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.

% of Each Counter in my Portfolio

A reader asked me about the % of the top 30 counters in my portfolio. I compile a table to show the information. This is based on the month end closing of November.

S/No	Counter	% of Portfolio
1	SPH	5.597%
2	ComfortDelGro	5.088%
3	OCBC Bank	4.522%
4	DBS	4.407%
5	Ausnet Services	3.356%
6	Sembcorp Ind	2.981%
7	Starhub	2.701%
8	ST Engineering	2.638%
9	Frasers Comm Tr	2.615%
10	Metro	2.540%
11	SGX	2.388%
12	CapitaLand	2.166%
13	CitySpring Trust	2.149%
14	United Engineers	2.146%
15	OUE	1.996%
16	CapitaComm Tr	1.979%
17	AIMSAMP Cap Reit	1.925%
18	Nikko AM STI ETF 100	1.800%
19	YZJ Shipbldg SGD	1.598%
20	Mapletree Log Tr	1.549%
21	Ascendas Reit	1.526%
22	Lippo Malls Tr	1.448%
23	Sing Inv & Fin	1.442%
24	Sembcorp Marine	1.429%
25	Global Inv	1.419%
26	SingTel	1.412%
27	SIA	1.406%
28	SATS	1.338%
29	Keppel Corp	1.292%
30	Sabana Reit	1.259%

28 November 2014

The November Update of my portfolio is one week late, as I was on a business trip in Europe last week.

The global equity market was quite positive, led by US market. The weak performance in China economy, falling oil price, weak European performance failed to dampen the market. Singapore market follow the US trend. STI rose 2.33% to 3,350.50 on 28 Nov, impressive performance indeed. However my portfolio value rose on 0.3% for the month. This was mainly due to poor performance of Keppel, SembCorp Ind. and SembCorp Marine - yes, the oil related companies. The price plunge by Pac Andes contributed to this too.

I bought some GK Goh and OUE shares this month. I also received shares from First Reit, MapletreeLog Tr and FraserComm Tr via Scrip Dividend Scheme. Total amount invested this month was about S$20,000. There was no Sell transaction.

Total passive income received in the month amounts to S$9,358, from shares and UT.

Below are my top 30 holdings as at 28 November 2014:

1.   SPH

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

 

31 October 2014

The equity market experienced some turbulence in the first half of the month. This was due to several bad news: Weak economics data from Europe and China, conflict in ME with Isis, Ebola scares, protest in Hong Kong... etc. By the middle of the month STI dropped more than 100 points.

Indices recovered, however, in the 2nd half of the month. STI closed today at 3274.25, recovering almost all losses from the first half. My portfolio did slightly better. It's value rose 0.33% for the month.

I took advantage of the price drop and bought into OUE, Stamford Land, Amara, Transpac, Midas and Metro this month. I also received some OCBC shares through Scrip Div Scheme. Total dividend received was S$6,587 from shares and UT.

Below are the top 30 holdings as at 31 October. OUE is a new member in my portfolio. It replaces Pan United.

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

30 September 2014

Regional conflicts in Middle East, Ebola crisis in Africa, unfavourable business data from Europe and China, all these negative factors weighed on the equity market in September. The latest development in Hong Kong doesn't help at all. STI dropped 50.35 points, or 1.51% in the month, to end at 3276.74 at the end of the month. My portfolio did worst, its value drop 2.02% in the month.

Will the market continue with the down trend in October? Or worst still, will the 2007 market melt down repeat itself since, as some Gurus claim, the 7 year cycle is due? Well, I don't have a crystal ball for that. I will just stick to my plan and seek out undervalue stocks to invest, while maintaining a "war chest" for any opportunity which may appear.

This month, I received quite a number of shares through scrip dividend scheme: First Reit, FraserComm, Mapletree Ind, MapletreeLog, Cambridge, AIMSAMPIReit, CapitaChinaR Tr,  and DBS. I also received OCBC shares through Right issue. I bought Saizen Reit from open market. I sold all my SMRT shares.

Total dividend received this month amounts to S$10,500.00. This number includes those I reinvested via Scrip Dividend Scheme. I injected S$12,000.00 into the portfolio this month.

Below are my top 30 holdings as at 30 September:

1.   SPH

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

OCBC Rights Issue

Today the result of OCBC right issue was out. This right issue must have been well received and subscribed by investors, because I was only awarded with 29 excess right shares though I applied for more. The excess shares don't even round my holding to the full lot, but only to the next half lot...hmm...

Full lot or not, it's not so important. Since I am subscribing to the scrip dividend scheme, I am going to receive odd lot anyway. Since the shares (rights and excess rights) received are at a discount, there is also no reason to complain too much. Of course it will be nice to receive a bit more... LOL.

Sigh! 人心不足，在下也不能免俗。

29 August 2014

August has not been a good month for share investors. STI has been in negative region (compare to end of July) the whole month. Globally, the stock market is still affected by the Middle East and East European Conflicts. European market continues to be weak but U.S. seems less affected.

As at today, STI closed at 3327.09, down 46.97 point, or 1.39% from July. My portfolio performed slightly better than STI this month, thanks to UE, whose price shot up more than 20% on talk of acquisition. Portfolio value was down 1.00% from last month, net of new funds injected.

I bought shares of Popular, LeeMetal and Cache Log Trust this month. I also participated in scrip dividend scheme from some MapletreeLog, MapletreeInd, First Reit, FraserComm, and CapitaChinaR.

The Unit trust I bought last month started to pay dividend. This boosted the total dividend income for this month to S$18,000. I think I am on track to reach my passive income target this year.

Below are the top 30 holdings as at 29 Aug 2014. This is the second months in a row when there is no change in the "membership" of the list.

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

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

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?

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
5. OCBC
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

30 May 2014

It was that magic month "May" again. STI stayed in negative territory in the first half of the month, suggesting that the market was going to fulfil the saying "Sell in May and stay away". But no! STI recovered in the second half of the month and ended above 3300 today (month end). That is 0.88% (28.8points) higher than last month.

Market seemed to have digested all the bad news i.e. Ukraine crisis, China slow down, tension in South China Sea, etc. Though these problems are all unresolved, equity market moved up, thanks to perhaps the corporate results which met the expectations.

On the last day of trading, news that Yangzijiang's boss was under investigation finally caused the sell down of the counter. The share price dropped more than 10% in one day. This sent the counter all the way to the tail end of my top holding list.

I did not make any purchase directly from the market, but participated in the Scrip Div Scheme offered by a few companies. I received the bonus warrants from TIH.

May is the "dividend" month. I received a total S$20,000 dividend (including though which will pay me scripts instead of cash). Below are the top 30 holdings as at 30 May.

1. SPH
2. ComfortDelGro
3. SP AusNet
4. DBS
5. OCBC
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. Ascendas Reit
20. Lippo Malls Tr
21. Keppel Corp
22. Sing Inv & Fin
23. Mapletree Log Tr
24. Global Inv
25. SATS
26. SingTel
27. Sabana Reit
28. PanUnited
29 SIA
30. YZJ Shipbldg SGD

30 April 2014

Equity market performed well in the month of April, though the tension in Ukraine and news on China slow down affected the sentiment and limited the up side. Good corporate earning results helped the market to move up.

STI performed well except the last week of the month, when rising tension in Ukraine caused some sell brought down the index. Towards the end of the month, the good results reported by the 3 local banks sent market moving up again. STI closed at 3264.71 today, rising 76.09 points or 2.39% in the month. My portfolio moved in step with STI, the value rose 2.5% in the month of April.

I did not buy any stock this month since the index was already quite high. I invested in a Europe bond fund to boost my passive income. I received S$5,578 of dividend from my investment this month.

With many companies announcing their result this month, I will be receiving more dividends next month. I will look for opportunities to invest the dividend next month.

Below are the top 30 holdings as at 30 April. The list is the same as last month, with some changes in positions.

 

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

31 March 2014

The equity market did well in March though it started weak. US stocks rallied despite the problem in Ukraine and weak economic data from China. Towards the end of the month, market spoke about possible stimulus from Chinese government further supported the stock price.

STI performed well, rising 2.5% in the month. As at 31 March, STI closed at 3,188.62. This also brings STI into positive territory for the year. My portfolio was less impressive. Its value rose only 1.49% in the month of March. Nevertheless it is still positive.

I participated in the rights issue of AIMSAMPIReit. I got the excess rights I applied for to round up the holding to whole lot. That was the only investment done in March. I received S$5,100 in dividend, including those from UT. Below are my top 30 holdings as at 31 March:

1. SPH
2. ComfortDelGro
3. Semb Corp
4. SP AusNet
5. OCBC Bk
6. DBS
7. ST Engineering
8. Starhub
9. SGX
10. FraserComm
11. MetroHldg
12. CapitaLand
13. City Spring
14. Sembmar
15. AIMSAMPIReit
16. CapitaComm
17. Nikko AM STI ETF 100
18. LippoMalls
19. KepCorp
20. Sing Inv
21. UE
22. Ascendasreit
23. Yangzijiang
24. SATS
25. PanUnited
26. SIA
27. Global Inv
28. Sabana Reit
29. SingTel
30. MapletreeLog

28 February 2014

Global equity market did well in February. Good earnings from Companies reports and economic data push the indexes higher. Speech from the new Fed Head also supported the stock market.

Singapore market started weak after Lunar New Year, but recovered from the second week. Though lagging behind the regional markets, STI stayed in positive territory from then till the end of the month.

My portfolio somehow lagged behind STI this month. At the end of the month, STI rose 88.87 points, or 2.94% compared to January. My portfolio value rose only 1.74%.

I bought some Loppo Mall shares this month to boost my regular dividend income. Though some counters offered script dividend option, I decided to opt for cash this time round. Including the dividend received from UT, I received a total of S$8,000 in dividend this month.

Below are my top 30 holdings as at 28 February:

1.   SPH

2.   ComfortDelGro

3.   DBS

4.   Semb Corp

5.   OCBC Bk

6.   SP AusNet

7.   ST Engineering

8.   Starhub

9.   SGX

10. FraserComm

11. MetroHldg

12. SembMar

13. CapitaLand

14. CitySpring

15. CapitaComm

16. Nikko AM STI ETF 100

17. LippoMalls

18. Kep Corp

19. Sing Inv

20. Yangzijiang

21. Ascendasreit

22. GlobalInv

23. SATS

24. Sabana Reit

25. SIA

26. UE

27. SingTel

28. MapletreeLog

29. PanUnited

30. FrasersCT

30 January 2014

January 2014 has not been a good month for the equity market. Weak data from China affected the share market performance. US Fed’s announcement to further trim USD10 Billion in bond buying towards the end of the month sent worldwide stock market in to down fall.

Singapore market performed badly this month. STI dropped 145.52 points (4.59%) to end at 3,021.91 at the end of the month. My portfolio dropped with STI. Its value decreased by 3.25% for the month. Judging by the trend and news received, February, at least the first half of it, may not be good for equity too.

I did only one trade in this month. I bought some KepReit shares. I did Q for AimsampIReit when its price drop below 1.40 but did not get it. I received S$2,840 in cash dividend from shares and UT this month.

Below are the top 30 holdings as at 30 January. There is no change compared to last month.

1.   SPH
2.   ComfortDelGro
3.   DBS
4.   OCBC Bk
5.   Semb Corp

6.   SP AusNet

7.   ST Engineering

8.   Starhub

9.   SGX

10. FraserComm

11. MetroHldg

12. CitySpring

13. SembMar

14. CapitaLand

15. CapitaComm

16. Nikko AM STI ETF 100

17. GlobalInv

18. Yangzijiang

19. Kep Corp

20. Sing Inv

21. SATS

22. Ascendasreit

23. Sabana Reit

24. SingTel

25. MapletreeLog

26. UE

27. SIA

28. AIMSAMPIReit

29. PanUnited

30. AscottReit