Share investment Apr 16 Part 1

A number of changes since the last update a year ago.

This time, let's start with divestment:

(1) Ausnet Services: due to a restructuring exercise, a new single company was established to replace the then current triple-stapled structure. Since I'm an overseas shareholder, they sold my shares and gave me the proceed.

(2) SBS Transit: despite invested in this share counter for more than 6 years and had plowed in more when its price fell, its dividend yield (on average cost) remains just above 3% i.e. well below my preferred minimum yield of 5%. I placed sell order for all my holding but there are still some remaining due to lack of buyers. I'll just hold this small amount while seeing through the Singapore government's restructuring exercise of the public bus transport.

(3) Saizen REIT: they sold all their properties in Japan en bloc and so now they are a cash-only entity. They have returned most of the capital to shareholders (on top of providing dividend). There's expectation of delisting in August this year.


Initiated/added:

(1) Ausnet Services: Since my shares were "forced" sold, as explained above, I bought shares in the new company.

(2) Boustead Singapore Ltd: Took opportunity to add more when its price fell, caught up in the fall in share market due to a number of global economic issues. The steep fall in oil price affected many oil & gas companies and related companies. I suspect Boustead is affected too since it does have O&G customers.

(3) Keppel Corp: This conglomerate's main business are Offshore & Marine, Property and Infrastructure. I vaguely recall that this share counter was shortlisted before but was dropped because it would be too prohibitive for me to buy due to then lot size of 1000 shares. However, since the size was lowered to 100 last year, I took the opportunity to buy some, with the then current dividend yield of over 6%. Since then, its price has fallen due to firstly corruption scandal involving one of its major customers and then followed by the steep fall in oil price.

(4) Second Chance Properties: Took opportunity to add more when its price fell, in line with share market. This company has very substantial number of properties. Falling property price clearly didn't help.

(5) Sembcorp Industries: Its share price fell due to similar reasons as Keppel Corp's.

(6) Silverlake Axis: I've been eyeing this counter for some time now. This company provides core banking solution to many banks in this region, as stated in their website: "Over 40% of the top 20 largest banks in South-East Asia run the Silverlake Axis core banking solution, and today, we are the core system platform partner of choice for 3 of the 5 largest ASEAN super regional financial institutions." Such institutional customers are reluctant to change their IT systems as long as they are working and service provided are not bad. It is a case of "If ain't broken, why change?". It is primarily up to the provider to mess it up. Unfortunately, after I purchased its shares, they were in embroiled in some alleged financial voodoo. I did trickle in more money and now will wait and see.

(7) Singapore Press Holdings: I believed at one point I wanted to put some of my war chest at work and so was researching which of my share counters I should top up. I generally avoid REITs because I'm still disgusted by the way managers are remunerated (performance bonus on top of fee as % of AUM). In the end, I added more SPH shares.

(8) VICOM: Yet another counter that was on my watch list for a long time. So when there was persistent general weakness in the market that affected this counter as well, I bought some. "VICOM Ltd is Singapore's leading provider in technical testing and inspection services." For as long as there are land vehicles in Singapore, there will be needs for testing and inspection. Fairly illiquid counter.


As at 16 Apr 16, I have investment in 27 companies (I've also indicated whether their source of business is solely in Singapore only or not):

AIMS-AMP Industrial REIT (Singapore only)
Ascott REIT
Ausnet Services
Boustead Singapore Ltd
Cache Logistics Trust (Singapore only)
CapitaCommercial Trust (Singapore only)
CapitaMall Trust (Singapore only)
CapitaRetailChina REIT
First REIT
Fraser Centrepoint Trust
Keppel Corp
Kingsmen Creatives
M1 (Singapore only)
SATS
SBS Transit Ltd (Singapore only)
SIA Engineering
Silverlake Axis
Singapore Press Holdings
Singapore Technologies Engineering
Saizen REIT
Second Chance Properties (Singapore only)
Sembcorp Industries
Singpost
SingTel
Singapore Shipping Corp
Venture Corp
VICOM (Singapore only)
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