Tuesday, March 31, 2020

Portfolio Update - March 2020

It's the end of the month once more, and you know what that means on my blog - a portfolio update for the month of March 2020.

Just when you thought February was pretty eventful already, March 2020 came in hard and wrecked havoc to everyone's portfolio. The oil price crash and escalating Covid-19 hits hard, and recession looms.

However, is this not one of the reasons why we invest? To guard our future via wealth accumulation in case one became victims to retrenchment or any personal black-swan events?

See: Link to Main Portfolio page

Contents:
  1. Portfolio (31 March 2020)
  2. Transactions and Dividends
  3. First Tranche Deployed
  4. Closing Thoughts



Portfolio (31 March 2020)


Notes
1 - Forex rate is based off indicative conversion (actual values will differ)

Performance


The chart shows a sharp increase, only due to distortion from capital injection (CMT + warchest).

Without the capital injection:
  • I would actually be down by a whopping 24.6% since end-Feb 2020.
  • I would actually be down by a whopping 22.1% YTD.
Some commentary on my portfolio
  • Welcome back CMT! Readers of my blog in its early days will know I used to own it back in 1Q2018, but chose to let go of it when faced with a choice what to divest to fund my home purchase. (Big mistake)
  • The price of Fu Yu Corp seems to have stabilised for now, but we have yet to observe financial impact. I am thankful Fu Yu Corp is debt-free and significantly net-cash positive.
  • Prime US REIT and Lendlease REIT were amongst those hit very hard earlier on, but has have slight recovery from their lows since then.
(back to top)

Transactions and Dividends 

(a) Transaction Summary
  • Injected SGD 6000 into portfolio, of which 3640 was spent on Capitamall Trust (CMT).
  • Bought 2000 units CMT at SGD1.82 each.
  • Remaining cash is added into warchest.
(b) Dividend Summary
  • Dividend received
    • Totals approximately SGD79, and this is cycled into the warchest
    • PRIME US REIT: SGD 59.72 (4.11 US cent per unit)
      • This represents a forex rate of 1.453 USD/SGD.
    •  Lendlease Global REIT: SGD 19.35(1.29 Singapore cents per unit)
  • No dividend declared for the month of March 2020
(back to top)




First Tranche deployed
This is going to sound contradictive, but despite what I said previously that we have yet to observe the impact on financial report (see Portfolio Feb 2020 update), I decided to "open fire" at CMT, as this price is quite attractive (it saw a low of 1.855 back in 2015, representing a 5-year low). Unfortunately somewhat too early as it saw a further selldown to as low as SGD1.56 before climbing back up to its closing price of SGD1.79 today.

Yet here I am in two minds, however, to get itchy fingers and sell CMT for small profit if it does bounce back up to 1.89 or more while we wait for it to revisit lows again. My budget for this year is limited to ~6000 + any dividends I get, and the purchase of CMT, already bite-sized to begin with,  leaves me with a tiny balance of 2400. Trading this way might help increase my balance, but then the risk of losing money is probably much more elevated.

FOMO is real, and managing emotional aspect in my opinion is one of the more challenging things in the world of investing. And see, this is probably why we do investment instead of trading - so we don't end up dealing with such what-ifs, and proceed to reap our rewards after some years.

It was said that the crash of REITs (does it apply to other equities? I can't remember) was due to forced selldown from margin calls on leveraged positions. I wonder if and/or when there will be another bout of selloff as realisation of actual financial impact.

Closing Thoughts
This concludes the portfolio update for 1Q2020. I have made a bunch more mistakes since the start of the year due to FOMO, so I ought to straighten up and get back on track with recovering from losses before pushing hard to outperform the market.

While buying opportunities has risen this month, we have yet to see the financial impact through financial reporting. I believe despite the measures taken to mitigate the situation worldwide to aid businesses, it ain't over yet.

So get lock and loaded, and get ready to accumulate again soon.

1 comment:

  1. That's Definitely True That This Year March Has Hit Everyone Really Hard Because Of The Crashing Economies and Outbreak Of Covid-19 Has Created Havoc Among The People.

    ReplyDelete