Risk N Returns

Personal Finance and Investment Ideas

Portfolio @ May 2020

By

Cash / SRS Portfolio

Performance Indicators / Dividends

  • YTD Time weighted return: -12.69%
  • XIRR since portfolio inception in 2013: 17.85%
  • Dividends collected: SGD 2,801.13
  • Cum-Dividend:
    • Singtel – SGD 337.90

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Portfolio Review

May turned out to be a great month thanks to the REIT explosion that occurred yesterday. So much for sell in May and go away.

Overall portfolio value crossed the $300k mark to $303,706 largely due to capital gains during the month. This brings my portfolio to yet another all time high, which also brings me back in the green for the year. Who would have thought that we would be here in May whilst in the dark abyss of March.

Sitting on my hands

Having done most of my buying in early April, I didn’t do anything in May as the market did not present any extreme bargains for me to take advantage of.

The power of MSCI index inclusion?

I, like most retail investors, was amused by the price action of S-REITs yesterday. There were also some pretty ugly sell-offs in certain STI blue chips.

There were many theories thrown around, with my personal favourite being flight of capital from Hong Kong thanks to the Security law. However, I think the most credible reason is fund flows thanks to the changes in the MSCI Singapore Indices effected after yesterday’s close.

Here’s a summary of the changes in the indices:

I’ve also highlighted the price movements of these counters in the diagram. With the exception of AIMS APAC REIT, the affected counters all experienced significant gains or losses. The explanation for these price movements is generally because funds that track the MSCI Singapore Indices will need to buy/sell the counters to mimic the index, resulting in significant buying/selling pressure on these counters.


But that’s only 10 counters…

While this does explain the price performance for the 10 counters affected, what about the rest?

Studying trading volumes yesterday, there were significant trading volumes in especially the large cap REITs like the Mapletrees and Capitalands. My only conclusion I have is that there was significant institutional money coming into S-REITs, with maybe some FOMO involved. Who truly knows.

I’ve been lucky to own many of the counters that were included into the MSCI Singapore Small Cap Index. That said, I do expect prices to pull back at least on Monday as prices seem overstretched at the moment. Relative strength index (RSI which measures whether a counter is overbought or oversold) also indicates significant overbought conditions for most S-REITs.

As such, I feel that if you’re interested in S-REITs, perhaps you should defer your purchases and allow the market to cool off first.

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.

Endowus CPF OA Portfolio

As you may know, I’ve started investing my CPF OA funds with Endowus. This month was nothing special, just my regular monthly top up of $1000. Happy to see that I’m back in the green on my Endowus portfolio as well.

As a side note, Endowus launched their revised Cash / SRS portfolios this week. I’ve not had the time to go through the material in detail, but if you’re interested, check it out here and here.

If you want to learn more about Endowus, do check out my review (Cash/SRS portfolio review to be updated). Also, if you’re interested in opening an account, do feel free to sign up through my referral link.


Personal Updates

Going part time

The wave of furloughs and pay cuts in the hospitality industry has finally caught up with me. As such, I’ll be shifting to part time hours with associated pay cuts in the next 3 months. While it kinda sucks to have to do this, it is understandable I guess.

With the extra time, maybe I’ll be able to return to a more regular blogging schedule or explore new courses to learn new skills.

Playing the stalk market

Source: The Verge

The other thing that I’ve spent a lot of time on is Animal Crossing New Horizons. There’s just something therapeutic about slowly building and designing your own island. It even has a stock (stalk) market mechanism to invest your in game money lol. Maybe I’ll talk about it in a future article.

Reader Appreciation

As usual, to the 9 and 14 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 as readers can attest to. Hope that you have found my blog content useful 🙂

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Past updates:

April 2020
March 2020
February 2020
January 2020
2019 Performance Scorecard
2018 Performance Scorecard
2017 Performance Scorecard

Happy Hunting,
KK

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