Monday 5 February 2024

Investment Portfolios Updates (2 Feb 2024) - S$613K and Projected Annualised Passive Income of S$46K.

While the valuation of my net investments had gone up relative to 2 months ago, my projected passive income has declined from S$50K to S$46K. Interest expenses from margin financing has gone up. In addition, I have revised downwards the projected yield from StocksCafe for Keppel Pacific Oak REIT as well as Prime REIT- the latter I have amended the expected dividend yield to be zero as it is in "deep shieet" from the looks of it still not releasing its financial results compared to its previous year end announcement date.

(Note: Please also refer to my other Family Portfolio which is projected to yield +S$20K of passive income per annum).

 1. Portfolio 1- Stocks held in SGX Central Depository 
(Note: This portfolio is designed to provide immediate dividends for use as it is under my own CDP account and the dividends credited goes directly to my bank account.)

I have taken up additional shares in Haw Par Corporation as well as entered a small position into CapitaLand Investment Limited. 

2. Portfolio 2- Margin purchased securities
(Note: My margin purchased securities has grown to a sufficient scale to sustain itself and can pay off annual financing charges as well as to gradually pay down the margin loan through dividends generated.) 
I have taken up new position in another REIT using margin financing. US Office REITs that I am holding (Keppel Oak and Prime REIT) are expected to perform badly this year given their weak financial position and close to breach of banking covenants. The only consolation for me is that their current pathetic valuation has now become immaterial to my overall gross portfolios.

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

(i) Keppel Corp share prices shot up with the announcement of a record year of profits as well as a good amount of final dividends. I had taken profit when its share price hit over S$7 and redeployed it into Ping An Insurance Group.

(ii) I continued to add in additional 200 shares into Alibaba as Jack Ma and Joe Tsai had also buy in US200Mil of shares. The million dollar question is will 7th Feb 2024 results announcement be a catalyst to break the death spiral of Alibaba stocks?

(iii) During this 2 months period, I have also added a position into Thai Beverage as it was trading near its 52 weeks low. Please refer to this video on why I added a position into Thai Beverage. 

(iv) I have continued to accumulate additional stakes into United Hampshire US REIT during the downturn when its price was hovering at US$0.37 per unit.

4. Portfolio 4 (Endowus & Other Investments)
I have added in a new self created balanced growth funds that is 50% equities (Fidelity Global Dividend Fund + Fidelity Asia Pacific Dividend Fund) and 50% bonds (PIMCO fixed income+ Allianz Global High Yield Fund) which will give an expected passive income yield of 4.8% per annum. 

I plan to continue building up my investments using Endowus as it enables diversification into bond funds.

I think that 2024 looks set to be another bad year for REITs due to the high interest rate environment which will affect most REITS and their distributions when their loans are due for renewal. Gone are the days of dirt cheap close to zero interest rates. Nonetheless, I am optimistic that the yearly rental escalation clauses should eventually negate the effects of higher financing costs for REITs. 


  1. 2024 is the year to buy good quality REITs cheaply if you have the holding power to wait for recovery. Also interesting to analyse which REITs are going to have rights issues which usually causes the price to drop in the short-term. On the other hand, MSCI World seems to be on track for another positive year, after its 24% performance in 2023, so good to load up as well.

    1. Hi Hello World, glad to see you dropping by again to share your thoughts. How have you been?

      Yup, agree fully with you on that 2024 maybe the year to continue buying in quality REITs at a cheaper valuation when there are still bad news in the market while waiting for recovery.

      Are you also vested in the MSCI World index? My Endowus CPF investments has around 50% vested in MSCI World index while another 50% vested in a Index Global Bond Fund. It has indeed performed very well in view of the global market recovery.

    2. Yes, after many years of losing to MSCI World, I have to concede that I am not a good stockpicker so I am deploying 50% of my free cash flow into world etfs. The other half goes into fixed income like T-bills or equities.