Portfolio Update Jul 2020

Alright so let’s do this. Quite a few changes made this month.

NameBought priceCurrent PriceMarket ValueGain/Loss (SGD)
Temasek 3.625%102.2118.913USD $297,00059,331
Commerzbank 7% perpetual106.85100.044USD $200,000-19,329
HSBC 5% perpetual104.4100.1SGD $250,500-10,750
Pimco Income Fund 4%10.089.89SGD $216,000– 4,147
Lifelong Income Whole life planSGD $220,000
SumSGD $1.38m$25,000
Correct as of 25 Jul 2020

Leveraged Portfolio

I have sold my Credit Suisse bond at 99.5. Together with the coupons I received so far, made a loss of about $4,500 for holding 8 months. I think this is acceptable given how bad prices were, and the gloomy outlook for banks. While I don’t think the banks will collapse, it makes sense for me to lower my risks. I’ve redeployed the cash into a lifelong income plan, as detailed here.

Prices of all my bonds improved, and the leveraged portfolio is now positive, with a $25,000 gain. It doesn’t count the coupons, which should be about $40,000 or 10% of my initial capital. I’m projected to have total returns of around $60,000 from this portfolio.

I would like to find more income generating assets and leverage because interest rates are so cheap. But there aren’t many good opportunities out there. Environment isn’t very conducive for income, with dividends being cut and low interest rates. If I do more, it will be fairly small. Tech stocks seem to be a better deal nowadays.

Leveraged portfolio value is SGD $1.38m, about the same from before.

Total real asset value = $1.38m x 0.333 (70% LTV) = $459,000

Just to note, the value also moved up because I used a more conservative 0.3 before. 0.333 is a more accurate representation of a 70% Loan-to-value (LTV).

The margin valuation report isn’t even a concern now. Standing at a very comfortable number of 192%.

Stock Portfolio

These are direct screen shots from my trading app. I have two stock trading accounts. One is my cash trading account, which holds my more recent trades, while the other is the margin account, where I pledge shares for leverage.

I’ll likely be moving all my funds over to the margin account for simpler management. It’s been troublesome to switch between and move funds around, and prefer they are all in the same spot.

Cash Trading Account
Margin Trading Account

I’ve been making a lot of trades. Dropped Booking.com and Johnson & Johnson at small losses (3% overall), and sold some S&P 500 ETF at a 7% profit. With those funds, I bought into AMD. Been lucky because AMD rocketed up 25% within a week. Made over USD $10,000, and all because I loved my $900 laptop.

I’ve learnt to eat small losses early, and let my winners run. I used to think that I need to take profit and would sell when there is a rise of 15% or so. I now realise that is a very noob approach. Just hang on for the ride. Selling stock because it’s gotten expensive is the silliest thing.

Total stock portfolio value = SGD $416,000

Cash

Holding about USD $43,000, and SGD $50,000.

The entire USD $43,000 will be deployed into the stock market once my bank confirms how much more they can lend me. I need to put it with them for a while to determine a new credit line.

I’ll be putting $10,000 into the SingLife endowment which gives 2.5%. This is a no brainer. With my OCBC 360 account paying next to nothing now that I have no salary, I’ll be keeping the bare minimum in my bank accounts. Will probably put a similar amount into Singtel Dash. These will function as my emergency stash.

I’m actually super cash low in my everyday bank account. Just three months of expenses. Anyone who peeks over my shoulder at the ATM will think I’m pretty poor guy, combined with my broken sandals and old T-shirt. I’m not concerned. It also helps to see such a low balance when I go to the ATM, and it makes me feel the pain when I withdraw cash.

Total Cash = $110,000

Net-worth

Total net-worth = $459,000 bonds + $416,000 stocks + $110,000 cash = SGD $985,000

10 comments

    1. CGS-CIMB. I think there are cheaper options now. But I’ve been with them for a while, all my accounts are set up there. Too much trouble to move

      1. I have the same mindset lol
        I’m with PHILLIPS and looking for cheaper & easier alternatives. The trouble is moving brokerage with my holdings
        Thank you for the reply

  1. Here’s a life hack for you: Close the 360 account (since this charges monthly fee if balance below min) since the interest rate is low w/o salary component and move to a Plus! account which comes free with the Plus! debit card. No initial deposit or monthly fee required for the account.

  2. What’s your take on profit taking? Sometimes you can take a loss selling, and then sometimes it happens that the other stock you buy dips as well..

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