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Portfolio Update - May & June 2018

Apologize for the lack of postings for the last 2 months. I had been pretty tied up with work, so let me do a quick update for May and June.

The local market has also turned quite badly in Q2, and is fact quite disastrous on my portfolio.

Hyflux 6% Perps

Hyflux announced that it will not paying interest on the Perps during this period. 

I have written a post in Feb 2018 on how disgusted i was with Ms Olivia Lum but didn't cut loss on that position then.  I hope the authorities will look into whether she has contravened any articles in the Securities and Futures Act . . . 

In any case, i have written down the value of my perps to 10% of its face value. 🤕

Lesson Learnt : Don't be lured by high interest rate and "high profile" business lady. Watch the cash flow and credit quality of the investment closely 

Dividends Received from SRS Portfolio

I received $5,918 from the SRS portfolio, contributed primarily by UMS Holdings ($3,000), Netlink Trust ($1,620), Starhill ($545) and Frasers Commercial Trust ($753).

The SRS value has tumbled quite a bit to $223,050, compared to its peak in March of $265,214. A drop of more than $42,000.... 🤕



Lesson Learnt: More nimble on equity positions in my dividend portfolio. To consider selling the equity if the returns are good

Trading positions

The trade in Facebook has turned out well and i sold my position in June.

Passive Income Update

One of the hottest "IPO" in June turned out to be the Astrea IV bond issuance. I managed to load up quite a bit on both the USD and SGD tranches from the wholesale market. My IPO write up is here. This is one of the more secured bond (definitely better than Hyflux Perps). It is also rated A by the rating agencies where the banks will also provide leverage against the purchase. 

On the flip side, I have written Hyflux Perps to 10% of its face value and projected zero income for the future. 

This is how my monthly passive income looks like on the portfolio.



The good news for me is that the passive income hit a high of $76,473 (or average of $6,372 per month) and exceeded my 2018 goal of $60,000 per year earlier than expected.The figure will drop towards end of the end as Perenial Bonds will mature in October this year.

That's all for now.

Happy SRSing






Portfolio Update - April 2018

IPOs

As announced on my IPO Facebook Page this morning, i have refreshed my chilli ratings for the IPO to include a "likely opening price vis-a-vis the IPO price" based on the chilli ratings. You can access the latest ratings criteria here.


The refreshed ratings is in response to questions from readers who always inevitably, one way or another, ask me what i think the opening price will be. As such, i have decided to make it easier by sharing with readers what i think the opening price will be and that will be tagged to the chilli ratings as well

To recap:

Chopped Chilli - around or below IPO price
1 Chilli - 0% to 10% above IPO price
2 Chilli - 10% to 20% above IPO price
3 Chilli - More than 20% above IPO price

In this regard, using the 2 IPOs as an example, SLB development debut well at my ratings of 1.5 chilli (13% above its IPO price) and Asian Healthcare Services had a 3 chilli debut (50% above IPO price). It was such a strong debut for Asian Healthcare that they have to do a press release about it 😋 

On that note, my IPO tikams for 2018 is off to a record start - let's see if it last till end of the year.

Passive Income Portfolio (SRS and non SRS)

Some of the portfolio companies announced the results.

Capitamall Trust - I convinced Mrs IPO to buy this in Feb at $1.98. The price has done well and recovered to a high of 2.12 recently. Very tempted to ask her to just sell it and collect the entire year's dividend and wait for correction hahaha. The Company announced a DPU of 2.78 cents for 1Q distribution (versus 2.73 cents last year). The Q1 2018 payment date is on 30 May 2018.

Frasers Commercial Trust - announced a drop in 2Q DPU of 2.40 cents (versus 2.51 same quarter last FY) but similar to the prior year, which is a good sign as it means the decline has now stablised.  The distribution will be made on 30 May 2018.


Keppel-KBS REIT - announced a "0.4% better than forecast" DPU of 2.32 US cents. There will be no distribution from listing date till 31 March 2018. The first distribution will be for the period from Listing Date to 30 June 2018... so investors have to wait a while longer... 🙄



Starhill Global REIT - announced that it will released its results on 26 April. This is one stock which i am not pleased with.... i may switch my capital to other better performing stocks. The other being Netlink Trust. I will rebalance them in the coming weeks once i collected the dividends.

UMS Holdings Limited - will be having its AGM at Intercontinental on 26 April 2018 at 10am. If approved at the AGM, 3 cents will be paid out to its investors and based on my shareholding, it will be another $3,000. I love this stock as the Company continued to pay 6 cents despite the increase in shares due to the bonus issuance! Definitely much better than the other bonds which i am holding... may increase my allocation to this counter if there is a severe correction that is happening to Venture Corp now.. UMS also announced the acquisition of a 70% stake in non-ferrous metal alloys specialist, Starke Singapore (not related to Ironman). The acquisition seemed to be a excellent one as it is based on NTA and Starke is profitable to the tune of $1.9m with cash of $1.5m.  

Perennial 4.65% Due 2018 - This is my second last payment from the counter before getting my capital back. The payment will be made on 23 April 2018. 

My non SRS and SRS portfolio summary is here and here respectively.

Trading Position

My Facebook Position has turned "black" since i last blogged about it here. Still holding on to it but it seemed like a big movement is coming as the Company will announce its earnings next week. See article here. Fingers crossed! 

Happy Retirement Planning ...