Thursday, September 01, 2011

My Investment Portfolio (August 2011)

August 2011 was the month best remembered for market volatility. Movements intra-day can be as much as 5% and panic was observed during some days. As usual, the issues like Euro debt crisis, US government credit rating downgrade etc are still in investor's mind. For this month, I have attended Popular Holdings and Stamford Tyres AGMs, UIS EGM and Sino-Env Scheme court meeting.

There are some changes in my top 30 holdings list this month. As I have positioned my portfolio more defensively going forward, more volatile stocks will be dropping out of my top 30 holdings. New additions this month include UIS and SP AusNet.

Taking advantage of market volatility, I have made my biggest outlay this month so far this year. I have bought the following companies from the open market this month - Amara, Avi-Tech, BBR Holdings, Breadtalk, Casa Holdings, CDW, CFM Holdings, Chuan Hup, Eastern Holdings, Foreland, Freight Links, GK Goh, Guthrie, Hiap Hoe, Hotel Grand Central, Hotel Royal, Hotung, IFS, Khong Guan, Kian Ann, Koh Brothers, K1 Ventures, LHT, Lion AsiaPac, Lum Chang, MapleTree Commercial Trust, Metro, MSC, Multi-Chem, Mun Siong, New Wave, Novo Group, Orchard Parade, Pan Pacific Hotels, Pertama, Popular, PSC, Singapura Finance, Sing Holdings, Sing Investments, SP AusNet, Singapore Reinsurance, Stamford Tyres, Superior Multi-Packaging, Tiong Seng, Tuan Sing, United Engineers, UIS, WBL and Wing Tai . As usual, no sales transaction was made.

I have participated in the following rights issue - MapleTree Industrial Trust. I have also accepted the following delisting offer - AustraLand PG.

Next month, I will spend sometime to read up some books on investment and portfolio management to improve myself. Also, I will continue to search for value in the market.

My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 31 August 2011)

Top 30 Holdings (Sing$ Denominated shares)
1. Jardine C&C
2. Noble Group
3. F&N
4. SGX
6. SembCorp Marine
7. CapitaMall Trust
8. Bukit Sembawang Estates
9. Metro Holdings
10. KepLand
11. UIS
12. Sarin Technologies
13. Singapura Finance
14. Viz Branz
15. Bonvests
16. The Hour Glass
17. OSIM International
18. K-REIT Asia
19. Transpac Industrial Holdings
21. SP AusNet
22. APB
23. Aspial
24. Fragrance
25. First REIT
26. Wheelock Properties
27. ABR Holdings
28. PSL Holdings
29. Keppel Corp
30. Challenger Technologies

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 Holdings (Aust$ Denominated shares)
1. AV Jennings

Top 5 Holdings (CPF OA investment)
1. Keppel Corp
2. Streettracks STI ETF
3. CapitaMall Trust
5. Challenger Technologies

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
11. Oriential Century
12. Japan Land
13. Zhonghui

My Unit Trust Portfolio:



Blogger Everlearning said...

Hi ghchua,

I took a bolder and bigger step into buying some of my existing companies that have fallen out with investors exiting the volatile market.

I partially divested STI ETF and SingPost - the very earliest counters I got in and later witnessing them plunged nearly half of the value in March 2009.

I sense that whatever the market situation we are in right now, is prominently and probably men's manipulation and madness of wealth.

No wonder, oftentimes, I read that investing in equities are not for the faint-hearted or clueless investors. However, the path is made much more pleasant with people like you.

Thank you for always there to answer some of my queries. I will remain invested for quite a while: as the saying goes; nothing ventures, nothing gains.

10:41 PM  
Blogger ghchua said...

Hi Everlearning,

Investment is a life time journey. One got to have the patience and commitment to stay vested, despite volatile market conditions. I know, it might be difficult at times to stay put when there are noises out there that might affect your judgement. However, if you believe that companies in general will grow in the long term, then share prices should go up in general as the intrinsic value of the company don't change so much everyday. If prices came down at attractive levels, then you should have the courage to buy more.

Personally, I don't like to divest stocks unless it is absolutely necessary. Switching stocks doesn't make sense to me unless you have a big portion of your portfolio vested in that counter. For me, I have a diversified portfolio and I prefer to add funds into my better ideas every month, rather than switching here and there.

Wishing you all the best in your investment journey and enjoy your adventure!

1:06 AM  
Blogger Cory said...

ghchua, you have a huge portfolio.

Just curious, do you perform much better than STI Index ETF fund ?


6:32 PM  
Blogger ghchua said...

Hi Cory,

I don't really benchmark my portfolio with STI ETF fund, which is essentially a large cap fund which tracks FTSE STI.

My portfolio consists of small, mid and large cap stocks mostly listed on SGX. Therefore, I guess I will do better than STI when the market is down as I am more diversified. But what the market is up, I don't think I can outperform STI consistently.

Having said that, the aim of constructing my portfolio is not to outperform STI, but rather to have consistent income and also long term capital gain for my retirement.

10:48 PM  
Blogger Cory said...

Hi ghchua, thanks for your kind response.

I am not exactly after your performance results. However i have a feel your current portfolio size can last you a lifetime.

Large portfolio may also means they will takes up alot of your precious time even when retired.

Question in my mind is will the extra Return further improve the remaining quality of your life or putting most of them in safe bonds or preference shares will.

Take note i am not judging your expertise but something i like to know before i arrive like you do currently. :)


6:55 AM  
Blogger ghchua said...

Hi Cory,

I don't think having a large portfolio takes up a lot of one's time. In fact, it is the exact opposite. Since you have a diversified portfolio, you do not need to follow those companies in your portfolio closely, since each company's share price movement will not have much impact on your overall portfolio.

Actually, much of my time on investing had been spent on finding new ideas for my portfolio rather than trying to follow day-to-day share price movement of the stocks in my portfolio.

8:41 PM  
Blogger faith said...

Hi ghchua,

I always wonder how you managed your wide portfolio of stocks. Do you use CFD or spread betting? Do you believe in cyclical stocks that must be sold before a recession sets in? What is your targeted long term investment duration? Which brokerage firm do you subscribe? I think by buying minimal lots per stock we actually incur more on our brokerage fee. Do you agree? Please advise. Thank you.

6:51 PM  
Blogger ghchua said...

Hi faith,

Nope. I don't use CFD and spread betting. I believe that a good portfolio should be able to ride on market upside and protect its downside as well. There is no need to complicate stuff by introducing CFD. The key is how to manage your portfolio such that it can give you good returns consistently despite market volatility. I am still learning as I go along in order to improve my portfolio.

Cyclical stocks only forms part of my portfolio. Yes, if you can time your market entry/exit, then cyclical stocks can be bought/sold. The question is whether you can do that consistently. On the hindsight, everyone is a good market timer but it is difficult to have consistent results.

My target duration for my portfolio is really for my retirement (so it will be at least 10 years or more). I will not sell out all my stocks in one go. Rather, I will do my drawdown slowly, depending on my needs during retirement.

I use a few brokerages. DBS Vickers, Lim&Tan, Phillips etc. If you want cheap brokerage, you can try Standard Chartered online brokerage. There is no minimum brokerage for small amounts but the downside is that your shares won't be deposited in CDP. It will be held in their nominee account.

You can also consider DBS Vickers cash upfront account or CitiBank Brokerage. Minimum $18.

9:08 PM  
Blogger edragon said...

Hi GH,

What was discussed in the UIS EGM and your opinion.
ed. :)

9:03 PM  
Blogger ghchua said...

Hi edragon,

The main issue was the discount of UIS market price with respect to its NAV. Laxey Partners wanted the board to narrow the discount by using some measures like share buyback, open-ending the fund etc. Also, there are questions on the independence of the independent directors currently on the board and the benchmark that UIS is using to measure its performance.

My personal view is that all the matters bought out during the meeting are valid, however, the most important issue is still to manage the fund well and let the market decide. I guess if UIS can show the market that it can manage its downside risk during market downturn and track the market upwards when markets are doing well, the share price will take care of itself.

There will be another EGM next month, which I will also be attending.

10:03 PM  
Blogger YH Tan said...

Hi ghchua,

You managed to buy Kian Ann. Good for you. Been queueing for this counter but without luck.

"Benefits" of iliquidity...

8:29 PM  
Blogger faith said...

Hi ghchua,

I am surprised you have kept Transpac as one of your top 30 stocks. I don't know much about this company except they give good dividends. Could you advise on their fundamentals? How about Elec and Etek? Is it a good stock for dividend yield? Thank you.

5:47 PM  
Blogger ghchua said...

Hi Yihhtan,

Keep on queueing. I am sure that your patience will be rewarded one day.

8:46 PM  
Blogger ghchua said...

Hi faith,

You can always goto SGX website to find out more about companies listed. There are plenty of information like annual reports etc. Basically, Transpac invests in private and unlisted companies and makes profit by selling them when they are listed. Therefore, dividend is not consistent for this kind of company, but it can be substantial if the value of their investment can be realized.

Elec and Etek manufactures PCB boards. As I am an Electrical Engineer by training, I do understand much of their business and their products. Margins for multiple layer PCB boards are higher. They do have a wide range of distribution network and their parent company is listed in HK.

Yes, their dividend had been quite consistent throughout the years. This is because they generate good cash flow from their business.

You can read more about the company at http://www.eleceltek.com

8:58 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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