Sunday, December 08, 2019

One week review of SGX Securities Borrowing and Lending Enhancement Phase 2

A week has passed since SGX lowered the lending and borrowing fee for Phase 2. Under the new structure: Lenders will get a fixed 70% of the borrowing fee, which is higher than the old 66.67% (4% lending fee) of the borrowing fee. (My own opinion: Yeah, that is only true for borrowing fee above 5.75%.) Guess what? The starting borrowing fee is 4% and if the equity is a Blue Chip, REIT or Business Trust, the borrowing fee is only 0.5%! Zzzz. So much for getting a higher lending fee....

Well, with the lowered borrowing fee, SGX expect there will be an uptick in borrowing rate. Guess what? There is no one who borrowed new shares from me. For my current shares that are on loan, they have either returned back to me or borrowed  from me at a lower quantity. Looks like this new Phase 2 is not so effective after all.

Wednesday, November 06, 2019

Next 3 years (2020 - 2022) Investment Plan

As we bring 2019 to a close, it is unlikely I will reach my 2019 goal set back in 2017. My portfolio dividend yield will probably be in the 2.0% to 2.5% range, way off the ambitious target of 3.75%. Re-balancing a portfolio with some dead weight stocks is not easy after all, with some hiccup along the way with the Noble Group and KrisEnergy saga these 3 years. Well, at least I managed to increase my yield of 0.76% from 3 years ago. 

Like I always advise, you can't always expect to earn money every time in investment. Sometimes it go well, sometimes it doesn't and you end up losing your capital. Hence, only invest if you are prepared to lose the money and have done your research. Looks like I will need to slowly write off Noble Group, Linc Energy and maybe Krisenergy from my folio, though technically, they are not delisted yet.

Well, back to my main objective of investment - earning passive income. You know for insurance with cash value, there is a non-guaranteed portion that ranges from 3.25% to 4.75%. I think for the next 3 year, I will set a target to get a better yield than insurance (Example: 4.8%). No reason why I set it as 4.8%, I just think it will be a challenging target to try to achieve. Well, here you are, the next 3 years (2020 - 2022) Plan:
  1. 50% Equity, 50% Reits/Trusts
  2. Portfolio Dividend Yield to be 3.50% in 2020, 4.20% in 2021, 4.80% in 2022.
I will likely to continue load up on MIT, FCT and Singtel (if price is right) till I reached at least 10k shares each counter, so that these counters can participate in the Securities Borrowing and Lending (SBL) Program. Other potential target also include HPH (I feel price cant get any lower after the HK protest and debt reduction), Netlink and Manulife US Reit.

Tuesday, November 05, 2019

The Addams Family

Synopsis: Get ready to snap your fingers! The Addams Family is back on the big screen in the first animated comedy about the kookiest family on the block. Funny, outlandish, and completely iconic, the Addams Family redefines what it means to be a good neighbor. [Source: Golden Village]

I didn't have much expectation going into the theater and I was right. The whole movie was pretty average at most, with some funny moment that may draw your laughter. Pretty cliche plot with not much twist and turns. Well, at least this can keep the kids entertain.

Rate: 6/10

Monday, November 04, 2019

EVE High Tea Gathering

It is great to see each other once again after so many years. Had a great catch up session @ POLLEN Garden by the bay. Great environment, cool atmosphere, lots of food that you wish you had an empty stomach before coming here. Hope we can meet up soon in the near future.

*Saliva dripping*

Friday, November 01, 2019

Hello World

Synopsis: In Kyoto in the year 2027, Naomi Katagaki, a male high school student encounters a person who claiming to be Naomi from 10 years in the future. Together, they must change the future and save a classmate, Ruri, whom the younger Naomi starts to date in three months. [Source: Golden Village]

A seemingly uninteresting synopsis transformed into an unexpected ending. That was the feeling I got after watching the anime film. Just which world is the character living in - the real world or the constructed world? This film does remind me of Inception though... Not a bad film to catch, the ending will be quite unexpected.

Rate: 7/10

Wednesday, October 23, 2019

Maleficent: Mistress Of Evil

Synopsis: Maleficent: Mistress of Evil" is a fantasy adventure that picks up several years after Maleficent, in which audiences learned of the events that hardened the heart of Disney's most notorious villain and drove her to curse a baby Princess Aurora. The film continues to explore the complex relationship between the horned fairy and the soon to be Queen as they form new alliances and face new adversaries in their struggle to protect the moors and the magical creatures that reside within. [Source: Golden Village]

Definitely not as good as the first installment, but still passable. Movie is a little draggy at times but being Disney, it won't go wrong in the end. CGI of the mystical creatures are pretty good. A good show overall to bring your kid to watch.

Rate: 6/10

Wednesday, October 09, 2019

SGX Securities Borrowing and Lending Enhancement Phase 2

Just received a letter two days ago from SGX informing Securities Borrowing and Lending (SBL) Program participants that they will be rolling out their phase 2 enhancement on 02-Dec-19. So what is this Phase 2 all about?

Following their Phase 1 enhancement which was rolled out 09-Dec-18, they have successfully increase the pool of shares available for lending by retail investors:
  1. For a security priced $1 or below, you must own a minimum of 10,000 units (previously 50,000 units) of that security; and
  2. for a security priced more than $1, you must own a minimum of $10,000 in value of that security.
(My own opinion: Yeah, they have increase the pool of shares available to short. >.<)

For Phase 2, they will be switching to variable rate pricing for the lending and borrowing fee. Currently, the borrower pays a fixed 6% per annum, while the lender receive 4%. SGX said in the letter that the 6% rate is generally higher than charged by other SBL providers, thus a deterrent for borrowers whose shares are kept at CDP. 

Under the new structure: Lenders will get a fixed 70% of the borrowing fee, which is higher than the current 66.67% (4% lending fee) of the borrowing fee. (My own opinion: Yeah, that is only true for borrowing fee above 5.75%. However, if they managed to entice more share borrowing by lowering down the borrowing fee, lenders will get to benefit as more of their shares are loaned out. That unfortunately, means that there is more shorting of shares. >.<)

With this Phase 2 roll out, will that means I will have more shares loaned out? Only time will tell.