Endowus - June 2020

Endowus statement always comes out pretty late around mid/late-mid month and this month seems to be much later. Anyway, I have reached out previously to ask and this was their response if you are wondering the same.

Junxu Lye, Endowus Chief Product Officer
We try to generate monthly statements as soon as we can, and right now it hovers around the 10th to 14th. The reason for this "delay" is because for some of our funds, the dividend payout date is on the last day of the month. Because we reinvest those dividends, our broker has to receive those dividends, put in a buy order, confirm the buy order, and then let us know the final confirmed units. Only after which we can then distribute it back to our clients. If we were to print the monthly statement without those, then we would have to re-print or send out an addendum, which would not be good as the statements would not be final. this is a slightly unique feature of the mutual fund industry (as opposed to say ETFs, where it is an accumulating share class where the funds take care of the reinvestment themselves). No good solution right now (and in the industry) but we are always on the lookout. Hope this helps!

Risk Profile
Goal type: General wealth accumulation
Risk tolerance: Maximise returns (loss tolerance -60%)

Monthly investment using SRS: $700

Account Summary

Capital: $6,650.00
Current: $6,471.66 (-3.88%)

There are quite a few differences as compared to StashAway. Firstly, all the cash has been invested while StashAway keeps 1% of the portfolio in cash. Secondly, the fees are not deducted on a monthly basis. The Access Fee charged by Endowus will be deducted at the end of each quarter as stated in their FAQ.

As of 22 July 2020, the portfolio value is $6,752.81 (+1.55%).

Asset Allocation

This shows that the number of shares for each fund that I owned:
- Dimensional Global Core Equity Fund (109.9920)
- Infinity US 500 Stock Index Fund (1,250.4800)
- Dimensional Emerging Markets Large Cap Core Equity Fund (43.8440)
- Dimensional Pacific Basin Small Companies Fund (38.8150)

It will be great if they actually showed my average price vs the current market price.

Transactions

Some of the funds have been sold/redeemed to pay for Endowus's fees. The fees are not presented clearly in the statement. I do not see a separate section for it except in the transactions above. Having said that, it is clearer in their web interface.

If we work backward, $3.67 * 4 / 0.004 ~ $3,670 is the invested amount being charged for the first quarter (01 Jan 2020 to 31 Mar 2020) which seems about right.

That's all! Overall, I think the statement is pretty straightforward and easy to read.

If you are interested in Endowus, do use our referral link for our readers! You will get S$10,000 managed free for 6 months ($20 equivalent) and we will get $20 too!

You might be interested in previous months update too:- Endowus CPF/SRS Review
- Endowus - January 2020 - $3,692.02
- Endowus - February 2020 - $3,704.57
- Endowus - March 2020 - $4,153.50
- Endowus - April 2020 - $4,849.67
- Endowus - May 2020 - $5,797.36
- Endowus - June 2020 - $6,471.66

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.)

DBS Multiplier Upcoming Changes

DBS will be decreasing the Multiplier interest w.e.f 1st August. Most impacted will be those with salary crediting and 1 category (credit card). Surprisingly, DBS has decided to leave the 3 or more categories alone this time round when one would think this group of people are less likely to leave/change their savings account.

Anyway, I took a quick look at the various savings account and felt that the Multiplier is still one of the better savings accounts that do not really encourage/require you to meet a minimum spending per month. However, the low 1%+ interest is really a hard pill to swallow so we have decided to fulfill another category - Investments by starting a $100 monthly/regular savings plan (DBS Invest-Saver) on Nikko STI ETF which will only be recognized for the first 12 consecutive months. Alternatively, you can consider refinancing your housing loan but that is out of the question for us when we refinance a few months ago with UOB - My Experience with Mortgage Brokers - Redbrick and iCompareLoan.

There is really nothing new here. When we blogged about DBS Multiplier + SSBs + Joint Account = Higher Interest! 2 years ago, we decided to take the SSBs bond ladder route because it seems less troublesome and "permanent" but I guess not. lol. Since the SSBs are now useless, we went to redeem all 6 of them in order to partially finance this new plan as well as to hold more cash for the crash/baby whichever comes first. Haha.

If you have not tried redeeming the SSB before, you can take a look above. Honestly, it is not very intuitive as one will have to select the year and month you would like to redeem. To do it correctly, you will have to log in to your CDP in order to view them. Not sure how it is going to work if one were to redeem the incorrect bond, will the $2 admin fee be forfeited?

DBS Invest-Saver has a sales charge/fee of 0.82% which is a small price to pay for more interest. Assuming if we have $20k in our savings account, with 1.8% interest, we can get ~$30 by "sacrificing" $0.82 monthly. On the other hand, doing nothing will net us just ~$18 interest with 1.1% interest. Meanwhile, the $99.18 monthly investment might continue to grow too. The only troublesome part is this will only be recognized for the first 12 consecutive months so one will have to take note of its ending period and change to another ETF in order to fulfill the Investments category. Another benefit of fulfilling 2 or more categories is the increase in account balance (from $25k to $50k) that will be eligible for the bonus/higher interest.

In my opinion, DBS will probably nerf/cut the interest for the Multiplier account again in the next few months but it will be targeting those people with 3 or more categories. It is simply unsustainable in this low interest environment. Wait for it, it is definitely coming!

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.)

Bye Sheng Siong! Hi SATS!

We decided to sell all our Sheng Siong shares (18,000 units) at $1.64 today and it has been our top/best investment after all these years.

After holding for about 1358 days (~3.7 years) with an average price of $0.907, we have almost doubled our capital with an absolute return of 94.54% and an annualized return of 19.58%.

We felt that Sheng Siong is currently trading at a pretty high valuation and the market seems to be overly optimistic. Sheng Siong Q1 financial report has been very impressive, almost doubling its profit/EPS when compared against the same period last year.

However, when we looked at the breakdown, the increase in revenue is mostly due to the "hoarding" effect whenever PM Lee gave his speeches. lol.

Anyway, if we were to look at the last few years, Sheng Siong has been trading at an average/median PE of 20-21. Based on the current price and its average/median PE, the market is expecting its EPS for 2020 to increase by 55% to 7.86 cents as compared to 5.04 cents last year. It just didn't look realistic when we forecast it, hence it felt overvalued when we were looking at it.

Will it goes higher? Maybe, just look at Tesla!

We have also decided to redeploy a bit of the cash from the sale of Sheng Siong to buy SATS (4,000 units) at $2.84. SATS came tumbling down from its high of $5+ due to COVID-19 where it even reported losses for the last quarter (ending 31 March 2020). The management was also being very prudent by cutting dividends by ~68%! We decided to buy it as we see this as an excellent opportunity to accumulate a good business (it is essentially a monopoly in Singapore) and it is a recovery play. I can see it returning to $5 once a vaccine is found but can't say the same for SIA especially after its right issues.

Similarly, I computed its average/median PE which is around 19-20. Based on the current price and its average/median PE, the market is expecting its EPS to decrease to 13.9 cents. In my opinion, this is still quite optimistic as its Q1 losses should be a lot more when travel restriction is placed around the world compared to the last quarter when it was just beginning.

In addition, there were multiple share buy back around ~$2.90 which could be a sign that the company is undervalued. You can read more about share buy back here - Why Would a Company Buy Back Its Own Shares?

Unfortunately, SATS has dropped quarterly reporting so we can only wait till around October for its half year financial statement to get a better overview of its business.

What's the worst that can happen? Getting kick out of STI lor like SPH. lol.

You can take a look at the above spreadsheet here.

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.)

StashAway - June 2020

Today is polling day and I'm sure we have all voted wisely :) I'm sure tonight is going to be a long night with the extended voting hours. Back to our monthly update, StashAway performance is still pretty impressive where all of them have recovered significantly from the March low and they have >20% time-weighted return now.

Anyway, we have 3 portfolios on 2 accounts now due to our new strategy - New Strategy: StashAway + Supplementary Retirement Scheme (SRS):
KPO and CZM Cash - StashAway Risk Index 22%

KPO SRS - StashAway Risk Index 36%

CZM SRS - StashAway Risk Index 14%

1. PORTFOLIO SUMMARY (as of the last day of the month)

KPO

CZM

Based on the statement (30 June 2020), our total investment is ‭$39,931.79! KPO gains $892.85 and CZM gains $‭‭‭49.65 for the month.

As of 10 July 2020, these are our portfolio performance:

KPO and CZM Cash - StashAway Risk Index 22%: $‭29,113.98 (26.99% - Capital: $24,500)

KPO SRS - StashAway Risk Index 36%: $7,604.97 (25.55% - Capital: $6,650)

CZM SRS - StashAway Risk Index 14%: $4,166.76 (22.49% - Capital: $3,750)

From here, you can see the difference in volatility/losses based on both our SRS accounts which started around the same time but with vastly different risk.

2. PORTFOLIO DETAILS 
Note that these are reported in USD.

KPO and CZM Cash - StashAway Risk Index 22%

KPO SRS - StashAway Risk Index 36%

CZM SRS - StashAway Risk Index 14%

3. FEE CALCULATIONS

I referred StashAway to 2 friends. Hence, the fee stated is based on the monthly-average assets SGD $18,973.94 x 0.8% / 366 days * 30 days = $12.44. Otheriwse, it would have been SGD ($25,000.00 x 0.8% + $8,973.94 x 0.7%) / 366 days * 30 days = $21.54.

The fee stated is based on the monthly-average assets SGD $4,036.18 x 0.8% / 366 days * 30 days = $2.65.

StocksCafe

Evan (founder of StocksCafe) made an improvement where one can now benchmark their portfolio against multiple indexes/ETFs. Looking at the time-weighted return (5.14%) for this year, we can see that StashAway Risk Index 22% is outperforming the STI ETF, SPY, and VT (including fees). If we compare across the years, StashAway's portfolio is winning by a huge margin (27.59%) except losing to SPY (32.37%). In addition, it has a lower max drawdown and lower volatility.

Which is the best? Only time will tell :)

Anyway, if you are interested in signing up for StashAway, do use our referral link - KPO and CZM Referral Link. You will get $10,000 free management fees for 6 months and we will get $16!

If you want to extract those transactions information from StashAway, do take a look at this article - StashAway Transactions Parser.

If you are interested in the smart portfolio tracker (StocksCafe) which I am using as shown above, sign up using my link for a longer trial period :) Refer to our Referrals page for more information.

You might be interested in previous months update too:
- StashAway - January 2020 - $31,742.42
- StashAway - February 2020 - $31,499.69‬
- StashAway - March 2020 - $30,934.95‬
- StashAway - April 2020 - ‭$34,830.73‬
- StashAway - May 2020 - $37,298.09‬
- StashAway - June 2020 - $39,931.79

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.)

Syfe - June 2020

Syfe launched Equity100 and you can read more about it here. I don't think I have the time to write a review/blog separately on this but you can take a look at Kyith detailed analysis here. I am not sure if this will perform as well as its historical performance but I am interested to compare it against StashAway most risky portfolio (Risk Index 36%) and Endowus 100% equity portfolio, so we will probably put in some money monthly.

Our Syfe REIT+ Portfolio
Composition: 100% REITs
Dividend: Reinvest
Monthly Investment: $1,000

Account Statement (Lifetime)

Our current tier is Blue (<$20,000). This is determined by the size of the portfolio which in turn determines the fees to be charged. The statement lifetime return is $558.58 which includes a $480 referral bonus. The actual lifetime return would be $78.58. Thanks to our readers for using our code!

Account Statement (June 2020)

The return for the month is $423.15 which includes a $440 referral bonus. This means our actual return for the month is -$16.85.

As of 7 July 2020, this is our portfolio performance:

Capital: $2,000.00
Current: $2,731.99 (12.69%)

Transaction Breakdown

There's too many so I will just share the first page. Anyway, if you want to extract the transaction information from Syfe, do take a look at this article - Syfe Transactions Parser.

After parsing them into a csv file, I pivoted the data to get the following view.

Management Fee

The management fee can be obtained by $1,781.19 x 0.65% / 366 * 30 ~ $0.92.

StocksCafe
In my opinion, the return captured by StocksCafe will be a more accurate representation of our portfolio return as the referral bonuses are treated as capital. Having said that, I can also understand why Syfe treats them as a return instead of a deposit too. Just a different perspective.

Anyway, looking at the time-weighted return (12.68%) for this year, we can see that Syfe REIT+ 100% is outperforming the STI ETF, SPY and VT (including fees). In addition, if we were to look at the projected dividends till the end of the year based on the existing investment, we can expect $70.25 of dividends or $5.85 per month. Since the dividends >> fees, this is a pretty sustainable portfolio assuming if there's no capital loss.

If you are interested in signing up, do use our referral code (KPOBONUS) for some cash incentive! Invests $500 and more and we will receive a $10 bonus each. Invests $10,000 and more and we will receive a $50 bonus each. Invests $20,000 and more, we will receive a $100 bonus each!

If you are interested in the smart portfolio tracker (StocksCafe) which I am using as shown above, sign up using my link for a longer trial period :) Refer to our Referrals page for more information.

You might be interested in previous months update too:
- Syfe REIT+ (100%) Review
- Syfe - May 2020 - $1,135.43
- Syfe - June 2020 - $2,558.58

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.)

Portfolio - June 2020

I started my new job last month and I am definitely busier at work. In addition, I would need to pre-clear our investment + a minimum of 30 days holding period (no trading) except for ETFs and those robo where we can't make decisions to invest in the underlying. Hence, to make things easier, we will probably be shifting towards that direction too.

The result of the NIPT/harmony test is out and we will be expecting a baby girl! Long story short, we went to KKH to get the test done as it was supposed to be at a subsidized rate of $400+ (as of 2019) as compared to private $1-2k. Unfortunately, the staff was telling us that the government stopped subsidizing it late last year so we ended up paying about $800+. Not as much savings as we were expecting for going through all the hassle (going to the polyclinic to get a referral) but every dollar counts. We were also looking forward to phase 2 as we can finally go out and shop for baby items, so many to buy! Shall blog more about the baby stuff separately.

A lot has happened on the 1st of July too! It was as though Endowus and Syfe knew that DBS will be making the announcement and they wanted people to invest their money instead of leaving it in the bank. lol.
- DBS will be decreasing the Multiplier interest w.e.f 1st August. Most impacted will be those with salary crediting and 1 category (us). In my opinion, this is going to be the trend (low interest) for the next few years and there is no point moving/changing our savings account when we do not hold much cash in the first place.
- Endowus launched a cash management product - Cash Smart. You can read more about it here. I would say this is almost same same as StashAway Simple which I blogged about previously and since we do not hold much cash, we would not be using such products.
- Syfe launched Equity100 and you can read more about it here. I don't think I have the time to be writing a review/blogging separately on this but you can take a look at Kyith detailed analysis here. I am not sure if this will perform as well as its historical performance but I am interested to compare it against StashAway most risky portfolio (Risk Index 36%) and Endowus 100% equity portfolio, so we will probably put in some money monthly.

Our portfolio reached another new high for the year with an increase of 6.72% to $502,313 - $17,795.27 of capital injection and $13,852.34 of capital gain. This includes $35,015 of leverage/debt (gearing ~6.9%).

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.

"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
- Geo Energy (41,000 units) @ $0.12

I have decided to cut my losses simply because it was making losses for the year and I don't think it will be recovering soon. After holding about 786 days/2.15 years, the annualized return is -22.66%.

BOUGHT
- Bank of China (9,000 units) @ HK$2.90
- Raffles Medical (6,000 units) @ $0.915
- Cromwell REIT EUR (12,000 units) @ EUR$0.415
- STI ETF (1,000 + 1,000 units) @ $2.668 and $2.652
- IWDA (13 units) @ US$58.93

Bank of China declared more dividends as compared to previous years and based on our entry price, we are looking at >6% dividend yield. We decided to average down Raffles Medical after visiting a gynae and was pretty impressed with their service. lol. Decided to deploy/utilize more EUR leverage on Cromwell REIT.

I have "force" myself to buy $1,000 SGD worth of IWDA. We have decided to set some rules for the monthly IWDA investment:
- Current average price: $56.643
- If the market price is above our average price, buy $1,000
- If the market price is below our average price, buy $2,000
- Must buy by last trading day of the month

As an introduction, IWDA (iShares Core MSCI World UCITS ETF) is an accumulating (does not distribute dividends) world ETF managed passively by iShares. This has multiple purposes:
1. Capital Growth - Determine if simply buying a diversified world ETF will outperform StashAway/Endowus
2. Leverage Collateral - It has 70% LTV which will increase eventually increase our ability to borrow more or prevent a margin call

Anyway, IWDA is highly recommended by ShinyThings from HWZ. You can refer to this summarized version here.

On a side note, we can invest in such a small amount because there's no minimum commission for SCB priority customers which makes our investment very cost effective.

I have also decided to increase my SRS contribution to $1,400 per month with the intention of maxing it by year-end.

Our Monthly DCA for June - $3,650
$1,000 Cash - StashAway Risk Index 22%

$700 KPO's SRS - StashAway Risk Index 36%

$250 CZM's SRS - StashAway Risk Index 14%

$700 KPO's SRS - Endowus Loss Tolerance -60%
$1,000 Cash - Syfe REIT+ (100% REIT)

Dividends
The total dividends collected this month is $2,381.99. The breakdown is as follows:

Company	PayDate	Shares	Total
SSB Jun 2019	1-Jun-20	500.00	$4.70
NetLink NBN Trust	3-Jun-20	6,000.00	$151.80
CapitaLand Mall Trust	5-Jun-20	9,824.14	$83.50
Oversea-Chinese Banking Corporation Limited	5-Jun-20	900.00	$252.00
OUE Limited	10-Jun-20	11,000.00	$550.00
Pacific Century Regional Developments Limited	11-Jun-20	14,000.00	$106.40
Thai Beverage Public Company Ltd	12-Jun-20	11,000.00	$44.03
First Real Estate Investment Trust	18-Jun-20	11,009.00	$204.76
Mapletree North Asia Commercial Trust	24-Jun-20	10,020.85	$49.70
Wilmar International Limited	24-Jun-20	2,000.00	$190.00
Tuan Sing Holdings Limited	25-Jun-20	11,000.00	$66.00
Frasers Logistics & Commercial Trust	26-Jun-20	10,200.00	$380.46
Frasers Hospitality Trust	29-Jun-20	4,000.00	$13.14
AIMS APAC REIT	29-Jun-20	1,600.00	$32.00
Accordia Golf Trust	29-Jun-20	15,000.00	$253.50

Total dividends collected for 2020: $8,587.87
Average dividends per month for 2020: $1,431.31

StashAway

KPO

CZM

Capital: $34,900‬.00
Current: $‭‭‭‭40,309.82

If you are interested in StashAway, do use our referral link. You get $10,000 free management fees for 6 months and we will get $16!

If you want to extract those transactions information from StashAway, do take a look at this article - StashAway Transactions Parser.

Endowus

Capital: $6,650
Current: $‭‭‭6,536

If you are interested in Endowus, do use our referral link for our readers! You will get S$10,000 managed free for 6 months ($20 equivalent) and we will get $20 too!

Syfe

Capital: $2,000.00
Current: $‭‭‭2,683.37

If you are interested in signing up, do use our referral code (KPOBONUS) for some cash incentive! Invests $500 and more and we will receive a $10 bonus each. Invests $10,000 and more and we will receive a $50 bonus each. Invests $20,000 and more, we will receive a $100 bonus each!

If you want to extract those transactions information from Syfe, do take a look at this article - Syfe Transactions Parser.

You might be interested in these blog posts too:
- Portfolio Performance in 2019
- 2019 Net Worth
- Portfolio - December 2019 - $463,297
- Portfolio - January 2020 - $455,071
- Portfolio - February 2020 - $442,216
- Portfolio - March 2020 - $415,071
- Portfolio - April 2020 - $459,037
- Portfolio - May 2020 - $470,665
- Portfolio - June 2020 - $502,313

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.)