Wednesday, October 10, 2018

Q3 2018 Portfolio Update

Another quarter has passed and it is time to review my portfolio again.

Dividend Income

Q3 2018 SGD Dividend Income

Dividends received from my SGD-denominated portfolio in Q3 2018 fell, when compared to the same quarter last year. This trend has persisted for quite some time and it is symptomatic of deeper issues that my portfolio is somehow not quite right. Shouldn't an income investor receive more dividends through the passage of time? With some psychic pain, I persisted in my task of pruning the fundamentally weaker stocks from my portfolio. The drops in dividends received should stabilize in another quarter or two.

Q3 2018 USD Dividend Income

On the other hand, the dividends received from my USD-denominated portfolio is growing steadily, a result from both capital injections into dividend growth stocks and dividend growth from said counters. 

In this quarter, I initiated a new and small entry into OCBC when its price fell from its peak. With this move, my portfolio has some exposure to the financial sector again (after divesting iFAST, Hong Leong Finance, and T Rowe Price previously).

I exited my entire position in Lippo Mall Trust and Accordia Golf Trust in this quarter. Previously, I have taken partial profits for these two counters when they were at their highs. This time round, I exited the remaining stake for both at below my cost price. Overall, these two trades turned out profitable.

An investment blogger friend sounded out to me that there were some flaws in my thinking and I am grateful for that. Specifically, what I intended to do with regards to Lippo Mall Trust was to shrug off any unrealized losses as I got them at a (formerly) very low price of $0.30. Since I have taken partial profits at $0.40 and have received almost 3 years' worth of dividends, I was willing to hold it through a market crash coupled with its deteriorating fundamentals. I was even contemplating to buy more in a market crash. Somehow, the following thought eluded me: some counters go down..........and stay down. Okay, now I know better. Thanks friend!

As for Accordia Golf Trust, the dividend trend is not looking good. 

I added to my position in Hongkong Land. Nothing much to be added here; I like the recurring income from their investment properties and their clean balance sheet. To quote a friend who aptly described my position, I am treating Hongkong land as an un-levered REIT income play.

I also added to my position in JM Smucker. Despite the challenges faced, JM Smucker is still going strong (relative to its consumer staples peers). Looking to scale in further if opportunities present itself. 

Net worth breakdown
There has been minimal changes to my net worth breakdown when compared to the previous quarter.

Net Worth Breakdown

As per before, "the pie chart depicts the breakdown in my net worth across the various asset classes in percentage (pie chart neither includes my CPF nor my emergency fund). To be conservative, I computed my precious metals allocation at spot price even though I am holding everything in physicals."

Emergency Fund
On the ground, things don't really look good. Based on anecdotal evidence, I have heard of contracts not getting renewed and retrenchment exercises taking place.

At my end, I have continued to build up our emergency fund each month. I mentally segregate the emergency fund from investable cash. That way, in a real market crash cum recession, my mind will be free to operate in a cold and clinical fashion.

Strategy moving forward
In the interim, I am exposing myself to opportunities in other markets.

I have created a trading account to trade Hong Kong stocks and another trading account to trade Singapore stocks (in the event that my main Singapore trading account fails when everyone is trying to exit their positions in a market crash).

I will be creating a Malaysia trading account and a Denmark trading account soon.......after I am done with reading up on the rules and regulations.

If this is the calm before the storm, I appreciate all the time I can get to research stocks, re-confirm my choices, build up my emergency fund and my cash levels.


  1. May I ask why you have so much in precious metals?

    1. Hi Singapore Dividend Collector,

      I have been collecting antique bullion for quite some time.


  2. HI unN,

    Can you do a post about your rationale in gaining exposure to Hong Kong market and what kind of companies you are looking into? And how will you manage the forex and potentially political risks?

    I also recently entered Hong Kong due to market weakness but I will like to hear an independent analysis before deciding on how to navigate further. Thanks!

    1. Hi INTJ,

      At this moment, I am still getting my feet wet, so I don't think I am in a position to blog about it yet.

      I have no particular strategy actually. A friend who is well-versed with the Hong Kong market is providing me with some names for me to do my due diligence.