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