Thursday, November 16, 2017

CPF Portfolio Update Nov

Here's a partial update of my CPF Portfolio invested using OA funds as at 2017-11-16:

Aberdeen SP Thailand Eq SGD$3,642.9456.99%

First State Regional China$3,203.48014.30%
PineBridge Singapore Bond$1,408.0990.34%

All three of them can be considered as indexes of their respective markets. I think major indices around the world are rising in tandem.

The portfolio is small now but the yield is already 7-14% (after the fees) since I started a few months ago. I'm approaching cautiously as it doesn't smell right for the market to keep on rising for so long when we're nearing a potential downturn based on the 10-year crash cycle.

I have already stopped the PineBridge fund Regular Savings Plan (RSP) as the yield is really low in a bull market.

I chose the unit trusts based on their stellar past performance.

The good thing about unit trusts is that you only incur an initial sales fee of 2.5-5% and after that recurrent purchase is commission-free.

Sunday, November 12, 2017

Saving money on clothes

I am a typical man (geek) who doesn't care much about fashion.

My wardrobe is full of free stuff from events, hand-me-downs, out-of-fashion stuff, oversized clothes from unknown sources, etc.

Recently when I was tidying up my wardrobe (for the 1st time in years), I got quite a shock when 10+ pieces of them had gone mouldy and yellowish! Most of them are cheapo stuff bought at sales and free stuff from events, from several years ago. So luckily, I didn't lose much $.

My ancient-looking wardrobe probably from the Qing dynasty.


Unsightly yellow stains on a white shirt.


That was the moment when I realised I need to take good care of my clothes so that I can save $ (or rather, not lose $ buying replacement).

Practical Tips

  1. Overcome humidity
    • As Singapore weather is extremely humid, it is best to completely dry your washed clothes before putting them away in the wardrobe. 
    • Try not to stack them as this tends to trap moisture. I hang up most of them using clothes hangers (also because I'm lazy to fold).
    • Use a dehumidifier such as Thirsty Hippo. I just bought a pack of 8 at $11.95 from Sheng Siong (on promotion). Each box can last for 2-3 months or when it cannot absorb any more moisture. 
    • Once in a week, if you have the time, unfold and fold your stacked clothes in the darkest corner of your wardrobe, to remove trapped moisture. 
  2. Buy prudently:
    • Review your wardrobe regularly. Many people buy clothes frequently and end up don't wear most of what they bought. They keep wearing those favorite few of the hundreds they own. Know what you have and rotate so you get to wear each of them eventually.
    • Control your urge to buy when you encounter sales. I buy 2-3 pieces of clothing every 2-3 years on average. 
    • Wear your clothes until they become not wearable anymore and by that I mean they have holes or have turned yellowish. Some people may say yucks! 
  3. Rid old stuff:
    • Sell those old and infrequently worn ones on sites like Carousel. Alternatively, donate to the salvation army or hand down to your younger siblings. 
    • Wear at home as "comfy" clothes (nobody cares what you wear at home anyways).
    • Use as "wash cloths" or rags.

    Saturday, November 4, 2017

    Top Winners and Losers of my Portfolio

    I reviewed my portfolio today to see if I can find any trends. 

    Name
    Current Invested
    Current Mkt Value
    Unrealised P&L
    Total Div
    DBS Group Holdings Ltd
    $4,972.441
    $7,212.580
    45.05%
    $197.820
    SPDR Straits Times Index ETF
    $286.710
    $342.000
    19.28%
    $14.300
    Oversea-Chinese Banking Corporation Limited
    $1,734.310
    $2,362.000
    36.19%
    $126.000
    Mapletree Greater China Commercial Trust
    $1,146.880
    $1,281.500
    23.52%
    $62.690

    Bank stocks definitely have done very well from the past year til now, and have generated returns higher than the STI index. My only regret is that I didn't buy more of them.


    Name
    Current Invested
    Current Mkt Value
    Unrealised P&L
    Total Div
    ComfortDelGro Corporation Limited
    $849.130
    $612.000
    -27.93%
    $53.950
    Raffles Medical Group Ltd
    $1,049.850
    $798.000
    -23.99%
    $20.500
    Singapore Press Holdings Limited
    $1,546.620
    $1,064.000
    -31.20%
    $68.000

    Comfort and SPH have their fundamentals being disrupted by innovative competitors. 
    I will stop buying them.
    The investors' sentiments aren't so good now. 

    The losses are nicely covered up by the winnings. 

    Luckily I placed more faith in the finance sector as Singapore is the regional finance leader back when I started investing.


    Name
    Current Invested
    Current Mkt Value
    Unrealised P&L
    Total Div
    First State Regional India
    $1,400.000
    $1,470.923
    5.07%
    $0.000
    First State Regional China
    $2,802.580
    $3,076.302
    9.77%
    Aberdeen SP Thailand Eq SGD
    $3,404.877
    $3,639.891
    6.90%

    The unit trusts I bought have also done well.


    I didn't use any technical analysis and in-depth fundamental analysis to buy the equities as the market is heavily influenced by the big players (institutions) and general sentiments.  

    I think a general assessment of the company's long-term prospects, profitability and market share would be sufficient, even for a 10-15% long-term return. Somehow, the fact that SPH and Comfort were facing tough competition back when I bought them, didn't come to mind. 

    I prefer to buy companies which dominate or monopolise their own industries and unlikely to be disrupted for the next 10-20 years, for obvious reasons. For example, Microsoft, Facebook and Google and McDonalds.

    Singapore blue-chip companies are very weak in innovation as far as I can see and I will pour more of my money into US and Chinese tech companies in the future.

    Even Singapore is playing a catch-up to China which has become more innovative with its widespread use of technologies such as cashless and face-recognition-based payment. 

    Thursday, October 26, 2017

    Bonds portfolio update

    The bonds that I bought using cash

    Bond
    Invested + Fees
    Dividends
    FCL Treasury
    $3,042.000
    $54.300
    ABF Singapore Bond
    $4,390.726
    $36.400
    SG Savings Bond Feb 16
    $5,002.000
    $78.000
    SG Savings Bond Feb 17
    $10,002.000
    $52.500

    I "park" my spare cash in SG Savings Bond (SSB) due to its rate higher than those offered by bank saving accounts. I can liquidate it any time within a month with no penalty and loss except for a small fee of $2 (I think). The returns of SSB recently issued is getting worse most likely due to the unfavorable economic forecast. 

    The ABF fund is really disappointing as it hasn't increased much over the past year til now. In fact I have an unrealised loss of a few percent. I have invested in it through the POSB Invest Saver, and have stopped doing so upon this realisation. 

    Based on its factsheet, it has a past performance of 2-2.5% over the last ten years, which is about the same as that of the Singapore Savings Bond. I was hoping its price rise gradually yet steadily besides generating a stable interest. 

    Moving on I shall find a good opportunity to liquidate it completely when the price is favorable.
    Also I will stop investing in bonds completely in the future as my risk appetite and hunger for higher returns have increased. 

    Sunday, October 22, 2017

    Stock/Equity Portfolio Update

    Stock Portfolio invested using cash as at 2017-10-22

    As shown below, I am able to get ~9.5% (after accounting for the fees) since I started my portfolio early last year. If I include profits made from sales, the ROI will be ~10.5%, not too bad huh, for someone who just started dabbling in stocks. 

    I must admit I am quite risk averse and dare not put too much into a single stock and instead chose to diversify, thus incurring more fees per counter invested. 

    I bought the stocks based on my simple assessment, for example, whether they are the market leaders and how much dividends they give. 

    Moving forward, I'd buy more index fund in the future than do individual stock picking as the STI has about 22% gain, much more than the overall portfolio gain. 


    Stock / Equity
    Invested + Fees Paid
    Current Market Value + Dividends
    Health Management International Ltd
    $418.870
    $381.000
    First Real Estate Investment Trust
    $914.590
    $1,025.040
    K1 Ventures Limited
    $1,067.150
    $1,006.500
    Raffles Medical Group Ltd
    $1,049.850
    $829.000
    CapitaLand Limited
    $309.770
    $381.000
    ComfortDelGro Corporation Limited
    $849.130
    $659.950
    StarHub Ltd.
    $2,030.356
    $1,834.380
    DBS Group Holdings Ltd
    $4,972.441
    $7,055.580
    SPDR Straits Times Index ETF
    $286.710
    $351.300
    First State Dividend Advantage
    $1,200.000
    $1,235.434
    Frasers Centrepoint Trust
    $794.420
    $917.540
    Mapletree Commercial Trust
    $286.710
    $331.700
    Oversea-Chinese Banking Corporation Limited
    $1,734.310
    $2,424.000
    Q & M Dental Group
    $736.010
    $688.200
    Mapletree Greater China Commercial Trust
    $1,146.880
    $1,371.690
    Singapore Post Limited
    $1,048.790
    $939.500
    SIA Engineering Company Limited
    $1,847.630
    $1,700.000
    SBS Transit Ltd
    $1,364.390
    $1,542.550
    Singapore Technologies Engineering Ltd
    $3,294.259
    $3,558.240
    Straco Corporation Limited
    $801.990
    $900.000
    First State Regional India
    $1,400.000
    $1,434.324
    Sembcorp Industries Ltd
    $306.760
    $339.000
    Singapore Telecommunications Limited
    $3,434.823
    $3,374.720
    Total
    $31,295.839
    $34,280.649

    Thursday, October 19, 2017

    CPF portfolio update

    Here's a partial update of my CPF Portfolio invested using OA funds as at 2017-10-19:

    Aberdeen SP Thailand Eq SGD$3,621.5707.03%

    First State Regional China$3,012.7098.23%
    PineBridge Singapore Bond$1,415.7511.02%

    All three of them can be considered as indexes of their respective markets. I think major indices around the world are rising in tandem.

    The portfolio is small now but the yield is already 7-8% (after the fees) since I started a few months ago. I'm approaching cautiously as it doesn't smell right for the market to keep on rising for so long when we're nearing a potential downturn based on the 10-year crash cycle.

    I will stop the PineBridge fund RSP as the yield is really low in a raging bull market.

    I chose the unit trusts based on their stellar past performance.

    I use POEMS Unit Trust Regular Savings Plan which offers one of the lowest fees.

    Wednesday, October 18, 2017

    How to calculate savings interest

    I'm sure many people out there don't know how the interest is calculated. They are contented so long they see the amount is roughly correct.

    Below is taken from the UOB website as at 2017-10-18:


    Many may be fooled by the 3.33% p.a. rate at first sight as the actual effective rate is only 2.43% p.a. if you fulfil the spending and crediting criteria.

    Effective rate for 50k = (10k * 1.5% + 20k * 2% + 20k * 3.33%) / 50k = 2.43% which is shown in the fine print at the bottom of the page.

    How to calculate the monthly interest?


    Monthly interest = Effective interest rate * savings amount * (N / Y) where N is the number of days in the month. Y is the number of days in the year.

    There may be some rounding differences.

    The savings amount may be the daily average balance in the month depending on the definition used by the bank.




    CPF Portfolio Update Nov

    Here's a partial update of my CPF Portfolio invested using OA funds as at 2017-11-16: Aberdeen SP Thailand Eq SGD $3,642.945 6.99% ...