Investment Portfolios Updates- S$613k (2 Sep'22)-Added Additional Alibaba, Capitaland China Trust and Fu Yu Corp.

With the US Federal Reserve still combating inflation, global stock markets remain in doldrum with the ever increasing borrowing rates. The "Big Short legend" Michael Burry holds the view that the S&P 500 will crash below 2,000 points (50% plus decline) but of course, he has been predicting a major crash since 2019. Recent rallies are nothing but fake bear market rallies according to this group of pessimistic investors. Other investors held the contrarian view that the stock market will rebound soon in another 2-3months once inflation is under control and whereby US Federal Reserve start to reverse monetary policy to fight global recession after keeping severe inflation in check. Commodity prices, oil prices and lower employment rate seem to suggest that the red-hot global economies are gradually slowing down. 

1. Portfolio 1- Stocks held in SGX Central Depository 

(Note: This portfolio is designed to provide immediate dividends for use (if required) as it is under my own CDP account and the dividends credited goes directly to my bank account.)

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I sold off some of my Ascendas REIT in early July 22 and purchased DigiCore REIT ("DC REIT") which I held on for 1 month. In view of the sudden August 2022 surge in DC REIT market prices which resulted in the extremely low distribution yield of less than 5% for DC REIT as well as the issue of major tenant facing bankruptcy, I have exited all my positions in DC REIT at US$0.865 per unit and took an immediate profit of US$2,440 (S$3,318). 16% realized return within a month is equivalent to waiting on capital deployed for 3 years to get the equivalent income distributions. I have since re-deployed the sales proceed back to United Hampshire US REIT and Ascendas REIT. 

2. Portfolio 2- Margin purchased securities

(Note: My margin purchased securities has grown to a sufficient scale to sustain itself and also to repay annual financing charges as well as to gradually pay down the margin loan through dividends generated.) 

The slight change made here was the additional investments into 5,000 units of Capitaland China Trust at average price of S$1.11 per unit in late August 2022. 

US Office REITs in my holdings continue to perform badly. Manulife US REIT held the worst performance REIT in my entire portfolio with losses of <19.35%>. The fortunate thing is that the high distribution yield of the 3 US office REITs helped to reduce the overall unrealised capital losses. 

Overall, for my margin portfolio, the dividends received since 1 Jan 2021 outweigh my slight unrealised capital losses by +S$40,059. The income focus investment approach is still holding up well despite the economic storm that has been raging relentlessly for the past 3 years.

3. Portfolio 3 (with Tiger Brokers)- Venture into higher risk as well as capital growth stocks here

Major change here is the disposal of all my Dasin Retail Trust due to the heighten probability of the Trust defaulting on its existing bank loans which it has been struggling to renew. Latest red flags is the huge loss of S$56.4Mil for 1st half of 2022 as well as the declaration that no distribution will be paid out to conserve working capital. Please see "Dasin Retail Trust And Investors In Trouble- Loss of S$56.4 Mil for 1st Half of 2022 And No Distribution Being Paid Out Red Flag".  

I have also added additional investments into Alibaba (800 shares), Fu Yu Corp, SingMedical as well as Lion-OCBC Sec HSTECH.

Summary:

I have unpaid S$21K of dividends upcoming for this month of September 2022. Most likely will be using the bulk of it to pay down on my margin loan in view of the stock market turbulence as well as the higher financing cost these days.