With reference to Journey To Retirement Part 6.2 -- SIA dated 2nd Aug 2020.
Did a full divestment of the MCB -- SIA MCBz300608. The divestment was the actual SIA MCBz300608 share but the locked-in stock for it. The divestment price for the locked-in stock was S$1.04/share. Couple with the first divestment in Aug 2020 at price $0.98/share, the nett divestment price works out to be S$1.01/share. As a result of this divestment, capital gain was +1.27%. At the same time, the locked-in share also received dividend and the dividend return so far was +4.8%.
As known, the SIA MCB is a zero coupon bond with an expected conversion price of S$4.84/share upon full maturity. The move in August 2020 was a strategic one to test out a swap and lock-in to another stock (in particular one with constant dividend) will it provide a better return in the long run.
The divestment now doesn't mean the test has completed as presently am doing a major restructuring of the Investment Portfolio. Any "unwanted", underperforming, lack of future visibility and of course "experimental" one would be let go. The SIA MCBz300608 fits into those category without any doubts.
The actual SIA MCBz300608 closed at S$0.988/share on 26th Nov 2021, which is 1.2% below the par value. Thus, since the strategic move in Aug 2020 till now, that 1 year 3 months of experiment yield a better performance than just pure holding on the underlying.
