Portfolio - October 2020

We were so close to reaching another milestone/goal last month but the market went against us in the last few days, losing 20k+ in 5 days. Hopefully, we will be able to achieve it before the end of this year!

Our portfolio has reached another new high! It increased by 0.12% to $567,374 - $24,741.70 of capital injection (including the use of leverage - $9,483.25) and $24,072.61 of capital loss. This includes $53,036 of leverage/debt (gearing ~10.3%).

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"Cash Flow" is the amount of money being injected/withdrawn from the portfolio (buying stocks = +ve cash flow while selling stocks and collecting dividends = -ve cash flow)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
- Accordia Golf Trust (15,000 units) @ $0.707

Technically, I have yet to sell this stock. Accordia Golf Trust has been privatized and should be delisted soon (it is currently suspended). It did a capital distribution and would have skewed the dividends received so the best action is to treat it as being sold. After holding it for 4/5 years, the absolute return is about 62.71% and the annualized return is 13.01%.

BOUGHT
- Thaibev (9,000 units) @ $0.585

- Suntec REIT (6,000 units) @  $1.47

- Capitaland Mall Trust (5,200 units) @ $1.82 (Using leverage)

- IREIT Global (400 units) @ $0.49

- OCBC (19 units) @ $7.81 (Scrip Dividend)

- iShares Hang Seng Tech ETF (400 units) @ HK$15.80

- IWDA (11 units) @ US$65.30

Thaibev, Suntec REIT, and Capitaland Mall Trust are all existing holding and we just decided to continue to invest and average down them. After oversubscribing by 9,900 units, I was only allocated 400 units. Meh. I was expecting to get 2,000/3,000 units.

Another interesting new addition to our portfolio is the iShares Hang Seng Tech ETF (3067). There are a couple of ETFs that is tracking the Hang Seng Tech Index and we chose iShares simply because it has the lowest fee/expense ratio. You can take a look at this article for more information - Hang Seng Tech Index ETF - Which one to buy?

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: $59.547
- 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 $1,480 per month with the intention of maxing it by year-end.

Our Monthly DCA for October - $4,230
$1,000 Cash - StashAway Risk Index 22%

$740  KPO's SRS - StashAway Risk Index 36%

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

$740 KPO's SRS - Endowus Loss Tolerance -60%
$1,000 Cash - Syfe REIT+ (100% REIT)
$500 Cash - Syfe Equity100 (100% Equities)

Dividends
The total dividends collected this month is $727.10. The breakdown is as follows:

Company                                                                 PayDate      Shares     Total

DBS Group Holdings Ltd                                        5-Oct-20    900          $162.00

Raffles Medical Group Ltd                                  7-Oct-20     20,000    $100.00

OCBC Limited                                                         7-Oct-20    900         $143.10

Pacific Century Regional Developments Limited   22-Oct-20  14,000    $322.00

Total dividends collected for 2020: $17,326.23
Average dividends per month for 2020: $1,732.62

StashAway

KPO

CZM

Capital: $43,170‬.00
Current: $‭‭‭‭50,592.80

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: $9,670.00
Current: $9,914.02

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: $8,200.00
Current: $‭‭‭9,030.90

New Syfe customers will have their first $30,000 managed free for 6 months when they use our new referral code (KPOCZM). We will be receiving a $10 cash incentive for our portfolio if you invest $500 or more.

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

- Portfolio - July 2020 - $487,135
- Portfolio - August 2020 - $525,857
- Portfolio - September 2020 - $566,705

- Portfolio - October 2020 - $567,374 

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.)

PayNow Promotion Part 2

When PayNow was first launched back in July, I analyzed and wrote an article about it - PayNow and its Promotions. I recommended one to registered with SCB for the $10 or with OCBC to win their lucky draw.

2 days ago, I received an SMS from SCB stating that the $10 has been credited to my bank account :) Who doesn't love free money? Thank you SCB! SCB paid out $200,000 for this promotion - $10 for the first 20,000 eligible customers. Whoever working in SCB, your bonus must be awesome. lol.

Any lucky readers that won any of the lucky draw?? CZM certainly did not win the OCBC lucky draw. Hahahaha.

Surprise surprise, turns out the promotions are still ongoing! OCBC is having a $1,000 lucky draw from 5th October 2017 to 3rd November 2017 where there will only be 30 winners. You can read the T&Cs here.

DBS is having a $500 lucky draw until 30th November 2017 and the lucky draw will be held on 15th December 2017. 80 lucky winners will be selected - T&Cs here. Do note that DBS lucky draw automatically includes customers who have registered as of 11th September 2017 so you will be competing with a much larger pool of people!

Citi PayNow Promotion 2 is giving $5 Grab promo code to first 10,000 eligible customers. Unfortunately, the promotion started from 14th September 2017 and will be ending tomorrow, 13th October 2017. On the bright side, who needs your $5 Grab promo code?! Grab has been giving out promo code in their battle against Uber and Comfort. T&Cs here.

It seems like Maybank is still running the same lucky draw since July and have added one night stay at Resorts World Sentosa. Apart from that, Maybank is advertising that they are the first bank that allows registration using SMS. That is so impressive! Would you register because of that? lol.

HSBC and SCB does not have any PayNow promotion, probably used up their budget. KPO will be registering with OCBC next! Sorry SCB, KPO will be going where the money is, loyalty doesn't pay. Hahahaha.

PayNow and its Promotions

You are reading it right, I am referring to PayNow and not DBS PayLah.

Remember the days when you make a fund transfer to your friend and it takes a few days before it appears in your friend's bank account? Then came FAST which stands for Fast And Secure Transfers where the fund transfer/money magically appears immediately in your friend's bank account. PayNow uses the same magic except it allows you to make fund transfer simply by using the other person mobile number or NRIC on your ibanking site/application. This removes the hassle of going through the tedious process of adding "New Payee", double checking and triple checking to ensure that the account number you entered is correct before taking out your OTP device to verify and confirm the addition of 1 new payee (You have yet to make the fund transfer. lol). I guess this is definitely a small step towards Singapore becoming a Smart Nation and going cashless. I am still pretty amazed at how we survived in Iceland without cash, just credit cards.

Anyway, you can refer to these articles for more information:
- New service PayNow to allow interbank transfers using mobile phone numbers

- From PayNow to unified system that pays everything

- PayNow FAQ

To get started, you need to register your mobile number with anyone of the participating banks. Note that you can only register with ONE of them.

Since you can only register with one of them, the banks will be competing for customers by offering sign up promotion!

Citi - None?! (Update on 12th July 2017: $10 Grab Credit*)

DBS - Register for PayNow and win a red iPhone* 7 Plus!

HSBC - Lazada $10 promo code*

Maybank - At least $5 off Grab ride + Lucky Draw for $2,888*

OCBC - Luck Draw for $50,000*

SCB - $10 Cash Bonus*

UOB - $5/10 Cash Credit*

Note that all the promotions have * - terms and conditions apply. Do take some time and glance through them. Below are just some of my personal opinions and a summary of what the banks have to offer:

Citi

I am amazed at how I could not find a single landing page on PayNow for Citi. Definitely not holding up to their slogan "Citi Never Sleeps", I think the whole marketing department must be sleeping!

Update: First 5,000 eligible customers + make a minimum of $10 transfer. By now should be gone as one of the readers pointed out where a promotional email was sent to existing customers.

DBS

30 winners will be chosen from the eligible customers. KPO not very lucky so will probably give this a miss.

HSBC

First 3,000 eligible customers. Almost no chance but better than nothing.

Maybank

1st Prize: $2,888

2nd Prize: $1,888

3rd Prize: $888

Daily winners of $20 from now till 31st December 2017. KPO not a Maybank customer

OCBC

1st Prize: $50,000

2nd Prize: $30,000

3rd Prize: $10,000

20 winners weekly for 6 weeks: $500. I shall get CZM to register for this. KPO not very lucky so will probably give this a miss.

SCB

First 20,000 eligible customers. KPO registered for this :)

UOB

First 5,000 eligible customers for the 1st $5. Subsequent $5 requires you to spend at least $20 using UOB MyKey.

PayNow went live at 8 am 10th July 2017. So I think you should stand a pretty good chance with SCB if you are a customer. Otherwise, go for the OCBC lucky draw and win BIG!

OCBC 360 vs UOB One Account

KPO says I am lazy, so I shall prove him wrong!

So as what KPO has mentioned previously, OCBC 360 has recently revised its terms where spending of $500 only gives 0.3% interest on deposit (as compared to 0.5% previously). Should we still remain with OCBC 360?

I did some calculations as per below.

From the table, you can see that OCBC 360 is still the better option for most salaried workers. It seems that OCBC is no longer the better option. The difference in interest increases if you have more deposit. Apologies if this post has mislead anyone! I shall go crunch some numbers and do up a more detailed analysis for all/majority of the banks (WIP) - Edited by KPO: Thanks to Investing Wolf for pointing the mistake.

However, if you are not drawing any salary or your salary is below $2000 and you have $500 spending every month, UOB One Account will always be the better choice.

BYE

Felt Cheated by OCBC & SIA on the Same Day

OCBC and Singapore Airlines both make announcements on what they have to offer going forward in the same day! If only they had sent these out on one month later (1st April), we will be happier thinking that it is a prank.

In the morning, OCBC sent us an email stating that they will be changing (decreasing) the interest rate for the 360 account with effect from 1st April 2017.

In summary, you will only be getting 1.8% after meeting the 3 conditions (salary, pay 3 bills and spend $500) vs 2.2% previously.

Some interesting examples:
Poor Now: $70,000 x 1.8% = $1,260
Previously: $60,000 x 2.2% = 1,320

Rich Now: $130,000 x 0.05% + $70,000 x 2.8% = $65 + $1,960 = $2,025
Rich Now Effective Interest: 1.0125%

That additional 1% is such a scam. Who would be in the right mind to leave $130,000 to get an effective interest rate that is much lesser? (the old rich aunties and uncles..)

Link: 360 Account Changes

In the evening, SIA sent us an email too! It states that the 15% discount for miles redemption will be discontinued and the cash surcharges will be removed (redemption) with effect from 23rd March 2017.

This is one of the example provided by them in the email. A cash saving of $241 does not justify the additional 12,000 miles. Even with specialized spending earning 4 miles per dollar, I would need to spend $3,000 to earn the additional 15% miles! I would rather pay cash because the difference is so huge!

CZM and I have been directing our spending to various different cards (specialized spendings) with the goal of redeeming Suites class tickets to US. We have accumulated about 180k miles till date and SQ just made it harder for us :'(

 Link: KrisFlyer Changes