Investment Portfolios Updates (28 March 2024) - Net S$594K and Projected Annualised Passive Income of S$41K.

Gross investments (including deployable cash) is at S$880K. Net investment value is currently at S$594K (after margin financing) with projected passive income of only S$41K due to Keppel Pacific Oak US office REIT suspending dividends for 2 years. SREITs have again sunk to the bottom of the ocean after rising up in earlier part of the year. Going forward, I have included a "Portfolio Allocation" pie chart to keep track of my current shift away from intense SREITs focused investment portfolios.  I have been busy investing and diversifying into Bond Funds via Endowus before the official announcement of the widely anticipated interest rate cuts by the US Fed in 2nd half of 2024. 

(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 sold off part of my DigiCore REIT units to buy into Mapletree Logistics Trust. In addition, I have also sold off all my holdings in Capitaland Integrated Commercial Trust and bought into United Overseas Bank when there was a decline in its price. 

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.) 

(a) Bought into 3,0000 shares of China Ping An insurance group as its price has reached one of its all-time low. Bought it more for capital appreciation recovery play and its attractive 8% dividend yield (albeit a 10% withholding tax). I think that the high dividend yield will more than compensate the possibility of long waiting time for its stock price to recover by at least 50%. 

(b) Have also paid back some margin loan as well as converting more expensive USD loans to SGD denominated since my natural forex hedging strategy against USD assets held is no longer effective with the huge drop in valuation of US Office REITs. 

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

(a) For the last 1 week, I have been using Tiger Brokers and this portfolio to do some short term trading between UOB and Mapletree Logistics Trust and managed to make some side income of S$400. Will probably be taking this money out for spending on food. Inflation has been crazy for the past year.

(b) Added Ping An insurance group to this portfolio too.

(c) Added more into Alibaba when its price dropped below HKD70 a share. 

4. Portfolio 4 (Endowus & Other Investments)

(a) While others folks have bought into more REITs to exploit on their extremely low market prices, I have been building up my stake in bond funds via Endowus. The high interest rates lead to many bond trusts paying out higher distribution as interest rates rise. If interest rate were to be cut, bond prices should further appreciate. In addition, have also been buying into global equities fund for further diversification and long term capital appreciation.  

Summary

I used to have more than 90% of my overall investments concentrated in SREITs. It is still a long way to push it down further to my own targeted reduced allocation of 50%. With the expected cuts in interest rates by the Fed since the last Powell announcement, SREITs valuation are currently rallying again which is like a game of see-saw. It is also a long long way to go to re-build up my annual passive income distribution from the SREIT cut in dividends and higher borrowing costs.