Jan19 has been a great month for equity investors.
All major markets made an incredible turnaround from the dismal Dec and put on a strong show within a month. STI gained about 5%, Hang Seng/China Shanghai indexes gained about 10% and US S&P-500 8%.
Happy # 1
My overall portfolio outperformed STI slightly, @6.5% but it paled in comparison to Hang Seng or S&P 500.
The size of the gain is expected as the bulk of my investments are largely here in Singapore. However, it did better than STI because I am relatively overweight on Reit than Banks (which are the majority of STI) and I also have about 10% investments in HK and US companies combined.
Overall, I am happy with this gain, especially after the “bloody” and volatile December last year. But it also showed me that I should continue to diversify from SG market and at the moment, I am focusing to grow my investments in HK and US markets via index ETFs.
Happy # 2
Furthermore, based on the dividends that had been declared so far by the companies along with their results, my accumulated dividend yield is now ~ 1%.
It will continue to climb as more companies report their results in the coming week. This is another good start as it will support the 5% dividend yield that I am targeting for my portfolio.
The third thing I am happy about is that I managed to take profit and rebuild my warchest back after ploughing into it to buy some of the local blue chips in Dec last year.
Even with this Jan rally, I am still not so optimistic that things have really turned around. There are just too many uncertainties in the market.
Hence, to me, having my warchest back is important as it would give me some useful resources to deploy if Mr Market decides to throw an unexpected tantrum and present me a buying opportunity into quality companies again. Furthermore the increase in the cap of SSB has given me an opportunity to place some fund there.
While I took profit in this Jan rally, I also took the opportunity to re-jig my portfolios to make closer and more aligned to my investment objectives.
Progressively over time, I want to increase the weightage of income and index portfolios and reduce that of my growth portfolio.
At the moment, my growth portfolio is still quite substantial.
On 1Jan2019, the breakdown of my portfolios was
- Income Portfolio – 21.3%
- Growth Portfolio – 65.2%
- Index Portfolio – 13.5%
On 1Feb2019, the breakdown has become as follows:
- Income Portfolio – 21.5% (+0.2%)
- Growth Portfolio – 62.5% (-2.7%)
- Index Portfolio – 16.0% (+2.5%)
I am particular happy with the growth in my index portfolio via additional investments and higher gain in overseas market.
As some of you know, I am moving more into index rather than individual companies investment.
Chinese New Year is just the corner.
It is one of my favourite festival as it brings the extended family together. Furthermore, it is a time for catching up and feasting to our hearts’ content without the guilty feeling (its once a year come on :-)).
Let me also take this opportunity to wish all my readers 新年快乐, 身体健康, 万事如意
Do have an enjoyable and safe holidays !