Portfolio Update August 2023

Today is the last day of Aug 2023, eve of presidential election holiday.

Time for some updates of my investment portfolios.

My SGX Income Portfolio value drops to $327k from $333k.

My US/HK Growth Portfolio value stagnates at US$15.4k.

My SRS Ultra Long-Term Portfolio value dips to $140.2k from $141.8k.

The US stock markets have hit new highs on a strong bullish run despite lingering fears of global recession setting and more potential interest rate hikes by end of this year. As a result, local S-Reits tanked and just stabilised slightly in past days.

Despite being immersed by uncertainties, immense noises and fears, it is crucial that long-term investors like us stay calm, unwavered and make the best out of current situation by investing and deploying our financial resources into stable, high quality income-producing assets or growth businesses tactfully.

I plan to continue adding high quality S-Reits or local bank stocks to my SGX income portfolio in the next few months while also growing my cash in cash funds and risk-free Singapore Savings Bonds.

Portfolio Actions

1. Bought 2,000 shares of Capitaland Ascott Trust at $1.01

Portfolio Dividends

1. Received $90 of dividends from Savings Bonds on 1 Aug.

2. Received $524.45 of dividends from UOB on 18 Aug.

3. Received $192 of dividends from DBS on 24 Aug.

4. Received $1,800 of dividends from OCBC in SRS on 25 Aug.

5. Received $222.24 of dividends from Ascott Reit on 29 Aug.

6. Received $86.95 of dividends from Suntec Reit on 29 Aug.

7. Received $90 of dividends from Wilmar in SRS on 30 Aug.

8. Received $157.80 of dividends from Ascendas Reit on 31 Aug.

9. Received $145 of dividends from Comfortdelgro in SRS on 31 Aug.

10. Received $188 of dividends from ST Engineering on 31 Aug.

11. Received $298.45 of dividends from IREIT Global on 31 Aug.

SGX Income Portfolio

Portfolio Value = $327k

US/HK Growth Portfolio

Moomoo

US$3.6k

Tiger Broker

US$10.9k

Syfe Trade

US$0.9k

Portfolio Value = US$15.4k

SRS Ultra Long-Term Portfolio

Portfolio Value = S$140.2k

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

With love and peace, 

Qiongster

Applied for Singapore Savings Bonds (SBSEP23 GX23090F)

The Sep 2023 tranche of Singapore Savings Bonds (SSB) has an average yield of 3.06% over 10 years.

The first 7 years yield a flat 3.01% per annum; 8th year yields 3.14% p.a. and 9th, 10th years yield 3.2% p.a.

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 3% p.a and above CPF OA yield of 2.5% p.a. for the next decade, then this tranche of SSB is fairly decent for us to park our spare cash at zero risk, capital guaranteed for the long-term. 

We could redeem SSB anytime , 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 Sep 2023 tranche using my idle war chest funds.

There it goes.

S$600m is up for grabs. Due to the relatively modest yield, I anticipate mediocre popularity for this tranche and almost guaranteed allotment of at least $20k per person.

The first payment will be on 1 Mar 2024 and this bond will mature on 1 Sep 2033.

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

Both short-term and long-term treasury bond yields have increased recently and these could signal that the yields of SSB will be higher in next few months. I am happy to inject more cash into SSB in the next few months if the yields stay above 3%. My ultimate aim is to max out the personal limit of S$200k.

Thank you for reading.

With love & peace,

Qiongster

Free Public Holiday on 1 Sep 2023 in Singapore!

 

The Elections Department has announced 3 candidates in the upcoming Presidential election held on 1 Sep 2023 which will be a public holiday for all in Singapore.

What does this entail?

For employees, it means one day of free salary for not doing any work.

For employees, it means one day of incurring staff costs for no work.

For the 3 candidates, it means one of them will be elected as the symbolic head of state for the Republic of Singapore, a country strong and free, prosperous and peaceful. The close to SGD 2 million remuneration will be a boost to their financial war chests considering that none of them worked for free in their decades long careers.

The Singapore President holds some executive power over the country's national reserves, revoking or appointing public service appointments or granting pardons to save lives of convicted drug traffickers sentenced with death penalties. Of course, there are other diplomatic work to maintain goodwill and relationships with counterparts of other nations, states or countries. 

As a salaried slave, I am happy to enjoy this free holiday to rest, do nothing and get paid, while having the chance to possible cast a vote in the presidential election though I do not believe my vote will affect the outcome of the election.

I hope everyone is happy to have this free holiday and look forward to 1 Sep.

Thank you for reading. Stay focused and remain steadfast as always!

With love & peace,

Qiongster

Net Worth Update Aug 2023

      

S$1.485m

I have been busy lately as I took a week off to paint my home.

Let me provide a quick update on my net worth which increases slightly from last month.

The positive contributions from salary, CPF savings and dividends in the past weeks have been offset by declines in the market values of my investment portfolios due to fears on uncertain interest rate hikes and lingering recession on unwavering inflation news.

CPF savings still form the bulk 37% of my net worth. 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 cash and war chest constitute 18% of my net worth. In the current high interest environment, my cash is 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.

Together with 7% of my risk-free Singapore Savings Bonds ($110k) and relatively low-risk Astrea 7A PE bond ($9k), CPF, cash and war chest total to 62% of my net worth as safe assets.

My stocks and Reits constitute 24% of my net worth. Together with SRS account which forms 8% and are deployed mainly into local stocks and Reits, they are the 32% of riskier assets in my financial portfolio.

My target net worth by the end of 2023 is S$1.5m and 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 fearful when others are greedy. Be contented when others are hungry. 

Thank you for reading. Stay focused and remain steadfast as always!

With love & peace,

Qiongster

"Subscribed" to Capitaland Ascott Trust Preferential Offer from the market

 

Capitaland Ascott Trust has recently announced an equity fund raising of approximately S$300 million. This includes a private placement at $1.043 for 191.8 million shares and a preferential offering at $1.025 for 100.5 million shares.

This corporate action is deemed unpopular by shareholders as seen by the issue prices for private placement and preferential offering at the lower tier of range and tanking of its share price by around 10% to lower than $1.02 as of time of writing.

This equity fund raising comes a year after its previous private placement held in Aug 2022 which caused a dilution of shareholdings. 

About $170.2 million, or 56.1 per cent, of proceeds from the overall fund-raising exercise will go into funding the stapled group’s proposed $530.8 million acquisition of assets from its sponsor, which includes The Cavendish London in Britain.

Another $82.8 million, or 27.3 per cent, will be used to finance aplanned extension and renovation of Novotel Sydney Central, its hotel asset in Australia.

Some $19.9 million, or 6.6 per cent, will go into financing the renovation of Citadines Holborn-Covent Garden London, the stapled group’s serviced residence in Britain.

The preferential offering will be on the basis of 29 shares for every 1,000 shares owned.

As I currently hold 8,000 shares of Capitaland Ascott Trust which were converted from previous Ascendas Hospitality Trust, I am entitled to 208 preferential offer shares. 

I hope to get 2,000 shares including excess but not guaranteed in preferential offering.

Now that the share price of Capitaland Ascott Trust is below the preferential offer price of $1.025, I have nibbled 2,000 shares at $1.01 off the market which costs $2,048 instead of $2,052 from if I were to subscribe to preferential offer. Hence I will skip the preferential offer exercise.

There it goes. 

Capitaland Ascott Trust constitutes less than 5% of my SGX income portfolio and is not my most favourite REIT. Though I believe it is the best hospitality REIT for investors to ride on the tourism recovery wave, it is not the most attractive REIT to hold for the long-term considering that there are many better quality REITs offering more attractive yields at lower risks.

Nonetheless, I am happy to round up my investment in Capitaland Ascott Trust at below book value of $1.15 and continue "owning" hotels and serviced residential properties around the globe, while collecting rental for the long-term at a yield of more than 5%.

Thank you for reading. Stay focused and remain steadfast as always!

With love & peace,

Qiongster