December 2018 - Yaruzi's Portfolio Update

To all my readers and blogger friends: Happy New Year 2019. My portfolio final number for 2018 is out. Return YTD was -0.85%, XIRR YTD was -0.88%, and XIRR since inception dropped to 4.25%. I'm contended with the portfolio performance considering market globally was not doing great this year. My portfolio also beat 73 out of 74 balanced fund unit trusts. Total portfolio value was $690,090.54 and total loss for 2018 was $5,892.11.

I received dividends of $128.99 in the month of December. Total dividends received for 2018 was $10,565.68, a 2.9% increased compared to to total dividends received in 2017.

Date	Securities Name	FCY	SGD
21-Dec-2018	Royal Dutch Shell PLC-B (GBP)	32.47	56.19
26-Dec-2018	BP PLC (GBP)	41.92	72.80

Equity allocation was at 31.20%, while bond & cash allocation was at 68.80%. I sold 2 bond ETF: ABF PAIF (USD) and CSOP China Ultra Short Term Bond (HKD) with the intention to consolidate the bond holding into Fullerton Short Term Interest Rate Fund C and United SGD Fund.

Link to Yaruzi's low cost portfolio as of December 2018

November 2018 - Yaruzi's Portfolio Update

Market recovered some losses as November came to a close. As a result, my portfolio manage to recoup some losses in October. For the YTD, my portfolio was rather flat, down -0.09%. XIRR YTD was -0.11% and XIRR since inception improved to 4.76%. I contributed a fresh fund of $4,000 in November.

I had two transactions in November.

• Sold 1900 shares of Indocement Tunggal Prakarsa @ IDR 19,525
• Added 4900 shares of First REIT @ $1.03, bringing my total holdings to 11500 shares @ $1.1504

Equity allocation as of 30th November was at 31.95%, while bond & cash was at 68.05%

Total dividends received in Nov 2018 was $871.94

Date	Securities Name	FCY	SGD
5-Nov-2018	Malayan Banking Berhad (MYR)	393.51	129.27
13-Nov-2018	British Land Co PLC (GBP)	19.24	34.10
16-Nov-2018	YiChang HEC ChangJiang Pharmaceutical (HKD)	308.93	53.97
22-Nov-2018	HSBC Holdings Plc (HKD)	618.99	108.01
28-Nov-2018	Toyota Motor Corp (JPY)	8,377.00	101.23
29-Nov-2018	Indofood CBP Sukses Makmur Tbk (IDR)	288,771.19	27.26
29-Nov-2018	SIA Engineering	36.00	36.00
29-Nov-2018	Starhill Global REIT	57.50	57.50
29-Nov-2018	First REIT	141.90	141.90
30-Nov-2018	Capitamall Trust	182.70	182.70

Link to Yaruzi's low cost portfolio as of November 2018

Recent Buy - First REIT

Add 4900 shares of First REIT @ 1.03 on 19 November 2018. The purchase brought my total holdings of First REIT to 11500 shares @ 1.1504. After my purchase yesterday, it gets sold down further to 92 cents a share before recovering to 97.5 cents at closing today.

There was a lot of fear that the issue plaguing First REIT main sponsor, Lippo Karawaci, will eventually affect the REIT. Investors may be nervous with all the negative news flowing from the corruption case involving Lippo group in it's flag project, Meikarta, credit rating downgrade, concerns on possible rights issue to fund acquisition of OUE Lippo Healthcare assets, to tenant concentration risk with Lippo group being the major tenant of First REIT. Weak market didn't help either.

I added to my existing position with the belief that there was long term fundamental story for healthcare need. My view is that healthcare needs will grow for many years to come. I understood that I bore the risk of being at the wrong side, but my risk was less than 2% of my total portfolio. I will see how Lippo group navigate all the headwinds, and ready to add more at lower price if they prove that they'll have a higher chance to survive these ordeals.

Recent Sale - Indocement Tunggal Prakarsa

Sold 1900 shares of Indocement Tunggal Prakarsa @ IDR 19,525 on 15 Nov 2018.

Indocement gave me a CAGR of 8.39% for a holding period of 2 years and 5 months.
Equity allocation was reduced to 31.30%, while bond & cash allocation was at 68.70%.

October 2018 - Yaruzi's Portfolio Update

My portfolio turned negative for the first time this year, even after $9,000 fresh fund injection. US market, which was standing strong, finally started to break down. STI dipped below 3000 briefly before recovering and settled above 3000. I have a long shopping list if markets correct further, otherwise I will wait patiently until the time comes. For those who followed my blog, I had been reducing my equity holding and switching into more defensive counters.

Total portfolio value as of end Oct was $684,164.32. Equity allocation was at 31.58%, while bond/cash allocation was at 68.42%. Return YTD was -0.56%, XIRR YTD was -0.69%, and XIRR since inception was 4.45%. I received dividends of $777.59 in October.

Date	Securities Name	FCY	SGD
8-Oct-2018	Greggs PLC (GBP)	22.95	41.44
11-Oct-2018	PCCW (HKD)	433.84	76.10
12-Oct-2018	Vanguard FTSE AS (HKD)	1,693.00	296.28
17-Oct-2018	CNOOC (HKD)	1,062.86	185.36
19-Oct-2018	Carlsberg Brewery Malaysia Bhd (MYR)	137.60	45.34
26-Oct-2018	CSOP China Ultra Short Term Bond ETF (HKD)	148.03	29.21
30-Oct-2018	Heineken Malaysia Bhd (MYR)	316.12	103.88

Link to Yaruzi's low cost portfolio as of October 2018

Recent Sale - Prada Spa, Chow Tai Fook, CNOOC, Vanguard FTSE AS

I take the opportunity by selling into strength today. I continued to reduce my exposure to consumer discretionary and cyclical stocks to manage my portfolio downside risk.

Sold 1000 shares of Prada Spa @ HKD 28.15. For a holding period of 2 years 5 months, it gave me a CAGR of 5.43% including dividends. I really need to work on when to sell!

Sold 5800 shares of Chow Tai Fook @ HKD 7.02. For a holding period of 2 years 7 months, it gave me a CAGR of 23.23% including dividends. I like Chow Tai Fook as it rewarded its shareholders with pretty decent dividends.

Sold 4000 shares of CNOOC @ HKD 14.5. For a holding period of almost 3 years, it gave me a CAGR of 23.24% including dividends. CNOOC is a stock in the energy sector that I considered cyclical. I still have BP PLC & Royal Dutch Shell PLC-B which I plan to hold and possibly add when there is good buying opportunity.

Sold 4000 units of Vanguard FTSE AS @ HKD 20.45. For a holding period of 3 years 5 months, it gave me a CAGR of 1.95% including dividends. I plan to rely less on ETF and construct my own portfolio.

Portfolio equity allocation is now reduced to 31.98%, while bond & cash allocation is now increased to 68.02%.

Recent Sale - iShares MSCI World

Sold all 230 shares of iShares MSCI World @ USD 53.9 to continue reducing my equity allocation.

iShares MSCI World gave me a 9.72% CAGR for a holding period of 3 years. iShares MSCI World has 61.85% of it's holding in US stocks. Instead of MSCI World, I'm considering Berkshire Hathaway Inc if I want US exposure next time.

Blood in The Street & Recent Sale

I added BT PLC on Tuesday (read here) as I felt smart money was switching to defensive play to prepare for blood in the street. I wasn't expecting the blood shedding to happen almost immediately on the next day. Dow lost around 800 points on Wednesday and 500 points on Thursday. Looking at the longer horizon, we need more sell off for value to emerge.

When market recovered slightly on Friday, I took the opportunity to sell some of my shares that were more "cyclical" or shares that I didn't intend to hold for longer term:

• 3000 shares of Sinopec Engineering @ HKD 8.05. I first bought it in August 2016 with average price of HKD 6.64. Both capital appreciation and total dividends received gave me a CAGR of 11.25%
• 180 shares of BHP Billiton PLC @ GBP 15.844. It was a good ride for me as I bought it around GBP 9.65 in August 2016. With all dividends received, it gave me a CAGR of 33% per annum. I like BHP Billiton PLC and I will definitely look at good opportunity to reenter.
• 320 shares of British Land Co PLC @ GBP 5.744. I wasn't sure what the impact of BREXIT towards UK property prices and rental incomes would be. The 10% tax slapped on the distribution was also the second factor for me to exit the position.

Aside of selling equities, I also sold all my holding of United SGD Fund Class A (short term bond unit trust). My equity allocation is now a lighter 40% vs bond/cash of 60%. I'm looking forward to increase my equity allocation again when STI broke below 3000 psychological support.

Recent Buy - British Telecom (BT PLC)

Bought additional 1200 shares of BT PLC @ GBP 2.276 yesterday.

This purchase brought my total holdings to 1780 shares with average price of GBP @ 2.837. At GBP 2.276 and the last dividend of GBP 0.1540, it gave a yield of 6.766%. It was trading around 11.2-11.3x PE. On 5th October, David Einhorn said "BT Group shares were cheap" according to CNBC news on 5th October. Link to news here.

On a bigger picture, I observed that telecommunication sector seemed to strengthen as a whole. This might just be a rotational play as this sector was battered rather badly recently, OR it could be smart money switching to defensive play in preparation for blood on the street. My view is more inclined towards the later.

Recent Sale - M1

Sold all 1600 shares of M1 @ $2.1

While there is a likelihood for a bidding war on M1 to happen, I think it will take some time and there is a possibility that things to develop against my favour.

I feel it's best for me to free up cash and deploy it for another investment opportunity.

September 2018 - Yaruzi's Portfolio Update

September was an exciting month. Keppel Corp & SPH joined forces to offer $2.06 a share to take M1 private. It's a smart move for them to make such an offer when M1 traded near it's 5 year low. Looking at the last closing price of $2.11, I thought it would be unlikely for the other M1 major shareholders to accept the offer price. A bidding war might just be on the card. It's going to be interesting, though I may not be as excited as B from Forever Financial Freedom or STE from STE Stock Investing Journey, as my M1 holding is only 0.49% of my total portfolio.

Another Singapore telecommunication player, Starhub, announced that it would make a change in it's organisation structure that could result in layoffs amongst it's 2,500 employees in a bid to stay "agile and lean", ahead of new challenges, disruptions, and threats.

Portfolio value was $691,935.99 as of end September with $4,000 fresh fund injected. Return YTD was 1.91%, XIRR YTD was 2.63%, while XIRR since inception increased slightly to 5.83%. Equity allocation increased to 43.06%, while bond/cash allocation was 56.94%. Total dividends of $1,176.66 was received in September.

Date	Securities Name	FCY	SGD
5-Sep-2018	BT Group PLC (GBP)	60.54	106.77
19-Sep-2018	Royal Dutch Shell PLC-B (GBP)	32.26	57.99
20-Sep-2018	Capitaland Retail China Trust	312.62	312.62
25-Sep-2018	BP PLC (GBP)	41.43	74.00
27-Sep-2018	BHP Billiton PLC (GBP)	86.41	154.92
28-Sep-2018	Telstra Corporation Limited (AUD)	81.44	80.12
28-Sep-2018	HSBC Holdings Plc (HKD)	620.45	108.02
28-Sep-2018	China Mobile (HKD)	1,621.59	282.32

Link to Yaruzi's low cost portfolio as of September 2018

Recent Sale - Starhub

Sold all 1200 shares of Starhub @ $1.65.
As I mentioned in my August update, I felt growingly uncomfortable with Starhub. With the business focusing only in Singapore, it would be difficult for Starhub to find new areas for growth. It's mobile and pay TV business had been on a decline for some time. Without growth, the cost saving initiative by the new CEO might only stabilise its earnings at best. When competition heats up, there could be more surprise to the downside.

Recent Buy - Tassal Group, Telstra, and First REIT

Bought 1200 shares of Tassal Group @ AUD 4.31.
Tassal Group produces and markets Atlantic salmon and ocean trout. The company's product is marketed under the Royal Tasman Salmon brand. The products are distributed in Australia, Japan and other international markets. I like the low debt and growth of Tassal Group, proven by it's ever increasing dividends. With PE of 12.8x, dividend yield of 5.32%, and weak AUD, I think it's very attractively priced.

Added 1600 shares of Telstra Corporation Limited @ AUD 3.185. Total shares owned is 2360.

Added 4100 shares of First REIT @ $1.24. Total shared owned is 6600.

Recent Buy - Yichang HEC ChangJiang Pharmaceutical & Dali Foods Group Co Ltd

Bought 800 shares of YiChang HEC ChangJiang Pharmaceutical @ HKD 35.65 yesterday
YiChang HEC ChangJiang develops and sells pharmaceutical products in the therapeutic areas of antivirus, endocrine and metabolic diseases and cardiovascular diseases. I like it's high margin, growing revenue and low debt. It's currently trading at around 13-14x PE.

Bought 5500 shares of Dali Foods Group Co @ HKD 5.43 today
Dali Foods Group Co Ltd is a snack food and beverage company. It went public in November 2015. The company has no borrowings and currently trades at 18-19x PE.

Recent Buy - Indofood CBP Sukses Makmur & Telekomunikasi Indonesia

This is a late post. During the sell-off in Asia & emerging markets, I bought some Indonesian stocks on 3rd September 2018:

Bought 6200 shares of Indofood CBP Sukses Makmur @ IDR 8,700.00
Indofood CBP Sukses Makmur is a consumer staple company, well known for their instant noodle: Indomie. The company major stakeholder is Anthony Salim, who is one of Indonesia richest man. Their revenue and earnings had been growing year by year and they have low debt.

Bought 15400 shares of Telekomunikasi Indonesia @ IDR 3,510.00
Telekomunikasi Indonesia is the largest telco in Indonesia with Indonesia government as the major shareholder. With growing population and middle class in Indonesia, their revenue and earnings had been growing.

August 2018 - Yaruzi's Portfolio Update

Bumper dividends continued in August, and I received $2,537.50 in total dividends . I watched an interesting insights from a research analyst who warned about financial engineering done by companies. Through share buy back, companies gave false impression of increasing profitability and paid more dividends. All this made possible due to "cheap" loans by central banks globally inflating their balance sheet.

Closer to home, it reminded me of Starhub who took loan to pay dividends. Recently they announced a new CEO. However even if he changed the company strategy, the result would not be immediate.I grew uncomfortable with companies with high level of debt. These companies will be the one prone to cashflow crunch with interest rate expected to continue to raise.

Total portfolio increased to $680,070.09, with $4,000 fresh fund contribution. Return YTD was 0.75%, XIRR YTD was 1.16%, and XIRR since inception was 5.48% as of end August. Equity allocation increased to 37.03% from last month as I had been buying slowly. I aimed to increase my equity holdings to 40% at the current market level.

Below were all the dividends and distributions received in August.

Date	Securities Name	FCY	SGD
3-August-2018	ABF PAIF (USD)	72.14	98.50
7-August-2018	British Land Co PLC (GBP)	18.65	32.92
7-August-2018	SIA Engineering	108.00	108.00
7-August-2018	Keppel Corp	135.00	135.00
13-August-2018	Singtel	438.70	438.70
16-August-2018	Chow Tai Fook (HKD)	2,496.52	437.14
17-August-2018	M1	83.20	83.20
21-August-2018	DBS	194.40	194.40
21-August-2018	STI ETF	252.00	252.00
24-August-2018	First REIT	53.75	53.75
27-August-2018	Ascott REIT	175.56	175.56
28-August-2018	ST Engineering	75.00	75.00
28-August-2018	UOB	100.00	100.00
28-August-2018	ComfortDelgro	95.70	95.70
29-August-2018	Capitaland Mall Trust	118.02	118.02
29-August-2018	Capitaland Commercial Trust	7.11	7.11
29-August-2018	Starhill Global REIT	54.50	54.50
31-August-2018	Sembcorp Industries	30.00	30.00
31-August-2018	Starhub	48.00	48.00

Link to Yaruzi's low cost portfolio as of August 2018

Recent Buy - WH Group

Bought WH Group (288.HK) 5000 shares @ HKD 5.97

Recent Buy - Daimler AG

Add Daimler AG (DAI.DE) 57 shares @ EUR 55.36

Recent Buy - China Mobile

Add China Mobile (0941.HK) 500 shares @ HKD 72.3

Recent Buy - ST Engineering and ComfortDelgro

Bought ST Engineering 1500 shares @ $3.35 and ComfortDelgro 2200 shares @ 2.31.

My equity holding was at 34.59% of the total portfolio. Based on a pre-defined allocation goal, I need to increase my equity holding to 40% at the current market level. So I was doing some research over the weekend and shortlisted ST Engineering and ComfortDelgro as good candidates to add.

They're selected because I considered them defensive, less volatile, offer decent dividends, and have relatively low debt. I personally think the market valuation is rather frothy at the moment, especially US, so I'm positioning my portfolio to be defensive and taking my time to nibble.

July 2018 - Yaruzi's Portfolio Update

It's been 7 months since the start of year and my portfolio has remained flat throughout. I injected $4,000.00 fresh fund into the portfolio and total portfolio value was $676,150.53 as of end July. Return YTD was 0.77%, XIRR YTD was at 1.36% and XIRR since inception was at 5.73%.

Equity allocation was at 34.59% with the rest in short term bonds and cash. My allocation rule will need me to increase equity holdings to 40% at the current market level. This mean I will have some room to add to my equity holdings. I've been busy at work to deliver a very aggressive goals, while trying to keep up with a number of new technology as a lot of companies invest heavily in automation to build their digital capability. Time is scarce for me to spend on researching candidates for new purchase.

I received dividends of $758.44 in July, which brought total dividends YTD to $5,152.22.

Date	Securities Name	FCY	SGD
6-July-2018	HSBC Holdings Plc (HKD)	620.62	107.49
10-July-2018	Carlsberg Brewery Malaysia Bhd (MYR)	176.57	59.06
11-July-2018	Malayan Banking Berhad (MYR)	506.49	169.47
11-July-2018	CNOOC (HKD)	1,060.76	182.34
13-July-2018	Vanguard FTSE AS (HKD)	748.07	129.34
16-July-2018	Sinopec Engineering Group Co (HKD)	457.71	79.32
18-July-2018	Capitaland Commercial Trust	31.41	31.41

Link to Yaruzi's low cost portfolio as of July 2018