April 2016 - Unit Trust Portfolio Update

Finally my unit trust portfolio turned positive, after staying under water since January. YTD return was 1.51% by end April 2016. I received cash dividends of $952.20. Moving forward, I've decided to re-invest the cash dividends into my low cost portfolio, instead of the unit trust portfolio.

United Gold and General fund, which invested in gold miners around the globe, surged unexpectedly. It was the significant contributor to the portfolio out-performance, as it rised from -18.64% in January to 34.86%, a total of 53.5% jump over 4 months. If we looked at the fund top holdings such as Newmont Mining Corp, Barrick Gold Corp, Goldcorp Inc, etc, we'd find out that their share price are trading at 52 week high. I might consider buying them direct for my low cost portfolio.

Do watch up gold and gold miners very closely, because I believe their bottoming process is real this time round. I sold some to lock-in some profit, but I was still holding most of it. I think this was just the beginning of their turnaround from multi-years down trend.

I also sold some of my United Emerging Markets Bond Fund(SGD) holdings to reduce my exposure in the riskier segment of fix income. This was the continuation after I liquidated 2 high yield bond funds in March.

Transactions in April 2016
1. Sold
United Gold and General fund $1,041.99
United Emerging Markets Bond Fund(SGD) $1,441.61

Link to Yaruzi's unit trust portfolio allocation as of April 2016