Investment Portfolios Updates- S$536k (30 Dec'22)- Investing During Bear Market Turmoil.

While the stock market conditions have improved slightly, December 2022 remains in the doldrum and the expected year-end huge rally mentioned by many analysts did not materialize at all. Based on StocksCafe, my year to date unrealised losses (including historical dividends received) is <-7.17%> as at 30 December 2022. The income investing strategy is still working well for me and getting realised investments in the form of recurring dividends helps to cushion against economic turmoil and mitigate the vagaries of exploiting the most opportune market timing to take profits.

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.)

I have invested my excess fund of approximately SGD10K over 2 tranches of 7,000 units each at prices of US$0.540 and US$0.520 respectively during the last week of December 2022 into DigiCore REIT. In fact, I have been gradually building back my stakes in DigiCore REIT since I sold off all my DigiCore REIT units at US$0.865 per unit to take profit during the mini-rally in August 2022. Please see "Is DigiCore REIT a Good Buy Now Since its 41% Decline in Unit Price From IPO?".

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.) 

2.1 Additional investments were made into Capitaland China Trust. The devastating frequent shut down and rental rebate to its retail shopping malls will soon be a thing of the past going forward into 2023. China has done a sudden reversal of its zero COVID strategy. 

2.2 Manulife US REIT is in trouble as its fair valuation has dropped substantially which caused its leverage ratio to hit 49% (1% short of Monetary Authority of Singapore maximum ceiling of 50%). There is a high probability that Manulife US REIT may be blacklisted by Maybank Securities in its allowable margin programme. Nevertheless, Manulife US REIT has now dwindle to become a small part of my entire margin portfolio such that even if it became non-marginable or zero in value, I will not be caught in a margin call. I have also applied the stress test on my Portfolio 2 in the event that the other 2 US office REITs (Keppel Pacific Oak and Prime) also ended up in the same predicament and overall, I would still be able to escape unscathed. 

2.3 If push comes to shove and the recession worsen, I still have an alternative backup plan in place to ensure my margin portfolio held up for the longer term. 

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

3.1 I have increased my stake in DigiCore REIT for capital growth as its price has declined 41% to its IPO debut which I personally think is being oversold. 

3.2 I have also took profit on my short term investment into Global Investment Limited with a small 7.1% capital gain within 2 months. 

4. Portfolio 4 (Other Investments)- Non-listed equities and DBS DigiPortfolio

I have invested S$1K into DBS DigiPortfolio to test out their new category of digital portfolio. This product is an income focused portfolio which has 55% in equities, 40% in bonds and 5% in cash holdings and seeks to pay out 4% dividends per annum. So far, I do not really like it as visibility to its components needs quite a bit of mental acrobatics. 

In future, I will also be opening up a pre-funded brokerage accounts with DBS Vickers for investing in index ETF that has a focus on income distribution. The brokerage fees starts from a minimum of S$10 per trade (or up to 0.12% of any transaction) for such an account. Portfolio 4 is being opened also to diversify away from the use of Tiger Brokers.