Thursday, June 4, 2015

[XMM STI ETF Investing] May 2015 Update

It has been quite a while since my last update. I have been updating on my spreadsheet monthly, but I always forget to post up my review.

As mentioned previously, this will be my attempt at having a monthly update of the small portfolio that I am running for my sister and mother. The aim to have as little downside risk as possible, and maximize returns from there.

No changes to the portfolio this month, I am still playing it safe because the STI doesn't seem to offer any very compelling entry points yet. It looks fair valued, but I just feel a buying opportunity coming around soon.

Here are the current stats of the portfolio as of end May 2015.

29 May 2015       Sister             Mom               Total       
Amount Contributed
$10,295.03
$16,546.47
$26,841.50
Percentage
38.3549%
61.6451%
100%

29 May 2015  Stocks  BondsCashTotal
Amount Contributed
$0
$10,246.04
$16,595.46
$26,841.50
Percentage
0%
38.17%
61.83%
100%

- Bonds are in UOB SGD Fund Class A with 5902.1 units.
- Cash is earning 2.25% from filling up the remainder of my OCBC 360 account.
- Additional $500 was added to Cash.


Starting May 2015, the OCBC 360 account now only gives 2.25% interest. This is unfortunate, but it is still the best cash option for me.

Since 1 April 2014 until now, my simple returns on cost is actually 2.49%. However, this amount is actually understated, because I did not calculate the time-weighted returns and that would have been higher. But oh well, I am way too damn lazy to calculate it.

Returns for the rest of this year should be quite optimistic considering that the bond fund was busy paying off its sales fee last year. I will most likely be running out of space in my OCBC 360 account as I near the $60k limit myself, which means I must find this cash another good yielding alternative

I have rebalanced the portfolio in January to have a better portfolio allocation between bonds and cash. I think a 40/60 split between bonds and cash is a good "war chest" allocation, especially since I highly suspect that 2015 will have an opportune time for me to pick up some lots of the STI. 2014 did not even experience a 10% correction the whole year, so just simple probability is telling me that there will be an opportunity soon.

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