- 6 Jan 2012
Initiated Regular Savings Plan into Franklin Templeton IF Templeton Global Bond Fund A(mdis) SGD-H1 and First State Bridge unit trusts on dollarDEX platform - 18 Jan 2012
Received dividends (re-invested) from Templeton Global Bond Fund - 29 Feb 2012
Collected dividends from FCT, PLife, Starhill, Cache, First REIT, Sabana and Cambridge - 14 Mar 2012
Reduced Cambridge existing holdings - 20 Mar 2012
Reduced Sabana existing holdings
Tuesday, January 24, 2012
Stock & Unit Trust Portfolio Update Jan/Feb/Mar 2012
Continuing on from Stock Portfolio Update Oct/Nov 2011,
Diversification of portfolio through unit trusts
For some time, I have thought about diversifying my portfolio geographically (outside of Asia) and across different asset classes (apart from equity). With my limited capital, unit trusts present one of the low-cost avenues for achieving this.
Between the two online unit trust fund distributors Fundsupermart and dollarDEX, I opted for the latter to avoid paying the "platform fee" which Fundsupermart had imposed in 2010.
Since fixed income instruments such as bonds are currently mixing from my investment mix, I decided to initiate a Regular Savings Plan into two funds:
Between the two online unit trust fund distributors Fundsupermart and dollarDEX, I opted for the latter to avoid paying the "platform fee" which Fundsupermart had imposed in 2010.
Since fixed income instruments such as bonds are currently mixing from my investment mix, I decided to initiate a Regular Savings Plan into two funds:
- Franklin Templeton IF Templeton Global Bond Fund A(mdis) SGD-H1 - note: mdis denotes monthly distribution and SGD-H1 denotes the SGD hedged version since the mother fund is managed in USD terms
- First State Bridge - note: this is an Asian balanced fund
Personally, I like the monthly distribution characteristic of the former, and the Asia-centric nature of the latter as this will give me the option of exiting my ILP in future but still retain some exposure to Asian equities.
Meanwhile, I am also on the lookout for a proven and low-cost precious metals fund to benefit from the long-term uptrend of gold and silver prices.
Happy Chinese New Year and good fortune to all !
Sunday, January 01, 2012
Aviva SAF Insurance II
For a while now, I have been considering increasing my critical illness coverage to complement my private MediShield plan (including a rider to cover the deductible and co-insurance portions) which I had signed with GE.
Of my existing plans, there were two immediate options open to me: tagging onto my Aviva SAF Group Insurance or onto my ILP. However, as my ILP was meant almost exclusively for investment purposes (as opposed to insurance), my preference was for the former.
Cost-wise, up till age 45, the charge for critical illness coverage under the Aviva SAF Group Insurance was $5.00 monthly per $50,000 coverage (max $300,000 coverage). Thereafter, the monthly premium progressively increases from year to year until the cut-off age of 65.
For reference, some details for two of the more prominent critical illness plans are as follows:
GE Early-Payout CriticalCare Plus - advertised as providing payout at the earlier stages of critical illness, $63 a month based on a non-smoking male, aged 30 at next birthday with a sum assured amount of $100,000 for a policy term of 30 years
PRUmultiple crisis cover - advertised as providing up to three critical illness claims, inclusive of 2 cancer claims, $1.76 a day for a female non-smoker aged 35 on her next birthday covered for $50,000 over 50 years
Just for comparison purposes, the monthly premiums for a 30-ish male/female non-smoker to be covered for $50,000 are estimated to be (* please consult a qualified agent for accurate quotes and kindly do not take these values at face value):
Aviva SAF Insurance: $5.00
GE Early-Payout CriticalCare Plus: ~$31.50
PRUmultiple crisis cover: ~$52.80
For cost-conscious consumers, the Aviva plan is clearly the most basic and hence least expensive. If one should desire the additional benefits which the other two plans bring, then there is of course an additional price to pay. To each his own...
Of my existing plans, there were two immediate options open to me: tagging onto my Aviva SAF Group Insurance or onto my ILP. However, as my ILP was meant almost exclusively for investment purposes (as opposed to insurance), my preference was for the former.
Cost-wise, up till age 45, the charge for critical illness coverage under the Aviva SAF Group Insurance was $5.00 monthly per $50,000 coverage (max $300,000 coverage). Thereafter, the monthly premium progressively increases from year to year until the cut-off age of 65.
For reference, some details for two of the more prominent critical illness plans are as follows:
GE Early-Payout CriticalCare Plus - advertised as providing payout at the earlier stages of critical illness, $63 a month based on a non-smoking male, aged 30 at next birthday with a sum assured amount of $100,000 for a policy term of 30 years
PRUmultiple crisis cover - advertised as providing up to three critical illness claims, inclusive of 2 cancer claims, $1.76 a day for a female non-smoker aged 35 on her next birthday covered for $50,000 over 50 years
Just for comparison purposes, the monthly premiums for a 30-ish male/female non-smoker to be covered for $50,000 are estimated to be (* please consult a qualified agent for accurate quotes and kindly do not take these values at face value):
Aviva SAF Insurance: $5.00
GE Early-Payout CriticalCare Plus: ~$31.50
PRUmultiple crisis cover: ~$52.80
For cost-conscious consumers, the Aviva plan is clearly the most basic and hence least expensive. If one should desire the additional benefits which the other two plans bring, then there is of course an additional price to pay. To each his own...
AUD / NZD Update December 2011
Rate cuts by Reserve Bank of Australia (RBA) while Reserve Bank of New Zealand (RBNZ) holds its rate steady. A sign of the slowing economy ahead?
| Effective Date | Change in cash rate Percentage points | New cash rate target Per cent | |
|---|---|---|---|
| 7 Dec 2011 | -0.25 | 4.25 | |
| 2 Nov 2011 | -0.25 | 4.50 | |
| 3 Nov 2010 | +0.25 | 4.75 | |
| 5 May 2010 | +0.25 | 4.50 | |
| 7 Apr 2010 | +0.25 | 4.25 | |
| 3 Mar 2010 | +0.25 | 4.00 | |
| 2 Dec 2009 | +0.25 | 3.75 | |
| 4 Nov 2009 | +0.25 | 3.50 | |
| 7 Oct 2009 | +0.25 | 3.25 | |
| 8 Apr 2009 | -0.25 | 3.00 | |
| 4 Feb 2009 | -1.00 | 3.25 | |
| 3 Dec 2008 | -1.00 | 4.25 | |
| 5 Nov 2008 | -0.75 | 5.25 | |
| 8 Oct 2008 | -1.00 | 6.00 | |
| 3 Sep 2008 | -0.25 | 7.00 | |
| Effective Date | Change in OCR Percentage points | New OCR Per cent | |
|---|---|---|---|
| 10 Mar 2011 | -0.50 | 2.50 | |
| 29 Jul 2010 | +0.25 | 3.00 | |
| 10 Jun 2010 | +0.25 | 2.75 | |
| 30 Apr 2009 | -0.50 | 2.50 | |
| 12 Mar 2009 | -0.50 | 3.00 | |
| 29 Jan 2009 | -1.50 | 3.50 | |
| 4 Dec 2008 | -1.50 | 5.00 | |
| 23 Oct 2008 | -1.00 | 6.50 | |
| 11 Sep 2008 | -0.50 | 7.50 | |
Monday, October 10, 2011
Portfolio Review 4Q11
One transaction completed:PST
- Buy
Counter is traded in USD but settled in SGD (see Taking advantage of the falling US dollar)
Acquisition of non-container vessels (two Capesize Bulk Carriers chartered to Jiangsu Shagang Group Co., two Multi-Purpose Vessels chartered to Cosco Xiamen and five Supramax Bulk Carriers chartered to Glovis) -> diversification of fleet and widening of charterer base - Sell
Exit offer made by Pacific International Lines (offer price exceeded highest transacted price in the last three years and was at a premium of 15% over last transacted price of US$0.375 before trading halt) -> immediate realisation of capital gains
USD rally against SGD during Sep 2011 (refer to chart below) -> additional capital gains from USD/SGD foreign exchange rate appreciation
- FrasersCT
- PLife
- Starhill
- Cache
- First REIT
- Sabana
- Cambridge
Note to self: only simple P/L calculated
Importance of steady dividends
In their reports and articles, financial analysts and columnists have always stressed the importance of dividends in making one's stock selections. Thus far, I have subscribed to this as well. However, to ground my belief in facts and figures, I have tabulated my own portfolio's change in value for presentation in graphical form to fully assess the impact of a regular dividend stream.
* Note: % value calculated as (paper worth of holdings + cash for stock investments - cash injections) / original cash amount X 100%
Indeed, the slow-but-steady dividends can sometimes be under-appreciated in the face of quick and at-times spectacular trading gains. Still, the above does help to remind myself of some of the merits of going down this 'cashflow cum dividends' path.
At present, my portfolio is enjoying a blended dividend yield of 8-9% p.a. =) Hopefully this may continue, and happy new year to all!
Stock Portfolio Update Oct/Nov 2011
Continuing on from Stock Portfolio Update Aug/Sep 2011,
- 15 Nov 2010, 4 May 2011, 8 Aug 2011 - 6 Oct 2011
Bought PST at US$0.35, US$0.36, US$34 (average US$0.35 @US$1=S$1.2539) and sold at US$0.43 @US$1=S$1.2993 - October 2011
Added to Starhill existing holdings - 8 Nov 2011
Received advanced distribution from FCT due to private share placement - 23 Nov 2011
Collected dividends from Cambridge - 29 Nov 2011
Collected dividends from Starhill, Cache, First REIT and Sabana - 7 Dec 2011
Collected dividends from PLife
Friday, September 30, 2011
Portfolio Review 3Q11
Currently holding on to 8 counters (see Portfolio Review 1Q10 for 1-3, Portfolio Review 2Q10 for 4, Portfolio Review 4Q10 for 5-7 and Portfolio Review 1Q11 for 8):- FrasersCT
- PLife
- Starhill
- Cache
- First REIT
- Pacific Shipping Trust
- Sabana
- Cambridge
Note to self: only simple P/L calculated
Remark: first quarterly decline in portfolio net value since inception (refer to spreadsheet) =(
Stock Portfolio Update Aug/Sep 2011
Continuing on from Stock Portfolio Update May/June 2011,
- August 2011
Added to PST and Sabana existing holdings - 25 August 2011
Collected dividends from Cambridge - 29 August 2011
Collected dividends from FCT, Starhill, Cache, First REIT and PST - 6 September 2011
Collected dividends from Sabana - 8 September 2011
Collected dividends from PLife
Monday, August 15, 2011
REITs Performance II
Out of curiosity, I investigated how selected REITs performed against the STI during the recent market volatility this past week or so.
From the chart, it appears to me that:
- Ascendas and PLife were the top performers from this list during the reference period;
- Ascott, FCT, K-REIT and perhaps Suntec generally performed better than the STI;
- CMT and MLT more or less tracked the STI closely;
- CCT generally performed worse than the STI; and
- CDLHT was the bottom performer from this list during the reference period.
Hope this might be interesting to some =)
Thursday, July 28, 2011
AUD / NZD Update July 2011
It has been some time since my brother and I started our AUD & NZD fixed deposits, more specifically we are just one quarter short of 3 years.Despite being hit by the financial crisis worldwide interest rate cuts, the interest rates have stabilised at around 4% and 2% respectively (source: OCBC 3-mth tenure rates). Although these are not fantastic returns, AUD and NZD remain the highest-yielding foreign currencies.
The main risk for foreign currency investment of course is that the exchange rate with your home currency becomes unfavourable for changing back (i.e. the worst case scenario will be that the home currency strengthens so much that the interest does not even cover back the shortfall, giving an overall loss of capital).
ILP Update July 2011
Having reached three years for my ILP, it was useful for me to take stock of where it currently stands. The reason for this is simple: in Year 1, a hefty penalty is imposed where only 15% of premiums paid is allocated to investment, this increases to 60% in years 2-3 and to 102% from years 4-6, thereafter from year 7 onwards, 105% is allocated to investment.
Looking at the graph plotted for premiums paid (blue) and amount allocated to investment (red), one can see the change in gradient of the red line to reflect the higher percentage in years 2-3 compared to year 1. What is disappointing to me is that the green data points for cash values are not consistently above the red line. This means that after deducting all expenses, the fund is not yet making money for me. For now I am continuing to monitor. After all, with the Europe and US debt situations not being healthy, this has had a toll on equity markets which have been pretty range-bound.
Ultimately, I would hope for the green points to go above the red line first and then the blue line over the long run. Only time will tell if these ILPs are worth it for private investors like myself.
Looking at the graph plotted for premiums paid (blue) and amount allocated to investment (red), one can see the change in gradient of the red line to reflect the higher percentage in years 2-3 compared to year 1. What is disappointing to me is that the green data points for cash values are not consistently above the red line. This means that after deducting all expenses, the fund is not yet making money for me. For now I am continuing to monitor. After all, with the Europe and US debt situations not being healthy, this has had a toll on equity markets which have been pretty range-bound.
Ultimately, I would hope for the green points to go above the red line first and then the blue line over the long run. Only time will tell if these ILPs are worth it for private investors like myself.
Thursday, July 14, 2011
REITs Screening Criteria II
For some time, REITs have been my preferred investment instrument. As mentioned in an earlier post, some screening criteria which I had formulated are:
Pre-requisites
These should be self-explanatory, although the strength of a sponsor can be debatable. For me, I should frequently remind myself of the 2008 financial crisis during when credit had dried up to a trickle. During such times, low gearing helps REITs to remain on a stable footing and having a sponsor would perhaps increase the REIT's chances of securing hard-found credit.
Buy signals
I have an untested and unproven theory that the market prices of REITs generally have upper and lower bounds. Based on my own observations, there are possibly two metrics:
Just to remind myself, quarterly distributions are better for me in terms of my personal cashflow and having its portfolio mainly in Singapore will enable me to have a more intimate feel of a REIT's operations.
For future posts on this topic, my self-assigned homework is to collate past records of yield and P/NAV to verify or disprove my theory on buy signals.
Cheers!
Disclaimer: these represent merely my own personal amateurish views on the subject =)
- Low gearing, i.e. < 35%
- Presence of a sponsor, preferably a strong one, eg. Capitaland, F&N, etc
- High yield, preferably > 8% p.a.
- Discount to NAV, i.e. paying less for more
- Quarterly distributions (as opposed to semi-annually)
- Portfolio mainly in Singapore
Pre-requisites
These should be self-explanatory, although the strength of a sponsor can be debatable. For me, I should frequently remind myself of the 2008 financial crisis during when credit had dried up to a trickle. During such times, low gearing helps REITs to remain on a stable footing and having a sponsor would perhaps increase the REIT's chances of securing hard-found credit.
Buy signals
I have an untested and unproven theory that the market prices of REITs generally have upper and lower bounds. Based on my own observations, there are possibly two metrics:
- Yield
Defined simplistically as (quarterly DPU x 4 / market price), each individual REIT's price might fluctuate within a certain range. This range would vary from REIT to REIT depending on the strength of its sponsor, past reputation, etc. When the market price falls to a point where the computed yield based on the last announced DPU reaches the upper bound of the range, this may present a buying opportunity. - P/NAV
Similarly for the P/NAV ratio, this might again fluctuate within a certain range which would vary depending on the sponsor, reputation, etc. At the low end of this range, a buy signal may be detected.
Just to remind myself, quarterly distributions are better for me in terms of my personal cashflow and having its portfolio mainly in Singapore will enable me to have a more intimate feel of a REIT's operations.
For future posts on this topic, my self-assigned homework is to collate past records of yield and P/NAV to verify or disprove my theory on buy signals.
Cheers!
Disclaimer: these represent merely my own personal amateurish views on the subject =)
Sunday, July 10, 2011
Portfolio Review 2Q11
Currently holding on to 8 counters (see Portfolio Review 1Q10 for 1-3, Portfolio Review 2Q10 for 4, Portfolio Review 4Q10 for 5-7 and Portfolio Review 1Q11 for 8):- FrasersCT
- PLife
- Starhill
- Cache
- First REIT
- Pacific Shipping Trust
- Sabana
- Cambridge
Note to self: only simple P/L calculated
Friday, May 13, 2011
Stock Portfolio Update May/June 2011
Continuing on from Stock Portfolio Update Jan/Feb 2011,
- May 2011
Added to PST existing holdings - 30 May 2011
Collected dividends from FCT, Cache, First REIT and PST - 31 May 2011
Collected dividends from Starhill - 8 June 2011
Collected dividends from PLife - 14 June 2011
Collected dividends from Cambridge - 16 June 2011
Collected dividends from Sabana
Saturday, April 23, 2011
Rights Issue
Thus far, I have twice had the opportunity of participating in a rights issue. For an investor in REITs, one should always be prepared for such exercises, especially in the current climate of acquisitions and increasing gearing levels (read Debt turns from foe to friend for many Reits).
When a REIT is seeking funds, there are various avenues open to it:
As mentioned in the opener, I had participated in two such rights issues: First REIT and Cambridge. These two occurred in contrasting situations. For the former, I was not a unitholder and specifically bought into the counter so as to be allocated the rights units; for the latter, I had bought into the counter just before the rights issue was announced and for better or for worse, decided to simply go along with the exercise.
On hindsight now, both turned out to be profitable moves as the two counters managed to stay above the TERP after the rights units started trading pari passu. Furthermore, I tried my luck at excess rights for Cambridge in an attempt to round up my odd lots and was successful. Speaking of which, this last brings me to a final point on odd lots.
On occasion, retail investors may be stuck with odd lots in a rights issue exercise. To remedy this, there are a few possible ways:
When a REIT is seeking funds, there are various avenues open to it:
- Debt
This is the most straightforward and directly results in an increase in gearing level. Recall that the subprime crisis in 2008 had resulted in the collapse of the CMBS market and caused some S-REITs to face refinancing woes (more specifically, Saizen comes to mind). Being neither a financial expert nor economist, I do not claim to understand the subprime crisis nor CMBS at all but to my simple mind, continually taking on debt can't be a good thing. - Private placement
My earliest experience of an acquisition by one of the REITs which I was holding was with FCT, Northpoint 2 & Yew Tee Point malls. FCT went the route of private placement with institutional investors. For the retail investor such as myself, what one should probably look out for is that the placement shares are not overly discounted and that the institutions to which the shares are placed out to are reputable ones. The advantage here is that the retail investor does not need to fork out any money for the acquisition(s) but faces a certain amount of dilution risk. - Bonds
Recently, CMT issued the first retail bonds by an S-REIT. This was overall 1.9 times subscribed and in particular, the public offer portion was 4 times subscribed. Going forward, tapping on the fixed income market might be an increasingly viable option for S-REITs now that a precedent has been set. - Rights issue
Possibly the most popular means of fund-raising with retail investors, this offers the chance of accumulating more units at a discounted price to the market. On the flipside, if one does not have the means of participating in the rights issue, one might face the double whammy of loss of capital (in a rights issue, the share price will drop to the TERP or thereabouts due to simple dilution) and a drop in dividend stream (again due to dilution but the extent largely depends on the purpose to which the funds are used for, ranging from acquisitions to AEI to paying down of debt, etc.)
As mentioned in the opener, I had participated in two such rights issues: First REIT and Cambridge. These two occurred in contrasting situations. For the former, I was not a unitholder and specifically bought into the counter so as to be allocated the rights units; for the latter, I had bought into the counter just before the rights issue was announced and for better or for worse, decided to simply go along with the exercise.
On hindsight now, both turned out to be profitable moves as the two counters managed to stay above the TERP after the rights units started trading pari passu. Furthermore, I tried my luck at excess rights for Cambridge in an attempt to round up my odd lots and was successful. Speaking of which, this last brings me to a final point on odd lots.
On occasion, retail investors may be stuck with odd lots in a rights issue exercise. To remedy this, there are a few possible ways:
- During the CR period, buy or sell units such that the number of lots held is a multiple of y in an x-for-y rights issue. For instance, in a 1-for-8 rights issue, one should hold 8, 16, 24, ... lots to avoid being allocated odd lots.
- During the trading period of rights, there will usually be a separate counter to trade rights, including one for odd lots denoted by a number at the end which indicates the board size. To continue with the 1-for-8 example, this will mean that there is a counter zzz 25 for trading in board sizes of 25. One thing to note though is that the overheads for trading rights can be significant since the dollar amounts will be smaller than that for trading the mother share.
- Arguably the most cost-effective and convenient way is to apply for excess rights when making the payment at the ATM for the rights units, since one will directly reap the benefits of the discounted price without going through the hassle of trading on the market.
Tuesday, March 01, 2011
Stock Portfolio Update Jan/Feb 2011
Continuing on from Stock Portfolio Update Nov/Dec 2010,
- 5 Feb 2010 - 4 Jan 2011
Bought Saizen warrant at $0.070 and sold at $0.075 - 28 Feb 2010
Collected dividends from FCT, PLife, Starhill, Cache, First REIT and PST
Portfolio Review 1Q11
One transaction completed:
Note to self: no P/L and NAV calculations due to ongoing rights issue by Cambridge
- Saizen warrant
- Buy
Probable DPU resumption in 2010 -> possible share price re-rating by market - Sell
See Portfolio Review 4Q10
- Buy
- FrasersCT
- PLife
- Starhill
- Cache
- First REIT
- Pacific Shipping Trust
- Sabana
- Cambridge
- Buy
Gearing has been progressively lowered through periodic repayment of debt and is around 33.4% after the latest round of paying down approximately S$20.0 million on 17 February 2011 (cf. gearing level of >40% in the early part of 2010, see From the Beginning...), but continues to offer high yield of >9% at ~50cents
Cessation of Distribution Reinvestment Plan -> no DPU dilution resulting from DRP ("Distribution Reinvestment Plan
The Manager has been informed by the Ministry of Finance on 17 December 2010 that the Distribution Reinvestment Plan (“DRP”) for REITs will not be extended beyond 31December 2010.")
- Buy
Note to self: no P/L and NAV calculations due to ongoing rights issue by Cambridge
Friday, November 26, 2010
Sixth time (un)lucky?
Previously for IPO applications...
CMA - unsuccessful
Ryobi Kiso - unsuccessful
Cache - successful (see Third time lucky)
MIT - unsuccessful
STX OSV - unsuccessful
Sabana - successful (again only allotted one lot as is the norm for applications of less than 10 lots)
Alas...
"Sabana REIT falls on market debut
Note to self: Low of $0.97 on first day of trading, @$0.96 annualised yield for Sabana will be ~9% in 2011; with a purchase of a further two lots @$0.96, average unit cost for me will be $0.99 and blended yield of Sabana holdings will be 8.72% in 2011
CMA - unsuccessful
Ryobi Kiso - unsuccessful
Cache - successful (see Third time lucky)
MIT - unsuccessful
STX OSV - unsuccessful
Sabana - successful (again only allotted one lot as is the norm for applications of less than 10 lots)
Alas...
"Sabana REIT falls on market debut
Sabana Shariah Compliant REIT
At 2:05 p.m., Sabana REIT was traded at $1.00 with 15.9 million shares traded. The shares traded as low as $0.97 -- 7.6% below the initial public offering price of $1.05.
Sabana REIT, Singapore’s first Islamic REIT and the world’s largest shariah-compliant property trust, sold 508 million units at $1.05 each in its IPO. The IPO was 2.5 times subscribed.
Sabana controls 15 industrial properties in Singapore with an aggregate floor area of about 3.3 million square feet."
Note to self: Low of $0.97 on first day of trading, @$0.96 annualised yield for Sabana will be ~9% in 2011; with a purchase of a further two lots @$0.96, average unit cost for me will be $0.99 and blended yield of Sabana holdings will be 8.72% in 2011
Sunday, November 21, 2010
Portfolio Review 4Q10
One transaction completed:- Suntec
- Buy
MBS and Esplanade + Promenade Circle Line MRT stations catalysts
Retail strength in central CBD area
Only mixed office and retail REIT -> diversification within a single REIT - Sell
Decreasing dividends from falling office rentals and dilution through issuance of new units (placement and deferred)
Proposed acquisition of one-third stake in MBFC financed by private placement and term loan will result in lower DPU for unitholders (10.915cents to 9.812cents) -> not at all beneficial to unitholders not entitled to placement units
- Buy
- FrasersCT
- PLife
- Starhill
- Saizen warrant
- Cache
- First REIT
- Buy
Proposed acquisition of two Jakarta hospitals (Mochtar Riady Comprehensive Cancer Centre and Siloam Hospitals Lippo Cikarang) financed by rights issue and term loan
Rights units priced attractively (discount of ~47% to closing price ~1 week before announcement) -> beneficial to new unitholders
Healthcare is a defensive sector -> stable DPU (cf. PLife)
- Buy
- Pacific Shipping Trust
- Buy
Counter is traded in USD but settled in SGD (see Taking advantage of the falling US dollar)
Acquisition of non-container vessels (two Capesize Bulk Carriers chartered to Jiangsu Shagang Group Co., two Multi-Purpose Vessels chartered to Cosco Xiamen and five Supramax Bulk Carriers chartered to Glovis) -> diversification of fleet and widening of charterer base
- Buy
- Sabana
- Buy
First Syariah-compliant REIT here in Singapore
Luck with IPO balloting for public (see Sixth time (un)lucky)? entry)
- Buy
Looking to hold
There were three counters which I held for the the entire 2010: Frasers Centrepoint Trust, Parkway Life and Starhill Global. Definitely, if distributions remain stable, I would continue to sit tight on these three and collect the quarterly dividends.
Looking to add
Of the remaining counters in my existing portfolio, four continue to have relatively high yields at current prices: First REIT, Cache Logistics Trust, Sabana and Pacific Shipping Trust. Cache and Sabana (and also MIT) are the new kids on the block for S-REITs and they remain largely unproven. First REIT has just undergone a rights issue to acquire two hospitals in Indonesia and there are always country risks to consider but otherwise, comments from the online community on the stability of its payouts have been favourable. As for Pacific Shipping Trust, of late it has been on a policy of acquisitions towards diversification of its fleet and I personally view this positively. Also, it has seemed to be the most prudent in its distribution policy and relatively free of counter-party risks compared to the other two shipping trusts (First Ship Lease Trust and Rickmers). However, as it is traded in USD, there are foreign exchange currency risks and one would have to keep an eye out for SGD/USD rates in addition to the share price.
Looking to release
The last counter which I am holding on to is the Saizen warrants. This was more of an opportunistic purchase to take advantage of a possible boost in share price from the resumption of distributions for this trouble-plagued REIT, so as to hopefully make some capital gains. Alas, I missed the window to sell when the price climbed for a bit earlier in the year and I will be looking to release it if there should be another similar window of opportunity to sell.
Finally, here's wishing everyone good fortunes in 2011 and a better year ahead!
~ Happy New Year! ~
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