| Counter | Average Price | Yield on cost(%) | Weightage |
| Croesus Retail Trust |
0.8472
|
8.47
|
47.16%
|
| OCBC Bank |
9.0500
|
4.00
|
12.19%
|
| UOB Bank |
18.8800
|
4.00
|
8.47%
|
| Saizen REIT |
1.0013
|
5.99
|
1.80%
|
| Keppel DC REIT |
0.9919
|
6.56
|
1.78%
|
| Soilbuild Business REIT |
0.7628
|
8.46
|
1.71%
|
| First REIT |
1.1822
|
6.91
|
1.59%
|
| Croesus Retail Trust |
0.8100
|
8.88
|
1.45%
|
| Cache Logistics |
0.9680
|
8.15
|
1.30%
|
| AIMS AMP Cap REIT |
1.3363
|
8.37
|
1.20%
|
| Capitaland Commercial |
1.3008
|
6.15
|
1.17%
|
| Ho Bee Land |
1.9800
|
2.50
|
0.89%
|
| SPHREIT |
0.9500
|
5.80
|
0.85%
|
| Fraser Centrepoint |
1.8550
|
6.19
|
0.83%
|
| NOL |
1.2117
|
0.00
|
0.54%
|
| Neratel |
0.5950
|
6.84
|
0.53%
|
| Mapletree Logistics |
0.9900
|
7.40
|
0.44%
|
| Sheng Siong |
0.8450
|
3.84
|
0.38%
|
| IREIT Global |
0.6650
|
9.00
|
0.30%
|
| Lippo Mall REIT |
0.3200
|
9.90
|
0.29%
|
| STI ETF |
2.8058
|
3.50
|
15.11%
|
| Total |
6.50
|
100.00%
|
| Legend |
| CDP |
| SCB |
Total Invested Capital = $22,534.31
Total Expected Dividends/month = $122
Average Dividend Yield = 6.50%
In a blink of an eye, the first month of 2016 has come and gone. During this volatile month, which saw most of the action coming from the actions of the Chinese government trying to stave off volatility in its markets by introducing circuit breaker which would halt stock trading across the board, in an attempt to 'control' the market like they have tried many times before but the result was the same, failing spectacularly to calm markets. The backfire was because of the increased uncertainty of the markets which this trading halts, which exacerbated the situation as the China stock market, dominated by retail investors, rushed to sell off their risky stocks. The fear spread quickly and the whole market collapsed within minutes.
But we should not be alarmed, as such actions are temporary and governments are learning their mistakes, would seek to rectify their ways, or so I would believe. Abenomics has more or less failed, and we know recently the Japanese government has proceeded to set the benchmark interest rates into negative territory! Which such bad news stemming out from every region, it is the right chance for people starting out in their investing journey. The moment could not be any better, or so I believe, markets can still get cheaper, so don't take my word for it. But start small, and take small nibbles into the market as much as you can stomach the losses which would come. Slow and steady as you go. There is no rush to catch multiple falling knives.
Speaking of which, this month has seen myself continuing to scoop up the STI ETF at my target prices. I have not bought all stipulated in my shopping list, but at least a few of my orders went through. I also tweaked my portfolio a little bit, by selling some stronger counters and buying back if they fell back to below or my original cost price. Some of this are Keppel DC REIT, First REIT and Fraser Centerpoint. I have managed to buy back the shares for Keppel DC and First REIT after they went XD and fell further, but for Fraser Centerpoint I have yet to buy back my shares as it has not fallen low enough for me to be interested to increase my positions again.
I have also quite a large exposure to industrial REITs, so I would no longer be increasing positions in them in the meantime. For now, I have identified some REITs which I would be focussing on accumulating if prices were to fall further. These are Capitaland Commercial Trust, Fraser Centrepoint Trust, First REIT and Keppel DC REIT. All four REITS possesses low gearing and relatively low interest costs as well as interest coverage on the higher side. Most of the management of these REITs have proven themselves for more than 5 years, the only exception is newbie Keppel DC REIT. I have decided to add Keppel DC REIT has the balance sheet have shown themselves to be of high quality, the only things I am not so happy about would be the premium over book value and its low yield. But I have decided to give them a chance to prove themselves, meantime, I will continue to collect their dividends.
On a side note, I have increased positions in Saizen REIT in anticipation of their results release and dividend announcement soon. Should prices continue to fall, I will be there to accumulate as we are more or less sure that the buyer of Saizen REIT assets would be paying at least $1.10 per unit, this is on top of the dividend it should be dishing out soon.
For now, my focus would be the 4 stated REITs and STI ETF, should the market provide me the opportunity to accumulate further.
In a blink of an eye, the first month of 2016 has come and gone. During this volatile month, which saw most of the action coming from the actions of the Chinese government trying to stave off volatility in its markets by introducing circuit breaker which would halt stock trading across the board, in an attempt to 'control' the market like they have tried many times before but the result was the same, failing spectacularly to calm markets. The backfire was because of the increased uncertainty of the markets which this trading halts, which exacerbated the situation as the China stock market, dominated by retail investors, rushed to sell off their risky stocks. The fear spread quickly and the whole market collapsed within minutes.
But we should not be alarmed, as such actions are temporary and governments are learning their mistakes, would seek to rectify their ways, or so I would believe. Abenomics has more or less failed, and we know recently the Japanese government has proceeded to set the benchmark interest rates into negative territory! Which such bad news stemming out from every region, it is the right chance for people starting out in their investing journey. The moment could not be any better, or so I believe, markets can still get cheaper, so don't take my word for it. But start small, and take small nibbles into the market as much as you can stomach the losses which would come. Slow and steady as you go. There is no rush to catch multiple falling knives.
Speaking of which, this month has seen myself continuing to scoop up the STI ETF at my target prices. I have not bought all stipulated in my shopping list, but at least a few of my orders went through. I also tweaked my portfolio a little bit, by selling some stronger counters and buying back if they fell back to below or my original cost price. Some of this are Keppel DC REIT, First REIT and Fraser Centerpoint. I have managed to buy back the shares for Keppel DC and First REIT after they went XD and fell further, but for Fraser Centerpoint I have yet to buy back my shares as it has not fallen low enough for me to be interested to increase my positions again.
I have also quite a large exposure to industrial REITs, so I would no longer be increasing positions in them in the meantime. For now, I have identified some REITs which I would be focussing on accumulating if prices were to fall further. These are Capitaland Commercial Trust, Fraser Centrepoint Trust, First REIT and Keppel DC REIT. All four REITS possesses low gearing and relatively low interest costs as well as interest coverage on the higher side. Most of the management of these REITs have proven themselves for more than 5 years, the only exception is newbie Keppel DC REIT. I have decided to add Keppel DC REIT has the balance sheet have shown themselves to be of high quality, the only things I am not so happy about would be the premium over book value and its low yield. But I have decided to give them a chance to prove themselves, meantime, I will continue to collect their dividends.
On a side note, I have increased positions in Saizen REIT in anticipation of their results release and dividend announcement soon. Should prices continue to fall, I will be there to accumulate as we are more or less sure that the buyer of Saizen REIT assets would be paying at least $1.10 per unit, this is on top of the dividend it should be dishing out soon.
For now, my focus would be the 4 stated REITs and STI ETF, should the market provide me the opportunity to accumulate further.
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