November 2015 - Low Cost Portfolio Update

Low cost portfolio YTD return was -3.97% in November. I received $52 distribution from First REIT.

Commodities was hammered badly, particularly oil. As a result, oil-gas-energy related stocks also took the beating. Taking opportunity of the weaknesses in the sector, I bought 900 shares of Keppel Corp at $7.09 per share. Keppel Corp TTM yield was ~6.7%. Of course there won't be guarantee that Keppel Corp can maintain the dividend rate, considering it's weakening cash position.

I topped up the $11.86 shortfall for the purchase, bringing YTD contribution to $81,011.86 in Nov.

Link to Yaruzi's low cost portfolio as of Nov 2015

November 2015 - Unit Trust Portfolio Update

The value of unit trust portfolio dipped in November due to weakening market, especially Asia and emerging markets. Let's just say that market had been boring since mid August as they're not able to make up their mind if they wanted to break out to the upside or downside. YTD portfolio return was 0.69% as of 30 Nov 2015. I also received $139.35 in cash from dividend/distribution.

With FED's first interest rate hike in the card for December ever since the great financial crisis, the currency market had been very volatile. In my opinion, it was the currency movement that impacted the unit trust portfolio the most. With USD strengthening, SGD-hedged funds suffered the most. Due to the volatile currency, I continued reducing my exposure to SGD-hedged fund.

Below were the summary of my transactions in Nov 2015:

1. Bought
Fullerton Short Term Int Rt C S$(SGD) $2,146.86
United SGD Fund Cl A Acc(SGD) $1,638.22

2. Sold

Allianz US High Yield AM Dis H2-SGD(SGD) $1,679.22

Legg Mason WA Global HY Fd A SGD H (mdis) plus(SGD) $1,969.31

Link to Yaruzi's unit trust portfolio allocation as of Nov 2015

October 2015 - Low Cost Portfolio Update

I've been busy with work, so the update of my low cost portfolio is a bit delayed. Along with the market recovery in October, my low cost portfolio YTD loss improved to -2.22% from -5.08% in the previous month.

No new purchase in October, and I received dividend of HKD 1,338.63 from Vanguard FTSE AS (HKD) and $100.53 from United SGD Fund Cl A (Dis). I also contributed $3,000 of fresh fund into the portfolio. This brought total investment YTD to $81,000. Portfolio allocation was 57.69% equity and 42.31% bonds & money market.

I will have proceed of around $25,000 from exercising my company's share option that will mature in December. I plan to use the proceeds to increase my low cost portfolio. Because of the expected injection of fresh fund, I plan to increase my equity allocation when there is buying opportunity.

Link to Yaruzi's low cost portfolio as of Oct 2015

Recent Buy - Low Cost Portfolio

Bought Keppel Corp - 900 shares at SGD 7.09 on 9 Nov 2015

October 2015 - Unit Trust Portfolio Update

With market rebounded in October, my unit trust portfolio was back in black. YTD return swung from -1.51% to +1.61%. I'd been increasing my equity allocation during the market turbulence that started as early as May. As I had reached my targeted allocation of 60% equity+high yield back in September, my plan was just to sit tight and adjusted the allocation after market reached or broke certain key level. I received a bumper dividend of $1,103.28 in October.

I also noticed that USD kept strengthening against other currencies, especially Asian and emerging market. In my view, this trend would persist in the next few years as US FED was expected to increase interest rate gradually. So I did some re-balance to reduce my exposure to SGD hedged high yield fix income, but increase USD exposure.

Also Fullerton Short Term Int Rt C S$(SGD) had re-opened for new subscription, so I switched all my LionGlobal Short Duration Bond Fund (SGD). I bought LionGlobal Short Duration Bond Fund (SGD) before because Fullerton Short Term Int Rt C S$(SGD) was closed for new subscription, and I bought Fullerton Short Term Int Rt C S$(SGD) to avoid concentration on United SGD Fund.

Below were the summary of my transactions in October 2015:

1. Bought

Aviva Inv Glb HY Bd Am USD(SGD) $2,706.80

2. Sold

Eastspring Investment MIP A (SGD) $3,087.12

Allianz US High Yield AM Dis H2-SGD(SGD) $3,703.24

Legg Mason WA Global HY Fd A SGD H (mdis) plus(SGD) $5,232.31

3. Switch

LionGlobal Short Duration Bond Fund(SGD) to Fullerton Short Term Int Rt C S$(SGD) $11,079.14

As I grew more comfortable with my low cost portfolio, I planned to liquidate some of my unit trust portfolio and shifted $60-70K to my low cost portfolio in the next few months. I had been pondering on this as I hated the blood sucker platform fee and annual management fee of unit trust. This would bring my unit trust portfolio to around $200K, as I grew my own low cost portfolio.

Link to Yaruzi's unit trust portfolio allocation as of Oct 2015