FTSE STI ended the year at 3365.15, up 6.24% for the year. Here is the review of my investment portfolio for 2014.
At the end of 2013, my investment portfolio stood at +88.27% (inclusive of dividend return) and it moved up to +92.80% (inclusive of dividend return) in the end of 2014. That is a gain of +4.53% (inclusive of dividend return) for the year. Dividend return for 2013 and 2014 were +30.91% and +36.58% respectively, an increase of 5.67%. Minus off the dividend return, the portfolio was -1.14% for the year as compared with the +6.24% for STI. The underperformed difference was mainly due to the enlarge of invested capital in December 2014 for the addition of Kep DC Reit. Excluding the addition of Kep DC Reit, portfolio return at the end of 2014 stood at +96.15% (inclusive of dividend return) while dividend return was +37.91%. With that, portfolio and dividend return increased by 7.88% and 7% respectively, thus giving the portfolio return (exclusive of dividend) of +0.88% instead of -1.14%. However, still underperformed STI.
In term of individual stock performance for 2014, excluding dividend return of the 11 stocks (excluding Kep DC Reit), 6 of them gave positive return for 2014.
SingPost (+44.91%)
First REIT (+18.40%)
SIA (+11.43%)
MapletreeInd (+11.24%)
CapitaMall Trust (+7.09%)
Kep REIT (+2.95%)
CapMallA3.8%b220112 (-0.68%)
Cambridge Industrial Trust (-1.45%)
Kep Corp (-20.91%)
SembMar (-26.74%)
Genting SP (-27.76%)
The big drop in Genting SP, Kep Corp and SembMar weighed down the portfolio performance. The drop in Genting SP share price was due to concern of growth of the IR in Singapore in which it has hit the saturation stage. This was pretty much expected and looking forwards Genting SP needs to expand outside of Singapore (it already has a foothold in South Korea for the IR in Jeju which is undergoing construction) and the main catalyst should be in Japan if Japan decided to legalize gambling. The other 2 big drop (Kep Corp and SembMar) was due to the plunge of the oil price lately with concern of oversupply. The star performance for the portfolio was SingPost in which its fundamental changed after Alibaba invested in it, thereby lifting the share price.
Based on purely capital return alone, both SIA and SembMar suffered from negative return as compared to only SIA in 2013. However, SIA capital return has improved from -14.16% in 2013 to -4.3% in 2014. If inclusive of dividend return, all of the stocks gave positive return for the year. As a whole, lesson to be learned from 2014 portfolio performance was diversification. With both SembMar and KepCorp belonging to the same sector, the downside will be doubled up.
2015 will be a year in which I will concentrate in re-balancing my investment portfolio in particular focusing on diversification and that will mean potentially of realizing some gain.
