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Monday, January 13, 2020

Portfolio Performance in 2019

Let's take a look at how our overall portfolio did for the year 2019.


If you prefer looking at a graph. It seems that we have just very slightly outperformed STI ETF :)


For the year 2019, our portfolio time-weighted return was 20.71% vs 8.78% (ES3: STI ETF). The overall performance since 2014 is 19.50% (time-weighted return) and 6.93% (XIRR). It has been a pretty great year! Too bad for those sitting/hoarding cash though. If you are wondering what is the difference between time-weighted return and XIRR, do read this article by Investment Moats. In short, XIRR takes cash flows into account while time-weighted return does not so the way they are calculated is different.


Looking at the top 5 losers and you can see that these are huge losses:
1. Raffles Medical
2. Geo Energy
3. Tuan Sing
4. Eagle HTrust
5. Soilbuild Business REIT

No plans to let go of any at the moment but if I had to cut loss, the first to go would be Geo Energy followed by Raffles Medical. In addition, I realized this year I have not been keeping myself updated with all the various stocks or reading the financial statements. It feels like a combination of not much capital to inject and a lack of time. Anyway, I am also considering to do more passive investment besides StashAway and Endowus such as buying IWDA on a monthly basis.


These are our top 5 winners:
1. Sheng Siong
2. STI ETF
3. Capitaland
4. CapitaMall Trust
5. CCB (in HKD which is only about 1k+ gain) Frasers Logistics & Industrial Trust

Similarly, no plans to sell/realized the profit for any of them at the moment but the first to go would probably be CCB/BOC because the country is still in a mess.


Together, we have a capital flow/injection of $‭35,768.54‬ ($32,268.54 + $3,500 to Endowus)! Capital flow is the amount of capital that is being injected or withdrawn from your portfolio where the dividends collected are considered as capital withdrawn. Our rate of saving/investing has dropped due to extremely high expenses from our new house - renovation and furniture. It is only around 15-25% of our salary this year.

Our portfolio gave us a total dividend of $21,307.84 at an average yield of 5.26%. That is $1,775.65 passive income per month! Having said that, there were a few special dividends last year that bump up the rate and this also includes the dividends from our StashAway portfolio, hence it appears slightly higher than our monthly portfolio update.


StocksCafe is even smart enough to project the dividends (removing special dividends) we will be getting for this year assuming everything remains constant which is still lower than our goal of 5% yield.


Based on our 10 years plan to accumulate a $1,000,000 portfolio for extremely early retirement (age 36), our target for this year was $431,301 and we have met the target despite injecting lesser capital than expected (total opposite as compared to last year). The current market value of our portfolio is $463,297. Our next year conservative target is $552,868 with a capital injection of $57,140. Our yearly target is pretty conservative as we believe our expenses will be growing exponentially year on year.


Our expenses are still going to be high this year because we will be travelling quite a bit (visiting >10 countries - Mexico, Peru, Bolivia, Brazil, Switzerland, Finland, Norway, Denmark, Sweden, Estonia, Japan and Malaysia). As we become 30 years old this year, we can feel our bodies becoming weaker (can't hike as much) and our minds becoming more humji (giving Bolivia Death Road a miss where you can bike down as an attraction). This will be our last year travelling so crazily *pinky promise*.

As much as this is more of a finance blog, instead of just constantly saving/investing for retirement, we should all take a break once in a while and enjoy life a bit. Everyone will get that eventually but why not make your journey more interesting and maximize every dollar you spent (use miles instead of cashback to travel like us! lol)?

Let's hope 2020 will be a great and better year for everyone and your investment!

You might be interested in these blog posts too:
- 2017 Net Worth
2018 Net Worth
- 2019 Net Worth
Portfolio Performance in 2017
- Portfolio Performance in 2018

Do like any of the following for the latest update/post!
1. FB Page - KPO and CZM
2. Twitter - KPO and CZM
3. Click here to subscribe using email :)
4. Instagram - KPO_and_CZM (Did you see those delicious food photos to the right --> Unfortunately, you can't see it on mobile.)

Tuesday, January 7, 2020

Portfolio - December 2019

Yay, the year ended with our portfolio reaching another new high as it increases by 1.34% to $463,297 - $1,556.74 of capital injection and $4,569.67 of capital gain.


If you prefer to look at numbers, this is the raw data used to generate the above bar graph. These numbers are as of the last day of the month. On a side note, the numbers (cash flow and PnL) vary slightly as compared to the previous few months because I forgot to include CZM SRS investment when she rejoins the workforce.


"Cash Flow" is the amount of money being injected/withdrawn from the portfolio (buying stocks = +ve cash flow while selling stocks and collecting dividends = -ve cash flow)

SOLD
None

BOUGHT
None

We did not buy/sell any stocks as most of the money was spent on optimizing our taxes either through SRS or CPF SA/MA. I topped up another $3,500 to SRS and decided to invest that with Endowus. You can read this post to find out more - Endowus CPF/SRS Review.

Dividends
The total dividends collected this month is $2,348.00. The breakdown is as follows:

Company Symbol ExDate Shares Total
Ascendas Hospitality Trust - Stapled Units Q1P 31-Dec-19 15,000 $814.50
Singapore Telecommunications Limited Z74 18-Dec-19 4,000 $272.00
Sysma Holdings Limited 5UO 10-Dec-19 10,000 $100.00
Accordia Golf Trust - Units ADQU 3-Dec-19 15,000 $391.50
Pacific Century Regional Developments Limited P15 3-Dec-19 7,000 $770.00

Total dividends collected for 2019: $‭20,978.35
Average dividends per month for 2019: $‭1,748.20

StashAway

KPO

CZM

Capital: $27,000.00
Current: $‭‭‭‭30,802.85‬

Endowus


Capital: $3,500.00
Current: $‭‭‭3,516.00

You might be interested in previous months update too:
Portfolio Performance in 2018 - $354,145
Portfolio - January 2019 - $376,381
Portfolio - February 2019 - $379,814
Portfolio - March 2019 - $400,263
Portfolio - April 2019 - $400,263
Portfolio - May 2019 - $392,934
Portfolio - June 2019 - $415,611
Portfolio - July 2019 - $420,798
Portfolio - August 2019 - $421,644
Portfolio - September 2019 - $420,854
Portfolio - October 2019 - $438,957
Portfolio - November 2019 - $457,171
- Portfolio - December 2019 - $463,297

Do like any of the following for the latest update/post!
1. FB Page - KPO and CZM
2. Twitter - KPO and CZM
3. Click here to subscribe using email :)
4. Instagram - KPO_and_CZM (Did you see those delicious food photos to the right --> Unfortunately, you can't see it on mobile.)

Monday, January 6, 2020

Advance Inspection - Post Renovation Defects Check

In my previous post here - Advance Inspection - Residential Inspection, I talked about our experience with the residential inspection i.e. pre-reno defects check. After BSC rectified all the major issues, we started with our house renovation. Honestly, we did not expect so many hiccups with our reno as we have done a lot of due diligence including checking online reviews, meeting up with the IDs several times to discuss on the designs/quotations as well as requesting to visit existing works. We have done everything that most people have advised. Even so, not everything went smoothly. You can read more about our reno horror story here - Renovation Cost for Our New House. Fortunately, we heeded ur parents' advice to who told us that we die die have to withhold at least 10% of the final amount until all rectification works are done. Prior to the start of work, we have also given our ID a heads up that we have engaged Advance Inspection to perform the post-reno defects check, and we will not transfer the final amount until all defects are rectified satisfactorily. Our ID agreed.


Unlike the pre-reno defects check, there is only one visit for the post-reno defects check (or you can top up extra for each additional visit). The inspector came and inspected everything relating to our reno works, including carpentry, electrical points (those extra points which we requested during electrical works), network data point, hollow tiles, etc. basically everything else which was related to renovation works. The whole defects check took a few hours as well. During the inspection, we noted a few major issues - our tiles were mostly hollow (especially at the skirting), a few chips/holes in the floor grout (we paid a premium for marble gum polishing btw), chipped tiles in the toilets, warping of carpentry.


We weren't expecting so many major issues since we did request our ID to rectify a few items prior to the inspection already. In fact, it appeared generally okay from a layman point of view and I have even asked KPO to move in a week before the inspection started, thinking that there would not be any major issue. Imagine our horror when we realized that our ID will need to remove/drill the tiles and re-tile them! Carpentry warping is another headache as we realized that our cupboards cannot close fully as the ends of the cupboard tend to be slanted. Our inspector explained that warping is a common thing over time as Singapore is generally humid hence expansion and contraction of the cupboards occur at different rates which resulted in warping. However, he was surprised that our cupboards warped so fast.


Other cosmetic issues include scratches on the glass panel, holes noted in the carpentry works. Our inspector told us that holes in carpentry are typically a result of drilling and the carpenter should paste a sticker over it so that it looks less unsightly.



On the same night, our inspector emailed us the report with all the findings. We shared it with our ID and requested all the rectification to be done asap. Obviously, he was reluctant and as expected, told us that certain things are meant to be like that. For e.g., both he and the tiler said that hollow tiles are fine and doesn't mean it will definitely drop. To be honest, if we have not engaged Advance Inspection, we may have taken this at face value. However, with the report (and affirmation) from Advance Inspection, it was a lot easier to dispute.

Next, the carpenter and our ID also told us that carpentry warping is inevitable. Similarly, we used the report from Advance Inspection and told them that this was unacceptable given the warping over a relatively short period of time. Eventually, the carpenter removed the carpentry and added reinforcement to resolve the issue.


For the other cosmetic issues such as glass scratches, we also requested for them to be replaced. Our inspector taught us how to inspect glass scratches previously, hence when the new glass panels were installed, we did the checks ourselves. Only after everything was rectified did we make the final payment. We were thankful that we have also engaged Advance Inspection for the post reno defects check. Otherwise, these issues would go undiscovered and possibly resurface a couple of years later and probably a lot more expensive to rectify then. It is also a lot easier to insist on the rectification as it comes from a "professional third party firm" rather than us layman.

Lastly, even until today as I have certain queries relating to house/reno issues, I could still reach out to Advance Inspection and they would respond very quickly to the queries. Hence, for new homeowners, you can consider engaging a third party inspection company to save yourself some headache and reno nightmares.

If you would like to engage Advance Inspection too, do use our referral/promo code - AISG0730. You will be able to get $30 discount and we will get $30 for the referral :) Simply contact them either through mobile/WhatsApp (8748 0988) or email (info@advanceinspection.sg) and quote the code. Do note that it is highly encouraged that you start off with the residential inspection first to avoid future disputes with your ID/developer.

You can also leave a comment below if you have any queries on our reno works.

Do like any of the following for the latest update/post!
1. FB Page - KPO and CZM
2. Twitter - KPO and CZM
3. Click here to subscribe using email :)
4. Instagram - KPO_and_CZM (Did you see those delicious food photos to the right --> Unfortunately, you can't see it on mobile.)