Portfolio Update March 2023

Today is the last day of Mar 2023.

It is time for me provide a quick update of my investment portfolios.

My SGX Income Portfolio value increases to $300k from $296k last month.

My US/HK Growth Portfolio value inches up to US$15.4k from US$14.1k last month.

My SRS Ultra Long-Term Portfolio value rises to $133k from $124k.

The stock markets have more or less factored in just one last interest rate hike this year before global recession sets in and thereafter a tapering of interest rate next year. Despite being clouded by uncertainties, immense noises and fears, we must remain calm and clear-minded as long-term investors and make the best out of current situation by investing and deploying our financial resources into high quality assets tactfully.

Portfolio Actions

1. Bought 2 shares of Coca Cola, Inc. at US$59.37.

2. Bought 1,000 shares of OCBC at $11.93 and 71 odd shares at $12.01 for SRS portfolio.

Portfolio Dividends

1. Received $270.65 of dividends from Savings Bonds on 1 Mar.

2. Received $180.40 of dividends from Ascott Reit on 1 Mar.

3. Received $792.50 of dividends from Ascendas Reit on 7 Mar.

4. Received $222.70 of dividends from Mapletree Log Trust on 13 Mar.

5. Received $413.20 of dividends from Keppel DC Reit on 14 Mar.

6. Received $286.62 of dividends as 122 shares from Mapletree Industrial Trust on 14 Mar.

7. Received $363.00 of dividends from MPACT on 15 Mar.

8. Received $219.65 of dividends from IREIT on 23 Mar.

9. Received $828.80 of dividends from Aims Apac Reit on 24 Mar.

10. Received $181.42 of dividends as 148 shares from Capitaland China Trust on 30 Mar.

SGX Income Portfolio

Portfolio Value = $300k

US/HK Growth Portfolio

Moomoo

Tiger Broker

Syfe Trade

Portfolio Value = US$15.4k

SRS Ultra Long-Term Portfolio

Portfolio Value = S$133k

Thanks for reading. Stay focused and remain steadfast as always!

With love and peace, 

Qiongster

Applied for Singapore Savings Bonds (SBAPR23 GX23040S)

The April 2023 tranche of Singapore Savings Bonds (SSB) has an average yield of 3.15% over 10 years.

This is not very appealing considering that other low to risk-free alternatives such as T Bills and bank fixed deposits easily yield more than 3.5% currently.

However, if we consider the great flexibility, liquidity of SSB for redemption and long-term lock down at above CPF OA yield for the next decade, then this tranche of SSB is fairly decent for us to park our spare cash at zero risk. 

Furthermore, both short-term and long-term treasury bond yields have declined recently and the interest rate hikes have sort of peaked with the markets factoring in interest rate cuts next year. These could signal that the yields of SSB declining in next few months.

We could redeem SSB anytime in the coming months, earning interest at 3.01% while getting back our capital for deployment to other investments or large item purchases unlike T Bills and bank fixed deposits which would incur losses or forfeit of interest with premature withdrawals.

I decided to apply for $10k of this Apr 2023 tranche using my idle war chest funds which were initially earmarked for adding local Reits.

There it goes.

$700m is up for grabs. Due to the relatively low yield, I anticipate moderate popularity for this tranche and almost guaranteed allotment of at least $20k per person.

The first payment will be on 1 Oct 2023 and this bond will mature on 1 Apr 2033.

If you are interested in this tranche of SSB, do note that the application dateline is on today, 28 Mar 2023, 9pm.

Thanks for reading.

With love & peace,

Qiongster

Passive Income in 1Q 2023 exceeds $5k

The first quarter of 2023 is trickling to an end.

I am entitled to the following passive income in Q1 2023 from Singapore Savings Bonds, stocks and Reits in my SGX income portfolio.

$117.50 Savings Bond (3 Jan)

$90.00 Savings Bond (1 Feb)

$99.50 Suntec Reit (28 Feb)

$270.65 Savings Bond (1 Mar)

$180.40 Ascott Reit (1 Mar)

$305.35 Keppel Reit (1 Mar) SRS

$792.50 Ascendas Reit (7 Mar)

$222.70 Mapletree Log Trust (13 Mar)

$413.20 Keppel DC REIT (14 Mar) SRS

$286.62 Mapletree Ind Trust (14 Mar) 122 shares

$363.00 MPACT (15 Mar)

$964.80 CICT (17 Mar)

$219.54 IREIT (23 Mar)

$828.80 Aims Apac Reit (24 Mar)

$181.42 Capitaland China Trust (30 Mar) 148 shares

Altogether they add up to $5,335.98. This amount is sufficient to cover all my essential expenditures such as food, groceries and telco bills but not enough for my insurance premiums and income taxes. Hence I have not attained financial freedom yet.

This is a 30% Year-on-Year increase from my passive income in Q1 2022 of $4,075.35.

Free cashflow is indeed awesome!

I value passive income highly because they do not require much effort nor labour to earn. Furthermore, dividend income is not taxable in Singapore.

I strive to continue living frugally, save up, invest in any bear or bull market conditions, slowly and steadily build up my investments, staying on track towards achieving financial freedom.

My ultimate goal is to own an investment portfolio valued at one million dollars yielding at least $50k of passive income annually.

I look forward to collecting more dividends as passive income in the coming months of Year 2023.

Thanks for reading. Stay focused and remain steadfast as always!

With love & peace,

Qiongster

Added more OCBC to SRS portfolio

 

The share price of OCBC (SGX: O39) has plummeted from the recent high of $13.23 to $11.93 today, due to contagion fears over banking systematic risks caused by the collapse of Silicon Valley Bank and Signature Bank in the US.

This is a near 10% correction which is enough to trigger my temptation to accumulate shares.

The book value of OCBC is around $11.43 and ideally I would prefer to pay lesser than the book value.

However, I added 1,000 shares to my ultra long-term SRS portfolio when my order got filled at $11.93 this morning.

As OCBC is currently on cum dividend of $0.40, net cost less dividend is $11.53 which is slightly above book value only, at a fairly attractive dividend yield of more than 4.6%, assuming OCBC maintains an annual dividend of at least $0.56 for the next few years. The next dividend in Aug 23 of at least $0.28 should drive down my net cost to below book value.

I last added OCBC shares last year at $11.56 and also added OCBC shares 3 years ago at $7.87 during the market shake-up from onset of the pandemic.

With this addition, I will own 4,429* shares of OCBC at an average net cost of $9.54.

*Edit: I then bought another 71 shares from unit share market at $12.01. Currently own 4,500 shares of OCBC.

My plan remains the same till now - to slowly and steadily accumulate OCBC shares via dollar cost averaging in my SRS account for the ultra long-term, because my SRS account is owned by OCBC and I intend to own the bank which owns my retirement funds.

Be greedy when others are fearful!

Thanks for reading.

With Love & Peace,
Qiongster

Net Worth Update Mar 2023

 

S$1.403m

My net worth inches up slightly to $1.403m in March 2023.

The increase in net worth from CPF contributions and savings from salary is offset by correction of stocks and Reits prices in my portfolio.

My CPF forms the bulk 38% of my wealth. Having achieved full retirement sum in CPF SA and topped up my Medisave account to the basic healthcare sum of $68.5k early this year, I have also topped up $8k into my mum's CPF Retirement account for the 5 reasons.

My stocks and Reits in SGX Income Portfolio forms 22% of my net worth. I intend to continue adding high quality S-Reits while also accumulating low-risk assets such as fixed deposits, short-term government bonds which are yielding more than 4% in today's high interest, inflationary environment. 

In terms of US growth tech stocks, I plan to just dabble with options to collect premiums this year. I have no plan to increase exposure to HK or china equities.

SRS forms 8% of my wealth and I have already completed the top up of $15.3k annual quota for 2023. I plan to use the SRS funds to add on to my investment in local banks i.e. OCBC amidst fear and uncertainty in bank stocks currently and in the coming weeks. Otherwise, I would deploy the idle SRS funds into T-bill or SSB.

I am still stashing away cash in Fullerton cash funds under custody of Moomoo and Tiger Broker, and in Money Market Funds held by Phillips Capital yielding around 3.5% p.a. with interest paid daily.  I will monitor the next few months of Singapore Savings Bonds and may subscribe if they yield above 3% for the next decade. Ultimately, I hope to max out SSB individual limit of $200k by end of this year.

My conservative strategy of building a well balanced portfolio for my financial assets involves hoarding cash to earn decent risk-free interest rates above 4% short-term while waiting for greater opportunities to slowly invest in income-producing assets and growth tech businesses for the long-term.

My asset allocation of low-risk cash (19%)/risk-free bonds (6%)/CPF(38%) to higher-risk equities (22%)/SRS equities (8%) ratio is around 63-30, which provides a rather huge defensive safety net.

My target net worth by the end of 2023 is at least S$1.45m or S$1.5m ideally, with an annual passive income of S$22k.

Life is exciting in a post pandemic world. Ignore the noises. Remain on track. Be greedy when others are fearful. Be hungry when others are contented. Live everyday to the maximum! En route to financial freedom!

Thanks for reading. Stay focused and remain steadfast as always!

With love & peace,

Qiongster