Portfolio Update May 2023

It is time to provide a quick update of my investment portfolios for May 2023.

My SGX Income Portfolio value stagnates at $302k from $301k last month despite capital injection of $16k into Mapletree Industrial Trust.

My US/HK Growth Portfolio value remains fairly stagnant at US$15k from US$15.4k.

My SRS Ultra Long-Term Portfolio value increases to $135k from $133k.

The US stock markets remain on a bull run while local Reits remain weak after Ex Dividend season. There are still fears of global recession setting in and hopes interest rate tapering next year. Despite still 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.

I am monitoring and plan to add high quality S-Reits or local bank stocks to my SGX income portfolio when the opportunity arises. I have no intention to increase exposure to US or HK growth stocks but just dabble with options to collect premiums.

Portfolio Actions

1. Bought 6,448 shares of Mapletree Industrial Trust at $2.29.

Portfolio Dividends

1. Received $121 of dividends from Savings Bonds on 1 May.

2. Received $192 of dividends from Sembcorp Ind on 8 May.

3. Received $188 of dividends from ST Engineering on 9 May.

4. Received $462.75 of dividends from UOB on 12 May.

5. Received $165 of dividends from Wilmar in SRS on 12 May.

6. Received $211 of dividends from Comfortdelgro in SRS on 18 May.

7. Received $1,800 of dividends from OCBC in SRS on 19 May.

8. Received $250.20 of dividends from Mapletree Log Trust on 22 May.

9. Received $185.10 of dividends from Astrea 7 A-1 PE Bond on 29 May.

10. Received $490.40 of dividends from Frasers Centrepoint Trust on 30 May.

11. Received $86.85 of dividends from Suntec Reit on 30 May.

12. Received $63.00 of dividends from OUE Limited on 31 May.

SGX Income Portfolio

Portfolio Value = $288k

US/HK Growth Portfolio

Moomoo

Tiger Broker

Syfe Trade

Portfolio Value = US$15k

SRS Ultra Long-Term Portfolio

Portfolio Value = S$135k

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

With love and peace, 

Qiongster

Added Mapletree Industrial Trust

 

Build-to-suit development for HP Singapore at 1 and 1A Depot Close

Mapletree Industrial Trust (SGX:ME8U) has always been in my watchlist to grow my SGX income portfolio, as well as A Reit that I do not dare to sell again. This is a multi-bagger Reit since IPO in Oct 2010 due to its ever-growing earnings and dividends per share from yield-accretive acquisitions of income producing assets over the past decade.

Thanks to noises and looming news of interest rate hikes, opportunity arises as the share price of MIT tanked below the preferential offering price of $2.64 in Jun 2021

As at time of writing, its share price is at its 100 day moving average of $2.33, below its 20 day and 50 day moving averages at $2.35 and $2.34 respectively.

I believe now is a great moment to increase investment in such a high quality income-producing industrial Reit for the long-term. The interest rate is almost pivoted and once Fed announces tapering or reduction of interest rates for 2024 or 2025, the share prices of Reits should recover. I am not bothered about short-term volatility but rather focused on long-term income investing in a well managed industrial Reit owning freehold data centres with long Wale and ever growing DPU, at a yield of more than 5%.

I added 6,448 shares of MIT today and will now own 15,025 shares.

Related posts:

1. Subscribed to Mapletree Industrial Trust PO shares

2. Order not filled for Mapletree Industrial Trust but... 

3. Added Mapletree Industrial Trust

4. Portfolio Rebalancing: Cut StarHub to buy Mapletree Industrial Trust

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

With love & peace, 

Qiongster

Net Worth Update May 2023

   

S$1.46m

My net worth increases $5k to $1.46m in May 2023 achieving another all time high!

This is after savings from salary, CPF contributions and dividends in the past weeks.

My CPF forms more than one-third bulk of my wealth. I have already achieved full retirement sum in CPF SA and topped up my Medisave account to the basic healthcare sum of $68.5k early this year.

My stocks and Reits constitute 22% of my net worth. I intend to slowly add high quality S-Reits or local bank stocks to my SGX income portfolio when the opportunity arises. I will not increase exposure to US or HK growth stocks but just dabble with options to collect premiums.

My cash and war chest remains at 19% of my net worth in the current high interest environment. They are being stashed away in bank fixed deposits yielding more than 3% p.a., 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.

SRS forms 8% of my wealth and I have already completed the top up of $15.3k annual limit for 2023. I have deployed the new SRS funds to increase my investment in OCBC amidst fear and uncertainty in bank stocks after the collapse of several US banks since Mar 2023.

8% of my net worth is in risk-free Singapore Savings Bonds ($110k) and relatively low-risk Astrea 7A PE bond ($9k). I plan to continue subscribing to Singapore Savings Bonds for the rest of the year 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.

I am building a well balanced portfolio for my financial assets conservatively. My asset allocation of low-risk assets is 64%:

a. CPF (37%)

b. Cash (19%)

c. Risk-free bonds (8%)

relative to higher-risk assets at 30%

d. Equities (22%) 

e. SRS (deployed largely into equities) (8%) 

This provides a huge defensive safety net but the opportunity cost is that my net worth will not grow as fast and furious but slow and steadily.

My target net worth by the end of 2023 of at least S$1.45m is already hit so now I target for S$1.5m 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

Redeemed Singapore Savings Bonds (SBAPR19 GX19040X)

 

For the very first time, I redeemed an old Singapore Savings Bonds (SSB) which I subscribed in Mar 2019. 

This capital recycling act costs $2. I should be able to get back my funds of $10k, together with pro-rated accrued interest before 2 June 2023.

There it goes.

The April 19 tranche of SSB has only an average yield of 2.16% over 10 years. It is running in the fifth year now yielding 2.12% p.a which seems attractive in 2018 but very low in today's high interest environment.

Thus it is a no-brainer to get rid of it for the June 23 tranche which yields an average of 2.81% over 10 years.

This June 2023 tranche is also 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 2.81% 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.

Thanks for reading.

With love & peace,

Qiongster