Year In Review 2015 - Financial Portfolio

2015 has not been a kind year to investors with the market taking quite a beating. Most people would be in the red and I am no exception. I must be really 'heng' that that my first full year of investing is the hardest to make money in 78 years. Viewed positively however, it's actually a good thing for someone in their early stages of investing - It means I get to accumulate more companies at fire-sale prices!

While I would like to think that I am "out-performing" the index, the sample size (investing period) is really too small to make any conclusion. Still, it's a consolation point to know that it's not because of my bad choices that I'm in the red - the whole market is going down.

Thankfully, I still have the majority of my holdings in cash. In 2016, I will look to selectively inject more into solid blue chips (with long term, sustainable dividends) to further diversify my holdings.

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Next up will be a brief review of all my holdings and lessons learned:

Frasers Centrepoint Trust
My first and most trusted holding. Each visit to causeway point just boost my confidence in this company. Economic recession? Property downturn? I don't think these macro-economic factors will make much of a dent on FCT. It's amazing 8 years consecutive DPU increase is unmatched in the REITs sector.

This have provided me with the most stable and biggest returns since I started investing, and I intend to hold it forever.






Super Group
A costly lesson in not blindly following analyst reports. I went in way too early in the midst of a downturn, catching a falling knife in the process. Have been holding on for several reasons:

1) Cyclical stock that should turn-around eventually.
2) Strong balance sheet, good management and still profit-making.
3) The nose-dive makes this only a small portion of my portoflio now, so there is really no point selling anyway.

Keeping my fingers cross that its newly launched Essenso coffee will take off.




China Merchant Pacific Holdings
Another one of my "dividend cash-cow". It has a diversified portfolio of 8 toll roads now in China. While there are worries of slowing China growth, I am satisfied with the current yield.

The interest hike has been weighing down on the stock price, but with its track record and strong parent backing, it's the least of my worries.

Like FCT, I intend to hold this for a long time. Keep calm and collect dividends!





Sembcorp Industries
OUCH! To be fair, no one could have foresee oil prices plummeting from $120+ to $40. Sembcorp has been massacred, burning many people in the process.It was so bad that Marine even posted a loss for the first time in the company history. Thankfully, the Utilities are helping to offset the losses, with potential growth coming from overseas segment.

Not going to sell this as I still believe strongly in "ah gong" stocks. At the same time, I can't average down as it will make me too over-weighted in a single company. If opportunity arises, I may look to "average down" via Keppel Corp to capitalize on the potential oil recovery.



M1
A valuable lesson to be learn about being patient. I was too hasty to deploy my cash after my bonus and didn't wait for a more opportune moment (like now! A Telco with 7% yield now are you kidding me!).

Many fellow investors, myself included, did not expect the 4th Telco news to impact M1 so negatively.

Its fundamentals didn't change much at all - earnings were still growing steadily and they are exploring new avenues of growth. To me, it's really cheap now and I would definitely want to buy if it weren't for the same ugly problem of over-concentration.

Just think about it. 4th Telco or not, we are heading for 6.9 million population. That means more people, more subscribers, more money for Telcos. If I could, I will definitely buy every single Telco and wait for 2030. Confirm huat lah!


Capital Commercial Trust
While the price has taken quite a beating after I brought, I am quite comfortable with this holding.

1. I entered at a reasonable price, with a good 20% discount to NAV, near its 52 week and historical P/E low.
2. Confidence in the management track records and grade A properties.

Even though there are headwinds of office over-supply, I don't think it will impact the DPU too badly. In the best case, CapitaGreen should provide some form of growth. In the worst case, a stagnating DPU for next 2 years - still satisfactory for me.



Accordia Golf Trust

I already know this is quite a 'risky' buy, but definitely didn't expect the DPU to drop so drastically. A few reasons why I brought:

1. Seduced by its unbelievably high yield (>10%) and 30% discount to NAV.
2. The false sense of security that "it can't get much lower!" (30+% from IPO price), a deadly fallacy.
3. Convinced by several bloggers - AK is still fighting on, B has backed out.

I am still holding on for its current annualized 7.2% yield, albeit with more risk. The management has been touting the return of golf to the 2016 Oylmpic Games as a growth pillar. Let's see if that comes true.

Straits Times Index

I have been deliberating between the various banks when the bear hits in September. In the end, I fled to safety and brought the STI. Haha.

This is a safety net for me, and I entered at a really good price. Now the issue is when, or should I sell? Looking to add either DBS or OCBC if I do sell this.