Tuesday, January 3, 2017

Strategic Investor 2016 Review

FTSE STI ended the year 2016 at 2880.76 compared with 2882.73 a year ago, representing a drop of 1.97 points or 0.068%.  A relative flat market despite being a volatile year.  Below is the review of my investment portfolio for 2016 vs portfolio for 2015.


20162015Variant
Unrealized Gain/Loss              +37.84%         +31.97%      +18.36%
Realized Gain/Loss   +10.73%   +10.67%   +0.56%
Dividend Return   +46.61%   +41.15%   +13.27%
Cash Holding   +31.89%   +30.83%   +3.44%   
Portfolio   +95.13%   +83.85%   +13.45%   
STI   2,880.76   2882.73   -0.068%


As a whole portfolio registered a gain of 13.45% compared with STI drop of 0.068% for 2016.  Of the 13.45% gain, 13.27% gain was contributed by dividend return.  Discarding the dividend return for 2016, portfolio gain would be 0.18% still outperforming the STI.  On individual stock basis, 4 of them ended in the red for 2016.

Genting SP  (+17.53%)
Kep DC Reit  (+16.75%)
MapletreeInd Trust  (+8.22%)
First Reit  (+5.42%)
CapMallA3.8%b220112  (+0.39%)
CapitaMall Trust  (-2.33%)
SingPost  (-10.67%)
KepCorp  (-11.06%)
SIA  (-13.66%)

On annualized basis (inclusive of dividend return), the performance of individual stock is as follow :-

Frasers Cpt Trust  --  21.63%
MapletreeInd Trust  --  15.79%
Kep DC Reit  --  15.54%
First Reit  --  12.86%
CapitaMall Trust  --  12.36%
SingPost  --  8.17%
Geting SP  --  6.22%
CapMallA3.8%b220112  --  4.68%
KepCorp  --  2.37%
SIA  --  1.37%


Divestment
There was no divestment in the non-Strategic section in 2016 but for the Strategic section, Cambridge Industrial Trust was divested in January 2016 for strategic reason (refer here).

Investment
1. Frasers Cpt Trust was added in the non-Strategic section (refer here) in January 2016 at the price of $1.80 (the lowest price level in whole of 2016) but after some strategic mean by acquiring more shares at $0 cost, the eventual holding price is lowered to $1.6314.

2. Unit in First Reit was increased by strategic mean at $0 cost thereby reducing the holding price from $0.6188 to $0.609

3. Unit in MapletreeInd Trust was increased due to scrip dividend thereby reducing the holding price from $0.9176 to $0.8537

4. Unit in Kep DC Reit was increased due to subscription of preferential offering, thereby increasing the holding price from $0.8719 to $0.9393 as the offering price was above my holding price.  There was a question posted to me how I get my holding price at $0.8719 (before the preferential offering) when the IPO price is $0.93 and stock has never traded below $0.93.  Well, I managed to acquire some unit at $0 cost thereby reducing the holding price from $0.93 to $0.8719.  

5. CapitaR China Trust was added in January (refer here) to the Strategic section


The main reason for my investment portfolio to outperform STI (two year in a row) was due to the Strategic section, those "extra-ordinary soldier" according to Sun Tzu Art of War (孙子兵法之奇兵) which I rebuild my portfolio since 2015 according to Sun Tzu Art of War.  The rebuilding process has not completed yet and so far the progress is as follow :-

1. Non-Strategic section is about 65% complete as I still need to make some divestment (partial divestment) to create a more balance portfolio.

2. Strategic section is only 10.82% done. 100% completion is needed in order to see the ultimate effect but with only 10.82%, the market value as of 30th Dec 2016 stood at 11.63% that of the cost of Non-Strategic section.  That is to say either I have a 11.63% paper gain or I managed to shelve off 11.63% of the cost of the Non-Strategic section.  The cost for the Strategic section currently stood at $0.0398/share up from $0/share in July 2016 due to the subscription of MapletreeCom Trust preferential offering.  While I could by strategic mean reduce the cost back to $0 but that is not my priority at the moment and am happy with that low cost too.

3. Dividend section is 93.22% done.  However, this section is beyond my control as the amount of dividend given out each year depends on the companies.

4. Cash holding section is 63.78% done and 100% can only be achieved once the Non-Strategic section is 100% done.

The above is the first objective that I set for my Sun Tzu Art of War investment portfolio.  I did not set a time frame as to when I want to achieve the objective as I like to do it in a more cautious but confidential way.

2 comments:

  1. will you be bale to share your strategy to add additional shares at $0 cost.

    ReplyDelete
    Replies
    1. hi,

      unfortunately, i would like to keep that as confidential. sorry for that.

      Delete