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"Cash Flow" is the amount of money being injected/withdrawn from the portfolio (buying stocks = +ve cash flow while selling stocks and collecting dividends = -ve cash flow)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

Portfolio - October 2018

The global markets have been in red for the past few weeks and our portfolio was not spared. At one point in time, our portfolio even went all time red/negative after investing since 2015. In such a scenario, it would have been better if we simply left the money in a bank account. At the very least, the capital will be intact and the interest collected over the years will definitely beat the below performance. lol.

We have a friend that lost his confidence and has stopped investing totally. Nothing right/wrong about it, just different risk profile/appetite.

The thing about investing is that it is not linear and there will be volatility. You cannot invest with the mentality that you will be making money all the way (at least not when you first started). However, given a long enough time (20 years?), the portfolio should be resilient enough such that it will become forever positive. I blogged about something similar here - Portfolio - March 2018.

The most important thing is not to let your investment affect your daily life - life goes on! So what have we been up to? We were busy planning for our USA honeymoon! Interested to read about fine dining in the air - Singapore Airlines Suites - Book the Cook. We also booked a Ford Mustang Convertible for our road trip :)

I have just purchased a new PS4 game - Dragon Quest XI | Echoes of an Elusive Age. I stopped playing Monster Hunter nearer to our wedding and now that I am back, no one plays it anymore. lol. Dragon Quest is like one of my childhood game too. Regardless, you get the point, we are not affected by the market volatility. Alright, back to our portfolio update :)

Our portfolio decrease by 1.75% to $348,378 - $16,293.36 of capital injection and $22,483.32 of capital loss. The one in blue is the StashAway portfolio, green is SGX and the total is in black.

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.

SOLD
None

BOUGHT
- Lion-Philip S-REIT ETF (1,000 units) @ $0.967
- Accordia Golf Trust (5,000 units) @ $0.525
- OUE (1,000 units) @ $1.470
- ThaiBev (1,000 units) @ $0.635
- DBS (400 units) @ $24.38

We bought 1,000 units of Lion-Philip S-REIT ETF as part of our new strategy - New Singapore Budget, New REIT Strategy!

We sold OUE Commercial REITs last month and merely redeploy the amount back to the market by averaging down what we already owned. Hence, the relatively small/random amount in OUE and ThaiBev.

We decided to enter DBS because it has changed its dividend policy and has pledged $1.20 per annual going forward. At our entry price, that will mean our dividend yield on cost would be around 4.9%. Something we are pretty comfortable with for a blue chip with a very solid dividend record - increasing almost year on year. In addition, a rising rate environment is beneficial to the banks. We were contemplating between STI ETF and DBS and thought that DBS seems to be more attractive now.

Dividends
The total dividends collected this month is $1,034.20. The breakdown is as follows:

Company	Symbol	ExDate	Shares	Total
Parkway Life Real Estate Investment Trust	C2PU	31-Oct-18	2,000	$64.60
First Real Estate Investment Trust	AW9U	30-Oct-18	4,109	$152.85
GuocoLand Ltd	F17	30-Oct-18	3,000	$630.00
Soilbuild Business Space REIT	SV3U	23-Oct-18	15,000	$186.75

Total dividends collected for 2018: $12,031.58
Average dividends per month for 2018: $1,203.15

Woots! We have finally achieved one of our goals - $1000 per month of passive income!

StashAway

Capital: $13,000
Current: $13,003.61 (IRR: 0.1%)

You might be interested in previous months update too:
Portfolio - January 2018
Portfolio - February 2018
Portfolio - March 2018
Portfolio - April 2018 + What is Ezion W230416?
Portfolio - May 2018
Portfolio - June 2018
Portfolio - July 2018
Portfolio - August 2018
Portfolio - September 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 -->)

Portfolio - March 2018

Our portfolio increase by 2.70% to $323,073 - $10,401.71 of capital injection and $1,914.81 of capital reduction.

Today is another bloodshed, the value of our portfolio decrease by >$5k in a single day. Are we worried? No :) Let me share an old but gold article by the Motley Fool - How You Can Reduce Your Chances Of Making Losses In The Stock Market. Make a guess?

Have a long investing horizon! It seems that some of our readers/friends/colleagues have been demoralized by the market. Numbers do not lie! The probability of losing money in 1 day is almost equivalent to a coin toss. However, based on historical data, there is a 0% chance of losing money if you stay invested in STI for 20 years (1992 to 2016). Just think about why the insurance companies/banks love to sell you long endowment/ILP, it is easy money for them because they just have to share a small return with you while you provide them with the capital!

SOLD
- Asian Pay TV Trust (5,000 units) @ 0.535
- OKP (5,000 units) @ 0.35

I hardly sell stocks but I made the decisions to liquidate these two and redeploy the money because I believe Tuan Sing will be a better investment.

Asian Pay TV Trust was a "legacy" investment. It was one of the stock which I purchased simply because the dividend yield was high when I first started buying stock in 2014. I was eventually punished as the dividend was unsustainable and the price fell accordingly when the dividend was cut. Fortunately, the dividends collected over the years was sufficient to cover for the capital loss and I ended up with an annualized return of 7.1% after ~4 years.

I bought OKP last year and blogged about it here - StockResearchAsia Strikes Again - OKP Holdings Ltd. The future is slightly unclear for OKP so I have decided to let it go at a loss in order to invest in a better future/stock - Tuan Sing. The annualized return is -10.2%.

BOUGHT
- Sysma (10,000 units) @ $0.149
- ThaiBev (4,000 units) @ $0.82
- Lion-Philip S-REIT ETF (2,000 units) @ $0.9995
- Tuan Sing (11,000 units) @ $0.42
- Ascendas H-Trust (6,000 units) @ $0.810

Sysma was brought to my attention by StockResearchAsia. It is currently trading at a discount to its NTA (Net Tangible Assets) with a significant cash! The problem is that it has extremely low volume and wide bid-ask price.

As for the rest, I have blogged about them individually and decided to average down given the weakness in share price.

Dividends
March is a boring month. The total dividends collected this month is $131.65. The breakdown is as follows:

Company	Symbol	ExDate	Shares	Total
Asian Pay Television Trust	S7OU	14-Mar-18	5,000	$81.25
Lion-Philip S-REIT ETF	CLR	2-Mar-18	3,000	$50.40

Total dividends collected for 2018: $2,151.48
Average dividends per month for 2018: $717.16

StashAway

Capital: $6,000.00
Current: $5,894.64 (IRR: -4.1%)

The UI is slightly misleading, showing green when it is losing money. lol. Took a quick look at our StashAway monthly statement and was pleasantly surprised!

The exchange rate is FINALLY being captured! Good job StashAway founders. Hahahaha.

Health - KPO Needs to Lose Weight
Date: 2018-04-04
Weight: 71.3 kg

BMI: 23.8

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 -->)

ThaiBev

We made our 1st purchase for the year! We purchased 6,000 units of ThaiBev (Thai Beverage) last week (9th January 2018) at $0.92. At the point of writing this article, the price is currently at $0.935. Yay!

The latest news on the acquisition of Vietnam’s top brewer Sabeco sent its share price falling from a high of $0.975 on 15th December 2017 to as low as $0.90 on 26th December 2017 which is totally understandable. It is an expensive price to pay for an effective stake of only 26.3%. Vietnam Beverage Co Ltd won the bid for 53.58% of Sabeco which will be funded 100% by ThaiBev although they only own 49% of Vietnam Beverage indirectly through Beer Co. (53.58% x 49% ~ 26.3%). The method of financing has yet to be confirmed but it will definitely increase its liability significantly.

Honestly, I think this is a bad deal too but this is probably the only/best way for ThaiBev to proceed with the acquisition. Sabeco is sort of "backed" by the government (The government had set a minimum sale price of 320,000 dong or $14.1 per share for Sabeco, formally known as Saigon Beer Alcohol Beverage Corp - Thai beer magnate extends SE Asia push with $4.8 billion Sabeco deal) and there is no way it will be owned externally with foreign ownership capped at 49%, hence the weird structuring.

If we were to look at the bigger picture, the acquisition is in line with its "Vision 2020" strategic roadmap to create greater value and deliver more sustainable returns to shareholders. This is extracted from ThaiBev's 2017 Annual Report - To support and sustain ThaiBev’s growth, we plan to diversify our revenue streams, increasing revenue contribution from non-alcoholic beverages and the sale of products outside of Thailand.

Based on the 2017 Annual Report, ThaiBev is trading at a PE of 16.36 at $0.935 - EPS of 1.37 Thai Baht ~ 0.05716 SGD which is pretty reasonable. Its NAV is 5.13 Thai Baht ~ 0.214041803 SGD and this translate to a PB of 4.37 (not so relevant/important). I will not go too much into the numbers as the 2016 numbers are reported based on a 9 months period hence it is difficult to compare its year-on-year performance accurately. However, a rough estimate on the 2016 numbers (numbers / 3 x 4) seems to indicate that ThaiBev did better in 2017!

Screenshot from 4-traders

Out of the 708 companies listed in SGX, ThaiBev is ranked lucky 8th in terms of market capitalization (around $23 billion). It is so large that it owns 28.4% of Frasers Centrepoint Ltd, 28.5% of F&N and 79.7% of Oishi Group currently (Sabeco soon).

Screenshot from ThaiBev website

Most importantly, ThaiBev has a dividend policy of distributing more than 50% of net profits after deduction of all specified reserve, subject to investments plan and as the Board of Directors deems appropriate and they have been meeting it very comfortably (dividend payout ratio between 50% to 80%) for the last 10 years with increasing dividends! People still need to drink during a financial crisis, maybe drink even more. lol.

We see the recent weakness in share price as an opportunity to accumulate some. Will the share price drop below $0.90? Maybe/maybe not. Will the share price be more than $0.92 by 2020? Most certainly! $2.020? Hahahahaha (laughing at my own foolishness).

Would you be interested in reading about our last purchase for the year of 2017? APAC Realty

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 :)