Portfolio Update July 2022

Today is the second last day of July 2022 and it is time for me to update my investment portfolios.

The stock markets have rebounded after months of volatility and uncertainty under the immense noises engulfing Fed tapering, interest rates hikes, inflation fears, recession fears, pandemic fears, rise of US Treasury yields, Ukraine war, poor company quarterly results and so on.

Whether it will stay as a new bull uptrend or merely just a fake breakout remains uncertain. Nevertheless, time in the market always beats timing the market. Every market tank leads to a rebound, stronger than ever before.

I remained focused and steadfast in my pursuit of financial freedom quest. I have started to deploy some of my war chest in S-Reits and US growth stock while dabbling with options for fun.

I have also channeled idle cash into money market funds in Philip Money Market Fund, Fullerton Cash Fund in Moomoo and Singapore Savings Bonds to let my monies work hard to generate yield from 1% to 3% respectively.

My SGX Income Portfolio value increases to $292.50k from $268.9k last month mainly due to the share price recovery of many of the S-Reits which are now cum dividend mode after announcing their 2Q 2022 or 1H 2022 financial results. Furthermore, I injected capital of around $14k to add Mapletree Commercial Trust during the preferential offer period and initiated position in IREIT Global.

My US/HK Growth Portfolio value increases to US$20.5k from US$16.8k last month due to capital injection to add Alphabet Inc. shares and rebound of tech growth stocks in the portfolios.

My SRS Ultra Long-Term Portfolio value inches up to $117.2k from $115.4k mainly due to slight strengthening of OCBC and Keppel DC Reit share price.

Portfolio Actions

1. Bought 12,000 shares of IREIT Global at $0.605.

2. Bought 4,000 shares of Mapletree Commercial Trust at $1.78.

3. Rolled down 1 unit of BAC Put Option by closing BAC220715 put option with $31 strike price at US$118 and sold BAC221216 put option with $26 strike price at US$138.

4. Sold 2 units of PLTR Call Options PLTR220812 with $11 strike price at US$25.

5. Bought 20 shares of Alphabet Inc. (NASDAQ:GOOGL) at $106.30.

Portfolio Dividends

1. Received $117.50 of dividends from Savings Bonds on 1 Jul.

SGX Income Portfolio

Portfolio Value = $292.5k

US/HK Growth Portfolio

Moomoo

Tiger Broker

Syfe Trade

Total Portfolio Value = US$20.5k

SRS Ultra Long-Term Portfolio

Thank you for reading. As always, invest safe and remain focused as always.

With love & peace, 

Qiongster

Allotment Results for Record High Yield Singapore Savings Bonds (SBAUG22 GX22080V)

 

The allotment results for Aug 2022 Singapore Savings Bond are out!

It is disappointing to find out that the allotment limit is only SGD 9,000 as this tranche has been greatly oversubscribed.

I applied for $10k and was allocated with $9k. Likewise for all who applied more, they will also get the same $9k or at most $9.5k.

If the average yield for Sep 2022 tranche is higher than 3%, I believe the subscription rate will be higher and competition be more immense.

Nonetheless, I will continue to subscribe for Singapore Savings Bonds for the rest of the year.

An individual holding limit for SSB is $200k and I target to hit $100k by end of this year.

Thanks for reading. Invest safe and remain focused as always.

With love & peace,

Qiongster

Added Alphabet Inc. (NASDAQ:GOOGL)

 

The share price of Alphabet Inc. (NASDAQ:GOOGL) remained weak today and tanked more than 20% since beginning of the year.

This is in lieu of its Q2 2022 quarterly earnings to be announced at 2pm Pacific Time today. Analysts forecast an earnings per share of $1.14 vs $1.36 in Q2 2021.

I stick to my plan and added 20 shares of Alphabet Inc. at $106.30.

Having 4 shares from pre-split, I now own 100 shares of Alphabet Inc.

This is for long-term investment with horizon of at least 5 to 10 years.

I will also be able to collect premiums from selling call option on these 100 shares, which is the minimum lot for an option contract.

I have previously shared on the 8 reasons Why I Invested in Alphabet Inc.

Monopoly dominance, exponential growth, ever-growing share price, strong moat, stock split, resilience, below intrinsic value make this Mega Tech stock a no brainer to own for the long-term.

In the short-term, the share price of Alphabet Inc. will remain volatile and subjected to further weakness due to noises of stagnated growth, losing market share to Tik Tok, lawsuits, interest rate hikes, recession fears, Ukraine war impact, inverted yield curve and so on.

In its monopolistic business, I believe its share price will grow by at least 20% annually, surpassing US$300 per share in 5 years and US$1000 per share in 10 years.

Thanks for reading. Invest safe and remain focused as always. 

With love & peace, 

Qiongster

Applied for Record High Yield Singapore Savings Bonds (SBAUG22 GX22080V)

 

The August 2022 issue of Singapore Savings Bonds has an average yield of 3% over 10 years.

This is a record high since the inception of SSB in 2015.

I have decided to apply for $10k of this Aug 2022 issue.

There it goes.

$700m is up for grabs this round. As per past allotment results, I predict only at most around $15k will be allocated per person.

The first payment will be on 1 Feb 2023 and this bond will mature on 1 Aug 2032.

If you are interested in this issue of SSB, do note that the application dateline is on next Tue, 26 Jul 2022, 9pm.

Thanks for reading.

With love & peace,

Qiongster

6 Takeaways from Mapletree Industrial Trust AGM

 

I took some time to attend the Mapletree Industrial Trust 12th Annual General Meeting physically today at the Mapletree Business City auditorium.

Physical attendance was poor from the large number of empty seats as the AGM could also be watched through live webcast online.

Let me summarise the 5 things I learnt from this meeting.

1. Strong income producing ability

Distributable income in FY21/22 is $350.9m increased by 18.8% year-on-year. DPU of 13.8 cents. This is great for investors.

2. Great financial flexibility

3. Strong financial results

4. Strong Balance Sheet

5. Hedged from interest rate impact

The management plans to maintain hedged loans at between 70% and 80% instead of 100% in order to preserve some financial flexibility and the hedges come at a cost i.e. 3% interest cost effectively immediately with an impact on DPU.

6. Portfolio Highlights

In conclusion, Mapletree Industrial Trust is strong financially and has a stable balanced portfolio but its outlook remains challenging in face of "fast and furious" interest rates by the FED and evolving landscape of data center assets. Protected by hedged debts, riding on the uptrend of USD and potential positive GDP in Singapore in 2022, MIT should still do pretty well in the short to mid term. 

However, its long term prospects will need to be fueled by more DPU accretive suitable acquisitions at reasonable interest rate loans and equity fund raising, which is not easy. The chairman highlights uncertainty in future headwinds such as recession in US which may present opportunities cheaper properties. The manager will remain prudent, be nimble in future transactions.

Thanks for reading. Stay safe and remain strong always!

With love & peace,

Qiongster

Net Worth Update July 2022 | SGD1.3m In Sight

S$1.296m

My net worth increases to $1.296m. On the brink of breaching $1.3m.

This is after collecting my July 2022 salary, Jun 2022 CPF contributions and more dividends from my SGX income portfolio and paying off all my credit card liabilities and bills.

I received a boost from the maturity of proceeds of an Great Eastern endowment plan purchased a decade ago. As a result, the portion of insurance drops to 5% and my cash war chest increases to 20% of my net worth.

I have completed SRS contribution of $15.3k, $8k RSTU of CPF SA account and $8k RSTU of my mum's CPF RA account for 2022.

For my SGX income portfolio, I have increased my investments by initiating a position in IREIT Global and adding Mapletree Commercial Trust for more dividends in future.

I plan to subscribe for the next few months of Singapore Savings Bonds, which should yield more than 3% on average for the next decade.

The coming months of year 2022 remains challenging and turbulent. Another round of 0.75% to 1% interest rate is on the cards of the Fed to curb immense inflation which could have already peaked. Global supply chain crunch, high oil prices and the Ukraine war have caused the prices of food and necessities to remain high. Prices of large items such as properties and cars continue to rise despite more costly mortgage loans. The stock markets remain volatile and unpredictable as to when is the bottom.

In such monetary environment, I still believe that Cash is King! Cashflow is also King! We should demand higher yields from banks, bonds, Reits and be more prudent with spending our monies. Continue making our monies work harder and own more income producing assets for more cashflow!

Life is great in an endemic world. Ignore the noises. Stay focused. Remain on track. Be greedy when others are fearful. We will get to our goals and dreams eventually.

Thanks for reading. Stay safe and remain strong always!

With love & peace,

Qiongster

"Subscribed" to Mapletree Commercial Trust (SGX:N2IU) "Preferential Offer"

 

Mapletree Commercial Trust (SGX:N2IU) launched a preferential offering (PO) of up to 1,094 million units at $2.0039 to raise up to $2.2 billion for the merger with MNACT based on 306 shares for every 1000 shares owned.

It is illogical for any retail investor to subscribe for the PO units when the market sells MCT shares lower than the PO issue price of $2.0039. The sponsor, Mapletree Investments will likely absorb the up to $2.2 billion worth of MCT shares at $2.0039 each.

I was entitled to 3,366 PO units from 11,000 shares owned.

I have long been wanting to increase my investments in MCT. I sensed opportunity this time because my investment is driven by passive income for the long-term horizon and paying closer to the NAV of around $1.80 post-merger. This merger, even though makes MCT no longer a pure commercial play in Singapore, should at least allows MCT to continue paying out consistent and steady dividends in the future.

I added 4,000 shares of Mapletree Commercial Trust (SGX:N2IU) at $1.78 today after upping my initial bid at $1.76 which was unfilled for 2 weeks. I am keen to get this deal done before XD for the clean-up distribution next week.

I will now own 15,000 shares of MCT, positioning for the new era after merger with MNACT to become the third largest Reit in Singapore and top 10 largest Reit in Asia.

Even though MCT will no longer be a pure Singapore Greater Southern Waterfront commercial property asset play, its dividend yield should at least remain steady, if not grow after the merger and continue to play an income producing role for investors.

Today's high interest rate environment will not last forever. The FED will hike interest rates this year until there are signs of inflation slowdown and onset of economic recession which will probably induce the FED to stop raising interest rates and perhaps slowly reduce back the interest rates in 2023 or 2024.

I believe that MCT will continue to suffer in terms of price weakness and volatility in the short-term but in the long run of next decade or so, it will definitely thrive and its share price will slowly climb back above $2.

Thanks for reading. Stay safe and remain strong always!

With love & peace,

Qiongster

How I utilised my NS55 $100 credits

 

I finally utilised my NS55 $100 credits stored in the LifeSG app today.

I decided to do what is most practical in today's high interest rate environment.

I did not purchase anything.

I merely paid $100 off my Citibank credit card bill on the AXS e-station website.

Using PayNow QR, there it goes. Paring $100 off my liabilities from paying Telco and Town Council bills using credit card.

Thanks for reading. Stay safe and remain strong always!

With love & peace,

Qiongster

Initiated position in IREIT Global (SGX:UD1U)

 

After exiting from IREIT Global (SGX:UD1U) at the high of $0.80 when it announced the acquisition of Spanish office properties in 2019, I bought into 12,000 shares of IREIT Global today at $0.605.

It is not difficult to make this decision because I aim to grow my SGX income portfolio and am willing to stomach relatively higher amount of risk to own European income-producing assets.

With a book value of $0.81, IREIT Global is trading at more than 20% discount currently. Expecting an annual dividend of at least $0.044 for year 2022, it yields more than 7%.

IREIT Global's portfolio consists of 5 freehold office properties in Germany, 5 freehold office properties in Spain and 27 freehold retail properties in France - leased to Decathlon. The properties have decent high occupancy rates at 95.7% and 3.7 years of weighted average lease to expiry.

Its aggregate leverage remains healthy at 32.1% with effective interest rate at 1.8%. All bank borrowings at floating rates have been hedged with interest rate swaps and caps.

It should be announcing the dividends for first half of 2022 next month soon and I shall be happy to join in the dividend-collecting party.

Thanks for reading. As always, stay focused and invest safe.

With Love & Peace,

Qiongster