Saturday, 28 May 2016

Portfolio Update - May 2016

*As of 31 May 2016


Counter Average Price Yield on cost(%) Weightage
OCBC Bank
8.6000
4.00
24.94%
UOB Bank
18.8800
4.00
13.69%
Croesus Retail Trust
0.7843
8.00
9.10%
Capitaland Commercial
1.3429
6.15
3.89%
First REIT
1.1754
6.91
3.41%
Soilbuild Business REIT
0.7628
7.80
2.76%
Starhub
3.3200
6.00
2.41%
Keppel DC REIT
0.9919
6.56
2.16%
Cache Logistics
0.9680
8.15
2.11%
SPHREIT
0.9417
5.80
2.05%
AIMS AMP Cap REIT
1.3363
8.37
1.94%
M1
2.3600
6.00
1.71%
Ascendas Hospitality
0.7217
8.03
1.57%
Mapletree Logistics
0.9900
7.40
0.72%
Saizen REIT
0.0645
0.00
0.70%
Sheng Siong
0.8400
3.00
0.61%
IREIT Global
0.6650
9.00
0.48%
Lippo Mall REIT
0.3200
9.90
0.46%
Kingsmen Creatives
0.6250
3.00
0.45%
Far East Hospitality
0.6200
7.00
0.45%
STI ETF
2.8058
3.50
24.41%
Total

4.99
100.00%

Legend
CDP
SCB

Total Invested Capital = $13.795.50

Total Expected Dividends/month = $57.22

Average Dividend Yield = 4.99%

Once again, another month of activities in the market news segment with the slight jitters from the Federal Reserve hawkish remarks to the unconvincing US economic reports. Despite this, markets remained fairly unchanged, with slight profit taking for stocks mid month in anticipation of some risks coming from the FOMC meeting and possibly some decisions that might derail the fragile economy.

The lack of market movements, however, did not prevent an active rebalancing of my portfolio during this month. People would quote the sell in May and go away nonsense, but statistically, it has proven to be largely untrue. So stay invested, and if markets shock us to the downside, then stay even more invested, notice I emphasise the word "more". Yes, you know what I am talking about.



Some of the main changes are:

1) Reduction in Croesus Retail Trust position

The recent strength in the units have tempted me to take some profits of my largest holding in my SCB account. Anyway, I was intending to rebalance my portfolio, so what better way to reduce my heaviest position as the shares strengthen and bring it closer in line to the current exposure I have with the other units in my SCB account.

2) Addition of Capitaland Commercial Trust units

Smallish positions was incrementally added as the share prices weakened mid May. Office supply is heading for a glut in 2017, but I am betting on the proven management and solid fundamentals of this REIT to weather through the storm as I continue to collect dividends from it. This is one of the REITs I would look to increase positions should markets take a tumble similar to GFC levels, as I like the way the management has handled previous crisis.



3) Smallish addition to SPH REIT

Share prices of retail REITs weakened somewhat in May, but not to the extent of SPH REIT, as I felt that its solid balance sheet did not warrant its fall in value, picked 100 shares at $0.925. Will continue to monitor and add if it falls further.



4) Smallish position initiated for Kingsmen Creatives

This is a new addition to my portfolio, which caught my attention when the prices fell strongly after its poor financial results. I like the businesses it does but unfortunately, its businesses are strongly correlated with the strength of the economy. The weakened share price since 2015 reflects its poor earnings and dampened investor sentiment. Looking at the price chart of Kingsmen would also point to a much better margin of safety to buy now then before. PB of kingsmen is almost 1, and for service companies like Kingsmen, Neratel and the like, it is really a good bargain to buy some as a bet of value. Do note that Neratel currently trades 4x PB.



5) Full liquidation of Neratel, NOL and Ascott REIT

I have fully taken profit on Neratel as it is selling its income generating payment solution business which is the main reason for me to add to Neratel. Without this business, it would have more volatile earnings and it is more difficult to have some degree on certainty in its income. NOL has reached the agreed deal and it is only a matter of days the offer will be despatched to investors. However, I have decided to liquidate it first so that I have cash on hand to put it into other opportunities since this counter yields nothing. Ascott REIT was something I was looking to trade on strength. Prices fell strongly on the placement issue back in April, and have rebounded since. I still do not like the management fees structure and its exposure to the hospitality business is not really what I wanted as I am in the process of accumulating Ascendas Hospitality. Hence, the full liquidation of Ascott REIT.


Observant readers would have noticed that my portfolio has been reducing in value month on month. This reduction has been largely restricted to my SCB mini portfolio account which is heavy on income stocks. I am looking to reverse this by adding more income focused stocks soon, should REITs and other trusts start to fall on fears of an impending hike in interest rates.

Remember, it does not matter how much you start with, but whether you start the first step in your investment journey or not! That makes a hell lot of difference, in the eyes of compounding that is.

Monday, 2 May 2016

Portfolio Update - April 2016

*As of 30 April 2016

Counter Average Price Yield on cost(%) Weightage
OCBC Bank
8.6000
4.00
23.87%
UOB Bank
18.8800
4.00
13.10%
Croesus Retail Trust
0.7843
8.00
15.24%
First REIT
1.1754
6.91
3.26%
Soilbuild Business REIT
0.7628
7.80
2.65%
Starhub
3.3200
6.00
2.30%
Keppel DC REIT
0.9919
6.56
2.06%
Cache Logistics
0.9680
8.15
2.01%
AIMS AMP Cap REIT
1.3363
8.37
1.85%
Capitaland Commercial
1.3008
6.15
1.81%
Ascendas Hospitality
0.7217
8.03
1.50%
SPHREIT
0.9500
5.80
1.32%
Neratel
0.5800
3.44
1.21%
NOL
1.2117
0.00
0.84%
Ascott REIT
1.1100
6.34
0.77%
Mapletree Logistics
0.9900
7.40
0.69%
Saizen REIT
0.0645
0.00
0.67%
Sheng Siong
0.8400
3.00
0.58%
IREIT Global
0.6650
9.00
0.46%
Lippo Mall REIT
0.3200
9.90
0.44%
STI ETF
2.8058
3.50
23.36%
Total

5.03
100.00%


Legend
CDP
SCB

Total Invested Capital = $14,455.62

Total Expected Dividends/month = $60.41

Average Dividend Yield = 5.03%

Here is another update, so quickly another month has passed by. Well, markets pretty much didn't do much over this month, it didn't go to outrageously high levels to warrant much selling, although I did make one large sale this month. It didn't go to levels more attractive for me to make large transactions, hence its another month of limited transactions.

The largest sale I made this month reduced my overall position by almost half. It was the sale of Croesus Retail Trust after the trust price moved upwards after the news of the acquisition. I took the chance to remove the heavy position I had since the middle of 2015, as part of my rebalancing portfolio to keep it more diversified and spread out across the different industries. I had an new position I initiated last month in my SCB account on Croesus Retail Trust as part of mainly speculative position made plainly because I had predicted the price of the trust would move upwards after the knee-jerk reaction due to the placement. It will remain in my SCB account as I still feel that the trust is a good source of passive income and its dividend yield sustainable along with my faith in the management.

The liquidation of this large position allowed me a larger war-chest to accumulate positions should the market go into a correction mode in future. I will continue to make smallish positions where I see fit while continuing to save aggressively from my monthly income, continuously adding to my war-chest.


The other surprise that happened this month was the sudden news about Ascendas Hospitality not looking to sell its assets despite multiple offers from at least 3 companies. This led to a crash in the price of Ascendas, falling as low as $0.66. The rebound was swift, and I failed to purchase more, but only added a few weeks later at $0.68 when it didn't look like it would go down further. Would look to purchase more on further weaknesses if presented. I am looking forward to its 2 quarters of distribution coming in this week or the next.


I have also added another hospitality REIT, Ascott REIT, in order to boost the hospitality segment in my REIT portfolio. Furthermore, I felt that Ascott REIT share price has been suffering from overhang from the recent placement done last month. The only regret was not being able to buy right after the placement, the similar strategy I employed with Croesus, simply because I was not monitoring the market frequently enough.


In other news, I had bought back Sheng Siong again at $0.84, another smallish position, awaiting the dividend coming in May. I may consider selling it if the price is favourably high enough after it goes XD.

And once again, I will continue to stay patient, though my hands are itching to buy more income producing assets with the increased size of the current war-chest now. But noooo, I will stay disciplined and focus on buying only when there is blood in the news. Waiting for the bumper dividends coming in May!