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Monday, February 28, 2011

My Investment Portfolio (February 2011)

It was a forgettable month as STI finished just above the 3000 points mark. Most of the stocks had been sold off across the board, with Middle East unrest and high oil price cited as the main reasons. S-chips were also sold off due to auditing problems at China Hongxing and Hongwei.

For my top 30 stock holdings, there is not much changes, except for a new entry - ARA. The stock had done well for the past one month and coupled with lower share price of the other top holdings, it managed to make it into my top 30 list. I remain vested in ARA as I like its asset light business model.

Taking advantage of market weakness, I have bought the following companies from the open market this month - BBR Holdings, BH Global, Casa Holdings, Chosen, Chuan Hup, Conscience Food, Elite KSB, GLP, Guocoleisure, Guthrie GTS, Harry's Holdings, Haw Par, Hotel Royal, Hotung, Lum Chang, Nam Lee, Oxley, PSC Corp, Sakae Holdings, Stamford Tyres, Tat Seng, Teck Wah, Tiong Seng, Tye Soon, Unidux, Wheelock Properties and Zagro Asia.

I have also converted the following warrants to shares - Bukit Sembawang Estates, Pacific Andes and Saizen REIT.

I will continue to position my portfolio defensively going into March. Selective buying in value stocks will continue to be my main strategy. I will also keep a look-out to add bombed-out high beta stocks into my portfolio if the opportunity presents itself.

My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 28 February 2011)

Top 30 Holdings (Sing$ Denominated shares)
1. Noble Group
2. SGX
3. SembCorp Marine
4. Jardine C&C
5. F&N
6. A-REIT
7. KepLand
8. Bukit Sembawang Estates
9. CapitaMall Trust
10. Cosco Corp
11. OSIM International
12. Transpac Industrial Holdings
13. Hersing
14. K-REIT Asia
15. Metro Holdings
16. CapitaCommercial Trust
17. Pacific Andes
18. Keppel Corp
19. Wheelock Properties
20. CapitaLand
21. CDL H-Trust
22. ARA
23. ComfortDelgro
24. OCBC Bank
25. Raffles Education Corp
26. Low Keng Huat
27. CitySpring Infrastructure Trust
28. VICOM
29. Ascott REIT
30. First REIT

Top 5 Holdings (US$ Denominated shares)
1. Jardine Strategic
2. Dairy Farm
3. Hong Kong Land
4. Jardine Matheson
5. Mandarin Oriental

Top Holdings (HK$ Denominated shares)
1. Fortune REIT
2. Tan Chong International

Top Holding (Aust$ Denominated shares)
1. AV Jennings
2. AustLand PG

Top 5 Holdings (CPF OA investment)
1. Keppel Corp
2. Streettracks STI ETF
3. CapitaMall Trust
4. A-REIT
5. SingTel

My Hong Kong Stock Portfolio (listed on SEHK)
1. Peace Mark Holdings

My Unlisted Company Portfolio
1. Automated Touchstone Machines Ltd
2. Iconic Global Limited
3. Greatronic Limited
4. China Printing & Dyeing Holdings
5. General Magnetics
6. Fastech Synergy
7. Beauty China
8. Memory Devices
9. Jurong Tech
10. FM Holdings

My Unit Trust Portfolio:
http://www.fundsupermart.com/main/community/Portfolio_View.svdo?id=P199

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32 Comments:

Blogger Everlearning said...

Hi ghchua,

Recently, I was advised by the banker to give up on one and only Unit Trust Fund I have since 2004.

The very reason was that it will continue to dip. This Asian Fund is supposedly to be a low risk investment but now the banker said it is very high risk.

It mainly comprises treasuries and government bonds. How could it lose so much even to the extend of wiping out the capital and the accumulated cash distributions, leaving behind 70%value?

I thought of keeping it perpetually, so-called long-term investment. I took it on a roadshow outside the bank.

What would you do if you were in this situation? Thanks in advance.

Everlearning

5:22 AM  
Blogger ghchua said...

Hi Everlearning,

Without having the name of the fund, I couldn't comment a lot on it. You said that it is an Asian fund, and it comprises treasuries and government bonds. But how many % of the fund had been allocated to treasuries and government bonds? Is it a pure bond fund, or a balanced fund? (i.e. a mix of equity and bonds) Are those allocation in US or Asian treasuries and government bonds? If it is in US, you might lose quite a bit on currency depreciation.

I would not be in a hurry to sell away the fund, but rather to understand what the fund does and how it fits into your current portfolio.

9:07 PM  
Blogger ZhuKoLiang said...

for me i have exited from all funds since 2007, and cleared away everything after arrogant wong sui jau warned me about my vulgarities posted in their FSM forlum when i was compraining about the then lion capital thailand price irregularities.

9:46 PM  
Blogger Everlearning said...

Hi ghchua,

It is called the Schroder Asian Bond Fund.

The banker said that it was due to the Malaysian Government Bond that caused the Fund to depreciate. Somehow,I am not convinced.

I always thought that Governments' stuff could be trusted; proven otherwise. Anyway, I steer clear away from banks' investments.

11:28 PM  
Blogger ghchua said...

Hi Everlearning,

The fund had been paying out 4cts of dividends every year (i.e. 2cts half-yearly). Have you taken it into consideration when computing its return?

According to its factsheet, its 5 year annualised return is -1.3%, calculated with net dividends reinvested. Not as bad as what you have said.

http://www.fundsupermart.com/main/admin/buy/factsheet/factsheetSDASBD.pdf

Anyway, there is no point buying unit trusts from bankers, since online platforms offer sales charge as low as less than 1%.

1:21 AM  
Blogger ghchua said...

Hi newbie_george,

I remember during that time, there was an argument on how they compute the Thai Baht exchange rate.

Anyway, vulgarities should not be allowed in forums right?

1:24 AM  
Blogger Everlearning said...

Hi ghchua,

You are absolutely right that it isn't as bad as the bankers (from two different branches) wanted me to believe that the Fund is doing so badly that I should switch to another investment.

All these years, I had the cash distributions reinvested and I am holding more than 1,000 unit holdings.

I took it from OCBC bank.

1:42 AM  
Blogger ghchua said...

Hi Everlearning,

Even if they want you to switch, they should justify their decision by looking at your current portfolio allocation, and not only because it is a fund that is "high risk" or "continue to dip".

Anyway, you can always ask them for free switches, but I don't think it is a high risk fund, since it invests in bonds.

7:11 PM  
Blogger Everlearning said...

Hi ghchua,

I am in a state of shock after digging through the piles of papers I received for the last 8 years from OCBC bank regarding this Shroder Asian Bond Fund.

As a matter of fact, I even kept the draft where the financial adviser explained the Fund future prospects and words written like "low risks, high returns", FD low but Fund promises higher returns were on the sheet of paper. Besides, my financial assessment indicated that I was a very low-risk person.

At that point of time, if the adviser got me into this investment, he had already misled me into a high risk investment as this Fund not only wipes out the dividends earned but also keeps loosing the capital value.

In July 2010, this Fund was ammended "to provide an absolute retrun of capital growth and income primarily through investment in a portfolio of bonds and other fixed and floating rate securities by governments, government agencies, supra national and corporate issuers in Asia excluding Japan".

Less than six months, they initiate the move of wanting me to terminate the Fund, switch to another Fund for better returns.

I must be dumb, dull and daft to put my future investments with our banks. DBS bank, OCBC bank, and next, maybe UOB bank?

7:25 PM  
Blogger ghchua said...

Hi Everlearning,

It is important for you to read the prospectus of the fund and understand why they changed their investment objective in July 2010. Changing the investment objective alone does not make a fund more risky overnight. Sometimes, they change it because they want to have more leeway to manage the fund. Question: What was the fund's initial investment objective before the change?

You should know that the risk profile of a FD and an Asian bond fund is different. Obviously, an Asian bond fund is higher risk since it is subjected to forex risk as it holds bonds denominated in various currencies. Also, fund manager normally don't hold bonds till maturity, and therefore you are subjected to price risk as well. There are many other risks like default risk, duration risk etc and you should refer to the prospectus of the fund when in doubt.

In conclusion, you should research more into the fund to understand it, before you even make any decision. Don't just make your decision only based on what your bankers said.

1:11 AM  
Blogger Everlearning said...

Hi ghchua,

Thanks for explaining to me the various aspects that could affect the Fund's performance. Nothing was elaborated or mentioned to me to help me made a calculated, informed decision on taking up this investment.

What forex risk, default risk, duration risk; never made known to me at the first place.

The lesson learnt is one must take time to understand the investment, weigh the pros and cons and don't invest what one cannot lose.

Evidently, a DIY approach towards investment is the way to go.

4:37 PM  
Blogger ZhuKoLiang said...

hi shifu,

do u know where to find the complete list of business trust listed on sgx?

i remember in the old sgx website can find, but now the new one i cannot find.

any ideas?

3:23 AM  
Blogger ghchua said...

Hi newbie_george,

You can refer to MAS website instead for a list of business trusts listed on SGX:

http://www.mas.gov.sg/legislation_guidelines/business_trust/sub_legislation/List_of_Registered_Business_Trust.html

11:54 PM  
Blogger ghchua said...

Hi Everlearning,

I prefer the DIY approach because one learns as he/she goes along. In this way, one can learn from his/her mistakes and then do adjustments accordingly to minimize future mistakes.

Most of my investment knowledge had been learnt the hard way - i.e. DIY. There is no short cut to investment success.

12:02 AM  
Blogger Yih Hwa said...

Hi gh chua,

Can enlighten me why you have bought Harry's Holding?

Tks.

Anthony

5:54 PM  
Blogger ghchua said...

Hi Anthony,

Harry's is a brand. It is not only in bar chain but also in restaurants and hotels. They also have plans to expand overseas.

It is not a value play, but a play on its brand and potential growth. That is why I bought into the company and hope that their brand will reward me in years to come.

7:37 PM  
Blogger ZhuKoLiang said...

shifu,

u got go the friedlinks EGM?

haiz, i think many people got fried by this stock...

11:11 AM  
Blogger ghchua said...

Hi newbie_george,

You mean Freight Links? I have one lot in my portfolio.

11:13 PM  
Blogger ZhuKoLiang said...

oo... how come 1lot?

assuming but at 10cents, the brokerage alone very large wor... mmm... like that worth it meh?

7:18 AM  
Blogger ghchua said...

Hi newbie_george,

I remember I bought 1 lot of it last time because I took up a free brokerage offer for the first few trades when opening a trading account.

Therefore, no brokerage incurred. :)

3:06 AM  
Blogger George Chen said...

ic.. some brokerage offers free first trade, so i propose a brilliant idea: open the account, make ur first trade, get back your rebate, then close the trading account.. wait for some time to avoid suspicion, then open account again..

if this continues forever, ie "t" approaches infinity, then u can save on brokerage cost forever..

but opening, closing of account take weeks n months..

i tried b4, n tested... ;)

3:54 AM  
Blogger ghchua said...

Hi George Chen,

Though it can be done, it is quite troublesome to close and open accounts consistently. I don't think I would want to do it because I need my accounts to be active in order to buy consistently every month.

I would be more than happy if they could offer me low brokerage and rewards points. :)

8:19 PM  
Blogger ZhuKoLiang said...

hihi shifu,

if a stock already XR (ie willas array),

can we still buy the mother share in order to subscribe for excess in atm?

in order to stand a chance to subscribe for excess in atm (after XR), must we:
a) buy the mother share
b) buy the right
c) both (a) and (b) ??

12:47 AM  
Blogger ghchua said...

Hi newbie_george,

From what I understand, your chances of getting excess rights shares is low if you bought the mother share on XR. You should have bought the shares during CR.

However, there is no harm going for it if you are still interested.

3:13 AM  
Blogger ZhuKoLiang said...

shifu,

u going for this friday's changtian SGM 10am? i wana ask them to cough out the money... :P

12:11 AM  
Blogger ghchua said...

Hi newbie_george,

Nope. Wouldn't be able to attend the SGM due to work.

Yeap. Maybe you can ask them to pay some dividends to shareholders if there is no plan to use their cash.

12:47 AM  
Blogger ZhuKoLiang said...

shifu,

updates on changtian's SGM today.

many , including me, asked angrily the directors to cough out money, but they seemed reluctant to do so.

i ask them the integrity of their cash, they say next month they will have their AGM, together with their auditors.

although a 10am SGM @ suntec, very disappointed only light refreshments given only. no lunch..

this is my 4th General Meeting attended. trying to learn more things..

2:51 AM  
Blogger Bryan Lee Tuck Sing said...

Hi ghchua

Like to say that this is a great site and I have receive much benefits from it. Thanks for sharing.

Also like to seek your advise on 1 matter. I am considering to put some money for investing, may I ask would holding funds in fund supermart be better than those listed ETF?

Cheers

10:49 PM  
Blogger ghchua said...

Hi Bryan,

For ETFs, you have to understand its structure and be comfortable with it. Basically, there are three main types - Physical, synthetic or a combination of both. Note that there is counter-party risk for synthetic duplication method.

Another issue to consider is costs. Normally, ETFs are cheaper but if you are buying in small amounts, then the minimum brokerge might hit you. However, if you subscribe to the fact that most active fund managers underperform the market, then you might wish to consider ETFs.

Hope that the above helps and you can research more on both to have a better idea before you commit.

12:30 AM  
Blogger George Chen said...

also,

greedy FSM charges platform fee. CDP does not charge any fee in holding your ETF.

woow, imagine CDP charges a platform fee, say $2 per counter per month. wah, shifu die pain pain? :S :S :S

10:19 AM  
Blogger ZhuKoLiang said...

shifu,

is it correct to say all EGM/SGM only provide small snacks, only AGM provide lunch ?

Rgds

10:21 PM  
Blogger ghchua said...

Hi newbie_george,

My advice to you is: Don't go for AGM/EGM just for the food. Rather, try to learn from those experiences and when talking to the directors.

It is more fruitful this way to justify your trip to the AGM/EGM.

9:06 PM  

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A self-directed investor, looking to invest for retirement needs and bypass all those expensive financial planners/insurance agents. Investing is fun, profitable or most important of all, knowledge gained is useful for the rest of your life!

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