Monday 24 December 2018

My Investment Machine 2018 Year End Review

2016 and 2017 was the year where stock prices in Singapore and around the world rose after sentiments changed after Brexit and Trump being elected as The President of United States of America. 2018 will probably be remembered as a year where it was a reality check. The bear took over as things were not as rosy as expected. But well that’s life. What goes up will go down. Similarly, what goes down will go up.

My portfolio has taken a beating as majority of my unrealized gains were wiped out. Thankfully, with the dividends collected over the years, I still in the positive territory. It has also reinforced the fact that investing is long term.

In 2018, I received $6,959.32 of dividends. A brief summary of my portfolio over the years is appended at the end of this post. My average dividends yield has increased slight by 0.13% while dividends received increased by 26.1% when compared to 2017. I had expected more dividends but several companies did not perform well including Accordia Golf Trust which used to pay handsomely.

I made 16 transactions in 2018, more than last year which was 11. Good or bad? Only time will tell. 12 transactions were buy actions and 4 were sell actions. As shared in my 2017 review, I had been wanting to cut off Hyflux and luckily enough, I did sell it off before the share was suspended although it was at a loss of 67.2%.

Next year, will be a test my endurance and discipline in the market. I hope that as the market presents more buying opportunities, I will have the courage to continue to buy more and stay invested. There are so many stocks which are at their 1 year low such as Keppel Corp, Singtel, SIA, SIA Engineering, Accordia Golf Tr, Sing Post, Jumbo and NetLink NBN Tr. I expect the dividends yield and my actually dividends to decrease next year as companies go through rough times. That is all for the year end review!

All the best in the year of 2019. May you and your love ones be healthy, happy and safe. May the odds be with you!

Sunday 2 December 2018

My Investment Portfolio (End Nov 2018)

Transactions made in Nov 2018:
- Sold 4,500 units of First Reit at $0.945
- Bought 100 units of SIA at $9.25
- Bought 1,000 units of Keppel Corp at $6.11

I broke my no transaction streak by making what appears to be 2 very weird transactions. 

Firstly, I cut loss on First Reit. I had attempted to cut loss at higher prices but both prices were not fulfilled. The reason why I cut loss was because of the liquidity issues Lippo Karawaci is facing. Lippo Karawaci is First Reit's main income contributor. With this issue, the fundamentals of why I bought First Reit has changed and this is the main reason why I cut loss since the reason why I bought it no longer exists. 

Is this the right decision? I really do not know. Only time will tell. Ironically, not too long after I cut loss, the price went up to slightly above $1, the price which I attempted to cut loss. But well, this is life. It never goes the way you thought it will pen out. 

For my second transaction, you will be wondering why I bought 100 units of SIA. Well, I had keyed in a bigger order and queued at $9.25. But well, nothing goes the way I wanted. Only 100 of the order was fulfilled. Which is a small percentage of my order and I had to incur the minimum commission fee. =(

As for my third transaction, I increased my stake in Keppel Corp as I wanted to deploy some funds that were from the sales of First Reit and this year's dividends. With this purchase, Keppel Corp has now overtaken ST Engineering and is now my top holding.

The recent prices are tempting and I really have no idea whether the prices are heading south or north in the short term. But well, I am still looking out for other opportunities to purchase other shares. 

Stay calm and invest on!

Dividends received* in Nov 2018: $524.52 (Old Chang Kee, Singapore Post, Frasers Logistics & Industrial Trust, NetLink NBN Trust, Mapletree North Asia Commercial Trust)

Total dividends received in 2018: $6,672.58

Average dividends per month: $556.05

Total Portfolio Market Value: $158,361.46

* Dividends are recognised after ex-dividend (xd) date
# Excludes investments in Cryptocurrency since it is of high risk and with an investment fund which I am prepared to write off.

Wednesday 31 October 2018

My Investment Portfolio (End Oct 2018)

Although there was no transactions made in Oct 2018, it was an exciting month. The stock market seems to be more bearish and this presents buying opportunity. I have some purchase orders and 1 sell order in the queue. Not sure if I will manage to get those purchase orders as I have keyed in a lower price since I am on the cautious end and do not know how low the stocks will go. Also, considering the fact that I have limited warchest.

If the market goes up, I am still happy, since I am already vested in the following shares above.

Stay calm and invest on everyone! The stocks will go up in the long term! 

Dividends received* in Oct 2018: $206.06 (Ascendas Reit, First Reit, Mapletree Com Tr, Suntec Reit)

Total dividends received in 2018: $6,148.06

Average dividends per month: $512.34

Total Portfolio Market Value: $156,178.15

* Dividends are recognised after ex-dividend (xd) date
# Excludes investments in Cryptocurrency since it is of high risk and with an investment fund which I am prepared to write off.

Sunday 30 September 2018

My Investment Portfolio (End Sep 2018)

It has been a relatively quite month in Sep. I did not make any transactions and there was no interesting corporate news. The usual noises were the potential trade war (some view it as trade war already) between USA and China. 

Interestingly, the last week of Sep became more exciting with news that Keppel and SPH plans to buy the rest of M1 that they do not own at $2.06 per share. 

Dividends received* in Sep 2018: $108.75 (Ascendas Reit)

Total dividends received in 2018: $5,941.97

Average dividends per month: $495.16

Total Portfolio Market Value: $164,632.16

* Dividends are recognised after ex-dividend (xd) date
# Excludes investments in Cryptocurrency since it is of high risk and with an investment fund which I am prepared to write off.

Saturday 1 September 2018

My Investment Portfolio (End Aug 2018)

Although there was no transactions made in Aug 2018, it was an exciting month. Many of the companies which I was vested in announced their results and their dividends went XD during the month too.

I am watching Singtel, ST Engineering and Keppel Corp closely as I may increase my holdings in them if the price drops further.

Dividends received* in Aug 2018: $1,095.99 (Wilmar Intl, Raffles Medical, ComfortDelGro, ST Engineering, Sing Post, OCBC, IREIT Global, Old Chang Kee, Sheng Siong, M1, Mapletree NAC Tr, Mapletree Com Tr)

Total dividends received in 2018: $5,833.22

Average dividends per month: $486.10

Total Portfolio Market Value: $160,335.42

* Dividends are recognised after ex-dividend (xd) date
# Excludes investments in Cryptocurrency since it is of high risk and with an investment fund which I am prepared to write off.

Wednesday 1 August 2018

My Investment Portfolio (End Jul 2018)

Transactions made in Jul 2018:
- Bought 600 units of Keppel Corp at $7

I added on Keppel Corp as it had dropped a fair bit since reaching $8++. I doubt oil prices will recover and go back to over 100 dollars anytime soon. But I still chose to invest in Keppel Corp as its business is also in other sectors such as property and investment. Unfortunately, the share price took a hit when the government announced measures to cool the private property market. 

The month of Jul (and in Aug) will be exciting as many companies will be announcing their results and dividends will be paid out. 

Dividends received* in Jul 2018: $1,033.72 (Suntec Reit, Singtel, CapitaCom Trust, Keppel Corp, Keppel DC Reit, Singpost, First Reit)

Total dividends received in 2018: $4,737.23

Average dividends per month: $394.77

Total Portfolio Market Value: $163,200

* Dividends are recognised after ex-dividend (xd) date
# Excludes investments in Cryptocurrency since it is of high risk and with an investment fund which I am prepared to write off.

Thursday 19 July 2018

Singapore Savings Bonds As Part Of Emergency Funds?

Singapore Savings Bonds As Part Of Emergency Funds? This is a question which I have been pondering recently.

I am sure those who follow financial blogs would have heard of Singapore Saving Bonds (SSB).

For those who are not aware of SSB, it is essentially a form of Singapore Government Securities (SGS) that is available for subscription by individuals. The aim of SSB is to provide individuals with a safe and flexible way to save for the long term. If you hold your Savings Bond for the full 10 years, the average return per year on your investment will match the returns of a 10-year SGS at the point of your investment. In the last 10 years, the 10-year SGS yield has generally been between 2% to 3%.

When SSB was launched in 2015, I did not bother to subscribe to it due to the following reasons: 
   1) The first year interest rate of 0.93% was lower than CIMB’s Fast Saver Account, which                        provides 1% interest. Also, the CIMB account allows me to withdraw my money immediately. 
   2) If I require more interest and want my funds to be locked up for a 1 year period, I would rather           go for fixed deposits (FD). Back then UOB’s fixed deposit interest rate was 1.6% for a period of         13 months. SSB’s average interest rate over the first three years was only 1.32% then.
      - Based on investment amount of $3,000
      - Calculations exclude SSB application fee of $2 and/or redemption fee of $2.

In recent months, SSB’s interest rate for the first few years have increased. This changes the context entirely. The SSB interest rate for the first year is now higher than most FD. If you are intending to park your money in FD, it is time to consider SSB. This is the reason why the SSB has been oversubscribed in recent months and has to be allocated.

As illustrated in the above table, the difference between the interest amount in the first 3 years when SSB was first launched and in 2017 compared to 2018 is huge. It is nearly a $70 difference! 

So should we park part of our emergency funds in SSB? 

Emergency funds are always used in an emergency which you can never predict. As such, it has to be readily available within a short period of time. Most people do not park such funds in stocks or FD because you may have to sell the stock at a loss or draw out your FD without interest. 

The wonders of SSB is that 
   1) it allows early redemption monthly, in multiples of $500 with no penalty. 
   2) accrued interest will be paid! In layman terms, accrued interest is the interest that you have               earned on your SSB since the last interest payment was made.

With that it is quite clear to me that I will be parking part of my family's emergency funds into SSB. As interest rate is likely to continue going up, it would be more feasible buying SSB over a 12 months period. While means splitting up the funds into 6 to 12 amounts and buying SSB each month instead of putting in a lump sum amount.

You may ask, why not park all emergency funds in SSB?

Well, SSB redemption application closes at 9pm on the 4th last business day of the month. Redemption proceeds will be paid by the end of the 2nd business day of the following month. So technically, you need at least 6 business days to cash out your funds. If you really need the funds immediately, within a couple of days, it is not feasible.

Is SSB safe?

SSB is fully backed by the Singapore Government. You can get your investment amount back in full - no capital losses any time. If this is not a safe investment tool, I do not know what is. In the extremely rare scenario, the government defaults, then Singapore's future would have already been jeopardised. By then, we would be facing high unemployment, MNCs would have pulled out from Singapore and local stocks sky dive down.

What are your thoughts?

Friday 29 June 2018

My Investment Portfolio (End Jun 2018)

Transactions made in Jun 2018:
- Bought 4,500 units of First Reit at $1.33
- Bought 1,000 units of SingTel at $3.10
- Bought 1,800 units of Frasers Logistics and Industrial Trust at $0.967 (via rights issue)
- Bought 156 units of Raffles Medical at $0.99 (via scrip dividends)

The threat of a full blown global trade war has impacted the STI. No one knows for sure whether the trade war will happen and whether this will eventually lead to a bear market.  In addition, the interest rate hikes seems to be having some impact on shares and even reits. The cost of borrowing by businesses will increase, affecting profit. Also, investors will demand a higher yield for investing in business as interest rates go up since they can easily park their money else where. This will eventually cause the price of the stock to decrease till the desired yield figure. Since I do not have a crystal ball to foresee the future and the cause and effect of thing on stocks are too complicated, I will not time the market. I have no idea if this is the right method. I will know in 10-20 years time. What are your thoughts? It would be great to hear differing views in the comment section.

June has been exciting! Obviously the concept of sell in may and the fact that it is World Cup period does not resonate in me. I welcomed First Reit into the portfolio after queuing for months! In additional, I added Singtel. This should not be a surprise since I have been queuing for both shares and mentioned this last month too. I am still queuing for Keppel Corp.

I have bought Frasers Logistics and Industrial Trust (FLT) via rights issue too. I was lucky as I applied for excess rights of 2,000 units and got 1,800 units. This was on top of the 1,000 units which I was entitled to. So I 'sold' 1,000 units of FLT to my wife at the rights issue price. As for Raffles Medical, I bought the units via scrip dividends. Ironically, the price is now hovering between $1.00 to $1.03. 

The dividends received in Jun for Accordia Golf Trust has been disappointing, I was expecting at least $250, but received only $154. My dividends yield used to be 9% for this share, but now it has dropped to 6%. 

Dividends received* in Jun 2018: $154 (Accordia Golf Trust)

Total dividends received in 2018: $3,703.51

Average dividends per month: $308.63

Total Portfolio Market Value: $156,208

* Dividends are recognised after ex-dividend (xd) date
# Excludes investments in Cryptocurrency since it is of high risk and with an investment fund which I am prepared to write off.

Monday 4 June 2018

My Investment Portfolio (End May 2018)

Transactions made in May 2018:
- Bought 5,000 units of NetLink NBN Trust at $0.81

During the month of May, I only managed to purchase NetLink NBN Trust despite queuing for several shares such as First Reit, Singtel and Keppel Corp. I had bought NetLink NBN Trust one and a half weeks before it XD. I am likely to hold this for short term and will sell it if it hits my selling price before the next round of dividends. Looking at the recent developments where Hyflux seeks court protection for debt reorganisation, I am glad that I cut loss and sold it at a lose of 67% in Mar 18. I hope that fellow investors out there did not and will not lose much from this.

May was an exciting month. I broke my record for the highest dividends received in a month. I hope I can break this record again later this year in August or in next year in May. Comfort DelGro's rise in price has also surprised me. It has overtaken ST Engineering and taken over the top spot in terms of value. 

I will be participating in the rights issue for FLT and the scrip dividends for Raffles Medical in Jun. Despite the recent price drop in Raffles Medical, I am confident that its share price will increase over long run. I am clear that this share is for potential capital gains and not for dividends yield.

Dividends received* in May 2018: $1,824.46 (Suntec Reit, ComfortDelGro, Wilmar Intl, Sheng Siong, Mapletree GCC Tr, Keppel DC Reit, Frasers L&I Tr, OCBC, NetLink NBN Trust, Jumbo, CapitaCom Trust)

Total dividends received since 2018: $3,549.51

Average dividends per month: $295.79

Total Portfolio Market Value: $150,015

* Dividends are recognised after ex-dividend (xd) date
# Excludes investments in Cryptocurrency since it is of high risk and with an investment fund which I am prepared to write off.

Tuesday 1 May 2018

My Investment Portfolio (End Apr 2018)

Current Value ($)
ST Engineering
Keppel DC Reit
Keppel Corp
Frasers L&I Tr
Raffles Medical
Wilmar Intl
Sheng Siong
CapitaCom Trust
Accordia Golf Tr
Sembcorp Marine
Ascendas Reit 
Suntec Reit
Mapletree Com Tr
Old Chang Kee
Mapletree GCC Tr
IREIT Global

No transactions in Apr 2018.

April was a quiet month in terms of transactions. I queued for several shares such as First Reit, Vicom etc but none was fulfilled. I am watching out for several shares that have just XD or are going to XD. Will update if I manage to get into any of them next month. In terms of dividends, this is one of my favourite month besides May and August as these are the months where I receive the bulk of my dividends. 

Dividends received* in Apr 2018: $1,036.14 (Mapletree Commercial Trust, Ascendas Reit, Sembcorp Marine, Keppel Corp, M1, ST Engineering)

Total dividends received since 2018: $1,725.05

Average dividends per month: $143.75

Total Portfolio Market Value: $149,756

* Dividends are recognised after ex-dividend (xd) date
# Excludes investments in Cryptocurrency since it is of high risk and with an investment fund which I am prepared to write off.