Thursday, September 24, 2015

Friday, September 11, 2015

August 2015 - Low Cost Portfolio

STI started the year at 3370.59 level, reached a peak at 3539.95 on 15 August based on closing price. On 31st August STI traded at 2921.44, giving a YTD return of -13.33% or -17.47% if we bought at the peak.

My low cost portfolio, that started in April, YTD return was -4.26% as of 31 Aug 2015. On a weighted annualized basis, return was -11.37%. I received USD 65.68 in cash from ABF PAIF, an ETF which invested in Pan Asia bond.

During the sell off in August, I bought the following ETF and REIT, which brought my portfolio allocation closer to my target of 60% for equity:
1. iShares Core MSCI World UCITS ETF (IWDA LN) - 230 shares at USD 41.29 on 21 Aug
2. Capitaland Commercial Trust - 2400 shares at SGD 1.275 on 24 Aug.

After the purchase, my equity allocation in the portfolio increased from 40% to 57%. If STI dropped further to between 1500-2500 range, I would increase my portfolio equity allocation to 80%.

With the landslide winning of the ruling party and risk of political uncertainty removed, I'm not too optimistic to see STI traded lower than 2500 in the immediate term. Personally I'm grateful to see the 2015 general election result, which I believe will deliver more good than bad.



Link to Yaruzi's low cost portfolio as of August 2015

Thursday, September 10, 2015

Have You Voted?

I was happy to excercise my voting right this morning.

This whole process of general election from the rally, the excitements, colourful comments in media and social media made me thinking. Does it look a lot like our investment thought process?? It does to me.

Do you vote for the long term or short term?
Do you vote a party because of emotional reason or good rational behind?
Do you do your home work before you vote (invest)?
Does track record mean anything to you?
Does the management mean anything to you?

Now change the word 'vote' with 'invest'. Based on your answer and experience in investing, how will your answer be?

Food for thought ....


Friday, September 4, 2015

August 2015 - Unit Trust Portfolio Update

August was a busy month for my unit trust portfolio, as I did a number of transactions. Taking opportunity of the equity market weakness, the panic, the volatility, whatever we called it, I kept increasing the portfolio allocation for equities.

Portfolio dipped into negative territory for the first time this year. On annualized weighted basis, portfolio return was -0.36% by 31 Aug 2015, outperforming ALL major indexes. I received cash dividends of $399.97, which I would re-invest.

Below were the summary of my transactions in August 2015:
1. Bought
First State Dividend Advantage $17,500.00
FTIF-Templeton Global Fd A(acc) SGD $6,000.00
Schroder ISF Gb Div Max A DIS SGD $2,000.00

2. Sold
United SGD Fund Cl A Acc (SGD) $15,998.28

With the transactions done, the portfolio allocation was very close to my targeted allocation of 60% equity+high yield, and 40% bonds. If major indexes deteriorate further, and STI drops below 2500, I intend to increase the equity+high yield allocation gradually to a max of 80%. If it dipped below 1500, equity+high yield allocation will be increased gradually to a max of 90%.



Link to Yaruzi's unit trust portfolio allocation as of Aug 2015

Tuesday, September 1, 2015

Recent Buy - Low Cost Portfolio

Bought First REIT - 2500 shares at SGD 1.205 on 2 September 2015

With this purchase my low cost portfolio has achieved the targeted 60:40 equity vs bond allocation.

I will adjust my equity allocation according to the following plan:
STI < 1500, equity allocation up to 90%
STI 1500 - 2500, equity allocation up to 80%
STI 2500 - 3500, equity allocation up to 60%
STI > 3500, equity allocation up to 40%