Thursday, August 11, 2016

[SGX Portfolio] May-Jun-Jul 2016 Update

It's been a while, and I've been so busy and lazy, but I've finally updated my SGX portfolio.

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 Jul 2016.

Total Cost    $25,318.90     
Unrealized Gains-$2,399.43
Accumulated Dividends $1,889.39
Realized Gains$1,023.75

*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. 

Let's start with what probably everyone is thinking about. WHY DO YOU STILL HAVE SO MANY COUNTERS? With the change to SCB's minimum commission, I have played my Hail Mary card and surprisingly, I think it might actually work. I might have "priority banking" status without actually having that $200k balance. Unfortunately though, this is not something that everyone can do, so I guess I'm thankful for the connections I have. Don't ask, because I won't tell. I have yet to execute any trades since the revised rates to check if I am indeed able to trade with no minimum commission.

So far, I've only sold off counters (before the change in fees) and I have yet to accumulate anything. Nothing really is calling out to me yet, so I'm just waiting around and observing how the market is going. I had decided to trim off some of my smaller position. I was going to continue selling away all my shares with a value under $300, but of course now I might not have to.

World Precision is a good example. I bought it and sold it at the same price, but for the the 18 months that I have held it, it has paid me dividends. My total returns (slight capital loss + dividends) is a very decent 23.6%! Of course, the amount is so small and fractional, but I like how even my small positions can do well. (which gives me encouragement to continue taking small positions on good opportunities, rather than only focusing fire on big positions)

Food Empire which I've held for almost a year nett me 36.36%.
Frencken for about 1.5 years has got me 22.57%.
CNMC Goldmine had multiple purchases, but the total return was 36.73%. I felt that I sold this one way too soon, considering that price had spiked to almost 0.61 and it is at about 50c now (I sold at around 0.30).

Although they all seem like small positions, this $570.41 capital used managed to give me back $747.89 is less than 2 years. That's a total return of 31%. Still small peanuts to some though, but it is a meaningful amount to me, especially if it was just sitting in my bank earning 0.05%. That would have been just $0.43 in interest.

With all of these small sells, I've reduced my capital investment and added to my realized gains. Profits from selling positions and dividends received are realized gains because they can never be lost back into the market. They are happily sitting in your bank account.

Overall, including dividends and realized gains, my portfolio is actually up 2%! My annualized IRR is about 1.44%, which makes this a very volatile and risky way to earn fixed deposit-like returns. However, considering that the STI is still under 2900, I think my portfolio isn't doing too badly. Plus, the upside from where my account is sitting at now doesn't look that bad.

Annual income from dividends is now expected to be about $1598 for a full year, (taking into account Keppel's cut) but of course I collected some and missed out on others by not owning them the entire period. That brings the expected monthly income to $133.17 and daily income to be $4.38.

Based on the dividends I am expected to collect, my portfolio dividend yield on cost is estimated to be about 6.31%. 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 rather stable around 6% now, since new additions are generally on the upper end based on their individual yield history.

Comparing the current trailing 12 months to 1 year ago, my dividends has gone up from $557 to $1332. Of course, a year ago I only had $14,000 capital in the market. My portfolio has gone up, and so has my dividends. Not a big surprise, but it's nice to see progress. Who know's what will be my trailing 12 month's dividend next year? Hopefully, more!

In the coming months I still 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?

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