Portfolio Activities for Dec 2017
December turned out to be a short month, so let's see how the SRS portfolio turned out.
SRS Portfolio
The portfolio ended the year at a record high of $237,815 (an increase of $5,314 since my last update in November). UMS continued to be the biggest contributor to the gains and since my last update, i received the following:
- $361 distributions from Starhill Global
- scrip dividend of 545 shares from Frasers Commercial Trust
- $1,000 cash dividends from UMS Holdings
Non SRS Portfolio
Hyflux Perps
Hyflux Perps continue to be a big drag on my portfolio, falling by 20c to $0.80. While i received the 6% dividend of around $3,024 in end Nov 2017, I really don't like how the management is running the company whereby it has decided to do a distribution in specie of its consumer business to existing investors. You can see the announcement here. While this may be "good" for ordinary shareholders, it is actually dilutive to perps investors. I will continue to put the company on close watch.
APAC Realty Ltd
I sold off the 10,000 shares allotted from the IPO at around $0.87. I have already reported this in the IPO tikams for 2017, so i will not mention more here.
Passive Income Update
No further update from my November post, the passive income is still around $49,000 annually. I will look to increase this amount in 2018.
That's all for now, i will do a review on 2017 in my next post :)
I'm a perp holder for hyflux too and I actually think it's better for us then the common shareholders.
ReplyDeleteI think we shouldn't think about whether it's dilutive or not but rather we get back out principal and our coupons.
By doing the specie , they conserve cash for coupons and principal and it doesn't cause the perp convenant to be effected where the coupons are cumulated
Well, we shall see... They don’t have to distribute the dividend specie in the first place and can still conserve cash by not paying ordinary shareholders dividend. From perp holders perspective, they could have sold vendor shares at IPO and set aside the cash for perps. So for me, it is not “beneficial” to perp holders at all. Whether they can redeem principal and interest remained to be seen, hence the share price reflect that concern. If the company has cash, the logical thing it would do is to buy back the perps at current levels.
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