Monday, August 3, 2015

[SGX Portfolio] July 2015 Update

As mentioned previously, this will be my attempt at having a monthly update of my SGX portfolio. I have also updated that page to include the historical growth of my portfolio. I find it personally encouraging to know I've come so far from where I started. Hopefully other people may be inspired and also decided to embark on their financial journey.
"The journey of a million miles begins with a single step"
Anyway, here are the current stats of the portfolio as of end July 2015.



Total Cost    $16,853.80     
Unrealized Gains-$691.25
Accumulated Dividends $557.06
Realized Gains$628.89

*Total Cost is initial purchase cost of the current portfolio
*Unrealized Gains represents the unrealized capital gains on securities still held in the portfolio
*Accumulated Dividends is the total of all dividends collected thus far

*Realized Gains will only take into account the final net capital gain or loss after including transaction costs to close a long position on a security. 


July has been an interesting month. I saw weakness and I took up small positions in Accordia, Semb Corp, Keppel, HPH, PEC and OUE Comm.

I decided to let go of SATS, which has net me a hefty 25.74% returns over just 6 months. I like the company and their business, but their valuations was just too rich for me to continue holding on. I would definitely like to re-enter a position in this stock at a better valuation.

I received no dividends this month, but I have some dividends coming in next month

Currently 100% of my returns have come from dividends. My current unrealized loses are pretty much the same as the realized gains that I have. Overall my portfolio is still up 3%, with the dividends and realized gains providing a good buffer in the recent weakness of stock prices. XIRR of the portfolio has dramatically dropped to 4.13%, and I fully anticipate that it will head lower and go negative if the stock market is languishing.

Annual income from dividends is now expected to be about $1058 for a full year, but of course I collected some and miss out others by not owning them the entire period. That brings the expected monthly income to $88.16 and daily income to be $2.89.

Based on the dividends I am expected to collect, my portfolio dividend yield on cost is estimated to be about 6.28%. I have taken the lower bound estimate for most of my counters, so it is quite possible to have surprises to the upside. My portfolio yield is dropping as I am trying to limit my individual exposure to high yielding names to spread my risks.

In the coming months I expect the Singapore stock market to perform poorly. My current strategy is to just brace myself and incrementally add on oversold opportunities. If my thesis is right, there is going to be plenty of opportunity in the coming months. I remain heavily in cash.

What drives me with the sharing of my SGX portfolio is to show people an example of how one can work towards their dreams - with discipline and hard work.

Rome wasn't built in one day. Everybody has to start somewhere.

Where are you heading?

9 comments:

  1. Do you feel the transaction costs eats up your gains especially when you have many small positions?

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    Replies
    1. Hi Anon,

      Nope, my transaction costs are very low because I use SCB as my broker. I have only paid about $55 in transaction costs so far.

      Delete
    2. Dude, thanks man. I literally went down to the branch office and opened an account the moment I saw and understood this.

      Delete
  2. How come SCB is able to offer such low transaction cost ? Any trade-off ?

    ReplyDelete
    Replies
    1. Hi Betta Man,

      The main trade off is that the stocks are held by SCB as custodian and are not credited to your own CDP account.

      This means that you must use their platform which is very basic. You are also unable to do any of the functions that is usually associated with CDP, like using multiple platforms or designating a single account for dividend crediting.

      There is also counterparty risks, which means if SCB goes belly up, there is a chance that you may not recover your holdings held by them in custody. Although of course best practice keeps custodial accounts separate, that is possible, but very very highly unlikely.

      Delete
  3. i'm holding SATS currently. Wondering why you feel that valuations are too high right now? I am thinking if the expansion to terminal 4 and 5 will be good for SATS.

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    Replies
    1. Hi gagme,

      I believe in market cycles and they help determine the earnings multiple of a given company.

      Given that SATS have a PE over 20 and I feel that market sentiment in the future will be less excited than it currently is, I believe that I will be able to re-enter SATS at a lower valuation.

      SATS is a great company, but at this price I wouldn't buy it.

      Delete
  4. Hi GMGH, nice blog you have. I will continue to track your portfolio and posts :)

    ReplyDelete
    Replies
    1. Thanks PI Trooper, I hope to see you and your posts around more!

      Delete

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