Sunday, December 27, 2015

Review/Reflections for 2015

I think most investors would agree with me that 2015 is a bad year for equity investors. The year started well and in April, STI was well above 3400 points. Unfortunately, a series of bad news including China market correction, Greek crisis, US rate hike, slump in oil prices, devaluation in regional currencies etc had contributed to a weaker performance in subsequent months and STI is expected to close well below 3000 points as we approach the end of the year.

I have stay invested in the market throughout this period with dividends being mostly re-invested back into my widely diversified portfolio but the sell-off was across the board and therefore, I expect to end this year in the red. Though I did not compute the returns of my portfolio, I guess I have suffered some setback in terms of portfolio value this year.

Again, I have lost some companies through M&A activities this year, the most high profile being Keppel Land. I have also closed out positions in some overvalued counters like Green Build, E2-Capital and Singapore Windsor. I have also reduced my stake in some trusts and REITs like AusNet Services, Keppel REIT, Ascott REIT, Cambridge and MapleTree Logistics Trust. Overall, I would like to maintain my exposure to REITs and trusts to not more than 10% of my portfolio, as they are prone to calling for rights issues and I do not wish to be caught in a situation where I have to fork out more money for their cash call.

I did not do much for my CPF-OA unit trust portfolio except for adding onto my Japan, Indonesia, Asian Smaller Companies and Global Emerging Markets funds from the dividend payouts for my CPF-OA stock holdings. As I am unemployed, I do not have CPF contributions every month and therefore there is a limit onto how much I can grow my CPF-OA unit trust portfolio. I will continue to be selective in terms of my CPF-OA unit trust allocation with overweight positions in Asia and Global Emerging markets. As for my CPF-OA stock portfolio, it is a subset of my cash stock portfolio and therefore I will continue to hold onto them. There is also a limit on my CPF-OA stock portfolio due to the CPF stock investment limit imposed by the CPF Board. I do not expect to grow my CPF-OA stock investment portfolio in a big way.

For my CPF-SA investments, I will still hold onto the existing 3 balanced funds as I have maxed out my CPF-SA investment limit imposed by the CPF Board. Again, with no contribution every month and a limit imposed, I do not expect to grow this portfolio in a big way.

I have continued meeting like-minded investors in two investment groups this year and we have shared many ideas and thoughts. Once again, thanks for the company and I really enjoyed those exchanges this year.

I have attended a lesser number of AGMs, EGMs, briefings etc this year and my health improved as a result. I have dedicated quite a number of days for rest and recovery this year in-between these meetings. Thank you, fellow investors that I met for your exchanges of ideas and discussions. It had been a fruitful experience chatting with you all over food and drinks at these meetings.

This had been the most toughest year for me since I turned into a full-time investor around 4.5 years ago. Having said that, it is during these tough times that you learn more about yourself, the robustness of your investment process and also your will to last the journey. I have certainly done so and hope that all you readers out there will too as we grow together to become a better investor.

It had been a year to forget in terms of investment returns and therefore I can't wait to say goodbye to 2015. Hope that 2016 will be a better year for all you investors out there. Happy holidays and hope to share with you all my portfolio activities in 2016!



Blogger Unknown said...

What wrong w yr health bro? Catch a cold?

6:56 AM  
Blogger Unknown said...

Why didn't calculate portfolio value? Like that not disciplined m conscientious

6:57 AM  
Blogger ghchua said...

Hi Unknown,

Last year, I have fallen sick a few times a year so therefore I decided to slow down the pace of my activities. Normally, when I fall sick often, I will try to slow down as my body might be telling me that I am working too hard. :)

I didn't calculate portfolio return but I know roughly my portfolio value from CDP. The reason is as I've said before is to focus on the process rather than returns.

11:30 PM  
Blogger John Smith said...

Hi ghchua. Agree with you to focus on process. Keep it up.

wish you better health in 2016 and on. Thanks for all the postings.

10:34 PM  
Blogger Joel Keh said...

take care ghchua - perhaps it's also your diet? may need to reexamine food choices as well :)

12:00 AM  
Blogger Unknown said...

But U are full time investor rightly should be more flexible n easier to manage time..
Anyway happy new year

2:44 AM  
Blogger ghchua said...

Hi John,

Thanks for your best wishes.

Hi Joel,

Yes. Will need to re-look at my food choices. Maybe more fruits and less AGM food. :)

Hi Unknown,

Yes. I am more flexible and able to manage my time. But sometimes, the pace is wrong. For example, there are some months (like April) where I have a lot of AGMs to attend but there are some months whereby there is not much meetings to attend. Although I am flexible, the financial year end of the companies are not. Therefore, I have to increase or decrease my activities based on the companies too. Sometimes, I might be traveling around and attending too many meetings in a week and sometimes there is only one meeting a week. My body had to adjust accordingly.

I have already taken some action based on my strategy for 2015. I have reduced the number of AGMs that I will be attending every year and I have also reduced the AGMs that I plan to attend in April. I have also proxy out some of these AGMs to other investors for them to attend on my behalf and feedback to me their thoughts after the AGMs. But not every investor out there that I know are full-time investor and they might not have interest in the companies that I am holding. Therefore, I have to take into consideration their limitations as well.

8:40 PM  

Post a Comment

<< Home


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!

Powered by Blogger