Mar 27, 2017

Cory Diary: Is STI Performance truly understood ?

What is STI Index true performance ? The often quoted is 7% XIRR or so called Compounded which includes dividends distributed. This is achieved if one invest all their money one time exact in the year 2005 low and measured on the final price this month of STI. Yes is about 7%.

The issue is can this be repeated ? That is the catch.

Firstly our money in fund is constantly injected and for some withdraw during the 12 years period.

Secondly, how sure are we the next 12 years will be another 7%. Are we sure we can extrapolates ?

Finally, investment period is critical. Investing in 2005, 2011 and now will yield different STI performance. This can be shown by taking the dividends distributed and using different period of entry.


As you can see above, the Compounded or XIRR are total different on entry year. I am not saying STI ETF is not good. I have some too. But I want to remind myself that, if I started investing in STI in year 2008, you are only earning 0.56% after dividends. Is ALL ABOUT ENTRY TIMING.

So is it good to invest in STI ETF now ? You tell me :P


Cory
2017-03-27

Mar 25, 2017

Cory Diary : Financial Portfolio Update 20170325




Has been a month since my last post. Seems a long time. Quite amount of office politics that I have to carefully maneuver while getting things done during this period while guiding my team on execution and business alignment. Good news is we are better today than a month ago. More work to do !

2017 is Year of Rates and Banking. Banking continues to recover from last year despite the oil saga.
Unfortunately my portfolio on such is under invest. Fortunately STI Index fund covers some. Index has again proves their usefulness.

Dividends wise $7,685 Year to date.Maximum achievable for 2017 is $43,000. I think $40,000 should not be an issue by year end.

Portfolio Size wise is another new high with return of market optimism. Did some balance in increasing Singapore Saving Bond and reducing some preference shares. Expanded my REITs further ironically in increasing rate environment. And did some sporadic speculation decisions in a few counters. Still slow in moving into financial sector. Not sure have I mentioned before that I have zero out my developer equity segment as I will still enjoy my ride up and down on my property.

Currency wise, I have remitted large amount of S$ with strengthened NT$. New bullets for SGX.
Is a hold for AUD$ and US$ amounts.

All-in-All, new net worth new high due to investment gains. This metric is important as a way for me to track growth and asset base for retirement. 2017 will bring more income due to stronger NT$.

Investment performance wise, XIRR 3.6% on expanded portfolio injection base using 2017 year end date on closure. However YTD XIRR incredible more than 18% despite large stakes in low fixed returns of bonds and preference shares. And this is achieved with pretty plain and relative safe investment strategy that anyone can do. No magic and all common sense decisions. Hopefully the market remains optimistic for rest of year.


Cory
20170325

Reminder for myself : Putting money in Unit Trust do not make me an investor.
It only convince myself that I am incapable to be one.



Feb 24, 2017

Cory Diary : Sheng Siong 4Q'2016

Is another profitable period for Sheng Siong. A growth and relative good dividend stock. The Rev/Profit growth is so persistent that every quarter seems like a norm. What I like most is it provides basic essentials therefore relatively recession proof. A mix of growth and yield stock, how much growth imo depends on how fast it can expands and idle cash available to support the expansion considering profit is mainly distributed out.

Sheng Siong 4Q'16

This is cut and paste Key Notes

Dividends
"Propose a final cash dividend of 1.85 cents per share, taking our total dividend for FY2016 to 3.75 cents per share, equivalent to about 89.9% payout on our net profit after tax." That's roughly 4% yield.

Growth
"The Group is still looking for suitable retail space particularly in areas where the Group does not have a presence. However, competition for retail space has not abated and looking for suitable retail outlets may be challenging." There is still enough cash to expand for growth.

Risk
"The Verge and Woodlands Checkpoint supermarkets which were to close on 30 April
and 30 June 2017 respectively as the landlords will be re-developing the sites have now been extended to 31 May and 31 August 2017. These supermarkets contributed 8.6% to FY2016’s revenue."





Without looking into details, appears mitigated by staggered closure, continue store growth and existing sales growth.


Cory
20170223



Feb 16, 2017

Cory Diary : LMIR TRUST Report Q4 2016

LIPPO MALLS INDONESIA RETAIL TRUST


DPU 0.87 ( 7.4% increase )
For Stock Price of $0.385, Yield about 9%
Gearing : 31.5%

I like this REIT because of good Indonesian population base growth potential, income outside Singapore with mid term track record. Base on this quarter result, likely next few quarters we will see better rental revision thus potential growth in DPU.

DPU Track Record



The down side is interest rate, mitigated with 70% fixed rate basis. Forex is ok with weaker Singapore dollars. Is this a rare REIT gem ?


Cory
20170216