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

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