Thursday, June 4, 2015

Journey To Retirement Part 14 -- MapletreeCom Trust

Using the same method as in FrasersCom TrustSun Tzu Art of War Chapter 3 — Strategic Attack (第三篇,谋攻篇)MapletreeCom Trust was added to the long-term investment portfolio under the category of "Cashless/Strategic".  The only difference is the total cost was not $0 but rather at a price of S$1.1329/share.  This was due to the fact that the holding was sold off after XD with a slight loss as compared with a gain in the case of FrasersCom Trust.

The slight cost incurred should not be any worries as in the long-term time frame, it will eventually reduce (due to the increase of quantity via scrip dividend) or a profit obtains in the next execution via the same strategy is able to offset that amount.

Like in the case of FrasersCom Trust, the strategic investment in it will do the followings :-

1. Use to hedge against the potential paper loss in the normal portfolio in the situation of a bear market

2. Better return achieve than compared with investing in corporate bonds or Singapore Savings Bond.

3. Build up wealth for retirement.

Looking forwards, the followings are the possible options that could be adopted :-

1. Leave the investment alone and every quarter just collect scrip dividend to increase the quantity

2. Continue execute the same strategy for every quarters to increase the quantity of share in the shortest possible time via the scrip dividend scheme but could risk incurring higher cost due to selling off in a loss after XD.  However, should such situation happens, can revert to step 1 for a few quarters to bring down the cost.

MapletreeCom Trust