Portfolio - August 2020

A lot has happened for the month of August. CZM was asking for a push present and we eventually decided to get a massage chair. She has been complaining about backache as the baby grows bigger. It was either her back that was aching or my hands so it definitely makes sense to get one. lol. We went around trying different massage chairs by OSIM and OGAWA during the national day period and decided to get OGAWA Genix at $2.2k because it was more affordable. According to CZM, the most comfortable one is OSIM uLove but that cost around $5.8k and she didn't want to spend so much.

I had to do a wisdom tooth surgery to extract my decaying impacted tooth last month. The surgery itself went smoothly (apparently there's a risk of permanent nerve damage causing numbness in the face) besides the drilling and pulling. The most painful part was when the dentist injects anesthesia into the gum and after it wears off. The next few days were torturing as well with a liquid diet and never feeling full. My pocket would have been very painful too if not for my company insurance as the surgery costs $800+.

Our portfolio has crossed the $500k milestone once again! It increased by 7.95% to $525,857 - $25,092.29 of capital injection and $13,629.65 of capital gain. This includes $45,276 of leverage/debt (gearing ~8.6%).

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"Cash Flow" is the amount of money being injected/withdrawn from the portfolio (buying stocks = +ve cash flow while selling stocks and collecting dividends = -ve cash flow)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
None

BOUGHT
- CCB (5,000 units) @ HK$5.66

- BOC (11,000 units) @ HK$2.63
- Capitaland (434 units) @ $2.767

- Cromwell EUR REIT (16,000 units) @ EUR0.42

- Tuan Sing (19,000 units) @ $0.31

- IWDA (11 units) @ US$66.75

We received some dividends from CCB and BOC and decided to average down and buy more shares. Their share price have fallen further as bad debt/loans rise due to COVID-19. We decided to take shares instead of cash for Capitaland dividends. 

Decided to buy more Cromwell EUR REIT using leverage after news that it will be investing in data centres. All the data centres REITs are trading at a premium valuation so I am guessing the same will happen once it is confirmed. Tuan Sing recently sold Robinson Point for $500 million and will be realizing a gain of $128.3 million. Its current PB is 0.325 and is severely undervalued. We are averaging down after buying it 2 years ago at $0.42.

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: $58.391
- 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 August - $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 $4,432.51. The breakdown is as follows:

Company PayDate Shares Total Bank of China Ltd. - Ordinary Shares - Class H 7-Aug-20 19000 HKD 3579.39 Singapore Telecommunications Limited 18-Aug-20 4000 $218.00 SPH REIT 18-Aug-20 23.2 $0.11 Capitaland Limited 20-Aug-20 10000 $1,200.00 Soilbuild Business Space REIT 21-Aug-20 30000 $223.50 STI ETF 25-Aug-20 22500 $1,327.50 Ascendas India Trust - Units 26-Aug-20 29.95 $1.38 Wilmar International Limited 27-Aug-20 2000 $80.00 CDL Hospitality Trusts 27-Aug-20 1856.3 $28.02 Suntec Real Estate Investment Trust  27-Aug-20 5168.1 $79.22 Ascendas Real Estate Investment Trust 27-Aug-20 130.67 $9.49 Starhill Global Real Estate Investment Trust 28-Aug-20 15600 $109.20 Ascott Residence Trust  28-Aug-20 23048 $241.29 CapitaLand Commercial Trust 28-Aug-20 2205.4 $73.65 CapitaLand Mall Trust 28-Aug-20 9974.7 $210.46 Keppel REIT 28-Aug-20 94.48 $1.32

Total dividends collected for 2020: $14,147.37
Average dividends per month for 2020: $1,768.42

StashAway

KPO

CZM

Capital: $39,190‬.00
Current: $‭‭‭‭46,900.16

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: $8,190.00
Current: $‭‭‭8,588.83

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: $5,200.00
Current: $‭‭‭6,417.36

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

- Portfolio - July 2020 - $487,135
- Portfolio - August 2020 - $525,857

Do like any of the following for the latest update/post!
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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!
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3. Click here to subscribe using email :)
4. Instagram - KPO_and_CZM (Did you see those delicious food photos to the right -->)

Tuan Sing

Company Description from SGX StockFacts - Tuan Sing Holdings Limited, an investment holding company, engages in the property development and investment, hotels investment, and industrial services businesses in Singapore, Australia, China, Malaysia, Indonesia, Europe, and other ASEAN countries. Its Property segment develops and invests in residential, commercial, and industrial properties; and provides property management services. The company’s Hotels Investment segment owns two five-star hotels managed by Hyatt International in Melbourne and Perth, Australia.

Tuan Sing has always been on my watchlist and I have finally decided to enter it this week at $0.42. It was first brought to my attention by a friend last year but I did not buy because there were other opportunities or its price has gone up. Since then, UOB has published a buy report and B from ForeverFinancialFreedom (Recent Action - Tuan Sing) has accumulated some too.

What I like about the company is that most of its properties are freehold. Some of the properties are at prime locations such as 18 Robinson and Robinson Point and there are others not captured in the above screenshot. Most importantly, it is currently trading at a steep discount (PB of 0.505).

Its NAV based on the latest annual report is $0.83. Assuming if it was to trade at the industry average PB of 0.6594, the price would be around $0.545 (~30% upside from current entry price). What really caught my attention and led me to pull the trigger is the letter to shareholders. One of its agenda for the upcoming AGM is the renewal of the share purchase mandate.

By doing shares buyback and keeping the shares as treasury shares, it reduces the number of issued/outstanding shares. This has an opposite effect as compared to rights/bonus issues (dilution on existing shareholders). The chairman gave 5 reasons/rationale for the share purchase mandate, do take a look if you are interested. If the mandate is approved, its NAV will increase to $0.868 - $0.870 because there are now lesser shares available for the same underlying assets. What a bargain!

Looking at its past 5 years performance, shareholders' funds and NAV has been increasing year on year. Dividend has been kept constant/increasing slowly over the years since 2010 and the yield is around 1.7%.

During Oct 2014, it traded at a high of $0.475 with NAV of $0.683 (PB of 0.695). Over the next few months, it went to as low as $0.27 and has never "recovered" despite increasing NAV and dividend. 

It is certainly not due to its corporate governance as Tuan Sing was ranked 7th out of 606 listed companies in Singapore based on the Governance & Transparency Index (GTI). This is a collaboration between CPA Australia, NUS Business School's Centre for Governance, Institutions, and Organisations (CGIO), and Singapore Institute of Directors (SID) and you can find out more information here.

So why is it trading at such a steep discount? Your guess is as good as mine. Slumpy earnings? Low dividend yield? Tuan Sing explicitly states in its Dividend Policy that "The Company’s priority is to achieve long-term capital growth for the benefit of shareholders. Most of its profits, when made, shall therefore be retained for investment into the future." Even my DBS Multiplier is giving higher interest rate than the dividend yield. lol. Regardless, this is an investment for one with patience :)

Happy long weekend everyone!

Do like any of the following for the latest update/post!
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