Tuesday, December 30, 2014

31 December 2014

From the stock market point of view, this month could be split into 2 half. The first half of the month was nominated by the oil price slump. Together with the weak performance in Chinese and European economy, the STI, together with the regional indices, dropped more than 4%. There was a great fear in the market that a crisis was on its way. However Santa Claus came and brought with him the Christmas and Year End rally (Frankly, how else can you explain this rally?). As at today, STI closed the year at 3,365.15, up 0.44% from end of November.

My portfolio did not perform as well as the index this month. Compared to last month, its value on rose 0.06%. I think it is because I have quite a few counters that are correlated to oil price. I tried to nibble on Keppel Corp and SembCorp Industry but was not successful in the bid. So I end up watching the prices recover empty handed. Too greedy - sigh. I received some shares from Mapletree Ind Tr, Cambridge Ind Tr and AimsampIReit through Scrip Dividend Scheme.

Total passive income (incl. dividend from shares and UT) amounts to S$12,471. 75. Below are the top 30 holdings as at 31 Dec 2014. There are not much changes. Keppel advance a few positions as price recovered. Lippo Mall moved down as its price dropped. Sabana Reit was replaced by Ascott Reit.

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

For the whole year, STI advanced 197.72 points, or 6.24%. However, My portfolio value (net of the investment added this year) rose only 2.13%. This is quite a distance from the index. Total dividend received from shares amounts to S$69,767. Take this into my calculation, than the total return of share investment in 2014 was 7.22%, which is not too bad.

Besides shares, I also received regular dividend from my Unit Trust Investment. The total passive income this year was S$111,188, which is in line with the target of S$110,000 I set for myself.

Going forwards, I will stick to my plan of investing for income. I will be holding a larger cash portion to seek out new investment opportunities. I will review the counters in my portfolio and may get rid of some non performing stocks. Passive income target for 2015 will be set at S$120,000.

Wishing everyone a prosperous and healthy new year.


Jimmy L said...

Very impressive

ghchua said...

Hi Sanye,

Congratulations on your good performance in 2014! Yes, 2014 was a tough year for investors. I hope that 2015 will be better.

Sanye ◎ 三页 said...

Hi Jimmy,

Thanks for coming by. Wish you a happy new year and all the success in the investment journey.

Sanye ◎ 三页 said...

Hi ghchua,

Thank you for your encouragement. I have been following your blog though seldom comment.

Yes hope that 2015 will be a better year for all.

Happy new year!

K said...

Hi Sanye,

Your investments are indeed impressive.

As you set your dividend target for 2015 at $120k, I would like to ask what is the value of your stock holdings to generate this return? In order words, what yield are you look to achieve?

I recently left the IT industry (after 20 years) and want to learn more about investments.


Sanye ◎ 三页 said...

Hi K,

I am looking to achieve about 5~6% yield in 2015, from my portfolio of stocks and UT.

Anonymous said...

Hi Sanye,

Regarding Lippo Mall share price drop. Lippo appears rather non-reactive to general mkt good news. For instance, many counters turned green on 23 Jan 2015; STI hitting high of 3411. But Lippo price stayed stagnant.

Whereas general/specific bad news can hit Lippo negatively, such as:
(1) Oil price dropping
(2) Interest rate rising
(3) Lippo rights issue causing share dilution.

Is there any good potential upside for Lippo, short-term and/or long-term?

I am most concerned with point (3), recurring share dilution is like a bottomless pit.

Thanks & regards,

Sanye ◎ 三页 said...

Hi Jon,

Lippo's recent performance was indeed disappointing. The market reacted negatively to their latest acquisition.

Short term wise I don't see any positive price movement catalyst. Indonesia economy is likely to be affected by the low oil price. Hope they will recover when oil price stabilizes and eventually recovers.

Anonymous said...

Hi again Sanye,

Yesterday, radio 958 FM, did its daily (weekdays; around 5.45pm) routine stock analysis. Lippo Malls was featured, and the analyst gave an overall good feedback; so I wondered if we should thank the analyst for today's Lippo rally.

In brief, the analysis:
(1) Lippo Mall REIT is the only counter that allows us to focus on Indonesia market
(2) Indonesia is a growing economy so we are able to participate in its growth through Lippo
(3) SGD currency weakening is generally beneficial for SG stocks.

Do tune in to 958fm from 5.30-6pm if keen to 'listen' to stock prices/analysis.


Anonymous said...

Just curious about something, if you have $2.4mil, why do you need more money? if the cost of living really that high in Singapore?

Sanye ◎ 三页 said...

Interesting question.

That's why my primary goal is not to make a lot of money but to beat inflation. 3 reasons why I still continue to invest:

1. While money is not the goal of our life, it is an useful tool. If one has surplus, one can use it to help others who are in need.

2. There is always some degree of uncertainty in the future. Who knows when one or his love one may fall sick and need money for treatment?

3. Investing help to keep one connected with the market, and hence with the world. So even if I retire from my day to day job, I will continue to invest to help keep myself connected with external world.