Category Archives: Portfolio Performance

Portfolio Review 2013

stock-photo-28595310-financial-year-2014

Total Portfolio value grew $57,501.23 or 15.34% to $432,315.50 as of 2013. Dividends continue to main contributor to the growth which is in line to my long term strategy for this family portfolio.

I am hoping to grow this portfolio to at least half a million in 2014 with additional capital injection from my pocket if Mr Market gives me a good opportunity in any of the asset classes.

Current Asset allocation stands currently at 74% Equity, 7% Bonds and 19% Cash & Equivalent.

I am not in a hurry to deploy the cash until I am comfortable with the valuation of the investment I am currently eyeing. A sustainable passive cash flow is more important than growing them at all cost.

My philosophy is always to invest when I deemed there is a substantial margin of safety and when my instinct tells me to do so. Good or bad? After years of investing, I trust a lot on my instinct before decides to invest. You could see that the portfolio is considerably concentrated (less than 10 stocks) and I am not afraid to invest heavily in a single stock when I see opportunity. I trust myself more than anyone else.

Moreover, I am not seeing any FEAR currently and out of sudden so many people around me got so interested in the equity market, I sense BULLISHNESS growing among them so I am WORRIED! Maybe I worried for nothing but my instint tells me so.

Biggest Winner: Cordlife (Market returns: 118.34% + Dividends on cost: 3.68% = 122.02%)

Market leader in Singapore; Look around you, most of your friends (if they just have their first baby) if they could afford, they will definitely consider buying this product which I considered an “insurance”.

In fact, I started to notice this company when my colleagues around me started discussing which cord bank they should subscribed to store their newborn’s cord blood in Singapore.  I am not going into the FA in details; you can do your homework.

With Singapore Government pushing to increase the population growth domestically, Cordlife benefited heavily in this aspect and I believed this stock will continue to do well as it continues to diversify outside Singapore. I am not looking to add more long position since the initial investment had grown substantially unless there is a major correction. Maybe my newborn is giving me some baby’s luck?

Biggest Loser: PerennialCRT (Market returns: -6.19 % + Dividends on cost: 7.82% = 1.63%)

In line with the negative market sentiment for China as one of the worst performer in the global stock market; PCRT a business trust invest in China retail assets also got hit with negative returns for 2013.

Many of its retail asset in China will be completed in 2014 and 2015 so execution will be an important factor whether it make it or breaks it thus management leadership is extremely crucial. I am looking to add to long positions in 2014 as it continues to trade below NAV and I have very strong confident in the CEO and management as well as the China recovery. Can the worst market performer China bounce back in 2014?

Reference: http://www.abs-cbnnews.com/business/12/31/13/why-chinas-stock-market-one-2013s-worst-performers

Steady Performer: SPH (Market returns: 2.23% + Dividends on cost: 9.90 % = 12.13%)

An old guard in the portfolio and also the biggest investment so far which I held since 2009 and frankly speaking at my cost price, the capital growth is pathetic but the portfolio continues to get steady income (6-6.5% annually) as a form of dividends from this old guard every year.

In 2013, they finally decided to spin off their property asset to diversify their business to Reits in order to offset the declining revenue of their core business. With the special dividends that accounts for 4.46% of the total dividend received; I am lucky to get a few lots of SPH Reit through IPO to reinvest this dividend to continue to generate sustainable passive income.

I will continue to keep this old guard in this portfolio for a long time unless there are major shakeups in the business model. I simply love stability and believe the diversifying to become a Reit manager will benefit the company in long term. Meanwhile my family will continue to support SPH with my parents buying the hard copies Chinese papers and me subscribing to ST Online. We try to support abit lah!

First post in 2014, I wish all fellow readers and financial bloggers a healthy and meaningful year ahead.

If you haven’t take charge of your financial health, it’s not too late to start now! No one cares more than you!

Still the old reminder, don’t work too hard for money and make an effort to spend more time with your family in 2014! Life is BIGGER than money!

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Fund Performance table 2012

Just some historical data to start the first virgin post for this blog.

I started tracking the performance of the fund with a NAV of SGD$1 since start of 2012 with initial asset injection of a mixture of high yield stocks and cyclical stocks from my parents.

My on-going aim was to fine tune the asset allocation to decrease portfolio volatility and increase stability with more dividend yielding stocks since the primary goal was to generate positive cash flow to cover monthly family expenditure. I will be cutting down on cyclical stock as I am not comfortable in their high volatility and low yield.

Absolute fund returns: 19.28% vs. STI: 19.68%

Yield on portfolio: 4.96% per annum

Passive income: $15,446.90 per annum or $1,287.24 per month

Current family fixed expenditure: $6,000 per annum or $500 per month

*Fixed expenditure includes all parents household utilities and insurance coverage only*

*I am supporting my parents by giving them monthly allowance for their meal expense thus meals expenditure not included*

Exchange (SGX) Sector Market Price Holdings Market Value (SGD$)
SPH MFG  $              4.03 27000  $              108,810.00
SGX FIN  $              7.01 15000  $              105,150.00
HL Fin FIN  $              2.53 6000  $               15,180.00
PerennialCRT PROP  $              0.57 20000  $               11,300.00
Noble Grp COM  $              1.16 13000  $               15,080.00
GLD 10US$ COM  $           196.92 20  $                 3,938.37
Olam COM  $              1.56 10000  $               15,600.00
Cordlife SERV  $              0.55 29000  $               15,805.00
         
                        290,863.37
         
Assets      
Cash        $83,950.91      
Securities        $290,863.37      
Total Asset        $374,814.28      
         
Price / Unit Units YTD STI Relative
               1.1928        314,230.40 19.28% 19.68% -0.40%
         
         
   Dividends   
  Stock Date Payout  
  SGX 14-Feb-12  $      600.00  
  LippoMalls 16-Mar-12  $      132.50  
  ST Engg 24-Apr-12  $   1,125.00  
  ComfortDelGro 15-May-12  $      594.00  
  SGX 16-May-12  $      600.00  
  SPH 23-May-12  $   1,890.00  
  LippoMalls 24-May-12  $      172.50  
  HL Fin 25-May-12  $      480.00  
  LippoMalls 30-Aug-12  $      197.50  
  ComfortDelGro 31-Aug-12  $      522.00  
  ST Engg 13-Sep-12  $      270.00  
  HL Fin 14-Sep-12  $      240.00  
  LeeMetal 14-Sep-12  $      115.00  
  SGX 12-Oct-12  $   2,250.00  
  SGX 5-Nov-12  $      600.00  
  Cordlife 14-Nov-12  $      522.00  
  Olam 20-Nov-12  $      200.00  
  LippoMalls 3-Dec-12  $      277.40  
  LeeMetal 16-Dec-12  $        69.00  
  SPH 21-Dec-12  $   4,590.00  
         
         
  Total Dividends  $      15,446.90    
  Dividend Yield 4.96%