampIReit's Mistake?

Today I received dividend from AimSampIReit rather surprisingly. I remember clearly I submitted the form and opted to receive scrip, as I normally do. However, I think the form did not reach CDP so I received cash instead.

I don't know if it's due to my mistake (forgot to sign form, etc), or was it a mistake by CDP (or AimSampIReit), or was the form lost in transit. Well, not a big issue, I receive my hard cash, at least. Lol.