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.

20 comments:

Low Paul said...

congrats.

i must keep up with u.

cheers!

Sanye ◎ 三页 said...

Hi Paul,

I think you are ahead of me. Didn't you mention (in your comment to one of LP's post) your dividend income annually was .....?

Plus you are younger than me, at least I think so. LOL.

Low Paul said...

Thats approx my total income...
i dont see my active one increasing since i will only be working less n less.
So i need to work on my passive. Those counters which run up leaving yield behind, have to be reshuffled into better yielding ones.
i am turning 40 next month..the big 4.

bb said...

How much did you invest to get this amount of dividend?

Sanye ◎ 三页 said...

Hi BB,

I have stopped revealing my portfolio size explicitly. However I always say that I am getting an annual yield of about 5~7% from my investment. You can roughly estimate the size of my investment.

Timmy said...

Impressive dividends, how much did u buy sembcorp and kepcorp? Looks like a good price now

Sanye ◎ 三页 said...

Hi Timmy,

I first bought SembCorp many years ago, when its price was below $3. KepCorp was bought in the mid of GFC at $4.50.

I recently nibbles them at 3.92 and 8.4 respectively - Not very good timing LOL.

I agree their price seems attractive now. However given the uncertainty following the outcome of the Greece referendum, I will be more cautious.

Tacomob said...

Hi Sanye,
This is my first time visiting your blog and thus have not read many of your posts yet. So do apologize my question in case you might have answered it many times before.
Out of curiosity does your portfolio also comprise some overseas stocks or ETFs?

Sanye ◎ 三页 said...

Hi Tacomob,

Welcome to my humble blog.

I do have a small position on the STI ETF, but not overseas stocks.

My exposure to overseas equities are through unit trusts.

Tacomob said...

Hi Sanye,

Where got humble blog? You are way too humble yourself.

Good that you have some overseas exposure.

From reading the Singapore financial blogs I got the impression so far that many people seem to suffer from the home and familiarity bias. This can be quite dangerous in the long run. Singapore's demographics are not too good. It is ageing very fast and consumption does drop after peaking in the mid 40s. So who is going to buy all that new stuff to keep the Singapore economy going? Can we rely on tourists to fill that gap?

Low Paul said...

Hi Tacomob,
What u said abt spore demographics makes some sense. However quite a number of companies including blue chips ones have oveeseas dealings. So buying into those provides the overseas exposure than might protect us from this familarity bias which u talked about.

Tacomob said...

Hi Low Paul,
Agreed. The question for me is whether that is enough in terms of global exposure and differing asset classes.
Are there any Singapore listed companies who derive larger chunks of their business from, say, India or Africa?
What about commodities? Any Singaporean companies that are exposed to industrial, precious metals or agricultural commodities besides palm oil?

History shows that we human beings have an extraordinary capacity to ignore risks and uncertainty that threaten their livelihood, as though this will make them go away.

Conscious awareness and thorough consideration a quite important here.

Just my personal view.

Sanye ◎ 三页 said...

Hi Tacomob,

I do agree with you that certain geographical diversification is necessary. That can be achieved by either investing in companies that have overseas businesses, or in foreign stock markets.

I choose to invest in foreign equity through unit trust, as unit trust itself is has some degree of diversification and hence the risk is lower. Some prefer to venture in to foreign markets themselves since they can manage it.

By the way, as a German, your Singlish is impressive! :)

Tacomob said...

Hi Sanye,

Have you tried covering your geographical exposure via broad-based country ETFs before?

That is my preferred vehicle for markets that do show good mid-term growth potential, but where I do not have a clue about their local companies.

Thank you for your compliments-lah. I do have many talented and willing teachers around me. Cheers

K said...

Hi,

May I know if you keep track of your capital gains separately from your dividend target? If you have a $120k annual target for dividend, what about capital gains target?

Frankly, I have a hard time tracking all the different gains/losses because its quite a bit of effort needed.

Thanks.

K said...

Hi Sanye,

If you can share, do you invest in properties as well or are you just comfortable investing in equities? I am considering if there is a need to "diversify".

Thanks.

Sanye ◎ 三页 said...

Hi K,

Thanks for coming by.

1. I don't really track capital gains closely, and I do not have a target for that. I am more a "income investor".

2. I don't invest in properties directly. I do have exposure to property sector through REITs and property related companies.

Cheers.

Low Paul said...

Hi tacomob,
there are spore listed entities with major overseas interests..eg ascenda india trust stamford land etc.
i believe the numbers might increase with time. Industrial n precious metals i am not sure. But if the latter exists, they might not be those which pays decent dividends(i could be wrong here as i am unfamiliar with these)
I agree with ur idea on buying index funds for those countries which are expected to have good mid term growth potential. I guess lots of homework has to be done to assess this potential first. A concern is that idex funds dont give good dividends(again, correct me if i am wrong) so any miscalculation might mean funds stuck there for a long time with low returns while waiting. But i guess as in everything, there are pros n cons.
thanks for the tip anyway!

Frugal Daddy said...

Hi Sanye

I have been seeing your name around the local financial space and I finally reached here. :)

Like Tacomob, I am new to your blog. Do you mind sharing your view why you choose SCI & KepCorp than SCM? SCM dropped most significantly, isn't that provides the best opportunity to buy at the lowest? I am just thinking aloud :)

Sanye ◎ 三页 said...

Hi Frugal Daddy,

Welcome to my humble blog. Sorry for the late reply as I was out of town over the weekend and just came back late last night.

At the moment I prefer KepCorp and SCI to SCM as their business is more diversified. They both have utilities business which is defensive in nature. Furthermore, SCI has stake in SCM, so buying SCI I am buying into SCM indirectly.

Dividend wise, I think SCI and KepCorp offer better dividend than SCM.