Sunday, November 30, 2014

[SGX Portfolio] November 2014 Update

As mentioned previously, this will be my attempt at having a monthly update of my SGX portfolio.

Here are the current stats of the portfolio as of end November 2014.

                                                                         Lots         Average Price   Dividends Collected
Croesus Retail Trust
1
0.900
$54.00
Saizen REIT
1
0.875
$31.00
CDW
1
0.131
$6.26
Asian Pay TV Trust
1
0.760
$41.20
Lippo Malls Retail Trust
2
0.3925
$20.60
New Toyo
2
0.275
$6.00
Chuan Hup
1
0.285
$10.00
Hotung
3
0.149
-
OUE Commercial REIT
1
0.805
-
Hock Lian Seng
1
0.270
-
Global Investments
3
0.141
-
Perennial CRT
1
0.520
$9.50
Singapore Reinsurance
1
0.295
-
Valuetronics
1
0.300
-
China Fishery
1
0.300
-

Total Cost    $7,646    
Unrealized Gains$197
Realized Gains$0.56
Dividends Collected$178.56

*Realized Gains will take into account the final net profit or loss after including transaction costs to close a long position on a security. Dividends for closed positions will be grouped under realized gains. Dividends that has been collected for positions still held (which are realized) are separately counted.

I am holding off increasing my holdings in both New Toyo and Lippo Malls even though there is price weakness. I don't want to bet too much on the underdogs. I picked up China Fishery when it's price was smashed down 10%. I've always thought that it was a decent counter, just waiting for an interesting entry point. This impulsive move down felt like a good time to dip my toe into it. It has gone down further, I am wondering if I should take another nibble.

I have accepted the offer on Perennial China Retail Trust (PCRT) to convert my units to Perennial Real Estate Holdings Limited (PREHL) unit, so next month I will probably get 524 shares of PREHL. Once trading of the 100 share lots start next January, hopefully I can figure a way to even out my shares. Odd lots make me feel uneasy, haha.

Annual income from dividends is now expected to be about $545 for a full year, but of course I collected some and miss out others by not owning them the entire period. Doesn't seem to be any counters declaring dividends next month.

Based on the dividends I am expected to collect, my portfolio dividend yield on cost is estimated to be about 7.2%.

The watchlist is quite big, around 70+ stocks, which comprises about 10% of the SGX listings. I am looking to trim it down a bit.

I am very eager for the drop in share lots from 1000 to 100, because it will enable me to have access to much more companies that used to have a very high capital requirement. However, this will only happen in Jan 2015.

I am resisting loading up on shares even though I see some very tempting picks and the broad market feels fairly priced. Markets rarely go sideways for so long, so something is definitely happening behind the scenes. I think this month we will finally see where we are heading.

4 comments:

  1. Your portfolio yield is quite high. This might indicate that the portfolio is overall quite risky. Any downturn in the market and you might be hit with great volatility. Just sharing from experience...

    ReplyDelete
    Replies
    1. Hi FF,

      Since total return is made from capital gains and yield, by having a larger weighting towards REITs and Trusts compared to typical portfolios (eg STI at 2.6%), I understand that I am actually gunning for more yield at the expense of capital appreciation. It is just my personal preference to have cash flow, rather than an appreciating asset.

      However, I will tread carefully moving forward. I will continue to make it a point not to prioritize yield as a criteria for selection. Thank you for sharing your experience and your wise words of caution!

      Delete
  2. Hi gMgH,

    You are using SCB to accumulate a large variety of counters right? I am planning to do that too after board lot reduction to 100 on 19 Jan 2015.

    However, I am thinking of the potential problem concerning rights issue when using SCB nominee account. I read that SCB is less efficient and less timely in handling/communicating about the rights. So this means that we ourselves have to monitor regularly over the many counters we hold in SCB account, to keep informed of rights issue.

    How do you work around this? Have you ever had experience with SCB regarding rights?

    Thanks,
    J.S.

    ReplyDelete
    Replies
    1. Hi J.S.

      You are corright, I use SCB to accumulate!

      I have similar strategy as well. Once the board lot drops from 1000 to 100, I am planning to aggressively pick up quite a few stocks that I have been watching. Looking to expand my portfolio by capital invested by around 50% and double the individual holdings.

      So far the only strange corporate action that SCB has handled for me other than dividends is the offer by PCRT, which the entire process is still underway. I thought SCB was rather efficient. They called me and sent me a letter. I have not gone through the process of rights issue with any of my counters with them yet, but I don't really foresee it to be a problem.

      IMO, if you are going to have big bets on individual counters, then I think you might worry and want to be extra on the ball. But if you're like me and plan to have like 2-3% allocation in like 50+ holdings, just wait for the phone call and letter lor, haha.

      Delete

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