Monday, August 12, 2019

Personal & Portfolio Update


Hi!

It’s been so long since I blogged! Since my last post, I kept telling myself I should start blogging soon but procrastinated about it all the time and 1.5 years like passed like that. Part of the reason why I stopped blogging for awhile was that I committed most of my days at work, including many weekends and I just wanted to do nothing when I reach home and just wanted some rest.

Though I stopped blogging for awhile, I regularly kept myself updated on the stock market: particularly in SG, HK and US, but lacked time to do research on individual stocks. (more macro then micro) I have been watching the HK updates like weather report these days, since I loved HK and it's my favourite holiday destination with no jet lag and good food. Another reason why I have been keeping up with the HK news was that I also invested in HK shares which started well this year but underperformed recently due to protests. The local market didn’t fare well either these few weeks due to the uncertainty in US China trade war. There’s a saying to be greedy when others are fearful; hence I have been trying to identify good stocks which were sold off steeply.

Since it’s 1.5 years since you last heard from me; I shall start off with personal and portfolio updates.
There isn’t much personal changes; I am still staying at the same place, same job, same hobby, same height and weight etc. The only change is that I have bought a car last month. I used to take public transport for meetings and take cab/grab when I am in a rush. However, as my business grows, it makes more sense to own a car. It’s an investment to my business, in a sense to trade money for time. With a car, I can go for more meetings, contact my clients and reply some emails along the way. During the weekends, I can explore nice food places which may not be easily accessible by public transport. 

The drop in COE also gave me another reason to purchase it at the point in time. I bought Hyundai Avante 1.6S, with a 27k COE. My initial plan was to get a Toyota because Japanese cars are always known to be reliable; which costs about $97k but what stopped me from going ahead was the prerequisite is to take a 5-year loan. A car loan uses the Flat Rate method, the interest you pay is fixed based on the original principle. Hence, I suggest not to be fooled by its low advertised interest rates but focus on the effective interest. You can read more here: https://www.singsaver.com.sg/blog/car-loan-interest-secretly-double-seems I went ahead with Hyundai Avante 1.6S with a two-year loan of $30k (because that’s their min loan size) and paid off $50k. 






As for portfolio updates, there has been much transactions in my portfolio as I took profits/partial profits on Singtel, SATS, First Reit, SGX, MicroMechanics, M1, ComfortDelgro and 800Super.




SGX Portfolio with CDP
Total Value= $285,034






I added HKLand, Mapletree Industrial Trust, Parkway Life Reit, and UOB and increased my position in three local banks over the months. I still see much value in local banks as they are traded 1 to 1.3X book value, with dividend yield around 4% with less than 50% payout ratio.

Along the way, I came out with an investment strategy for my equity portfolio. Moving forward, I will be focusing on US and HK stock market for growth stocks and SG stock market for dividend income. For SG dividend stocks I am referring more to Banks and REITS.

Low interest rate environment and Federal Reserve's decision to lower interest rate gave REIT a boost and had a good run this year. With the tightening yield spread, I don't see much value in local Reits and many investors are exploring Reits with property overseas with higher yields such as Sasseur REIT, Prime  REIT or Business trust such as ARA and Eagle Hospitality.

I have opened a DBS Treasures Accounts to enjoy lower trading fees (no min charges) and since then transferred some of my SG shares which I planned to sell in the next 12 months.


DBS Treasures Securities= $84,129



I have changed the monthly purchase of ST Engineering to Singtel late last year. I then sold away the shares which I bought, (yet I still hold STI ETF). Now I am setting aside $1,000/month in DBS shares. At. It is paying a dividend of, and with a payout ratio of, it is attractive in my opinion compared to Reits.

ShareBuilder = $1,945



I started buying US stocks early this year via StanChart Online Trading with more focused on growth companies with long term plans to own about 15-20 US stocks. Most of them are trading at high pe ratio, or no pe ratio at all as they are in their stage of growth but loss making. Hence, I invested in small amount each time, and plan to add them in batches during market correction.

StanChart Portfolio Value= $52,219


The Standard Chartered Statement is updated as of 31 July. I have added 3,000 shares of Champion Reit and 10 more shares of Twilio.


I have closed my MayBank KimEng account as some of you may know they stopped the monthly investment plan. I transferred my Tencent Holdings Shares to Standard Chartered and the staff are kind to waive off the transfer fees.

For Nikko AM STI ETF under POSB InvestSaver, not much changes so far. I decided to keep it that way.

As for my HK portfolio with HSBC, there has been no changes too other than adding Xiaomi and PingAn Insurance. Looking at current situation in Hong Kong, I am having second thoughts if I should continue investing in 2800.HK. I will update this again in the next post.

POSB InvestSaver= $12,634


HSBC Portfolio= $35,749


80 Shares of Tencent 0700
600 Shares of Xiaomi 1810
250 Shares of Ping An Insurance 2318
4,102 Tracker Fund of HongKong 2800


One of my favourite shares in my watchlist is Hang Seng Bank. If you have been to Hong Kong, you will see Hang Seng ATM machine like you see POSB/DBS ATM in Singapore. It's actually HK's local bank, and owned by HSBC. 

I briefly looked through their financial statement and I thought that their results were more impressive than DBS. Their managed to achieve a higher ROE of 16%,vs DBS of 12.1%, Cost/Income ratio is 36% compared to DBS of 43%. Common Equity Tier 1 Ratio if 16.% and 13.9% for DBS. The only reasons which stopped me from investing is it's high valuation in terms of pb ratio of 2 times and pe ratio of 16. Recently the pe ratio has eased to 13 due to higher quarterly earnings reported and the sell down of it's shares but with the situation in HK I am having second thoughts now to invest.

Cash Available for investment= $57,000

Total= $528,710

I am sorry if this post doesn't really add much value other than showcasing my portfolio. Reason being that I hadn't been doing much stock research these days due to lack of time. I am trying to restart the blogging momentum. Will update when I find interesting stocks to invest.

If you are keen to follow my posts or get updates, do like/follow my FB page here where I will update it when there's a new post. 


2 comments:

  1. Hi EOTS

    For your migration of foreign listed holdings from Kim Eng to SCB, can you share what are the relevant costs and how to get the appropriate waivers?

    I am interested in reducing custody fees as I am interested in acumulating overseas counters. Looking forward to your input!

    ReplyDelete
    Replies
    1. Hi INTJ,

      sure, for waiver, I gave the reason that they have stopped the Monthly investment Plan,hence I wrote to helpdesk@maybank-ke.com.sg and cc my broker.

      My advice for overseas counter is to also consider the forex as well.TBH, StanChart or DBS Treasures aren't giving good forex when you transfer currency over to buy foreign shares. Brokerage firms like Kim Eng and Lim & Tan give much better rates. So you might want to take into account.

      If you are buying frequently, i.e. at least 2 times mth, Kim Eng can waive off your custody charges (if I rmb correctly).

      Hope this helps! All the best!

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