Sunday, 1 November 2015

Portfolio Update - October 2015

*As of 31 October 2015

Counter Average Price Yield on cost(%) Weightage
Accordia Golf Trust
0.6400
8.91
32.42%
Croesus Retail Trust
0.9207
7.43
33.32%
OCBC Bank
9.0895
4.00
9.87%
UOB Bank
18.9951
4.00
6.87%
Accordia Golf Trust
0.6247
8.91
5.65%
Neratel
0.5850
6.84
0.64%
Ascendas Hospitality
0.6175
8.29
0.22%
Cache Logistics
0.9924
8.20
1.08%
Mapletree Logistics
0.9974
7.40
0.36%
Capitaland Commercial
1.3250
6.15
0.48%
IREIT Global
0.6465
9.55
0.47%
Asian Pay TV Trust
0.8016
10.18
0.87%
Keppel DC REIT
1.0000
6.46
0.73%
Soilbuild Business REIT
0.8025
8.05
0.29%
Saizen REIT
0.9250
6.30
0.67%
SPHREIT
0.9500
5.80
0.69%
STI ETF
2.9720
3.00
5.38%
Total

7.19
100.00%


Legend
CDP
SCB

Total Invested Capital = $27,635.86

Total Expected Dividends/month = $165.50

Average Dividend Yield = 7.19%

For this month, it was overall a bullish month as the STI pushed on with a stunning rally to almost 3100, before slipping back below the 3000 level on weaker sentiments.

The highlight of the month was the re-purchase of Accordia Golf Trust (AGT) once again. I have previously been a shareholder of Accordia back in the early part of 2015 and subsequently liquidated my position after the share prices ran up due to the dividend announcement. The share price of AGT has weakened considerably since as currency risks due to AGT non-hedging of its Japanese yen distributions has dampened investor sentiments on the units. The weakening of the Japanese yen has been constantly the dampener for this stock I believe, as I don't see what not to like about the trust other than its foreign exchange woes. And I like to imagine, if the same stock is listed in Japan and I am a Japanese resident, then I would have no qualms in investing most of my wealth into this stock. I mean, who doesn't like a REIT-like structure with freehold properties, which theoretically could generate high returns of more than 9% annually while having low interest rates in its disposal as Abenomics continues in Japan and a comfortable gearing similar to most REITs in Singapore, yet trading at a discount to its book value? Unfortunately, investors are risk averse, and with the JPY/SGD pair fluctuating madly recently with a general downwards bias (partly due to Abenomics), it is no wonder investors chose to dump this stock. Anyway, I have to stop myself from rambling along. The time for AGT to announce its dividend is round the corner in November, 12 November to be exact. So, as prices are still on a weak side, and cheap relative to the price I had previously bought them, I took the chance to get some units. 

Observant readers may notice I have some units of AGT already in the SCB custodian account. This are units which were accumulated during the recent crash in the stock market, and forms part of the mini-portfolio which I had planned to play around with. In terms of weightage, it is obvious that AGT is on the heavy side in both my CDP and SCB portfolio. I would be doing further tweaks once I obtain further clarity on the AGT results in November.

For the SCB portfolio, I have added smallish positions on Asian Pay Television Trust (APTT), SPHREIT and Saizen REIT. APTT would be announcing dividend in early November, so I am accumulating more on share price weaknesses. SPHREIT was more for a portfolio balancing as I am currently lacking in a retail REIT. I would be purchasing more on weakness as I like SPHREIT's low gearing and slight discount to book value vs the other retail REITs which are trading at a premium to book value. Saizen REIT was a bet, a bet that the firm offer which it received on 23 October was close to the current NAV of Saizen REIT. Even if it didn't materialise, I am happy to continue receiving a yield of 6+% for the units. As at $0.925, the units were still trading at a discount even after the steep increase when news of the offer emerged. And indeed it is, as just this morning, the news broke that the firm offer was a slight premium to the NAV. Now, I am feeling regretful I didn't buy more :P

So far, I am satisfied with the mini-portfolio performance, partly because most of the units were bought during the turmoil in August-September. My best performing counter, excluding Saizen REIT, would have to be Ascendas Hospitality, rising almost 10% within this short span of 2 months. The worst performer would be the recently purchased SPHREIT, which I haven't allowed it the chance to perform just yet.

Lets see how it goes then.

3 comments:

  1. I notice u have a lot of positions at under 1%
    Why not 5% or so for each counter instead?

    ReplyDelete
    Replies
    1. Yup you are right. The thing is, for those counters below 1% weightage, it really depends if the price continues to get cheaper, as I am employing a mechanically DCA approach to add positions bit by bit as the prices fall. So in other words, the weightages will depend on the price behaviour of the stock. Since prices have rebounded recently, I won't be adding to my positions until it has gone below my last bought price. :)

      Delete
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