Summary of April 2020 Transactions

Stock Portfolio

Today is the last day of April 2020 whereby I usually summarize my stock transactions. I have applied my strategy of buying small quantities of stocks instead of large transactions. This is because I believe the stock market have not factor in the financial impact by the COVID-19 pandemic.

In early April, I have bought more of CapitaMall Trust and US Manulife REIT. US Manulife REIT and CapitaMall makes up 2.33% and 9.70% of my stock portfolio respectively.

If you have noticed, Frasers Commercial Trust no longer appears in my stock portfolio. This is because Frasers Commercial Trust had been delisted due to its merger into Frasers Logistics and Industrial Trust. As a result of the merger, my holdings of Frasers Logistics and Industrial Trust had increased to 12.99%.

Most REITs have released their quarterly financial results. They are Suntec REIT, Mapletree Commercial Trust, Mapletree Logistics Trust, ESR-REIT, ParkwayLife REIT, Mapletree Industrial Trust and Starhill Global REIT. Due to the uncertainty of the impact caused by the COVID-19, most REIT managers have decided to retain a portion of their distributable income. Even though distribution per unit have declined due to the retention of distributable income, the share price of most REITs had still gone up. I am not sure why but I advise investors to trade with caution.

If you are looking for safe haven, I have found two endowment plans this month. They are Tiq 3 Year Endowment Plan and China Taiping i-Save Plan. The benefit of these endowment plans is the guaranteed capital upon maturity. Even though the returns may not seem as attractive, the risk is definitely low.

There is still one more month before the end of the “Circuit Breaker”. I definitely hope this does not get extended.

Meanwhile, stay safe and stay at home!

Goodbye Frasers Commercial Trust

Frasers Commercial Trust currently makes up 1.93% of my stock portfolio.

I am saying goodbye to Frasers Commercial Trust not because I am selling it. This is one REIT that has been paying me consistent dividends no matter whether the economy is good or bad. Frasers Commercial Trust has completed their Asset Enhancement Initiative last year and their assets should start to generate revenue for them this year.

Last year, Frasers Logistics and Industrial Trust and Frasers Commercial Trust announced their merger. If you are keen on the results of the annual general meeting, 98.61% are for the merger while 1.39% is against it.

The last day of trading for Frasers Commercial Trust is on 9th April 2020 and I have received my cash payout on Friday, 24th April 2020. If you are a Frasers Commercial Trust unitholder, you would have received

  • S$0.151 in cash for each unit; and 
  • 1.233 new Frasers Logistics and Industrial Trust units per Frasers Commercial Trust unit

Goodbye Frasers Commercial Trust!

Summary of March 2020 Transactions

We are coming to the end of March 2020 and this is time to look at my stock portfolio. I have never expect the COVID-19 outbreak to have such a significant impact on the world wide economy which caused all the stock markets to plunge into a sea of red. I guess it was too early when I assess the impact of the COVID-19 outbreak with the previous outbreak as the stock market was still relatively stable at that time.

From 11th March 2020, this is the period whereby the impact could be felt and the worst is the Straits Times Index Fell 6.03% Due to Oil Price War between Saudi Arabia and Russia. I have sold off The Hour Glass and Kingsmen Creatives at reasonable prices when I read about the impact of COVID-19 to retail and entertainment industry. I feel that the risk of these two stocks will be impacted the most when shoppers avoid malls and attractions such as NERF experience are closed.

Taking opportunity of the market crash, I have bought OCBC Bank and Singtel as the dividend yield has turned attractive. Of course, I am expecting dividends to be cut but the dividend payout should turn positive when the economy recovers. There are other blue chips whereby the current prices are attractive but if you look at my stock portfolio, I have already own a couple of them such as ST Engineering. The others such as SBS Transit, VICOM can be found in my wife’s stock portfolio.

The stock prices of REITs have fallen as much as 58% this month. As I have a limited war chest, I have nibbled at US Manulife REIT and keep the rest for deployment in tranches in upcoming months.

Last, I will like to share the investment lessons I have learnt during this crisis.

Even though we had bought some shares at the prices prevailing before the fall, we welcomed the decline because it allowed us to pick up many more shares at the new panic prices.

Berkshire Hathaway shareholder letters, 1990

Keep calm and continue investing!