Friday, September 30, 2016

Recent Buy - Greggs PLC and Hugo Boss AG

1. Greggs PLC (GRG.L) 220 shares @ GBP 10.0272
2. Hugo Boss AG (BOSS.DE) 55 shares @ EUR 47.685

Thursday, September 29, 2016

Recent Buy - Toyota Motor Corp and Malayan Banking Berhad

1. Toyota Motor Corp (7203.JP) 100 shares @ JPY 5,756.00
2. Malayan Banking (1155.KL) 1600 shares @ MYR 7.62

Sunday, September 25, 2016

How Does Yaruzi's Low Cost Portfolio Stack Up?

I was curious on how my low cost portfolio has performed, compared to similar fund managed by professional fund managers. As my portfolio was incepted on 30 March 2015, I used 2 year annualized return of balanced funds for bench-marking. Balanced fund invest in both equities and fix income.

The result is rather encouraging, as my portfolio rank #14 and beat 70% of professionally managed balanced fund (see table below). Balanced funds that was less than 2 years were excluded. On a YTD basis, my low cost portfolio with return of 9.76% will rank #4 and beat 94% of the other 58 balanced fund. On a longer term basis e.g. 10 years, there is only 1 fund that return more than 4%, which is First State Bridge. I guess overall not too bad huh?

Sunday, September 18, 2016

Recent Buy - HSBC & Perusahaan Gas Negara

Bought HSBC (0005.HK) to add to my existing position 400 shares @ HKD 57.95
Initiating position on Perusahaan Gas Negara (PGAS.JK) 11000 shares @ IDR 2,690.00

Unit Trust Portfolio - The Finale

I liquidated all my unit trusts in Fundsupermart on 29 Aug 2016. I received sale proceeds of $279,816.26. XIRR YTD was 8.32% and XIRR since inception was 2.52%. Not impressive, but the positive thing was I didn't lose money and I felt liberated from the need to pay platform fee! After about 4 years and 2 months investing in unit trusts, I finally decided to consolidate my investment fund in my very own portfolio.

Dividends and distributions received in August was $268.61. All proceeds will be re-invested in my low cost portfolio. With this significant cash injection, my low cost portfolio equity allocation dropped to a low of 20%. That was the reason I made quite a number of purchase in September.

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

Monday, September 12, 2016

Friday, September 9, 2016

August 2016 - Low Cost Portfolio Update

Global markets continued their move up in August. XIRR YTD was 9.76% and XIRR since inception was 4.08% by end August. I was glad because this would be the first time my portfolio was able to beat the CPF SA rate. When I first started my investment journey, my aim was to have a long term portfolio return of 4% and above.

I received bumper dividend of $920.56 in August and I injected $4,250 of fresh fund. As I had a significant fresh fund injection in July, my equity allocation of the total portfolio dropped to around 40%. To rebalance the portfolio, I was buying some dividend paying stocks to raise the equity allocation:
  • BHP Billiton PLC (BLT.L) 180 shares @ GBP 9.465
  • Bayer Motoren WK (BMW.DE) 26 shares @ EUR 74.96
  • Royal Dutch Shell PLC-B (RDSB.L) 90 shares @ GBP 19.76
  • Sinopec Engineering (2386.HK) 3000 shares @ HKD 6.6
  • Daimler AG (DAI.DE) 31 shares @ EUR 61.49
  • SIA 400 shares @ $10.57

Link to Yaruzi's low cost portfolio as of August 2016

Recent Buy - Sembcorp Industries, M1, PCCW

1. Sembcorp Industries 1500 shares @ $2.69
2. M1 1600 shares @ $2.53
3. PCCW (0008.HK) 5000 shares @ HKD 5.01

Thursday, September 1, 2016

The Farewell

After slightly more than 4 years, I finally decided to liquidate my unit trust portfolio completely. I entered sell orders for all remaining portfolio worth $217,000.00 last Monday. The full proceeds will be available by next Thursday and I plan to inject the fund into my low cost portfolio.

Through the unit trust experience, I learnt about diversification, portfolio allocation, sitting tight, and taking long term view when investing. It helped me in formulating the strategy for my low cost portfolio. I enjoyed the investment talk that Fundsupermart organized. Though there were marketing talks, but there was also precious nuggets that I picked up from the fund manager when they shared their thought process while making investment decision.

I also enjoyed the exclusive dinner invitation, which were held in 4-5 star hotels. You'd get to hear the fund manager sharing his/her view and thought process, while enjoying a decent 3 course meals, a nice cup of coffee with a small piece of chocolate. Unfortunately I didn't get the invitation this year, which made the decision to exit easier .... lol. Well, the platform fee which could amount to $800+ per annum was killing me. So it's time to say good bye.

iFAST IPO price was 95 cents. It went up to as high as $1.51. Recently it traded around 93 cents, which was below its IPO price. With many investors awake to the idea that they can build their own low cost portfolio with ETF or dividend stocks, I think iFAST will have challenges and headwinds to continue their business model of collecting ongoing fees. iFAST already felt the heat and has revised down their platform fee. It will be interesting to see if iFAST current business model will last.