3Q 2026 Investment Strategy Update

Same old story. Nothing really change in the last 3 months. Iran and Ukraine war is still on-going. El Nino effect is going strong, bringing the haze back to Southeast Asia with drier weather and lesser rain. Future market outlook to me is also hazy as well. >.< Trump still believes that USA is great and everyone should revolve around him, weaponizing tariff and forcing countries into his own agenda. Well, we still have 2 years and 4 months of him more to go! *sigh*

Market wise, the Fed has just raise the interest rate by 0.25% 2 weeks ago to tame inflation, ending hopes of lower interest rates to drive the stock market higher. US Reits took a hit from that decision. DJI ended at 50906, an decrease of 1413 points (-2.70%) compared to 2Q 2026. For Singapore, STI ended at 5675, an increase of 505 points (+9.76%) compared to last quarter. Banks in Singapore (58.5% STI weightage) continues to drive the STI direction. Thanks DBS for the stellar results and contribution towards capital and dividend gains.

Below is a summary of my transaction in the last quarter:

Transaction 1: Bought 1 batch IReit Global shares in July. Project RE(O has shown results with the signing of 2 long term hospitality lease and 1 long term office lease, with the first contribution in 3Q 2027 after construction finished. Dividend is expected to increase from 2027 onwards.

Transaction 2: Bought 1 batch DBS shares in July. DBS has shown stellar results and has exceeded all expectation consistently every quarter. I believe eventually, this could be Singapore first $100 stock! Buy in for their ever increasing quarterly divided and capital gains.

Transaction 3: Bought 1 batch Singtel shares in August. Singtel28 transformation execution is bearing fruit, with the heavy investment into data center and share buybacks. Dividend has since return to pre-COVID levels.

Transaction 4: Bought 1 batch Prime US Reit shares in September. There was this one day in September that without warning, Prime drop a whopping 12%. No idea what is the reason, but I decided to buy in the next day to capitalize on the drop with improving US sediments and results in the last 4 quarters. Dividend payout ratio has been increasing as well with improving confidence from the management. Worth to buy in and keep to wait for turn around.

That is all for now. See you all in Q4 2026 update and thank you for reading thus far.

2Q 2026 Investment Strategy Update

Chaos is the word defining Q2. Iran war is just about to come to an end (I hope) as cease fire was agreed on 17-Jun between USA and Iran. However, limited tit-for-tat strikes are still reported on both sides, threatening the fragile peace. Oil price at least has came down, putting a hold on further inflation escalation.

June is also the month for World Cup 2026 as USA, Canada and Mexico co-host the event. Lots of surprise results as participants battle for glory and honor. Cape Verde became the rookie star of the tournament. Who can foresee that a country with only 500,000 citizens can go into the Round of 32? Maybe.... Singapore can take some inspiration from them? Haha

Market wise, USA and SG has gone back to its peak after a quick correction. Investors are still buying the AI dream, and with it, tech and semi-con companies have continue to rise with their out of the world valuation. DJI ended at 52319, an increase of 5888 points (+12.70%) compared to 1Q 2026. For Singapore, STI ended at 5170, an increase of 285 points (+5.83%) compared to last quarter. Banks in Singapore (51.1% STI weightage) continues to drive the STI direction.

Below is a summary of my transaction in the last quarter:

Transaction 1: Bought 1 batch Grab shares in June. I still believe in the potential of Grab as they still have their advertisement segment and GXS bank yet to fully developed. Just a case of buying the dip.

Transaction 2: Bought 1 batch NTT DC Reit in June. Good entry point at 7.5% yield as they go Ex-Div. Data center is now high in demand. Good potential and room to grow with increase dividend in future. Yes, their lease to tenant are going up as well.

Transaction 3: Bought 1 batch Singtel in June. Singtel has dropped about 12% from its last high point ($5.02). Good point of entry and dividend yield if holding long term.

That is all for now. See you all in Q3 2026 update and thank you for reading thus far.

1Q 2026 Investment Strategy Update

Dear President Trump, you have done it again. You have said to want to negotiate deals with countries to end a tariff standoff that is acceptable to both parties. Yet, the moment U.S. Supreme Court ruled that the tariff measures you invoked under the International Emergency Economic Powers Act were illegal, you raised the tariff to 15% under another another alternate regulation: Section 122 of the Trade Act for the next 150 days. All previous agreed deals are now void.

Dear President Trump, you have said you wanted peace (I know you wanted the Nobel Peace Prize very badly for reasons that only you knew) and have negotiated or participated in some ways to end XX number of conflicts. Yet, you turn around and kidnap the Venezuela president and started bombing Iran because they pose national security concerns to the USA? In the span of 1 week, oil price has increase from $70 to $108, a whopping 50%, directly impacting our common folks cost of living. What about the Ukraine war that is still on-going into its 4th year? Should you not focus on ending this first? Or maybe President Putin is your very good friend and you do not want to displeasure him?

I gathered: I cannot trust you with any deals that we spent countless time negotiating, for you will not hesitate to tear it to shreds in the blink of an eye if things doesn't go your way.

Anyway, chaos, chaos and more chaos. That basically sums up the first 3 months of 2026. Large swings in equity values. With that said, I still believe if the fundamental of the company remains strong, we should double down on cost dollar averaging when its price becomes attractive.

DJI ended at 46341, an decrease of 1722 points (-3.58%) compared to 4Q 2025. For Singapore, STI outperformed and ended at 4885, an increase of 239 points (+5.14%) compared to last quarter. Banks in Singapore (48.7% STI weightage) continues to drive the STI direction. Due to potential rise in inflation as a result of oil price increase (depends on how long the Iran war might drag on), market is pricing that there might be no more interest rate cuts this year.

Below is a summary of my transaction in the last quarter:

Transaction 1: Bought 1 batch Singtel shares in February. Singtel is currently undergoing transformation to embark on the next pillar of growth: Data Centers. Besides developing and managing its own data centers, it just also announced a joint acquisition with KKR for ST Telemedia Global Data Centres (STT GDC) for S$6.6 billion. With stable dividend returning due to its associates contribution, this is a valued company to buy into, with a forecast dividend yield of 3.5%.

That is all for now. See you all in Q2 2026 update and thank you for reading thus far.

4Q 2025 Investment Strategy Update

2025 is really not the year for the faint hearted. We have a USA president that is weaponizing tariffs to change world order to prevent the rise of China and forcing company to shift manufacturing back to USA. Whether it is effective or not still remains to be seen, but cost is rising in USA as these tariffs are pass on to customers. We also have 3 regional military conflicts happening within a single year, from "Thailand - Cambodia conflict" to "Israel - Gaza Hamas war" to "Russia - Ukraine war" which is still on-going after 3 years, it is really beyond words that stock market can continue to rise and break their respective top records. In USA this year, we have the AI related industry leading the way, while back in Singapore, we have our 3 top banks to thank for as investor flock to these safe heaven equity.

DJI ended at 48063, an increase of 1666 points (+3.59%) compared to 3Q 2025. For Singapore, STI ended at 4646, an increase of 346 points (+8.04%) compared to last quarter. Banks in Singapore (50.5% STI weightage) continues to drive the STI direction and for once, STI has outperform DJI significantly.

With 2024 drawing to a close, it is time for the annual review against my 3 year plan (Next 3 years (2023 - 2025) Investment Plan) set back in Nov 2022. Below are my result:

Original 2023-2025 plan:

1. 50% Equity, 50% Reits/Trusts
2. Portfolio Dividend Yield to be 3.80% in 2023, 4.30% in 2024, 4.80% in 2025.

End 2025 result:

1. 49.56% Equity, 50.44% Reits/Trusts
2. 78.29% SG Equity, 21.71% USA Equity

Portfolio Yield at 3.73% in 2025 (+0.27% from 2024, and miss 2025 4.80% target)

Verdict: Miss Target

Note: In 2025, Prime US Reit only gave out dividend at a reduced rate (50%). Keppel Pacific Oak US Reit elected to suspend dividend until 2H2025.

Below is my end 2025 portfolio snapshot:

Total dividend received in 2025: $7,758.09 (~$646.50/month)

In this quarter, I did a few buy-ins for REITS that I felt is currently undervalued, so as to position myself for the recovery in the next 2 years.

Transaction 1: Bought 1 batch Prime US REIT shares in December.

The USA real estate has began to recover as tenants started expanding for more office space to accommodate more employees returning back to office. All these will be positive for USA REITs as their occupancy rate rises. Not to mention, Prime has started to increase the dividend rate from 10% to 50%

Transaction 2: Bought 1 batch DBS shares in December.

Our darling for the year as a series of strong results cause the share price to rise from $43+ in January to $56+ (+30%) in December. Who knows if this continues on, we may see a $100 DBS in the next 3 years.

Transaction 3: Bought 1 batch IREIT Global shares in December.

Berlin Campus is currently in the process to change from a single-let property to a multi-let, mixed-used property. Target to finish in 2027, it should directly result in a dividend increase. Time to buy in first for positioning while the price is low.

Transaction 4: Sold 1 batch Marriott shares in December.

I just think it is time to cash in while the price is high and use the proceed to buy in Visa as it is a more stable equity whose price will rise with time due to their share buy-back program.

Transaction 5: Bought 1 batch Visa shares in December.

For stability in slow price appreciation due to their share buyback program and improvement in business year after year.

That is all for now. See you all in Q1 2026 update and thank you for reading thus far.

Next 3 years (2026 - 2028) Investment Plan

I believe "Chaos" is an appropriate term to define 2025. With Trump tariffs re-ordering world's trade, regional wars erupting in parts of the world (See Thailand - Cambodia conflict; Israel - Gaza Hamas war; Russia - Ukraine war which is still on-going after 3 years), it is really amazing that stock market can still rise and break their respective top records.

Looking back the last 3 years, I am glad that my passive income dividend portfolio is still going strong. This year, I am expecting the dividend yield should be around 3.6% to 3.8% range, pending the finalization of some small tweaks I have done the last few days. The dividend yield could be higher, if my current USA reits have started giving their dividend, which they are planning to in 2026. 

For the next 3 year, my target will be similar as the current (2023 - 2025) Plan cycle, with a slight tweak to aim for higher dividend yield:

1. 50% Equity, 50% Reits/Trusts
2. Portfolio Dividend Yield to be 4.00% in 2026, 4.50% in 2027, 4.80% in 2028.

I will likely to continue load up on US Reits listed on SGX as they are still undervalued at the moment, together with our brightest star (DBS). Who knows, we may see a $100 DBS within the next 3 years.

3Q 2025 Investment Strategy Update

Trump (again) continues weaponizing tariffs to force countries to bow to his demands. This quarter, the focus for Trump is on Pharmaceuticals, where he demands companies to move manufacturing back to USA. Frankly, previous deals signed mean nothing under Trump administration, as he can just change the tariffs % as and when he feels like it. Look at India, they are charged additional 25% tariffs to penalize its trade with Russia beginning 27-Aug-25 under so called "secondary" tariff. China on the other hand will seize this opportunity to replace USA as the soft power leader of the world. Market is still not looking rosy at the moment, with frequent news of companies still right sizing their workforce. 

DJI ended at 46397, an increase of 2303 points (+5.22%) compared to 2Q 2025. For Singapore, STI ended at 4300, an increase of 336 points (+8.47%) compared to last quarter. Banks in Singapore (48.7% STI weightage) continues to drive the STI direction. USA Fed has started their cycle of reducing interest rates, and projects there will be 2 more cuts this year. Banks usually do not do well in an interest rate reduction environment. I think STI may just trade sideways for the rest of the year, with banks likely taking a small hit in their share price.

In this current quarter, I did some loading on USA REIT as the real estate has seem to bottom and start recovering with more companies asking their employees to return back to office and interest rate has started to decrease.

Transaction 1: Subscribe NTT DC REIT IPO shares in July.

With the focus in AI, data center will continue to be in hot demand. 7% projected yield looks enticing enough to invest some money in.

Transaction 2: Bought 1 batch Kep Pac Oak US REIT shares in July.

Same reason given as above. The USA real estate has seem to start recovering with more companies asking their employees to return back to office and interest rate has started to decrease. Best time to invest more money in before the share price start rising. Besides, this REIT has a solid sponsor and a good management team.

That is all for now. See you all in Q4 2025 update and thank you for reading thus far.

2Q 2025 Investment Strategy Update

Trump continued his bullying tactics in 2Q, weaponizing tariffs by imposing a 10% import tax from every countries in the world, with some countries facing a higher charge due to their trade imbalance with USA. China, which was specifically targeted, ends up with a 145% levies as they went head on with USA. Though Trump will not admit it, he blinked first for de-escalation as China uses rare earth export control to choke USA high tech sector. Will EU survive Trump's bullying as July 8 deadline draws near? We will know in a week's time. In the meanwhile, prepare for a rough ride.

DJI ended at 44094, an increase of 2061 points (+4.90%) compared to 1Q 2025. For Singapore, STI ended at 3964, an decrease of 8 points (-0.20%) compared to last quarter. Banks in Singapore (50.1% STI weightage) continued to do well with record profits as interest rates remains elevated, though the sediment is that rates should start coming down in Q3. Overall, market continue to respond to Trump's policy wimps.

In this current quarter, taking the short opportunity presented when Trump was scaring the world with his tariffs, I did a few loadings.

Transaction 1: Bought 1 batch DBS shares in April.

Darling of Singapore with growing loans and profits. Just buy the dip for the dividends. Who knows 10 years later, we might see a $100 DBS on SGX?

Transaction 2: Bought 1 batch Marriott shares in April.

Same reasoning, just buy the dip with their healthy share buyback program. I doubt Trump will want to crash USA economy, unless he wants to lose his republican base. Given his nature, he will pass his big beautiful tax bill, enrich the rich and kick any potential pitfall to whoever is coming after his term.

Transaction 3: Bought 1 batch Danaher shares in April.

Love this counter and their Danaher Business System. Work the companies within their group dry to achieve maximum efficiency to generate more cash to go buy other company to work on.

Transaction 4: Bought 1 batch Grab shares in April.

I believe in their potential with the up and coming to monetize Grab Ads and digital banks in SG, ID and MY. Give them 2 more years and healthy profits should start rolling in once they have economy of scale.

That is all for now. See you all in Q3 2025 update and thank you for reading thus far.

1Q 2025 Investment Strategy Update

This quarter marks the start of Trump's rule for the next 4 years and he does it with a bang! With the all too familiar bullying mentality, it is his way or the highway. Within the first 2 months, in order to cut down government expenses, he close almost all foreign aids, fire contingent government workers and started tariff wars with countries which have a huge trade surplus with USA. Economist is currently talking about slow down in USA GDP due to the increase in cost and pricing in a possibility of recession 6 months down the road. Private companies are not spared either, with increasing news of retrenchment to right size the workforce to combat recession threat. Personally, I don't foresee a good year ahead, even if Trump manage to ramp his way through with tax cuts (and possibly put USA into more debt with fiscal deficit).

DJI ended at 42033, an decrease of 511 points (-1.20%) compared to 4Q 2024. For Singapore, STI ended at 3972, an increase of 185 points (+4.88%) compared to last quarter. Banks in Singapore (52.8% STI weightage) continued to do well with record profits while technology shares took a hit due to slowdown in demand. Overall, market continue to respond to Trump's policy direction. 

In this current quarter, with limited budget as company is not doing well, I can only do some small bot on purchase.

Transaction 1: Bought 1 batch Credit Bureau Asia shares in March. 

This company continue to scale up in their new markets in Cambodia, and Myanmar, while Singapore and Malaysia will be buoyed by the new digital banks increased checks on customer profile as they start their loan business. Income will be stable as it is much a recurring business. I believe there is still room to grow for this company.

That is all for now. See you all in Q2 2025 update and thank you for reading thus far.

4Q 2024 Investment Strategy Update

It is a crazy world. Just when I think the USA folks are clear headed enough to see through Trump's flowery commitment (After going through 4 years of his rule), they went back and elect him as the next term president. 2025 could just be a Year of Chaos, where tariffs and Trump's way or the highway politics will take center stage. Overall, I believe Trump's politics will benefit the US stock market, with tax cuts and deregulation. Fed's interest rate should still be on the downward trend, but at a slower rate. After all, Trump always has a tendency to rate his performances based on the strength of the US stock market. With the downward trend in interest rate, I will be staying clear of bank stocks. Instead, I may take a look at REITs that have exposure to USA Offices. Things have started bottoming out, with companies demanding employees to come back to offices to work, and that means they need more space!

DJI ended at 42544, an increase of 214 points (+0.50%) compared to 3Q 2024. For Singapore, STI ended at 3787, an increase of 202 points (+5.63%) compared to last quarter. Banks in Singapore have taken central stage in the last 6 months with their stellar results, but with the looming downward interest rate trend, I will only do opportunistic buy-in if they drop too much a price.

With 2024 drawing to a close, it is time for the annual review against my 3 year plan (Next 3 years (2023 - 2025) Investment Plan) set back in Nov 2022. Below are my result:

Original 2023-2025 plan: 

1. 50% Equity, 50% Reits/Trusts 
2. Portfolio Dividend Yield to be 3.80% in 2023, 4.30% in 2024, 4.80% in 2025.

End 2024 result: 

1. 49.22% Equity, 50.78% Reits/Trusts 
2. 80.58% SG Equity, 19.42% USA Equity 

Portfolio Yield at 3.46% in 2024 (-0.12% from 2023, and miss 2024 4.30% target)

Verdict: Miss Target

Note: In 2024, Prime US Reit only gave out dividend at a much reduced rate. Keppel Pacific Oak US Reit elected to suspend dividend until 2H2025.

Below is my end 2024 portfolio snapshot:

Total dividend received in 2024: $6,595.05 (~$549.58/month)

For this quarter, I continued accumulating Keppel Pacific Oak US Reit and Mapletree Industrial Trust to take advantage of Fed starting cycle in reducing interest rate. Overall, this move should be a positive for Reits as a reduction in interest rate = reduction in interest expenses = more distribution available for investors.

Transaction 1: Bought 1 batch Mapletree Industrial Trust shares in December. 

Overall positive for the Reit as they started investing into Japan Data Center market, partly due to low interest rate for Yen and Yen currency weakness. At current 5.9% dividend yield. this is a good deal.

Transaction 2: Bought 1 batch Keppel Pacific Oak US Reit shares in December. 

Current weakness was due to its suspension of dividend until 2H2025. I personally don't see this Reit in any potential danger as the manager has been keeping a close eye on its gearing level. Continue to buy in while waiting for dividend to resume.

That is all for now. See you all in Q1 2025 update and thank you for reading thus far.

3Q 2024 Investment Strategy Update

The Feds has finally made their move, deciding on a 0.50% interest rate cut, making borrowing cheaper, and at the same time, hoping to steer the USA economy into a soft landing and not go into recession. With that, this signals the start of the interest lowering cycle. Cheers to the REITs and those companies on high debt. Banks, on the other hand, ever dependent on their Net Interest Margin, is forecast to start reporting lower profits. Now... this is the time to buy your last train ticket into REITs before they start flying off, benefiting from lower interest cost and reporting higher dividend rate. Next Federal meeting is set in Nov, where markets are envisioning a 0.25% cut and a final 0.25% cut in December.

DJI ended at 42330, a increase of 3212 points (+8.21%) compared to 2Q 2024. For Singapore, STI ended at 3585, an increase of 253 points (+7.59%) compared to last quarter, tracking gains on Wall Street. Last 3 months saw the Singapore 3 banks surging from stellar results and not forgetting Singtel, continue its 23% climb after releasing Singtel 28, their next growth strategy and revised dividend policy back in May 2024. Investors seem to really like what they saw, with potential increase in dividend rates.

Sadly to say, as the company I am working at is not doing well, they have decided not to issue any mid year bonus, thus, I do not have spare cash to load into any counter this quarter. Hopefully, with the lowering of interest rate, all the US Office REITs in Singapore can start resuming their dividend soon.

That is all for now. See you all in Q4 2024 update and thank you for reading thus far.

2Q 2024 Investment Strategy Update

When is Fed going to start cutting interest rates for real? I guess that is the questions weighing on many people's mind. Goalpost has shifted compared to 3 months ago. Now, the projection is lowered to just one cut this year, with analysts predicting it will likely happen in Sep 2024. I am currently staying on the sideline, probably continuing what I have been doing these past 6 months: Accumulating US Office Reits, since their price now is at rock bottom and there is little risk they will go Chapter 11 as they have suspended their dividend payment.

DJI ended at 39118, a decrease of 689 points (-1.73%) compared to 1Q 2024. For Singapore, STI ended at 3332, an increase of 108 points (+3.34%) compared to last quarter. Not much movement in the index as it seems everyone is also staying on the sideline like me, waiting for further directions. AI tech stocks did have a boom in the last 2 months, unfortunately, I did not ride the wave.

Anyway, below are my transactions for 2Q 2024: 

Transaction 1: Bought 1 batch Keppel Pacific Oak US Reit shares in June. Continue accumulating at rock bottom price, waiting for Fed to cut their interest rates. Assuming 5 cents dividend a year during normal times, this will be 37% dividend yield based on current price. 

That is all for now. See you all in Q3 2024 update and thank you for reading thus far.

1Q 2024 Investment Strategy Update

Main headline news dominating 1Q is when the Fed will start cutting its interest rate. So far from the last 2 day policy meeting a few days ago, the Fed is still maintaining its stance that they see 0.75% cut by end of 2024. Majority of the analyst predicts that the first cut will be in June 2024. Anyway, so long the Fed start cutting its interest rate, it will be good news for the Reits, which have been hammered down (especially the US Office Reits) since 1-2 year ago. For myself, I will probably continue accumulating US Office Reits, since their price now is at rock bottom and there is little risk they will go Chapter 11 as they have suspended their dividend payment for the year.

DJI ended at 39807, an increase of 2118 points (+5.61%) compared to 4Q 2023. For Singapore, STI ended at 3224, a decrease of 16 points (-0.49%) compared to last quarter. While investors continued pouring into the USA market for high tech stocks with the Fed signaling they are done with the interest rate increase; however, there is not much movement in the Singapore market partly due to investors holding their ground against buying into the banks counter (consisting of 46.40% STI weightage) as banks are typically bearish due to their shrinking NIM in a decreasing interest rate environment.

Anyway, below are my transactions for 1Q 2024:

Transaction 1: Sold 1 batch Man Utd shares in February.

Accepted the tender offer of Sir Ratcliffe at $33 per share, parting with 26% of my holdings.

Transaction 2: Bought 1 batch Veralto shares in February.

New company spin-off from Danaher, focusing on environmental and applied solutions. I believe there is potential for the company to continue growing in the field through the usage of Danaher Business System, which is essentially lean manufacturing and using free cash flow to acquire companies.

Transaction 3: Bought 1 batch Grab shares in February.

Grab has started turning around by reducing the incentives given out. Their digital banks in Singapore and Malaysia has just started operation and they are ramping up their advertisement income segment. Cannot wait for Grab to reach its full potential!!

That is all for now. See you all in Q2 2024 update and thank you for reading thus far.

4Q 2023 Investment Strategy Update

Finally, we can start breathing a sign of relief. US Fed finally has indicated they are not looking at increasing the interest rate further and instead projects 3 rate cuts in 2024 as the economy cools down and start losing steam. Who will be the winners in a decreasing interest rate environment? For Singapore, it will be non other than the Reits (Especially Reits with US market exposure). Less $ spent on interest payment = more distribution to unitholders and higher property value. The losers in a decreasing interest rate environment? It will be the banks of course as their Net Interest Margin shrinks = lesser profits. So for 2024, it will be bearish on banks equity and bullish for the Business Trust and Reits. Market has already start pricing in this information as it can be seen in the rally in Reits with USA exposure at the start of December. For me, I can finally start reaping the rewards for accumulating Prime US Reit and Keppel Pacific Oak US Reit for the past1 year.

DJI ended at 37689, an increase of 4182 points (+12.48%) compared to 3Q 2023. For Singapore, STI ended at 3240, an increase of 23 points (+0.71%) compared to last quarter. While investors has poured into the USA market with the Fed signaling they are done with the interest rate increase in the last 2 months; however, there is not much movement in the Singapore market partly due to investors holding their ground against buying into the banks counter (consisting of 46.65% STI weightage) as banks are typically bearish due to their shrinking NIM in a decreasing interest rate environment.

Manchester United has finally announced on Christmas Eve 2023 that Sir Jim Ratcliffe had acquired a 25% stake in Manchester United and would be taking control of the club's football operations. The acquisition will consist of 25% from the Glazer family and 25% from public unitholders in the form of tender offer at $33/share. Once he pass the director test, which is said to take anywhere up to four weeks to complete, although usually takes closer to a fortnight; he can then officially start the tender offer. I cannot wait to cash in when that time comes.

With 2023 drawing to a close, it is time for the annual review against my 3 year plan (Next 3 years (2023 - 2025) Investment Plan) set back in Nov 2022. Below are my result:

Original 2023-2025 plan: 

1. 50% Equity, 50% Reits/Trusts 
2. Portfolio Dividend Yield to be 3.80% in 2023, 4.30% in 2024, 4.80% in 2025.

End 2023 result: 

1. 50.16% Equity, 49.84% Reits/Trusts 
2. 80.74% SG Equity, 19.26% USA Equity 
3. Portfolio Yield at 3.58% in 2023 (+0.00% from 2022, but miss 2023 3.80% target)

Verdict: Miss Target

Below is my end 2023 portfolio snapshot:

Total dividend received in 2023: $6,478.37 (~$539.86/month)

For this quarter, not much activity from me, except accumulating Prime US Reit, Keppel Pacific Oak US Reit and Mapletree Industrial Trust as I feel the SG market has over reacted to the Manulife US Reit and interest rate increase saga.

Transaction 1: Bought 1 batch Prime US Reit shares in October. 

40+% yield is just too tempting to be missed. Load up more as I don't think it will fold like the Manulife US Reit. Manager is quite prudent in controlling debt, carefully avoiding borrowing more to maintain dividend.

Transaction 2: Bought 1 batch Keppel Pacific Oak US Reit shares in December.

Maiden investment in this counter at 20+% yield. I find this counter the strongest out of the 3 Singapore US Reits. Property price of the portfolio has not decrease much and management has worked hard to maintain the building high occupancy rate.

Transaction 3: Bought 1 batch Mapletree Industrial Trust shares in December.

Investing more due to the exposure to USA data center portfolio, which will benefit the trust in a decreasing interest rate environment and long customer tenancy time. 

.

That is all for now. See you all in Q1 2024 update and thank you for reading thus far.

3Q 2023 Investment Strategy Update

A quarter of sideway movement, while investors at large waiting for the next economy cycle signal. This basically sums up the feeling for the last 3 months. Generally, economy are slowing down, inflation are slowing down and federal rate hikes are taking a pause, without pushing the market into a recession (Or they aim for a soft landing). Companies are cutting expenses and investment to preserve profit, hiring are slowing down in most of the markets, with all signs preparing for the next economy downturn. War between Ukraine and Russia are not looking to end anytime soon. China property market is a timebomb waiting to unleash the next major jolt (bomb) to the world, with major Chinese developers going into defaults. A silver lining though is that China government are trying to control the fallout, with aggressive slashing of local rates to pump cash into the local market. Hopefully, this cycle of slowing down can pass soon to put the world economy into a path of sustainable growth.

DJI ended at 33507, an decrease of 900 points (-2.61%) compared to 2Q 2023. For Singapore, STI ended at 3217, an increase of 12 points (+0.37%) compared to last quarter. Not much movement in the recent months as investors waits for a clearer direction.

Almost 1 year on (since 22 Nov 2022) when the Glazer announced exploring strategic directions for Manchester United, 2 bids have been submitted to the Raine Group, rumored around 5 billion pounds range. I am still waiting for Glazer's confirmation to SELL Man Utd. Understood they are looking at >6 billion pounds valuation, but realistically speaking, they are not a good owner to grow the football team (Currently 3W 4L, sitting at 10th place, definitely not a good start). The longer they drag, the lower the valuation, with poor performance on pitch. Hopefully, they can make up their mind soon to exit the business.

For this quarter, I am continuing to focus on accumulating US Reits (Except Manulife US Reit), as I believed they are too oversold in the Singapore market and their current yield is too good to be missed. Once the interest rates start to come down, US Reits should start appreciating in value.

Transaction 1: Participate in IREIT Global Rights issue in July.

Participated in the preference rights issue to “fund the acquisition of a portfolio of 17 retail properties located across France which are fully let to B&M France SAS.” Managed to get some excess rights to round up to the 100s for future trading purposes.

Transaction 2: Bought 1 batch Prime US Reit shares in July. 

30+% yield is just too tempting to be missed. Load up more as I don't think it will fold like the Manulife US Reit. Manager is quite prudent in controlling debt, carefully avoiding borrowing more to maintain dividend. Temasek being a 10% shareholder also adds to its credibility.

That is all for now. See you all in Q4 2023 update and thank you for reading thus far.

2Q 2023 Investment Strategy Update

Nothing significant changed compared to last quarter. Ukraine war is still going on, interest rate is still sky high, though there are signs that central banks are looking at taking a pause on the rate increase to see if inflation can be tapered to a sustainable rate, without dragging the economy into recession. I must say that things are not looking good. There are already signs that companies are holding back investment and new orders as things start to slow down, though only time will tell if this situation is only temporary, or it is the start of a recession cycle.

DJI ended at 34407, an increase of 1133 points (+3.40%) compared to 1Q 2023. For Singapore, STI ended at 3205, a decrease of 53 points (-1.62%) compared to last quarter. Markets are moving sideways in the recent months as investors waits for a clearer direction. 

For this quarter, not much action from me, except waiting for the official announcement if the Glazers are going to sell off Man Utd. I personally think at the end, they will leave Man Utd, but not before getting the highest bid for their shares. Other than this, I am focus on accumulating US Reits, as their current yield is still too good to be missed.

Transaction 1: Bought 1 batch Grab shares in May. 

GXS has started getting active with now accepting loans. Grab continued with adjusting their customer incentives system to make the business more profitable. Recently, Grab announced slashing 11% of their workforce to be aligned with the current business environment. I think Grab will be on target to turn profitable and has a great potential for share value increase.

Transaction 2: Bought 1 batch Prime US Reit shares in June. 

At least to me, this does not look like a Reit in distress. Tenants are still paying rents, occupancy rate is reasonably good, gearing % is not too bad, but this does not show in the share value, probably due to the high interest rate environment. But with the current yield at 30% for a reit, this is too good to be miss.

Transaction 3: Bought 1 batch Mapletree Industrial Trust shares in June.

Usual stocking up on this good counter, while waiting for interest rate to drop and the Kolam Ayer 2 cluster to start contribution to unlock more share price value.

That is all for now. See you all in Q3 2023 update and thank you for reading thus far.

1Q 2023 Investment Strategy Update

What a curveball that history throws at us. Just when we thought we have seen the last of COVID-19 crisis, the world is opening up, economy is picking up, interest rate is rising to tamp the hot economy, then came the sudden news of the collapse of the Silicon Valley Bank after a bank run, marking the second-largest bank failure in United States history and the largest since the 2007–2008 financial crisis. 2 days later, Signature Bank also failed, and followed by Credit Suisse crisis 7 days later, with UBS taking over the company to save it from failure. This cast jittery repercussion around the world. Is this the start of another crisis? Or is this just a blip in the market? Only time will tell. As of now, investors are staying on the sideline, waiting to see how this situation will play out.

DJI ended at 33274, an increase of 127 points (+0.38%) compared to 4Q 2022. For Singapore, STI ended at 3258, an increase of 7 points (+0.21%) compared to last quarter. Singapore market has the 3 big banks (DBS, UOB, OCBC accounting for 43.5% of STI weightage) to thank for, keeping the index stable due to their strong fundamentals.

For this quarter, not much action from me, except trying to play out if Glazer indeed will call an end to their relationship with Man United. I personally think at the end, they will leave Man Utd, but not before getting the highest bid for their shares:

Transaction 1: Bought 1 batch Man Utd shares in January. Sold 1 batch in February. Bought 1 batch in March.

Buying in thinking Glazer will set a dateline for initial bid submission, which came true. Amid rumors of the amount of initial bid (4.5B pounds), sold them in February after news emerge that Glazer might not be selling after all as the bids are way below their expectation (6.0B pounds). Glad did not make a loss. Buy in again in March before the second bid submission. I highly think Glazer will narrow down to 2 preferred bidders and go for a third round. Personally, I think if Glazer do decides to sell, the final price will be between 5.5-6 billion pounds (6.6 - 7.2 billion USD) which translates to $40 - $43. We shall see in time what is the outcome.

Transaction 2: Bought 1 batch Grab in February. 

Grab is adjusting their customer incentives system to make the business more profitable - Lesser discount on delivery fee (drop from $4 to $3 discount), lesser discount on self pick-ups (drop from 20% to 15% discount), lesser points awarded from using GrabPay. I guess these streamlining results will start to show in the subsequent quarters as they do their adjustments. Plus GXS bank is now fully operational! 

That is all for now. See you all in Q2 2023 update and thank you for reading thus far.

4Q 2022 Investment Strategy Update

It is the time of the year again where we take stock of what we have done and how we have performed. COVID-19 issues have taken a back seat now that countries around the world have started opening their borders since Jun 2022. China has dropped their long standing COVID Zero policy and remove their tight control on virus management starting Dec 2022. Residents within China cheered this move but globally, analyst still remains skeptical due to the usage of only vaccines developed in China, which is less effective than the ones developed by Pfizer or Modena. Now that China begins to open up, they are highly likely going to face a surge in infection rate, overwhelming their medical system and a high death rate among the elderly (which is what many countries faced during the early stage of COVID-19 pandemic 2 years ago). Russia Ukraine war is still on-going. US Federal interest rate has hiked by 4.25% in 2022, with forecast to raise another 0.75% in 2023. 2022 sure does not end on a good note, at least not something investors will cheer about.

For myself, business trip has re-started in the second half of the year, potentially exposing myself to other variants of COVID-19 in other countries. Thank God for keeping me safe, I still have not contracted the virus yet so far.

DJI ended at 33147, an increase of 4872 points (+17.23%) compared to 3Q 2022. For Singapore, STI ended at 3251, an increase of 121 points (+3.86%) compared to last quarter. Singapore market has the 3 big banks (DBS, UOB, OCBC accounting for 43.5% of STI weightage) to thank for, keeping the index stable and not fall like dominos in other countries. Overall, USA market welcome investors return to companies that largely outperform expectation but for the tech companies, they are still out in the wild (As seen DJI +17% vs Q3, compared to NASDAQ -1% vs Q3). Singapore market this quarter are relatively stagnant as the banking counters did not gain much, and the REITs are taking a beating due to the increase interest rate. For Q4, the investor community remains jittery over the potential of a world recession in 2023, with USA a 70% chance in entering a recession, up from 65% last forecasted in November.

With 2022 drawing to a close, it is time for the annual review against my 3 year plan (Next 3 years (2020 - 2022) Investment Plan) set back in Nov 2019. Below are my result:

Original 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.

End 2022 result:

1. 55.55% Equity, 44.45% Reits/Trusts
2. 79.85% SG Equity, 20.15% USA Equity
3. Portfolio Yield at 3.58% in 2022 (+0.51% from 2021, but miss 2022 4.80% target)

Verdict: Miss Target

Below is my end 2022 portfolio snapshot:

Total dividend received in 2022: $5,655.22 (~$471.26/month)

With market retreating, if you look closely, opportunities awaits. I am closely looking at some of the USA REITS listed on SGX. Investors has been selling them due to the high interest rate the REITS are paying in US dollars and the potential of USA entering recession, affecting future yield distribution. Prices has dropped to an unprecedented low levels that most counter are on a 0.5 Price to Book ratio, with dividend as high as 15% yield! I believe most companies are sound and if you can wait for 3 years for this down cycle to recover, you will likely stand to reap the benefits. Now, enough talking, below are my transaction for this quarter:

Transaction 1: Sold 1 batch Man Utd shares in December.

Partly cashing out since Glazer announced commencing strategic alternatives with a possibility of a total sale. Their appointed advisor has placed a target of 6-7 billion pounds. Personally, I think the final price will be between 3-4 billion pounds (3.6 - 4.8 billion USD) which translates to $22 - $29.20. We shall see in time what is the outcome.

Transaction 2: Bought 1 batch Visa shares in December.

Long term investment with the recent drop in share price. Visa has been buying back their shares every quarter and with such a cash cow generating machine, if you have holding power, share price are bound to increase in the long term with a smaller pool of shares in the market as time goes on.

Transaction 3: Bought 1 batch Prime US REIT shares in December.

USA REITS listed on SGX has been given a hammering in the last 4 months, with the Feds aggressively increasing interest rates, leading to a declining pool of cash available for distribution. In addition, USA is now forecasted at 70% potential in entering a recession in 2023, further diluting investor appetite for such REITS. However, I find Prime US REIT to be sound, not highly geared (38.7%) and their portfolio have a decent occupancy rate. At current price, this will equate to a 15% dividend yield. Buying in to ride the once in a lifetime opportunity. Plus, they have just launched the Distribution Reinvestment Plan. Time to grab more free shares.

Transaction 4: Bought 1 batch Mapletree Industrial Trust shares in December.

Long term investment as the manager has the history of growing distribution and Net Asset Value. If you have holding power, the share price will rise with time.

That is all for now. See you all in Q1 2023 update and thank you for reading thus far.

Next 3 years (2023 - 2025) Investment Plan

2022 has become a year of upheaval. First the euphoria of post COVID-19 when countries started re-opening and economy starts picking up. Then came the Russia-Ukraine war where it drove up the prices of almost everything, sending inflation rates sky rocketing and countries on the heels of raising interest rates to tame inflation. Now, investors are in jitters that interest rates are increasing at too fast a pace that will send economies into recession and in the process sending equities on a downhill slippery slope!

Again, it is unlikely I will reach my 2022 goal set back in 2019. My portfolio dividend yield this year will probably be in the 3.2% to 3.5% range, way off the ambitious target of 4.8%. Re-balancing a portfolio with some dead weight stocks is not easy after all, while waiting for Noble Group, KrisEnergy and Eagle H Trust to officially delist from SGX. At least I managed to increase my dividend yield from 2.44% from 3 years ago.

Now, back to my main objective of investment - earning passive income. Again, I will be using the insurance projected returns as a guide, which typically ranges from 3.25% to 4.75% currently. For the next 3 year, I will set a target to get a better yield than the insurance projected returns (Example: 4.8%). I think this will be a very challenging target as I have never achieve it before. Well, here you are, the next 3 years (2023 - 2025) Plan:

1. 50% Equity, 50% Reits/Trusts
2. Portfolio Dividend Yield to be 3.80% in 2023, 4.30% in 2024, 4.80% in 2025.

I will likely to continue load up on high dividend yield REITS (Looking at US Reits listed on SGX) and Singtel (if price is below $3.00) 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 DBS if it fall below $35.00, MIT and FCT.

3Q 2022 Investment Strategy Update

What a combination of disaster. Russia war with Ukraine still grinds on, stubbornly high inflation has lead to central bank raising rates (0.75%) 3 times in a row. Businesses are forecasting recession and started laying off employees. Chances of USA entering recession in the next 12 months has increased from 40% to 52% just a few days ago. Market has been grinding down for the past 4 weeks with no ends in sight. What a disaster!

DJI ended at 28725, a decrease of 2050 points (-6.66%) compared to 2Q 2022. For Singapore, STI ended at 3130, an increase of 28 points (+0.90%) compared to last quarter. Singapore market bucks the global trends and are impacted lesser due to STI having a high weightage for banking counters (accounting for 42.5% of STI weightage), as rising interest rates is a positive for banks since they stand to earn more profits from the widening NIM. Ever since Putin started the war on 24-Feb-2022, DJI has lost 7613 points (-20.95%) compared to the end of 2021, while STI has increased 7 points (+0.22%) instead. For this quarter, I am just sitting ducks collecting dividends and taking opportunistic additions for counters that I deem have high growth potential:

Transaction 1: Bought 1 batch Singtel shares in July.

Rejoice! India Airtel has turnaround from loss to profits as competition eases and competitors started raising their product offering prices. Singtel and Grab GXS Bank has launched in August and is a positive catalyst for additional profits. Will continue to add if shares price is below $3.00.

Transaction 2: Bought 1 batch HPH Trust shares in July.

Management has guided they are continuing their debt reduction plan at a tune of HKD $1.00 billion a year. With the rising interest rate and plans for expansion of berths in the next few years, the distributable amount is expected to increase. Buy in today to enjoy the fruits later.

Transaction 3: Bought 1 batch China Everbright Water shares in July.

Last buy in for this counter as it has hit my internal target investable amount. Expecting China will continue to focus on Industrial Wastewater Management as the economy develops. This counter should do well in the long term as they continue to apply for price adjustment (increase) for their treatment services to combat inflation.

Transaction 4: Bought 1 batch OxPay Financial shares in July.

I continue to be sold on the company plans for riding on the digital economy wave as a financial services technology platform provider. The only obstacle now is if the company is able to onboard more partners to use their service and expand regionally. If they succeed, it will be a cash generating machine similar to VISA.

Transaction 5: Bought 1 batch Man Utd shares in July.

With poor performance, guess the end of road is near for Man Utd Glazer to sell off all their shares. Recently, news article reported that 3.75 billion pounds will be enough to entice the Glazer family to sell. Now, I am just waiting for the White Knight to appear.... 

That is all for now. See you all in Q4 2022 update and thank you for reading thus far.

2Q 2022 Investment Strategy Update

Russia's war with Ukraine slowly grinds on into the 5th month, with failure not an option to Putin. With this war, food, crop and oil price escalated, causing high inflation unseen in many countries globally. To combat high inflation, central banks have been aggressively raising interest rate (June - 0.75%, forecast July - 0.75%, forecast September - 0.5%), hoping to cool the economy down. This however, have a damping effect on equity, as rising interest rate means a drop in consumer consumption (Yes, all your loans on floating rate are going to get more expensive!) which has a high risk of tipping the economy into recession. Currently, analyst is predicting a 40% chance of USA entering recession in the next 12 months and this is reflective in NASDAQ (entered bear 2 months ago); S&P 500 (entered bear 2 weeks ago); DJI (narrowly avoided bear 1 week ago by 400 points).

FYI: Bear Market refers to a drop of at least 20% from the index peak.

With the war seemingly not ending anytime soon (only God knows when and how this will end), let us spend a few mins in prayer for the people of Ukraine. May God in His sovereign will put an end to the Russian act of aggression and this unjustified war. May God in His mercy bring light to the people of Ukraine suffering the effect of war in this dark hour. May God also bless the people of the world with great health and protection against the Covid-19 virus that is ravaging the face of the Earth. Amen

Face with market uncertainty and volatility, I guess it is time we go back to the company fundamentals, where good and sound company will eventually pull through any crisis. DJI ended at 30775, a decrease of 3903 points (-11.25%) compared to 1Q 2022. For Singapore, STI ended at 3102, an decrease of 306 points (-8.98%) compared to last quarter. Singapore market are not spared from the high inflation rate concerns and rising interest rates, moving in line with the USA market, though for banking counters (accounting for 43.3% of STI weightage), rising interest rates is a positive for them as they stand to earn more profits from the widening NIM. For this quarter, not much actions from me except taking opportunistic additions for counters that I deem have high growth potential:

Transaction 1: Bought 2 batch Grab shares in April and May.

US investors still seem to not have confidence in Grab, continuing dumping its share to an all time low of $2.32 on 26 May 2022. For me, given they have won the digital bank license for Singapore and Malaysia speaks volume. Anyway, Grab will be focusing on returning to profitability by cutting down on consumer incentives. From end user point of view, this has seem to take effect after 19-May as the discounts given is not as high as per 3 months ago. Example: Self collect on GrabFood is now only entitled to 15% discount compared to previous 20%, unless you purchase their subscription, then you are entitled to 20% discount. Anyway, GxS bank is preparing to start operation soon in Singapore in the next few months. Hopefully, this will contribute to their bottom line profit.

Transaction 2: Exit Amara totally in June (at a loss).

High number of director resignations, plus the review for their flagship hotel in SG is not that great on major hotel booking websites, guess I better run first before more problems start surfacing. Having held this counter for close to 9 years, I don't think the management will be privatizing the company anytime soon.

Transaction 3: Bought 1 batch OxPay Financial shares in June.

I got won over by this up and coming business plan. Basically, they provide Merchant Payment Services (MPS) and Digital Commerce Enabling Solutions (DCES). Whenever a customer uses their system for payment, they will get a portion of the fee (~0.5%) as payment. Think of the card terminals and the software facilitating the payment between the customer, merchant and their banks. As long as their customer base is huge, this should be a stable cash generating machine to provide dividends.

Transaction 4: Bought 1 batch DBS shares in June.

Interest rates are rising, which will increase DBS Net Interest Margin (Profits) due to increasing loan interest rate. It was already reported a few days ago that all SG banks has revised their home loan interest rate up. Buying to hold for long term with the hindsight that business are growing and dividends declared are increasing yearly.

Marriott has restarted their dividend payout, and share buybacks will soon follow. I was right about Marriott TP. It did rise to $190.30 (>$185 which I predicted) on 20-Apr-22, before Putin's war destroyed everything. Oh well, guess I have to hold the shares a little longer. That is all for now. See you all in Q3 2022 update and thank you for reading thus far.