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Mr IPO's Passive Income Portfolio (Non SRS as well)

One reader left a comment on what my "non-SRS" positions are in the portfolio is that generated the $50,708 passive income, so let me break it down for you (even though i have blogged about the various holdings in piece-meal) . . .  Note that this post only includes holdings which i hold for the long term and for the passive income. It excludes IPO punts and positions which are not intended for passive income.

The investment cost of the portfolio (both SRS and non SRS) is around $788,681 and is not marked to market (e.g. UMS holdings went up but Hyflux Perps crashed and the SGD fluctuates quite a bit against the USD) and it generates a blended yield of 6.4%. The USD/SGD rate used is 1.32

The monthly "cash flow" pattern is as follows where i managed to create a portfolio that gives me some cash every month.



I have shared with you my SRS portfolio yesterday. So what is not inside my SRS portfolio that helped generated part of the passive income?

Bonds and Perps
  • 100,000 shares of Perenial Real Estate Bonds yielding 4.65% where i got it through the IPO. My IPO write up is here and the bond matures on 23 Oct 2018. I will get $100,000 back this Oct where i can redeploy into other assets
  • 100,000 share of Hyflux Perps yielding 6% and my IPO write up is here. The share price has since crashed by 30% and i complained about the poor management team several times in my SRS blog so i will not repeat them. 🙄. The perps will "theoretically" mature on 27 May 2020, otherwise the interest will step up to 8%
  • Mrs IPO managed to get 49,000 shares of Aspial Retail Bond yielding 5.3%. My IPO write up is here. The bond matures on 1 April 2020
  • A US$200,000 bond that yields 6.5% and maturing in July 2021
Stocks and REITs 
  • Mrs IPO 50,000 shares in Netlink Trust yielding 5.43% for its initial year
  • 50,000 shares of Keppel KBS US Reit yielding 6.8%. My IPO write up is here.
What are the few key takeaways for today?

Mr IPO always eat what he cooks (write)

You can see that i eat what i cook (write), so a lot of the stock and bond positions are actually acquired around the time of IPO or shortly after its debut. Ironically, the stock and REITs portfolio is actually yielding 7.1% while the pure bonds and perps portfolio is yielding a blended 6%.

The portfolio is slowly built up over time

This portfolio is not build up overnight but painstakingly over a long period of time. For example, the SRS portfolio grew to where it is today because i started contributing to the SRS portfolio since 2006. It has been a long 12 years! Of course, having two people working as well as some luck in property investments helped paved the way as well.

Over time, we used the capital gains, savings and bonuses to build up the initial portfolio and keep adding on with savings and distributions received. Once it reached a certain scale, a virtuous cycle can be created where you can use the income generated to continue building up the portfolio. 

You can do it too and the younger the better!

I started dabbling in stocks since my army days and then investing more seriously when i moved into my working life. The younger you start, the less school fees you pay and the more time and runway you have to do something right. So if you are in your 20s and early 30s reading my blog, start saving and investing today. You will do fine and hopefully my blog will help provide you with answers or inspiration! 

9 comments:

  1. which usd bond is this? and where can we buy it? whats the min entry price for usd bonds?

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    Replies
    1. https://www.bondsupermart.com/main/article/The-Astrea-III-Bonds-Today-501

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  2. Is there any reasons why you do not invest your SRS in a STI ETF? STI ETF are low risk and traditionally returns 8-9% annually (with dividend reinvested)....

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    1. Don't know :) maybe i should! ...

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  3. Hyflux - commencement of court re-Organisation. What is your view?
    http://infopub.sgx.com/FileOpen/HL%20-%20Announcement%2022%20May%202018%20final.ashx?App=Announcement&FileID=506928

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  4. Will you let go in the open market once the trading has been lifted ? Or may be You have already sold off

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  5. Oic! What can we do at this moment ..Are you going to write in to them .. What is your plan ..

    ReplyDelete