Recent Buy - Low Cost Portfolio

I bought 4000 shares of CNOOC at HKD 8.26 per share last Thursday on HKSE. This would likely be my last purchase for 2015, as I'll be away for vacation and returning only in January next year.

I also exercised my company's employee share option maturing in December. I injected the proceed of SGD 26K into the low cost portfolio, which brought the total investment to SGD 110K. Equity vs bonds/cash allocation was 53% to 47%.

I wish my readers and blogger friends Merry Christmas this December and a Happy 2016 New Year. I can't wait to spend some quality time with my family after slogging off throughout the year. May God bless you and your loved ones and may you keep being happy and healthy despite the market roller coaster!

November 2015 - Low Cost Portfolio Update

Low cost portfolio YTD return was -3.97% in November. I received $52 distribution from First REIT.

Commodities was hammered badly, particularly oil. As a result, oil-gas-energy related stocks also took the beating. Taking opportunity of the weaknesses in the sector, I bought 900 shares of Keppel Corp at $7.09 per share. Keppel Corp TTM yield was ~6.7%. Of course there won't be guarantee that Keppel Corp can maintain the dividend rate, considering it's weakening cash position.

I topped up the $11.86 shortfall for the purchase, bringing YTD contribution to $81,011.86 in Nov.

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

November 2015 - Unit Trust Portfolio Update

The value of unit trust portfolio dipped in November due to weakening market, especially Asia and emerging markets. Let's just say that market had been boring since mid August as they're not able to make up their mind if they wanted to break out to the upside or downside. YTD portfolio return was 0.69% as of 30 Nov 2015. I also received $139.35 in cash from dividend/distribution.

With FED's first interest rate hike in the card for December ever since the great financial crisis, the currency market had been very volatile. In my opinion, it was the currency movement that impacted the unit trust portfolio the most. With USD strengthening, SGD-hedged funds suffered the most. Due to the volatile currency, I continued reducing my exposure to SGD-hedged fund.

Below were the summary of my transactions in Nov 2015:

1. Bought
Fullerton Short Term Int Rt C S$(SGD) $2,146.86
United SGD Fund Cl A Acc(SGD) $1,638.22

2. Sold

Allianz US High Yield AM Dis H2-SGD(SGD) $1,679.22

Legg Mason WA Global HY Fd A SGD H (mdis) plus(SGD) $1,969.31

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

October 2015 - Low Cost Portfolio Update

I've been busy with work, so the update of my low cost portfolio is a bit delayed. Along with the market recovery in October, my low cost portfolio YTD loss improved to -2.22% from -5.08% in the previous month.

No new purchase in October, and I received dividend of HKD 1,338.63 from Vanguard FTSE AS (HKD) and $100.53 from United SGD Fund Cl A (Dis). I also contributed $3,000 of fresh fund into the portfolio. This brought total investment YTD to $81,000. Portfolio allocation was 57.69% equity and 42.31% bonds & money market.

I will have proceed of around $25,000 from exercising my company's share option that will mature in December. I plan to use the proceeds to increase my low cost portfolio. Because of the expected injection of fresh fund, I plan to increase my equity allocation when there is buying opportunity.

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

Recent Buy - Low Cost Portfolio

Bought Keppel Corp - 900 shares at SGD 7.09 on 9 Nov 2015

October 2015 - Unit Trust Portfolio Update

With market rebounded in October, my unit trust portfolio was back in black. YTD return swung from -1.51% to +1.61%. I'd been increasing my equity allocation during the market turbulence that started as early as May. As I had reached my targeted allocation of 60% equity+high yield back in September, my plan was just to sit tight and adjusted the allocation after market reached or broke certain key level. I received a bumper dividend of $1,103.28 in October.

I also noticed that USD kept strengthening against other currencies, especially Asian and emerging market. In my view, this trend would persist in the next few years as US FED was expected to increase interest rate gradually. So I did some re-balance to reduce my exposure to SGD hedged high yield fix income, but increase USD exposure.

Also Fullerton Short Term Int Rt C S$(SGD) had re-opened for new subscription, so I switched all my LionGlobal Short Duration Bond Fund (SGD). I bought LionGlobal Short Duration Bond Fund (SGD) before because Fullerton Short Term Int Rt C S$(SGD) was closed for new subscription, and I bought Fullerton Short Term Int Rt C S$(SGD) to avoid concentration on United SGD Fund.

Below were the summary of my transactions in October 2015:

1. Bought

Aviva Inv Glb HY Bd Am USD(SGD) $2,706.80

2. Sold

Eastspring Investment MIP A (SGD) $3,087.12

Allianz US High Yield AM Dis H2-SGD(SGD) $3,703.24

Legg Mason WA Global HY Fd A SGD H (mdis) plus(SGD) $5,232.31

3. Switch

LionGlobal Short Duration Bond Fund(SGD) to Fullerton Short Term Int Rt C S$(SGD) $11,079.14

As I grew more comfortable with my low cost portfolio, I planned to liquidate some of my unit trust portfolio and shifted $60-70K to my low cost portfolio in the next few months. I had been pondering on this as I hated the blood sucker platform fee and annual management fee of unit trust. This would bring my unit trust portfolio to around $200K, as I grew my own low cost portfolio.

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

How Great Is Thy Love For Me - Part 3

Read previous post: How Great Is Thy Love For Me - Part 2

It is said when all the doors around you were shut - in front, behind, left and right - you only had 2 ways left: went above or went below. And I thought I was on my way going under, through the valley of the shadow of death, while living the rest of my life in misery and pain. It was at this point, things that were important to me: my successful career and pursuit of material life, suddenly became less important. 

I had a flash back in my mind on how I'd lived my life in the past few years. I neglected my family for my career. Even during the family time, I'd busy with my blackberry rather than spending quality time with the ones who loved me. I couldn't even remember the last time I read my bible. I had unconsciously became a selfish man who thought too highly about myself, that all the success were because of my own ability. It's like a new revelation was unveiled. I realized the most important things actually were those who had loved us dearly, God and our families.

I had to re-arrange my priorities in life. I tried to live by day and not to worry too much about my future. I put my future in God's good hand, and no longer in myself or other men. I prayed that I would get a new job that would allow me to spend times with my loved ones. I was more than willing to take less pay for such job.

It was then, when I no longer trying with my own strength, I got re-connected with an ex-boss. Starting with an informal chat, it continued with interviews, and I ended up getting a job offer. I wasn't having high hope and was already preparing myself for a significant pay cut if I got the job. But hey, alas, it wasn't much a pay cut when I finally got the offer. Indeed with the variable bonus, the overall package would be better than my existing job.

These verses below about Peter, the fisherman, described exactly how I felt after failing many times applying for jobs:

"When He had stopped speaking, He said to Simon, 'Launch out into the deep and let down your nets for a catch.' But Simon answered and said to Him, 'Master, we have toiled all night and caught nothing; nevertheless at Your word I will let down the net.' And when they had done this, they caught a great number of fish, and their net was breaking." - Luke 5:4-6 NKJV

I also received another good news about my health. I was referred to a specialist to check further on my urine condition. I was asked to do another round of test. The waiting for the result was like an eternity to me, though it's just for a week. I really prayed for a good result to come out, so I could still work and wouldn't be a burden to my family. When the result finally came out, the specialist discharged me as he found nothing wrong in my urine test.

To be continued ...

How Great Is Thy Love For Me - Part 2

Read previous post: How Great Is Thy Love For Me

I sold my car and stopped eating out. I tried very hard to be careful with my spending. I could remember the sadness in my wife and daughter's eyes, when all the conveniences they had been enjoying, were taken away. But they didn't complain. My daugther, though they're still very young and didn't fully understand, knew that their father was having difficulties.

Meanwhile, during one routine health check, red blood cells were found in my urine. The more I read about what caused it, the more worried I was, as it might be an indication of kidney disease. Having the vision of me needing to rely on dialysis one day was too much to bear. I was wondering how I would pay for the dialysis and treatment, and if any employer would be willing to employ me.

I didn't receive a single call for many job applications I sent out. And reading many sad stories in transitioning.org, where many Singaporean struggled to get re-employment as they grew older, broke whatever fighting spirit in me. I had very little faith left at this lowest point of my life, and I sank deeper into depression.

These were the days I shed a lot of tears, when I was alone in my prayer. I envied my friends who had rich parents and could afford to quit their jobs any time they wanted. I was angry and I questioned God, why I didn't have rich parents which I could fall back to, why I couldn't get a new job while struggling and unhappy with the one I had, and why I was allowed to have what might be a very serious (and expensive) sickness. Didn't He say "For I know the thoughts that I think toward you, says the Lord, thoughts of peace and not of evil, to give you a future and a hope. " - Jeremiah 29:11. Why did He allow all these bad things to happen in my life?

To be continued ...

How Great Is Thy Love For Me

In the aftermath of 2007 great financial crisis, the company I worked for was in the brink of bankruptcy. I was doing well in my job, but my company wasn't. It was finally bought over by a bigger company, and that was when the whole drama began.

After the takeover, we're pretty much under the mercy of the new owner. I got a new boss and the direction from the very high up was to outsource the function where I belonged to. I was retained by the new company to "manage" the outsourcing company. However most of my colleagues and team mates were given severance package and asked to work for the outsourcing company, which would provide services back to my new company.

It was then my worst nightmare started. The outsourcing company wasn't able to deliver according to expectation. There were so much corporate politics taking place as the senior management from both the previous company and the new company fight for their own survival. Things just got harder and harder for me. The incompetence of the "lower cost" outsourcing company in delivering required services didn't help me either.

In 2010, I was on my breaking point. I was working for almost 18 hours a day, 7 days a week. I started looking for new jobs. I contacted ex-colleagues and friends for job opportunities. They politely told me they would meet me or contact me when opportunity arose, but they never did. There was one ex-company that I thought I had a good chance to land a job, but I didn't. It was much later that I found out that an ex-colleague held a personal grudge and another one worried I'd become a strong competitor. I felt very hurtful and dejected because I used to help them.

I continued looking for new jobs, relying on my own strength and connections, but to no avail. I hated the environment of my workplace and my job then, but I couldn't quit because I was the sole bread winner for my family of four. I also needed to support my parents and service my home loan. I didn't have much savings in my bank account either. I became severely depressed and lost 10 kg without diet and excercise.

To be continued ...

September 2015 - Low Cost Portfolio

STI broke it's August low in September to test 2740 level and subsequently rebounded. I took the opportunity during market panic to add First REIT into my low cost portfolio. At my buying price of $1.205 per share, yield on cost was a decent 6.8%.

Loss YTD increased to -5.08% or -11.55% on a weighted annualized basis. No dividend received in September. I added $3,000.00 of fresh fund into the portfolio in September. As my portfolio allocation had achieved the targeted allocation of 60% equity and 40% bond, I planned to sit tight and only increase equity allocation if STI dropped to between 1500-2500.

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

September 2015 - Unit Trust Portfolio Update

September is the 2nd month my unit trust portfolio dipped into negative territory. On annualized weighted basis, portfolio return was -2.01%. Total YTD return was -1.51%.

I didn't have many transactions in September as my unit trust allocation was close to the intended allocation of 60% equity+high yield, and 40% bonds. I received cash dividend of $155.33.

Below were the summary of my transactions in September 2015:

1. Bought

First State Dividend Advantage $2,000.00
Schroder ISF Gb Div Max A DIS SGD $2,000.00

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

New Blog Links Added

One more new friend, one more new link added to my blog roll.

My Thoughts on Stock Investments

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

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 ....

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

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%

Don't Waste Our Life On The Pavement

"The twelve gates were twelve pearls: each individual gate was of one pearl. And the street of the city was pure gold, like transparent glass." - Revelation 21:21 NKJV

"Don't waste our life on the pavement" was the powerful sermon message I came across this morning. It reminded me on what our true purpose in this world was What are we living for? Are we living just to eat our bread of toil? To pile up the gold and the treasures? One day, the gold we fight so hard for our whole life, will be worthless. Because we'll walk over the pavement made of pure gold, if our names are found in the book of life.

Or in the financial blog term, to build the war chest? What will happen if the Alpha and the Omega decided our time is up, before we can use our war chest? Or worst, before we get to enjoy the result of successful deployment of our war chest ...

Yes, as long as we live, we'll need the bread, the gold, and the treasures. They're the mean, but they're not the destination. So let's remind ourselves, not to get too fixated with them, or even worship them. There is a higher calling for each of us, like showing care to the people we love and people we don't.

By the way, I just got to know a new friend, Derek, from TheFinance.sg. I felt very honored to have my blog added in his web site. I have also added the link to TheFinance.sg in my blog roll.

Happy Sunday All.

Recent Buy - Low Cost Portolfio

I've been in shopping mood as there is a great sale going on.

For my low cost portfolio, I was buying:
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.

My low cost portfolio allocation as of 24 Aug is 57% equity - 43% bond. My allocation target is 60% equity - 40% bond, which mean I have a little bit more room to add to my equity holdings.

July 2015 - Low Cost Portfolio Update

Market continued to sell off in July. Indeed as of 21 Aug 2015, it seemed clearer that the global stock market had started to peak in April (see table below). While some people might feel stress looking at the paper loss in their portfolio, I'm actually rather excited as I've been waiting for such time and opportunity to come. It's been a while since I last saw STI traded below 3000 points.



As of 31 July 2015, my low cost portfolio was down -6.48% in weighted annualized basis. Portfolio allocation was 40% stocks, 40% bonds, 20% cash. Portfolio performance was supported partly because of the strengthening of USD and HKD.

I made my regular contribution of $3,000,00 to the low cost portfolio. Total investment as of July $72,000.00. I received a distribution of $100.80 from United SGD Fund Cl A (Dis), which I reinvested back to the fund.



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

New Blog Links Added

It's about 8 months since I started blogging. During this time I have also learnt and received feed backs and suggestions from other financial bloggers. Amongst the blogs available, I like to read the following blogs:

• Singapore Man of Leisure - I like this blog for it's witty and at times "cryptic" write-up that raised critical questions which will stimulate the readers thought process. 

• Lady You Can Be Free - No nonsense blog of a lady, who showed that financial independence could be achieved, by taking responsibility on our own finances and investment decision. The lady's experience also showed that we needed patience before we could reap the fruit of success. 

• A Singaporean Stock Investor - Another no nonsense blog that taught us how to achieve financial success by making smart decision with our finance. A lot of in-depth analysis to ensure the money we spent for living or investment were based on sound decision making process.

I felt that there were valuable lessons we could pick from the above blogs, and I have added them into my blog roll with the permissions from respective blog owners.

Thank you Jared, Lady, and AK for allowing me to add your blog links. Keep up the good work.

Singapore Jubilee - Prayer for My Nation

God's blessing for Jubilee (Triple Harvest):  "Then I will command My blessing on you in the sixth year, and it will bring forth produce enough for three years. And you shall sow in the eighth year, and eat old produce until the ninth year; until its produce comes in, you shall eat of the old harvest." - Leviticus 25:21-22 NJKV

I pray that God will bless Singapore and all my fellow Singaporean so:

1. You will be blessed in the city and blessed in the country.

2. The fruit of your womb will be blessed, and the crops of your land and the young of your livestock—the calves of your herds and the lambs of your flocks.
3. Your basket and your kneading trough will be blessed.
4. You will be blessed when you come in and blessed when you go out.
5. The Lord will grant that the enemies who rise up against you will be defeated before you. They will come at you from one direction but flee from you in seven.
6. The Lord will send a blessing on your barns and on everything you put your hand to. The Lord your God will bless you in the land he is giving you.
7. The Lord will establish you as his holy people, as he promised you on oath, if you keep the commands of the Lord your God and walk in obedience to him. Then all the peoples on earth will see that you are called by the name of the Lord, and they will fear you.
8. The Lord will grant you abundant prosperity—in the fruit of your womb, the young of your livestock and the crops of your ground—in the land he swore to your ancestors to give you.
9. The Lord will open the heavens, the storehouse of his bounty, to send rain on your land in season and to bless all the work of your hands. You will lend to many nations but will borrow from none.  
10. The Lord will make you the head, not the tail.

May Singapore continue to achieve greater happiness, prosperity and progress. We love you Singapore, God bless Singapore !!

July 2015 - Unit Trust Portfolio Update

The rout in equity market continued in July. Amongst the hardest hit were:

1. Commodities related sector especially oil and gold.
2. Countries that had heavy reliance on oil export such as Brazil, Russia, etc.
3. Gold and oil mining companies.

Taking advantage of the market weaknesses, I added equity allocation during the month of July.

Below were the summary of my transactions in July 2015:
1. Bought

First State Dividend Advantage $6,000.00
FTIF-Templeton Global Fd A(acc) SGD $6,000

2. Sold
United SGD Fund Cl A Acc (SGD) $20,004.61

Weighted annualized return as of July stood at 2.58%, a significant reduction compared to 6.36% return in June. An important factor that supported the portfolio resiliency in July was the bumper dividend received, which amounted to $760.63.

Despite the "so-so" return I should be grateful as I was able to sleep tight during the market rout, while some other investors/traders were having sleepless night, depression, or even committing suicide.

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

Goal Review in May and June 2015

1. Read 2 chapters of bible every day.
I was rather disorganized in these 2 months, but on average I read bibles 5-6 days a week in these 2 months. I gave myself 77% for these 2 months. There were many useful lessons one can learnt from God's word. I needed to ensure I had the discipline, so I didn't miss the valuable lesson.

2. Exercise 4 x 45 minutes every week.
It was school holiday, and I was spending time and enjoying life with the kids and my wife. I was relaxing too much and not pushing myself hard enough to keep with my exercise routine. On average I was only achieving 60% of my goal in this area in May and June.

3. Reduce my weight by 5 kg, from 78.5 kg to 73.5 kg.
My weight surged back up to above 78 kg with the holiday and eating out. Fortunately I was able to bring it back to 77.8 kg by end June. Score as of June remained at 14%.

4. Save $90K, and use the fund to grow my investment portfolio from $265K to $355K.
I continued my contribution regularly, $3,000 in May and another $3,000 in June. Total fresh fund invested ytd: $74,000. Score as of June was 82%.

5. Achieve 4% return on my investment on average weighted basis.
I had a mixed result in this area. My unit trust portfolio YTD return was 8.78% in May and 6.36% in June on annualized basis. While my low cost portfolio YTD return was 1.6% in May and -2.08% in June on annualized basis. I believed both portfolio need more time before I could gauge the long term return rate more accurately.

Due to increase commitment in other areas of my life, I may have lesser time to blog. Next goal review will be done on a quarterly basis.

June 2015 - Low Cost Portfolio Update

The market continued selling off in June. I sat tight and watching closely for buying opportunity. I added another $3,000 in June into the portfolio. I also sold some United SGD Fund Cl A (Dis), in preparation to purchase more equity ETF.

My low cost portfolio YTD was down 1.91% on weighted annualized basis. Of course, this drop was pale compared to the drop in major equity indexes around the world, especially the China SSE index.



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

June 2015 - Unit Trust Portfolio Update

Equity market corrected further in June as I forecast-ed in my May update. I continued to re-allocate my portfolio by adding more into equity funds. Weighted return as of June 2015 was 6.36%.

Below were the summary of my transactions in June 2015:
1. Bought

Fidelity China Focus A SGD $2000.00

First State Dividend Advantage $12,500.00

2. Sold
United SGD Fund Cl A Acc (SGD) $13,953..58

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

May 2015 - Low Cost Portfolio Update

I was swamped with work and had difficulties finding time to update the blog.

In May, I added another $3,000 into my low cost portfolio. Total investment made YTD into the low cost portfolio was $66,000. I also took the opportunity of weaker USD & HKD in early May to buy the currency, because I plan to buy the following ETF:
1. Vanguard FTSE Asia ex Japan High Dividend Yield Index ETF (HKD denominated, listed in HKSE, code: 3085 HK)
2. iShares Core MSCI World UCITS ETF (USD denominated, listed in LSE, code: IWDA LN)

To diversify the time of purchase, I decided to buy the ETF with the lower PE ratio first, which was the Vanguard ETF (3085 HK). I kept the USD cash ready to purchase the iShares ETF (IWDA LN).

The portfolio value was actually down slightly due to market sell off in end May. However, when converted to SGD, there was forex gain as USD and HKD actually strengthened during market sell off.



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

May 2015 - Unit Trust Portfolio Update

With some funds doing well and others experienced pull back, I did a number of transactions for minor re-balancing. Looking at the overall portfolio, I felt my equity holdings were too low and I intended to increase the allocation gradually over time.

Weighted return as of May 2015 was 8.78% and it had been trending down compared to Jan 2015.
I predicted the weighted return would continue to trend down before stabilizing, as I expected stock market to have further pull back. Total return was 3.58% as of May 2015.

Below were the summary of my transactions in May:
1. Bought
United Emerging Markets Bond Fund $1,000.00

Schroder ISF Gb Div Max A DIS SGD $2,000.00

First State Dividend Advantage $2,000.00

2. Sold

United Gold & General Fund $2,123.14

3. Switched
HGIF Brazil Eqty SGD Cl AD to Fidelity China Focus A SGD $1,849.02

4. Reinvested Cash Dividends received
Nikko AM Shenton ShortTerm Bond(S$) $458.29

 

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

Goal Review in March & April 2015

1. Read 2 chapters of bible every day.
There were weeks when I was lacking of self discipline. On average I was reading bible 6 days a week, so my average hit rate ~ 85%.

2. Exercise 4 x 45 minutes every week.
With travelling and a new role in my job, it's difficult to keep up with the regular exercise routine. It's tough to continue with exercise when I reached home late and tired after working longer hours. I could only fulfill 50% of my target during March and April. I really hope I can get back to where I was in May 2015 after I get used to with the new role.

3. Reduce my weight by 5 kg, from 78.5 kg to 73.5 kg.
With lack of exercise, working longer hours, and eating more, I wasn't surprise my weight was creeping back up to 77.4 by end March and 77.8 kg by end April. Score: 14%.

4. Save $90K, and use the fund to grow my investment portfolio from $265K to $355K.
I received bumper bonus and managed to contribute $60,000 in March and $3,000 in April. Total fresh fund added to investment portfolio by end April was $68,000 or around 75% of $90K target. As I mentioned in my previous email, I'm channeling any new fund to my 2nd portfolio (low cost portfolio). I have stopped contributing fresh fund for my unit trust portfolio, though I still re-invested cash dividends received.
Total investment value on both portfolio as of end April was $338,478.68.

5. Achieve 4% return on my investment on average weighted basis.
My unit trust portfolio return by end April was 10.52% on average weighted basis, while the low cost portfolio that I just started in March gave a return of 3.39% on average weighted basis. Though the low cost portfolio return was below 4%, I'm not sweating over it as it needed more time to reflect the long term expected market return.

April 2015 - Low Cost Portfolio Update

I decided to name my 2nd portfolio as low cost portfolio to better reflect it's strategy. On 23rd of April, I add $3,000 to the portfolio, and planned to make regular contribution to the portfolio in the subsequent months.




Link to Yaruzi's low cost portfolio allocation as of April 2015

April 2015 - Unit Trust Portfolio Update

There was re-organization in my company and I got a new boss and expanded role. I was rather busy with work and basically didn't touch my portfolio in April.

I collected $593.97 in cash dividend, that I'll need to re-invest. My portfolio was holding steady despite the volatile market.

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

Starting My Second Portfolio

After reading Andrew Hallam's Millionaire Teacher, I had been intended to create a second portfolio consisting of low cost index fund and dividend stocks.

So I started the second portfolio by injecting a fresh fund of $60,000.00 on 1st April 2015.

I bought 2900 units of STI ETF @ $3.45, but couldn't find any decent bond ETF to form a balanced portfolio. So for the lack of bond ETF, I bought United SGD Fund for the time being. I thought Singapore Saving bond might be a good alternative, when it became available in the near future.

I also bought some USD during the recent pullback, as I intended to buy some ETF denominated in USD.

March 2015 - Unit Trust Portfolio Update

Total profit YTD as of end March 2015 was down by $1,858.96 from February peak of $8,734.11 to $6,875.15, which translated to 10.48% annualized weighted return.

March was quiet and I had no transactions, except reinvesting cash dividend received from Jan to March 201, which amounted to $775.46. As I mentioned in my previous email, I'll be channeling fresh fund to build a low cost index portfolio. More on my second portfolio of low cost index in my next post.



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

The Day Heaven Cries

"The days of our lives are seventy years;

And if by reason of strength they are eighty years,

Yet their boast is only labor and sorrow;

For it is soon cut off, and we fly away." Psalm 90:10 NKJV

"So teach us to number our days,

That we may gain a heart of wisdom." Psalm 90:12 NKJV

Rain poured from the sky as if it was crying to bid the final farewell to Singapore founding father, Lee Kuan Yew. Without him, most of us won't be blogging today. Most of us will be occupied with survival, let alone achieving financial independence.

I have a lot of respect for you, Mr. Lee Kuan Yew and I hope I can live my life being useful for the people, the country, and the nation. So with a heavy heart, I bid my farewell to you, Sir. May your good soul finds a peaceful rest in the hand of God. I'll also pray that your family and the people of Singapore be given strength to continue your legacy. Amen.

A Trip to Taiwan

"Look at the birds of the air, for they neither sow nor reap nor gather into barns; yet your heavenly Father feeds them. Are you not of more value than they? Which of you by worrying can add one cubit to his stature? 

'So why do you worry about clothing? Consider the lilies of the field, how they grow: they neither toil nor spin; and yet I say to you that even Solomon in all his glory was not arrayed like one of these. Now if God so clothes the grass of the field, which today is, and tomorrow is thrown into the oven, will He not much more clothe you, O you of little faith?

Therefore do not worry, saying, ‘What shall we eat?’ or ‘What shall we drink?’ or ‘What shall we wear?’ For after all these things the Gentiles seek. For your heavenly Father knows that you need all these things. But seek first the kingdom of God and His righteousness, and all these things shall be added to you. Therefore do not worry about tomorrow, for tomorrow will worry about its own things. Sufficient for the day is its own trouble." - Matthew 6:26-34 NKJV

I was on a trip to Taiwan to visit my 80 year-old grand-aunt, who lives in Taipei. It was such an enriching trip and I would have to say Taiwan is much more advance in elderly care. People there seemed to be very respectful to their elders.  

Singapore, in contrast, was not as gracious towards their elder generation. An ungrateful, under-aged student was being investigated recently for posting hoax about Lee Kuan Yew, who is the founding father of modern Singapore. What a spoiled brat !! I hope he reflected on his idiotic act and become a better and useful person one day.

My grand-aunt is eligible to receive monthly handouts from the government, as she doesn't have children or own a home herself. Her husband passed away about 4 years ago. She has 1 stepson and 1 step daughter, but both are not close to her. She has some savings she accumulated when she was working during her younger days, and a little bit of passive income. She has no debt. She leads a simple and frugal life, living in the senior folk home. Her income is more than what she needs to pay for her daily expense.

Her day is full with activities like exercise, computer training, church activities or just meeting with friends. Do you believe that she even uses LINES to communicate? :-) ... Well, I'm happy to see her. I wish her a healthy and happy life.

Goal Review in February 2015

1. Read 2 chapters of bible every day.
I managed to read 2 chapters of bible almost every day. There was 1 day I missed, so I gave myself a 96% for this month. I learnt a lot reading the Book of Kings and Chronicles. The bible taught me the valuable lessons from the Israel and Judah kings' life that led to their rise and fall.

2. Exercise 4 x 45 minutes every week.
I wasn't able to keep up my exercise routine during the Chinese New Year holiday. Nevertheless, I didn't regret as I was spending quality time with my mum and my family. This month I only kept my 80% of my exercise target.

3. Reduce my weight by 5 kg, from 78.5 kg to 73.5 kg.
My weight was going up and down like a yoyo. With less exercise and lot of temptation (Chinese New Year snack, bak kwa, etc), I was gaining some weight back. Fortunately I managed to end February weighing at 77.1 kg, reducing another 0.4 kg compared to January. I gave myself 80% for this goal achievement in February.

4. Save $90K, and use the fund to grow my investment portfolio from $265K to $355K.
I spent more than what I earned. With all the gifts and ang paos for relatives, and a trip planned to visit my 80+ year old grand auntie in Taiwan in March, I was expecting negative savings for January and February.

I didn't expect myself to be able to save and make new contribution to my investment portfolio until late March or early April, My next contribution will be channeled to build a new portfolio consisting of low cost index and dividend stocks.

YTD, I only fulfilled 5.56% of the total target for new contributions, no changes from January.

5. Achieve 4% return on my investment on average weighted basis.
I really didn't expect to repeat the January performance in February. But alas, I was wrong and February turned to be another good month. My portfolio returned 3.28% YTD (20.67% annualized).
Because I'm still on track to achieve 4% return for this year, I gave myself 100% for this goal.

While equity market was bullish in February, I took the opportunity to reduce my equity funds and re-balanced it to bond, high yield, and short duration bond funds. On a hindsight, this was probably the right move with Dow losing almost 300 points last week. It felt "shiok" seeing blood with only 20% of the portfolio in equity.

February 2015 - Unit Trust Portfolio Update

My portfolio continued to perform well in February despite a short month. Portfolio value increased by $4,159.84 (20.67% annualized) compared to January, with $4,006.6 from capital appreciation and $153.35 from cash dividend. Cumulative YTD profit was $8,734.11.

I used the bullish sentiment in equity markets to further take some profit and reduced my equity holdings. I reduced my holdings in HGIF Russia Eqty SGD Cl AD(SGD), sell the remaining of Aberdeen China Opportunities(SGD), and cut loss on Threadneedle (Lux) Enh Comm Cl ASH SGD(SGD). 

At the same time I add some Blackrock World Energy Fund A2 SGD-H(SGD), because it seemed oil may had found some interim bottom. I also and my bond holdings in United Emerging Markets Bond Fund(SGD), and United Asian Bond Fund Class SGD(SGD).

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

Inspirational Story by Real People - Grandma Ira

Grandma Ira passed away on 28^th Feb 2015 (yesterday), and this was her story.

“Life is hard, but we must persevere”

Grandma Ira was 74 years old when I first met her. She looked older than her age, because all the hardship she had to endure in her life. She was a single parent and used to own a successful textile factory in Tangerang. 

The May 1998 riot in Indonesia turned her life upside down. Her factory and home was burnt by the rioters. Her only son, who was studying to be a doctor, experienced a serious mental disturbance. He couldn't finish his study because of the mental stress.

Despite losing everything she had, Grandma Ira took full responsibility of her employees’ welfare. She sold the land she had left to pay for their salary. The rest was used to pay for her son’s treatment. Unfortunately the son’s condition deteriorated further and he eventually passed away.

In her darkest moment, she met a pastor who brought her to a shelter house in Senen. There, she had her faith and spirit restored. She managed to get herself back on her feet after one year.

Life outside the shelter was no heaven. She got cheated many times. She had her possession forfeited by landlords and the door to her room locked, because she wasn't able to pay the room rental. There were so many difficult and sad things she had to face. However she also witnessed how God’s never ending providence for her.

When she had no money, God sent her angles in various forms.  Helps from students of Atmajaya to get her possession back by paying her rental, orders for hand phone or coin pouches (handmade by grandma Ira) from kind-hearted folks, flowed continuously. At times she only got 5000 Rupiahs (about 50 Singapore cents - Yaruzi) in a day, but she was grateful and she never complained.

Last Saturday, I happened to sit next to her in the bus stop. Grandma Ira saw Giza, my little daughter, and spoke to us. She gave Giza a nice hairpin and a small bag. We ended chatting a lot about her, and that’s how I first knew her.

In her old age, she was still optimistic, full of hope, and always grateful for whatever God provided. I prayed that she would be blessed with perfect health, better life, and spirit. Amen. 

This was originally written by: Titi Atmojo based on her encounter with Grandma Ira.

Oma Ira had no family or relatives when she passed away. Her funeral and final sent-off was arranged by a group of volunteers. Some of the volunteers are my personal friends and one of them is my sister.

Yaruzi Wish You a Happy Lunar New Year 2015

24 

“The Lord bless you and keep you;

The Lord make His face shine upon you,

And be gracious to you;

The Lord lift up His countenance upon you,

And give you peace.” Numbers 6:24-26

I'm Officially A Convert

I came across the book "Millionaire Teacher" when I was in Kinokuniya last week. Either the glossy cover or the author's name "Andrew Hallam" that attracted me to it. I ended up buying and reading the book.

To me, it's not a book that teach us how to be a millionaire, instead it's a book about a teacher who becomes a millionaire. This book basically says that everybody can be a millionaire, despite being just an average salary man.

I won't divulge much in my blog, but I think it's a good read and it's a must read. Everybody who is serious about achieving success in their personal investing journey must read the book. Even my boss already told me that he would borrow mine after I finished reading.

After reading this book, I'm determined to tweak my investing style. No more bearing with the platform fee nonsense. No further contribution into my unit trust portfolio. New contribution will be directed towards a new low cost index portfolio. Gradually, I'll shift my portfolio from the "expensive" unit trusts to low cost index. Period. Good bye blood sucker.

Q&A with Fellow Investor in FSM Forum

Hi Yaruzi,

I m Prince MK from Kuala Lumpur invested via FMS Sg. I m also invested in Allianz US High Yield AM Dis H2-SGD(SGD) too and the dividend rate is 6 cents. What do you think of others Fixed Income funds? Would you consider abt United Asian High Yield Bond Fund? I see the dividend rate is quite attractive too. How long you keep the United SGD Fund ?? Mind to share ?

Besides that, I also see Allianz Income and Growth is giving a very attractive dividend rate too. Any comments?

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Hi Prince MK,

Nice to know you through this forum.

To answer your questions:

1. In regards to Asian High Yield Bond fund, I prefer Fidelity over UOBAM because of bigger fund size, lower cost ratio, and longer track record. I just bought an initial position in Fidelity Asian High Yield in January after taking profit on some of my equity funds and gold mining funds. Check my blog for my portfolio allocation as of 30 Jan 2015.

2. In regards to United SGD Fund, I have invested in it ever since I started investing in FSM two and a half year ago. I have added to this fund gradually with my monthly contribution. This will be the fund that hold most of my allocation, when I don't see good buying opportunity. I will always hold some allocation in this fund and will use it to buy when a crisis strike or major correction happens.
Fullerton Short Term Int Rt C S$ is also a good short duration bond fund, but unfortunately it is not receiving fresh fund at the moment as it has reached the fund max capacity. Also geographically it invested globally as opposed to just Singapore focus (better diversification).

3. Allianz Income and Growth does offer a very attractive income yield, however it's not a pure fixed income fund. It has 1/3rd of it's asset invested in equity, and geographically it's focusing on US only. With US market priced higher relative Asia and Europe, I'm concerned upside may be limited and income yield is not sustainable. Short track record is also a major concern for me to consider this as a core income fund in my portfolio.

Goal Review in January 2015

1. Read 2 chapters of bible every day.

Reading bible enriched me with wisdom to live my life. It also gave me strength when I was going through rough patch. Most of the time I read more than 2 chapters a day, however there were days where I didn't read any. For this I gave my self an 80% mark, which to say I have room to improve.

2. Exercise 4 x 45 minutes every week.

I managed to maintain the discipline to excerise 4x45 minutes a week. There was time when I almost skipped a session or 2 due to hectic schedule in the office and with the family. I marked myself a good 100% on this.

3. Reduce my weight by 5 kg, from 78.5 kg to 73.5 kg.

In the beginning of the year, I told myself to get healthier and lost that extra weight. My target was to lose 5 kg a year or an average 0.4-05 kg a month. I managed to lost 1 kg in January alone, so I was pretty happy with the result. I gave myself a 100% mark on weight loss.

4. Save $90K, and use the fund to grow my investment portfolio from $265K to $355K.

I contributed a fresh fund of $5,000 in January into my unit trust investment portfolio. I still have 11 months to meet the targeted $90K total savings to be invested. As it stood in January, I only fulfilled 5.56% of the total target.

5. Achieve 4% return on my investment on average weighted basis.

January was a good month with the total profit in January alone exceed the whole 2014 profit. Assume the portfolio grows at this rate for the whole of 2015, I will achieve 20.94% return by end of 2015. However I don't think that will be realistic, because there will be up and down. I marked the performance of the portfolio a perfect 100% in January.

Jan 2015 - Unit Trust Portfolio Update

"The LORD's blessing enriches, and struggle adds nothing to it." - Proverbs 10:22

January 2015 was a good month for me. My portfolio increased by $4,574.16 in January (20.94% annualized return), with $4,112.43 came from capital appreciation and $461.73 came from cash dividend that yet to be re-invested. I think it would be tough to repeat the same performance in the months ahead.

I sold 37.5% of my position in United Gold & General Fund, 40% of Aberdeen China Opportunities, and 100% of Blackrock European Eqty Income A6 SGD-H.

I bought some Allianz US High Yield AM Dis H2-SGD, and initiate a position in Fidelity Asian HY AMDIST SGD Hedged. The weaknesses in high yield bond made their dividend yield attractive. I'm positioning myself as defensive as possible, as I'm anticipating further volatility in the equity funds.

Unit Trust Portfolio Monthly Performance in 2015

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

The Unloading - Taking Profit from The Table

The flight to safety continued with gold strengthening and touched the $1300 psychological resistance zone. I started accumulating gold miners in Oct/Nov 2014 during the gold sell off then. I didn't expect that the bearish sentiment on gold to change so fast.  My earlier plan was to hold the gold miners for at least 6-12 months.

From the low of 73.6 cents on 16 Dec 2014, United Gold and General fund has rallied 33.6% to 98.4 cents on 20 Jan 2015. This was the price zone I projected as my initial target price. So I decided to lock-in some profit by unloading 3/8 of my total position in United Gold and General fund. Unloading was done from 20-22 Jan for a decent profit.

I also sold half of my position in Blackrock European Eqty Income A6 SGD-H, to lock-in some profit. In the meantime, it seemed the high yield fund offered a decent yield at the current price level. I initiated a position in Fidelity Asian HY AMDIST SGD Hedged. The fund distribution rate was 6.8% based on my purchase price.

January seemed to be a good month. My unit trust portfolio value appreciated some $4400 compared to 31 Dec 2015, more than the return I got for the whole of 2014. I'll post my position by end of the month.

Gold Chart - 20 January 2015

Higher low, higher high ... trend reversing?

Platform Fee is Killing Me

Total platform fee I paid to FSM in 2014 was $505.51.

Total profit I made was $3207.68 or 1.47% of total capital on an average weighted basis. Without platform fees, I would make $3713.19 or 1.7% of total capital on average weighted basis.

Platform fee cut my annual return by around 0.23% or 13.61% of my 2014 profit.  When market is good and I make above average profit, 0.23% cut probably is not big deal. But when return is just "so so", yes it is a big deal. And in the long run, it's a very big deal.

So I've been thinking for lower cost alternative investment such as ETF and even build my own dividend portfolio. For this purpose I've been looking at offerings from TD Ameritrade (thinkorswim) and E*TRADE.

TD Ameritrade offers a wide range of commission free ETF, however they currently do not have a local bank account to facilitate local fund transfer. They can only accept international wire transfer which will cost $25-$30 per transfer. They're willing to reimburse the cost incurred for international wire transfer up to USD 100. However as I will be doing a regular contribution instead of a lump sump transfer, this will not work for me. They said they would offer a local fund transfer facility by Q1 this year. 

E*TRADE on the other hand offers local fund transfer, and offer some commission free ETF. However the more liquid ETF (such as VanGuard) are not free of commission.

Anybody has any comments or suggestions? You're more than welcome to leave your suggestions.

Thank you.

Weekly Update - 17 Jan 2015

1. Unit Trust Transactions

• 13 Jan - I bought $500 Allianz US High Yield AM Dis H2-SGD(SGD).
• 13 Jan - Switch $5506.46 worth of United SGD Fund Cl A Acc to Nikko AM Shenton ShortTerm Bond(S$) in preparation for buying opportunity that may arise.

2. Swiss National Bank Scrapped CHF/EUR

SNB surprised currency market on 14 January after deciding to scrap 3-year-old peg of 1.20 CHF per EUR. The decision swiftly sent the EUR down to 0.85 CHF (~41% drop). This sudden and surprise move caused a number of forex brokers to go into insolvency.

3. Gold Broke Out its 3 Month High to Reach USD 1,280

Gold & gold mining companies were the beneficiaries of flight to safety due to volatility in currency and equity markets.  It finally broke it's 3 month high of USD 1,240 and reached a high of USD 1,280 before closing at USD 1,276.
As I mentioned in my last week update, I expected gold and gold mining companies to benefit and continue their rally due to shifting to assets perceived as safe havens.

4. FSM Event - What & Where to Invest 2015

Same old same old I guess. Nothing much to say, except that all the speakers think it's still bullish for equity markets especially Asia. Within Asia, Hong Kong and Singapore was believed to be the cheapest market at the moment.

There was one fund manager from HSBC, Elina Fung, that impressed me because of her in-depth insight in Asia smaller cap companies.

Rise of The Gold Mining Companies

Gold is trading near its 3 months high and even trying to take out the high on 9 Dec 2014 of USD 1,239.00. Meanwhile, the stock of gold mining companies continued with their rally in the past few days, showing some underlying strength despite the volatility seen in general stock market index.

On a 5 year basis, the spread between fund investing in gold mining companies and one of the major stock index, such as S&P 500, are at its widest range. However in the 6 months and 3 months chart, we can see the spread are narrowing. As the stock index started to turn down, the gold fund started to turn up.

United Gold and General fund in my portfolio has turned from -3.77% to +9.22% as of today. I think there will be more upside in the near term, and I'll be looking to take some profit gradually as the price rises.

5 Year

6 Months

3 Months

Krispy Kreme vs Dunkin Donuts

My youngest daughter got a free online voucher for an original glazed doughnut from Krispy Kreme through the chat application LINE. She asked me and my wife to accompany her last Sunday. However because we're going somewhere else, we told her that we'd redeem it next week or some other days.

So she asked again this morning. But alas, the voucher unfortunately expired on 9 January 2015. Not wanting to disappoint her, both I and my wife decided to buy 2 pieces for her and the eldest sister.

While we're in the queue, I saw 1 piece of original glazed doughnut cost $2.60. My eldest daughter saw the price too and told me to buy her Dunkin Donuts instead, because it's cheaper and probably she could get 2 pieces for the same price. She would eat one today and kept another one for school recess on Monday. That way, my wife wouldn't need to prepare food for her, and she wouldn't need to spend her pocket money.

Such thought coming from a 10 year old actually surprised me. I ended up buying a piece of Krispy Kreme for my youngest daughter and half a dozen of Dunkin Donuts for $9 or $1.50 each, enough for the whole family.

As we're walking to the bus stop, I told my eldest daughter to study math well. I told her that I would teach her the power of compounding, and she might just have her first million by saving bit by bit from young and invested them wisely.

Weekly Update - 10 Jan 2015

1. Unit Trust Transactions

• 2 Jan - I bought $5,095.77 United SGD Fund ($5000 fresh fund, $95.77 dividend reinvested)
• 5 Jan - I bought $500 Allianz US High Yield AM Dis H2-SGD(SGD). With the monthly distribution of 6 cents and per unit cost of $9.34, the yield was at 7.7% p.a. The yield looked attractive to me.

2. Fierce Rally on Gold Mining Stocks & Funds

Over the week, there was increased volatility in risk assets. Major stock index such as DJI, S&P, STI, Hang Seng saw fierce sell off, followed by quick recovery. The volatility was triggered by further drop in oil price below psychological support of USD 50.00.

The perceived risk caused flight to safety with buying seen on assets that were considered "safe haven" such as gold, treasury bills, and USD. As a result yield on US 10 year T-bills dropped below 2%.

Fortunately for my portfolio, United Gold and General fund that invested in gold mining companies acted as a hedge. Apparently the buying in gold also spread into buying bashed down gold mining stocks. Many gold mining stocks rallied more than 5% in 1 day. Most of them were at 1 month high and some were at 3 month high. I think gold mining stocks may be bottoming and probably in initial phase of medium & longer term reversal.

3. Spike in SIBOR

As a result of USD strengthening and sell off in EUR, SGD was also impacted because it is pegged to a basket of currencies. The sell off in SGD, caused the SIBOR to spike. Those who are over leveraged due to years of low interest rate may want to be cautious. The spike may be a start of trend reversal in years to come.

Annual Review 2014 - Unit Trusts Portfolio

Link to Yaruzi's unit trust portfolio allocation as of Dec 2014.

My Resolution for 2015

1. Read 2 chapters of bible every day.
2. Exercise 4 x 45 minutes every week.
3. Reduce my weight by 5 kg, from 78.5 kg to 73.5 kg.
4. Save $90K, and use the fund to grow my investment portfolio from $265K to $355K.
5. Achieve 4% return on my investment on average weighted basis.