Saturday, January 31, 2015

[SGX Portfolio] January 2015 Update

Hi everybody,

To all those that have seen my previous monthly, you would notice that this month it has changed quite a bit. This is due to the new change in the SGX as well as a new method of caluclation that I will be using. With the change of calculation, my previous individual monthly updates are slightly wrong. I don't know if I like this presentation format the best, but it's a work-in-progress.

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 that at this point last year I had nothing, but now I have accumulated a fair bit. 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 January 2015.

Total Cost    $11,291.20    
Unrealized Gains$422.42
Accumulated Dividends $253.46
Realized Gains$33.77

*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. 

As of December 2014, I had 15 holdings in my portfolio. One month later, with the introduction of the reduced SGX board lot size, I have expanded my portfolio quite aggressively to 27 holdings now. Many of the purchases were because of previous pent up demand, but I held off because I did not have enough conviction to purchase 1000 shares. The smaller board lots makes it much easier to dip my toes in the water and fine tune my portfolio allocation weights.

I have divested my small stake in CDW holdings for a total return on 46%, excluding transaction costs.

I received $28.40 of dividends from OUE Commercial REIT. I have very happy with it's stable unit price. Even with no capital appreciation, I am happy to collect the rent twice a year.

Annual income from dividends is now expected to be about $757 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 $63.08 and daily income to be $2.07. Quite a few counters will be declaring dividends next month, 7 if my count isn't wrong.

Based on the dividends I am expected to collect, my portfolio dividend yield on cost is estimated to be about 6.7%. I have taken the lower bound estimate for most of my counters, so it is quite possible to have surprises to the upside.

I am very pleased that now I can pick up stocks and take small nibbles with only a small capital outlay. It is a lot easier to psychologically get into the market with the lower capital requirements. I might need to think of a new way to display my portfolio. As my holdings increase, the screen will not be long enough!

I am still very cautious about the local market. I am hoping for some broad market weakness soon to allow me entry to some good names at good prices. Therefore I am also trying to hold off purchases until there are some really tempting offers in the market. I have my eyes on quite a few counters.


  1. Hi GMGH

    Are there any particular reasons why you have expanded massively from 15 to 27 counters within a span time since the number of lots is being reduced? I understand that diversification could be key, but given your astute nature in researching and understanding investing, I would have thought you would have a more concentrated portfolio.

    1. Hi B,

      You give me too much credit! Actually diversification is the main reason. I don't think I have the ability of stock picking well enough to have a concentrated portfolio. My ideal portfolio will probably have almost 100 counters equal-weighted except for those that I really have done solid research on and feel they are quite mispriced.

      Actually, I'm choosing to step back away from finding perfect stocks that fit all my criteria, and instead relax my expectations a bit. As long as I can weed out the bottom half of the stocks with the weakest balance sheets, I am actually quite happy to pick stocks on my watchlist once their valuations reach attractive levels to me.

      For certain counters like SATS, GLP and Olam, before the lot size reduction, grabbing a single lot of these each would push my allocations out of whack. For the rest, I've been eying them for a long time, but I just don't have that much conviction in them. Currently my allocation is quite representative of my conviction of each stock.

  2. Won't transaction costs cost alot for 27 counters?

    1. Hi Anon,

      I use SCB as my broker. To date, my transaction fees is about $30. I find them extremely reasonable :)

  3. The latest update about Singapore market says that the top active stocks today were Singtel, which gained 1.87%, DBS, which gained 1.50%, Fortune REIT HKD, which gained 0.65%, UOB, which gained 0.88% and Global Logistic, with a 1.65% advance.


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