Shares investment Oct 11 Part 1
It's been an 'exciting' (read: nerve-wrecking) period these few months. Share markets globally plunged, eked out some gains and then plunged again. Rinse and repeat.
I took the opportunity to add some shares to my modest portfolio:
(1) Boustead Singapore Limited. Although I did some cursory research about the company, chiefly about its operations, geographical reach and its profitability, I admit that I rely quite heavily on someone else's analysis. I like the business strategy, its diversified nature and, of course, its past performance. While keeping the amount invested in this company low, I'll keep an eye on any news and analysis of the company
(2) CapitaRetailChina Trust: I've always wanted to invest in REIT that owns good shopping malls. Problem is that I am only familiar with malls in Singapore. After speaking with some friends who just recently moved from China, after years living there, I decided to invest a nominal sum in this trust. So far, REITs created by Capitaland consist of good quality assets and appear to be well-managed, although their dividend yiels are typically lower than its peers but that's alright if one consider them to be the blue-chip version of their industry
(3) SPDR STI ETF: This is mainly to obtain capital gain as I'm convinced that market will move much higher within 2 years. This conviction comes from research by others as well as from my days of investing in unit trusts. Note that this ETF is denoted in SGD and thus I do not need to take into account of losses due to currency exchange rates (more on this later)
(4) Added more to CapitaCommercial Trust and Suntec Reit when the price dropped by more than 20% relative to my average purchase price.
On the other hand, I have sold the following:
(a) DBXT MSCI Asia ex-Japan ETF 10: Mainly because I decided that I didn't want the extra trouble of taking into account of the movement between SGD and USD (the share is denoted in USD)
(b) DBXT MSCI Emerging Markets ETF 10: Same reason as (a)
(c) DBXT MSCI World TRN ETF 10: Same reason as (a)
(d) Cityspring Infrastructure Trust: It has excellent investment moat but unfortunately, it has been making losses in recent years (and yet the entity managing it is making profit!). More importantly, the trustee-manager chooses to emphasise on cash earnings and thus appear to brush off the losses. Cash earnings do not take into account the capital expendicture that eventually would be needed e.g. for repairs, replacement of parts. Many investors have dumped this share because of this stance. At last, I joined them too.
(e) First Ship Lease Trust: The management either has no plan or doesn't want to announce a plan on how to reduce its debts, especially those with LTV covenants of which they had some difficulties with previously. Also, there is still no news on how they're going to deal with repayment of loan due in about 6 months time. Hence, I've decided to exit this counter despite its historical dividend yield of about 11%.
(f) Pacific Shipping Trust: I actually like this trust, despite its share denominated in USD. The management has a clear plan to reduce debts and thus it is no surprise that its share price has been steadily increasing. Unfortunately, its sponsor Pacific International Lines Pte Ltd, who is also the main shareholder, wants to delist it, subject to regulator's and shareholders' approval. They would need just 75% to delist the trust and highly likely they'll achieve it given that they had over 59% and likely more now as it seems that they've been buying from share market too. The offer price is excellent compared to my purchase price. Though I loathe to sell such well-managed trust (historical dividend yield of about 10%), I do not wish to be in the position of the remaining 25% and thinking of how to sell my shares privately (since it would be delisted).
So far, I've made a realised loss of just over 1% but I'm conforted by the fact that the dividends I've received thus far is about 9 times of the amount of losses. Phew!
I took the opportunity to add some shares to my modest portfolio:
(1) Boustead Singapore Limited. Although I did some cursory research about the company, chiefly about its operations, geographical reach and its profitability, I admit that I rely quite heavily on someone else's analysis. I like the business strategy, its diversified nature and, of course, its past performance. While keeping the amount invested in this company low, I'll keep an eye on any news and analysis of the company
(2) CapitaRetailChina Trust: I've always wanted to invest in REIT that owns good shopping malls. Problem is that I am only familiar with malls in Singapore. After speaking with some friends who just recently moved from China, after years living there, I decided to invest a nominal sum in this trust. So far, REITs created by Capitaland consist of good quality assets and appear to be well-managed, although their dividend yiels are typically lower than its peers but that's alright if one consider them to be the blue-chip version of their industry
(3) SPDR STI ETF: This is mainly to obtain capital gain as I'm convinced that market will move much higher within 2 years. This conviction comes from research by others as well as from my days of investing in unit trusts. Note that this ETF is denoted in SGD and thus I do not need to take into account of losses due to currency exchange rates (more on this later)
(4) Added more to CapitaCommercial Trust and Suntec Reit when the price dropped by more than 20% relative to my average purchase price.
On the other hand, I have sold the following:
(a) DBXT MSCI Asia ex-Japan ETF 10: Mainly because I decided that I didn't want the extra trouble of taking into account of the movement between SGD and USD (the share is denoted in USD)
(b) DBXT MSCI Emerging Markets ETF 10: Same reason as (a)
(c) DBXT MSCI World TRN ETF 10: Same reason as (a)
(d) Cityspring Infrastructure Trust: It has excellent investment moat but unfortunately, it has been making losses in recent years (and yet the entity managing it is making profit!). More importantly, the trustee-manager chooses to emphasise on cash earnings and thus appear to brush off the losses. Cash earnings do not take into account the capital expendicture that eventually would be needed e.g. for repairs, replacement of parts. Many investors have dumped this share because of this stance. At last, I joined them too.
(e) First Ship Lease Trust: The management either has no plan or doesn't want to announce a plan on how to reduce its debts, especially those with LTV covenants of which they had some difficulties with previously. Also, there is still no news on how they're going to deal with repayment of loan due in about 6 months time. Hence, I've decided to exit this counter despite its historical dividend yield of about 11%.
(f) Pacific Shipping Trust: I actually like this trust, despite its share denominated in USD. The management has a clear plan to reduce debts and thus it is no surprise that its share price has been steadily increasing. Unfortunately, its sponsor Pacific International Lines Pte Ltd, who is also the main shareholder, wants to delist it, subject to regulator's and shareholders' approval. They would need just 75% to delist the trust and highly likely they'll achieve it given that they had over 59% and likely more now as it seems that they've been buying from share market too. The offer price is excellent compared to my purchase price. Though I loathe to sell such well-managed trust (historical dividend yield of about 10%), I do not wish to be in the position of the remaining 25% and thinking of how to sell my shares privately (since it would be delisted).
So far, I've made a realised loss of just over 1% but I'm conforted by the fact that the dividends I've received thus far is about 9 times of the amount of losses. Phew!
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