FTSE STI ended the year 2021 at 3,123.68 compared with 2,843.81 a year ago, representing a gain of 279.87 points or +9.84%. Most would like the performance was due to the recovery from the Covid-19 pandemic which started in January 2020. While the pandemic is still ongoing with the latest being the mutated Omicron variant, it is still too early to conclude the pandemic is over or stock market correction is over. Just a food of thought, if vaccine is able to get the world out of pandemic, those nations who have been mass vaccinating the population out of the pandemic are still requiring further booster shot against newly mutated variant why ?
The following summarized the Investment Portfolio performance for 2021 vs 2020
| 2021 | 2020 | Variant | |
|---|---|---|---|
| Non-Strategic Unrealized Gain/Loss | +33.40% | +14.08% | +137.22% |
| Strategic Unrealized Gain/Loss | +2.88% | 1.26% | +128.57% |
| Portfolio Unrealized Gain/Loss | +16.67% | +11.21% | +48.71% |
| Realized Gain/Loss | +20.05% | +29.08% | -31.05% |
| Dividend Return | +68.51% | +66.31% | +3.32% |
| Cash Holding | +54.05% | +26.91% | +100.85% |
| Portfolio | +105.23% | +106.60% | -1.29% |
| STI | 3123.68 | 2843.81 | +9.84% |
| Annualized (w/o dividend) | Annualized (with dividend) | |
|---|---|---|
| Genting SP | +2.52% | +4.14% |
| CapitaMall Trust | +4.74% | +9.03% |
| SIA-SATS | -2.52% | +0.08% |
| SingPost | -3.39% (divested) | +1.34% (divested) |
| Kep Corp | -3.36% | +0.08% |
| MapletreeInd Trust | +9.73% | +12.44% |
| Kep DC Reit | +13.83% | +16.52% |
| Frasers Cpt Trust | +6.29% | +10.39% |
| SIA MCBz300608 | +1.27% (divested) | +6.07% (divested) |
| STI ETF | +28.89% | +33.93% |
There was a dip in the realized gain from +29.08% to +20.05%. This was due to the ongoing Investment Portfolio restructuring and rebuilding (refer here) in which both SIA MCBz300608 and SingPost were divested. While the former netted a positive return (refer here), the later registered a capital loss of 36.17% (refer here), the main factor for the overall dip.
After the divestment, Cash holding increased from +26.91% to +54.05%. Strategic section unrealized gain moved up from +1.26% to +2.88% as 2 more stocks (Fu Yu and InnoTek) were added.
Overall, total portfolio performance still able to maintain above 100%.
The following summarized the performance of the Stock Incubator portfolio for 2021 vs 2020.
| 2021 | 2020 | Variant | |
|---|---|---|---|
| Unrealized Gain/Loss | +55.80% | +28.74% | +94.15% |
| Realized Gain/Loss | +32.29% | +32.29% | +0.00% |
| Dividend Return | +18.99% | +16.05% | +18.32% |
| Cash Holding | +62.67% | +61.98% | +1.11% |
| Portfolio | +107.09% | +77.09% | +38.92% |
| STI | 3123.68 | 2843.81 | +9.84% |
The solid performance was mainly due to the performance of Nordic Group. It closed S$0.23/share in 2020 but S$0.41/share in 2021, a jump of 78.26%. However, for my holding the price was locked at S$0.3934/share due to a strategic locked in price at S$0.355/share for 31.25% of the holdings. Nevertheless, this still register a jump of 71.04% in unrealized gain. While both Valuetronics and Creative closed lower than in 2020, the jump in Nordic Group was more than enough to offset those two and gave an overall increase of 38.92%.
Dividend return also recorded a gain of 18.32%. Cash holding increased 1.11% due to the continue recovery of the capital being injected into Creative as the holding price reduced from S$3.5718/share in 2020 to S$3.4562/share in 2021.
Total portfolio rebounded back to above 100% for 2021
Looking Ahead
Investment Portfolio will continue to restructure and rebuild to form the 3rd Investment Portfolio since 1993. If everything work out as planned, the whole restructuring and rebuild should be able to complete within 1Q 2022 and hopefully before STI correction.
While most people in particular analysts will be more optimistic about STI in 2022 with reason being the Covid-19 pandemic should be ending in 2022, from the STI analysis I did on the STI Analysis -- the next peak and trough series coupled with my "6.5th sense", a final correction is not a big surprise and something expecting for me.
