Cash / SRS Portfolio
Performance Indicators / Dividends
- YTD Time weighted return: -4.95%
- XIRR since portfolio inception in 2013: 13.81%
- Dividends collected: SGD 3,154.70
- Cum-Dividend:
- DBS – SGD 33
- OCBC – SGD 196
Topsy-Turvy month
My portfolio performance in February can only be characterised as a roller coaster. At one point in the month, I was looking at over $200k portfolio value. That was was wiped away in the space of 1-2 weeks as Covid-19 hit Europe and Korea, with signs of initial exposure in the US.
Overall portfolio value decreased 2.9% to $188,821 mainly due to market value losses of $6.8k, offset by $1.6k of capital injections.
Many exits
There were quite a few transactions this month as I performed some reconstitution of my portfolio:
- Rotated some of my Manulife US REIT into Prime US REIT in a like-for-like switch that should result in more dividends.
- Exited Yuexiu Transport Infrastructure due to Coronavirus lockdown probably affecting expressway traffic.
- Sold Hang Lung Properties as I don’t anticipate much further upside / unlocking of value by the owner
- Exited Avenue Therapeutics and Zoetis to raise cash from speculative positions. I still believe in the investment theses, but there are many juicy opportunities coming in the US market that I’m more interested in.
As usual, this is not a call to buy or sell securities and its just sharing my own thought process for your information. Please do your own due diligence.
Losses create opportunities
February was obviously a horrendous month for my net worth. I don’t believe I’m alone in this.
How do I feel in the face of disgusting losses? Strangely excited to be honest.
Don’t get me wrong, losing 2-3 months worth of salary in the space of 2 weeks is definitely not fun. But at the same time, US stocks that I’ve regretted not buying in the past are now getting cheaper. This presents an opportunity for the brave of heart. I’m sitting on a ton of USD at the moment ready to pounce once the market stabilises.
I think some relative calm in the markets is needed before I’ll be interested in redeploying funds. Yesterday’s small drop in the market is a start. Will need to continue to closely observe the market over the next month.
Endowus CPF OA Portfolio
As you may know, I’ve started investing my CPF OA funds with Endowus. As such, I will present my portfolio performance going forward for those interested to know more.
I started with initial $5,000 investment with recurring monthly top ups. I increased my monthly top up to $1,000 for February in response to the Covid-19 sell off. Unfortunately I was a bit too early. I’ve adjusted my monthly top up to $3,000 going forward to take advantage of the selling off.
If you want to learn more about Endowus, do check out my review. Also, if you’re interested in opening an account, do feel free to sign up through my referral link.
Last call for Dividend Machines sign-ups
Just a quick shout-out for my friends over at the Fifth Person – The annual sign-up for their Dividend Machines course is closing tomorrow, 1st March, at midnight. If you have an interest in learning about dividend and income investing, Dividend Machines is an excellent starting point for beginners at a relatively low cost of $488.
You can read more about the course in my un-sponsored review and my thoughts on the recent REIT methodology refresh.
As Warren Buffett says,
Someone is sitting in the shade today because someone planted a tree a long time ago.
Warren Buffett
Do sign up via my referral link if you’ll like to start growing your money today. I’ll earn a small fee at no extra cost to you.
Reader Appreciation
This month was another bumper month as the blog reached exactly 250 subscribers! Thank you for your support as always.
To the 36 and 9 people who subscribed to my blog and liked my Facebook page respectively since my last portfolio update, welcome. Feel free to reach out via email or Facebook. I’m usually quite responsive. Hope that you have found my blog content useful 🙂
Past updates:
January 2020
2019 Performance Scorecard
2018 Performance Scorecard
2017 Performance Scorecard
Happy Hunting,
KK
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Hi,
Any reason why you have no holdings in mapletree REIT since majority of your shares are in logistics sector.
Hi Chris,
Hmmm I don’t see how my portfolio is mainly in the logistics sector… Other than FLT and maybe AA REIT, its not really a majority position.
As for mapletree REITs, it is more of a valuation thing. Mapletree REITs (other than MNACT) are quite richly valued. If they sell off, I’ll be interested.
Regards,
KK
Hi KK,
I was wondering why did you “rotated some of my Manulife US REIT into Prime US REIT in a like-for-like switch that should result in more dividends.”?
If I understand correctly, Manulife US REIT’s dividend currently stands at 6.34% whereas Prime US REIT is 4.33%?
Hi Margie,
Prime US REIT has not paid out a full year’s worth of distributions since IPO. As such, the yield you are seeing from websites are lower than annualised yield. The best source of information is from the investor relations website directly.
Prime US REIT recently paid out its first DPU of 3.15c for the about 5.5 months of operations. If you annualise that DPU, it is roughly 6.87c. This implies a yield of 7.1% based on current price of 97c.
MUST has a DPU of 5.96c in 2019. Using current price of 96c, it implies a yield of 6.2%. As such, rotating from MUST to Prime is a appropriate since both have similar asset profiles.
Hope this clarifies.
Regards,
KK
Yes, it does. Thanks a lot!
Hi, Can i ask are you still holding onto EHT shares after the default?
Hi Matt,
I’ve exited my position already. With so many better quality REITs at attractive yields, I don’t need to reach for yield anymore.
Regards,
KK