Portfolio Update October 2023

This is a quick update of my investment portfolios on the last day of Oct 2023.

My SGX Income Portfolio value plunges to $301k from $320.8k.

My US/HK Growth Portfolio value inches up to US$16 from US$15k.

My SRS Ultra Long-Term Portfolio value decreases to $136.4k from $142.2k.

The US stock markets have corrected recently amidst increasing certainty of prolonged high interest rates, ongoing wars and lingering fears of global recession. US 10-year and 30-year government yields hit record highs and the Federal Reserve is expected to maintain interest rates steady at the 5.25 to 5.5% range till 2024. As a result, local S-Reits were hammered and impacted my SGX Income Portfolio greatly. Such storylines just keep repeating, causing chaos and fear amongst investors and traders.

Clouded by uncertainties, immense noises and fears, it is crucial that long-term investors like us stay calm, unwavered and focused in our investment objectives. Make the best out of current situation by allocating our financial resources into high yield bonds, stable and high quality income-producing assets, or growth businesses tactfully.

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

Portfolio Actions

1. Rollup 1 unit of Alphabet, GOOGL231117 call option with $105 strike price by buying back at US$17 and selling 1 unit of GOOGL240621 call option with $115 strike price at US$18.90.

Portfolio Dividends

1. Received $148.86 of dividends from Savings Bonds on 2 Oct.

2. Received $56.08 of dividends from Capitaland Ascott Reit on 11 Oct.

SGX Income Portfolio

Portfolio Value = $301k

US/HK Growth Portfolio

Moomoo

US$3.3k

Tiger Broker

US$11.9k

Syfe Trade

US$0.8k

Portfolio Value = US$16k

SRS Ultra Long-Term Portfolio

Portfolio Value = S$136.4k

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

With love and peace, 

Qiongster

Applied for Singapore Savings Bonds (SBNOV23 GX23110V)

The Nov 2023 tranche of Singapore Savings Bonds (SSB) has an average yield of 3.32% over 10 years.

The first 6 years yield a flat 3.21% per annum; 7th year yields 3.3% p.a, 8th year yields 3.52% p.a. and 9th, 10th years yield 3.63% p.a.

This is not very appealing considering that other low to risk-free alternatives such as T Bills and money market funds easily yield more than 3.5% currently. However, this yield is higher than many fixed deposit rates on offer by local banks.

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 3.21% in the short-term 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. Do note that the redemption process of SSB can be up to 1 month of lead time.

I decided to apply for $10k of this Nov 2023 tranche using my idle war chest funds.

There it goes.

S$1b is up for grabs.

The first payment will be on 1 May 2024 and this bond will mature on 1 Nov 2033.

If you are interested in this tranche of SSB, do note that the application dateline is on today, 26 Oct 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 soon.

Thank you for reading.

With love & peace,

Qiongster

Net Worth Update Oct 2023

My net worth dips to S$1.499m for Oct 2023.

This is after savings from salary, CPF contributions and dividends collected.

CPF constitutes 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.

Cash and war chest constitute 18% of my wealth. In the current high rate 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 9% of my risk-free Singapore Savings Bonds ($110k) and relatively low-risk Astrea 7A PE bond ($9k), CPF, cash and war chest amount to 64% of my net worth as safe assets. I intend to subscribe to the coming Nov 23 tranche of SSB with average yield of 3.32%.

Stocks and Reits constitute 22% of my net worth. Together with SRS account which forms 8% and are deployed mainly into local stocks and Reits, they are the 30% of riskier assets in my financial portfolio.

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