Saturday, October 3, 2015

[SGX Portfolio] September 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 September 2015.


Total Cost    $19,602.90     
Unrealized Gains-$1,788.97
Accumulated Dividends $792.02
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. 


September was a pretty boring month as the stock market is grinding downwards. I don't really see any rush at all to get into stocks, especially ones that I have been watching and have come off their previously nosebleed valuations.

I saw weakness and I took up tiny tiny positions in Perennial Holdings and Super Group.

I would mind to pump a bit more into the O&G names like Keppel and Semb Corp if their prices continue to drop, but I will cap my allocation to them at 40% and just consider it as all my ammunition directed at that target board is spent, and I will wait out their market cycle. 

I did not have any sell orders this month, and I doubt I will be making any sells for a very long time to come. We seem to be entering the accumulation phase. Does the stock market takes 2 months to "bottom"? The answer is clearly, no.

Overall my portfolio is only down 1.9%, with the dividends and realized gains providing a good buffer in the recent weakness of stock prices. Without taking dividends into consideration, I am down 9%. However, considering that the STI is down 20% and I've still been collecting dividends, this isn't too bad in my opinion. As expected, the XIRR of the portfolio has turned negative since the stock market is languishing. Even though my portfolio is negative, let me be clear that I am not fazed by what is happening.

Annual income from dividends is now expected to be about $1161 for a full year, (I removed the forecast for Perennial Holdings) but of course I collected some and miss out others by not owning them the entire period. That brings the expected monthly income to $96.75 and daily income to be $3.18.

Based on the dividends I am expected to collect, my portfolio dividend yield on cost is estimated to be about 5.93%. 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 continue to perform poorly. My current strategy is to just brace myself and incrementally add on oversold opportunities. If my thesis is right, there are going to be plenty more opportunities 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?

10 comments:

  1. Thanks for sharing your portfolio, makes me less depressed as mine also fell quite a bit lol

    ReplyDelete
    Replies
    1. Hey Anon,

      No prob! Just hang in tight! Valuations now are historically quite cheap, but they won't stay this way forever!

      Delete
  2. Thanks for sharing your SGX portfolio. I m about to step in SGX.(waiting for DBSV approve my application). Drop by here to see what stock you are holding so that I got ideas what stocks m going for. lol

    Cheers,
    J

    ReplyDelete
    Replies
    1. Hi J 丰,

      No problem, I am glad to hear that you are starting. It's never too late to start taking control of this aspects of your finances! Share ideas with me too! Haha!

      Delete
  3. Thanks GMGH for sharing (in addition to all the other helpful posts on SSBS, savings accounts, etc). I'm waiting to enter the SGX too, anticipating further drops in the STI and mid-cap indexes, while looking for suitable ETFs or undervalued stocks.
    P.S. Looking forward to your updates on the SSBs. Interested in this month's.

    ReplyDelete
    Replies
    1. Hi Zhihe,

      Care to share which suitable ETFs or undervalued stocks you might be stalking?

      Just a quick pre-preview of the SSB, it is highly likely that next month's issue is going to be substantially lower on the tail end of the curve (5-10 years) while maintaining a relatively higher front end of the curve (1-2 years).

      If you have already decided that the SSB is a tool that you want to use and you are only deliberating between when to apply, it might be a bit pre-mature to say, but it would seem that this month's bond would be more attractive than next month's.

      Things will be clearer the further along the month we go!

      Delete
  4. realised your buying are mostly small amounts, wont the commision corrode your gains?

    ReplyDelete
    Replies
    1. Hi kkelviin,

      I buy with SCB, so I've paid about ~$70 in commissions so far.

      I guess with any other broker you'll be paying an arm and leg in commissions, or you'll have a portfolio of similar value but with only 5 stocks.

      Delete
    2. Hi GMGH, am with other broker and have 5 counters, am enticed by SCB comm% and your style on broad small diversification, could you share more insight if i should switch? any cons on having scb as broker apart from custodian?

      Delete
    3. Hi kkelviin,

      SCB is a custodian, so you don't directly own the shares, so they do not go into your CDP.

      As such, you are not able to vote, attend AGMs and get free food.

      Also when it comes to corporate action, the timeline to work with SCB is much shorter, about 50% the usual time to give them your instructions.

      Finally, their brokerage UI is not that fantastic. It is really basic.

      So it's not the best, but it's cheap for small lots and it's enough for me. I guess it really depends what attributes you are looking for in a broker.

      Delete

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