Sunday 31 July 2016

Portfolio Update - July 2016

*As of 31 July 2016

Counter Average Price Yield on cost(%) Weightage
UOB Bank
18.2150
4.00
21.83%
OCBC Bank
8.6000
4.00
20.62%
First REIT
1.2500
6.75
6.74%
Keppel Corp
5.3700
5.00
9.66%
SPH
3.7500
5.00
6.74%
Capitaland Commercial
1.3523
6.15
4.05%
SPHREIT
0.9293
5.80
3.90%
Keppel DC REIT
1.0102
6.50
2.42%
Ascendas Hospitality
0.6991
8.03
2.09%
Mapletree Logistics
0.9800
7.40
1.76%
STI ETF
2.8058
3.50
20.18%
Total

4.61
100.00%

Legend
CDP
SCB

Total Invested Capital = $16,749.29

Total Expected Dividends/month = $64.34

Average Dividend Yield = 4.61%

The rally in the markets after BREXIT is now showing signs of weakening. Given the sudden plunge last Friday, it is looking like another opportunity to add to my portfolio. I have already taken advantage of the weaknesses of the markets to make 2 significant additions to my portfolio.

The main transactions this month if you have noticed from my portfolio is the liquidation of Saizen REIT and using the proceeds and more cash injected to buy into SPH and more Keppel Corp. As such, my total invested amount has increased to almost $17k, bumping up my expected monthly dividend to almost $65. The dividend yield remains a low end of 4.61% owing to the larger positions in the banks and STI ETF. I am currently looking to add to positions away from banking counters if possible, and addition of SPH and Keppel Corp is a step to diversify my holdings, though still heavily weighted to the banks at this moment in time.

Keppel Corporation has been in my holdings as more of the trading play if possible, but if I am not able to make the trading plan then it is still a nice blue chip to have given weaker valuations at the moment. Now that the SCB rule of minimum commissions have kicked into effect starting next Monday, I am unlikely to add to positions unless the valuations are very compelling. I might even consider moving positions to CDP, but I would prefer to wait and watch as brokerage charges in SCB is still slightly cheaper than CDP. I might as well accumulate more before transferring over since the charges for transferring is fixed at $10.70 per transfer per share.




SPH is more of an income play for myself, and an alternative income stock to the REITs I currently hold. At the moment, REITs are trading near their highs ever since speculation that the US Fed is unlikely to raise rates caused a sudden gravitation towards bonds and REITs. SPH share price plunged back to close to its low after it reported very much weaker results which poses some risks to the current dividend payout to being cut. This puts the scenario of having the current 5% yield I am looking at reducing to 3-4% is to a very much possible outcome given that the current payout is squeezed to a 100%. Still, I am fairly positive on its property segment, also a reason why I am invested in SPH REIT. The media segment has been a drag for a couple of years already and it is up to the management of SPH to seek out ways to improve its income stream away from media and advertising.



Saizen REIT has been liquidated because of the risk coming from the proposed transaction they announced earlier the past few weeks. If they do proceed with the transaction, it is likely they will stay listed, which I believe might be a disappointment to the speculators believing in the actual liquidation of the REIT. Moreover, the share price now is very close to the liquidation value of 1.172 - 1.056 = $0.116. I am willing to take the profits off this counter given the risks of a falling out of the liquidation procedures. The money in this counter would also technically not contribute to any income as at the moment Saizen REIT is an empty shell company, and I would rather use the money to deploy into income stocks rather than waiting for news which may not produce significant upside. In other words, the risk now is now larger than the reward to hold Saizen REIT. And so, sayonara Saizen REIT, it has been nice speculating with you for the past few months.




And so that is all for the month of July. The main focus for me in the coming months is to add to diversification away from banks and to income stocks wherever possible. I don't foresee REITs falling back down anytime soon, but I am eagerly anticipating the time when it does, because you can be pretty sure I would be busy picking up REITs to boost my income segment of my portfolio.

Chaos.

Wednesday 6 July 2016

Portfolio Update - June 2016

*As of 30 June 2016

Counter Average Price Yield on cost(%) Weightage
UOB Bank
18.2150
4.00
24.10%
OCBC Bank
8.6000
4.00
22.75%
First REIT
1.2500
6.75
7.44%
Keppel Corp
5.3600
6.00
7.09%
Capitaland Commercial
1.3523
6.15
4.47%
SPHREIT
0.9293
5.80
4.30%
Keppel DC REIT
1.0102
6.50
2.67%
Ascendas Hospitality
0.6991
8.03
2.31%
Mapletree Logistics
0.9800
7.40
1.94%
Saizen REIT*
0.0645
0.00
0.64%
STI ETF
2.8058
3.50
22.27%
Total

4.61
100.00%

Legend
CDP
SCB

Total Invested Capital = $15,177.93

Total Expected Dividends/month = $58.07

Average Dividend Yield = 4.61%

This month, the only thing we kept hearing in the news was the BREXIT saga. Nobody expected it to happen, as they did not believe the Brits would be so stupid to risk exiting the EU. But they did. And so the mayhem.



Just nice that the mayhem happened when my portfolio has been drastically reduced in size ever since the wonderful SCB has decided to charge minimum commissions. I have been busy liquidating stocks which I had no intention to keep for the long term and decided on a few to focus on accumulating more shares. This has resulted in a suddenly very much reduced variety of stocks in my portfolio, as we can see for the month of June.

Despite the reduction in variety, the portfolio value actually increased quite a bit to $15k, up from $13k in May. I took the opportunity of BREXIT to accumulate more shares which I had decided to focus on. However, dividend yield for the portfolio has reduced as I liquidated positions on the weaker counters which tended to have higher yields. The month of June also seen me using SGXcafe to record my transactions and dividends. It is truly a useful portfolio monitoring software which provides real time (end of every day) profit/loss of your portfolio, dividends generated from inception, etc all from just regularly and diligently recording your purchases and sales. I am still recording my portfolio using the traditional excel sheet, as I love to see my portfolio in the format I have created.

So in summary, some of the noteworthy transactions made in June are:

1) The average down in UOB, I bought more after BREXIT, as I felt the bank is largely unaffected by Britain's exit, as its focus of operations have been largely in the SEA region.



2) Bought some First REIT with my traditional broker, adding them into my CDP account.

3) Increased position on Keppel Corp with SCB. If prices were to surprise on the upside, I may consider to sell partially or all as a trading play. If not, I would simply hold for dividends.



4) Took on increased positions on all REIT counters I am focusing on for my SCB portfolio, with the exception of Saizen REIT, which I expect them to delist soon and be liquidated on their own, needing no action from me.

And so that is all for the month of June.