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SRS Portfolio as of 31 July 2012

It's the end of the month today and it will be about 1-2 weeks before i receive my statement for July for which i will update again. I am pretty disappointed with myself this month, having missed out on CDL Hospitality Trust or Ascott REIT in June and then have to cut loss on my position in China Fishery Group in July.

Interestingly, the defensive stocks in my portfolio has move actually move towards records high and my position in Starhub recorded a gain of 83.3% versus a loss of 79% in Raffles Education. I present the portfolio below generated from my personal finance software.

The unrealised portfolio value is up about 10.1% and the cash on hand is approximately $49,172. As of 31 July 2012, the gain (both realised and unrealised) is about 16%.

My personal view is that i have not been utilising my cash adequately and have failed to accumulate good quality dividend paying REITs or stocks during the downturn this year. I should deserve a "F" grading for this since i am going to inject another $12,750 this year.

Let me share two reports today on REITs so that you can do your homework and share with me what stocks i should add to my portfolio in the coming months. In addition to REITs, i had thought of adding stocks such as Sheng Shiong, Diary Farm or Osim. We shall see how it goes.Here are the 2 reports as promised.

Singapore REITs by JPM dated 30 Jul 12
Singapore REITs by MacQ dated 30 Jul 12

If you find the above posts useful, please either like my facebook page or download the dropbox via the link on my website so that i have more space to share the reports.:)

Happy SRSing.

Streamlining of Blogs

Dear readers,

I am going to streamline my blogs so that it will be easier for everyone to follow.

As such, with effect from today, the previous 2y capital fund will be redesignate as a Real Estate Fund where i will share my thoughts, views and experiences on real estate investments in Singapore.

Let me summarise the various blogs and its purposes:

Singapore IPOs blog - views on new listings in Singapore.

Starfish SRS Fund - views on long term investments to create a portfolio generating passive income for retirement.

Ninja Master Fund - views on the stock markets and on specific stocks and shares listed in Singapore and elsewhere. May also include views on forex, M&A and any other trivial matters. It's a catch all blog :-P

2Y Real Estate Fund - views on the real estate market market and how to generate passive income and pursue financial freedom from it. I will share some personal experiences here. :-)

SQ travelogue - snippets of the places which i have been

If any of the blogs interest you, please subscribe to the emails or feeds directly so that you are only informed of topics that interest you.

Hope that by sharing my experiences, it will help both you and me in our pursuit of financial freedom.

Yours truly.

My thoughts on China Fishery Group

China Fishery Group has turned into a smelly salted fish. The chart broke the critical support level of 85 and is now at a new 52 week low. I hate making sweeping statements but once again, it has proven to me that we should be very very wary of Chinese companies. Just to name a few, China GaoXian, Sino Forest, China Hongxing, Hongwei Technologies are just one too many. Not to mention my previous article on China Taishan too (the share price is now 0.044 cents versus 0.10 when i last blog it)!  

Be careful of companies that have excellent 'financial results' but are always in need of cash for business expansion. They will forever be raising cash via placement issues or worse still, via high yield bonds and most importantly, they never pay dividends. 

Let me just share a few lessons which I have learnt the hard way in the past. If you can master the 3 things below, it will bode you well in your pursuit for financial freedom.

1.  Never trade on tips or insider news. 
2. Always know when and where to cut your losses (before you even enter a position).
3. Know yourself and do your homework.

 Blogging on the 3 lessons above will probably take me another few hours, unfortunately, i have many meetings tomorrow. Just spend some time to ponder on what i said and when i am free, i will elaborate on them in more details. 

Good night.

China Fishery Group

I have been mulling whether i have made the right investment in China Fishery Group for the last couple of weeks. It has been very frustrating because at the point where i was considering China Fishery, i was also thinking of buying CDL Hospitality Trust or Ascott Reit but alas, picked the wrong horse.

China Fishery really got on my nerves today by issuing debt again!  And i seriously doubt that with such bad cash flow mgmt, can they really meet the stable passive income which i am seeking for this portfolio. This 5% yield comes at a higher risk vis-a-vis the real estate or telco reits. Frankly, i wonder sometimes if the auditors or rating agencies actually visit the fishing vessels and the sites etc and i certainly hope they do as it is actually quite difficult to verify such assets.

Rather than have waiting for a rebound to take out my positions and despite all the analysts buy calls, i decided to pay some school fees and cut the position at 87. Of course i may be wrong but its time for me to move on.

Yields on the Singapore Market

There is no much counters you can play with the SRS. I always find it very funny why SRS funds, which is my own $, has so many restrictions and if i am not wrong, you can only invest in Singapore listed shares.

There is an interesting article my SGX which list down the companies listed here and its yield and i want to share that in case you have not read it.

You may want to print out the list and see which companies actually give you dividend of more than 5% a year.

Happy investing.

SRS Activity for June 2012

I received my June statement for SRS today. June proved to be a quiet month with only $1.96 in interest income received from the cash balance.

As of June 30, the cash in the account is $40,573.33. The value of the portfolio is $38,296.41.

I have yet to contribute the $12,750 for year 2012. Will only do that closer to Christmas time and will also remind you to do so. :-)

Performance of REITS

This table was from a recent article. It does make a compelling case as to why investors should be overweight on REITS for their retirement portfolio. I am actually looking to add a hospitality REIT for a while now. Not sure why they missed out on CDL Hospitality REIT in this listing though.

Starfish SRS Investment Criteria

I am going to share my investment criteria for putting the eggs into the SRS basket. Only time will tell if the eggs are golden or rotten.

Let me run thru my portfolio again and why I bought them.

1. Raffles Education. Wanted to buy a "growth" company but the company wasn't doing well fundamentally with its school in China. Would have failed my yield criteria back then.

2. Starhub - stable telco company with strong casflows. Yield of > 8% at the time of purchase.

3. SPH - monopolistic media industry. Good FA and cash flow with yield > 5%.

4. Starhill (retail), Suntec (office), Cache Logistics (industrial) with Yields ranging from 6-8 %.

5. China Fish. Never really like Chinese related counters, but this company stands out with its dividends of 5% (at least it is paying dividends each year) and its single digit PE ratio of 6.5x. I will sell if it cross above $1, otherwise just enjoy some yield for holding this stock.


1. Businesses that are easy to understand.

2. Companies with strong cashflows and paying dividend yield of >5% each year. (ideally quarterly basis for Reits and semi annually for stocks).

3. Companies with products or services that I like.

4. Well managed with strong corporate governance.

5. Preferably with some analysts coverage and "buy" ratings.

6. If the yield criteria is not met, there must be other compelling reasons such as a blue chip company, a strong growth company, low valuations etc. The reasons must be compelling enough.

7. Companies which I can invest for a long time.

Starfish SRS Fund

This blog was set up to share my past and future experiences investing the cash in the SRS account. Just to give you a little bit of background, the Singapore government encourages individuals to set aside a lump sum of money each year for retirement purposes and SRS stands for "Supplementary Retirement Scheme".

For more on the SRS scheme, please refer to the information found on IRAS website. From 2006 till 2010, individuals can contribute $11,475 a year to the SRS account and $12,750 from 2011 onwards. The amount contributed will allow tax relief for individuals, however, they will also be penalised if they do early withdrawals before the age of 62 and subject to other terms and conditions.This account is only suitable for individuals who don't intend to make any early withdrawals.

Anyway, back to Starfish SRS Fund. I started contributions to the SRS fund from 2006. Thus from 2006 to 2011, the total amount of contributions amounted to ($11,475 x 5 = $57,375) + $12,750 =  $70,125. As of 30 June 2012, the capital gains, dividends and interest received earned over this period amounted to $9,880. 

The Starfish SRS fund is worth around $80,000 today. At the date of this posting, $40,572 is in cash and the balance is the value of the portfolio. The latest portfolio acquisition was China Fishery Group which i shared with you a few days back. 

The current portfolio looks like this:

SRS Portfolio as of 6 July 2012

Estimated cash as of 6 July 2012 - $40,572 (yet to receive my June statement from the bank). The listing above will not show the dividend income earned from holding those investments.

It is interesting to note that my investment criteria has changed since its inception. As such, Raffles Education would not have made it to my portfolio today if i have apply the same investment criteria. When i first started, I was looking for 'capital gains and growth' but over time, my views have changed.  

From 3 years ago, I wanted to create a long term portfolio that can give me a regular stream of passive income. In this regard, the "growth and capital gains criteria" has since been replaced by "strong fundamentals and regular income" criteria. Capital gains, if any, will be an added 'bonus''.  The responsibility for "growth and capital gains" has been shifted to my more risky Ninja Master Fund.

I will share more of the investment criteria in my next posting and why i selected those stocks above. I will also share on some of the stocks which I like to add to my Starfish SRS portfolio. Will update when the time permits. 

If you would like to subscribe to emails or receive updates from this blog, please do so on the right hand side of this blog.I have opted for dynamic views for both the 2 new blogs i created, hope you will like it.