To think that I was recently anal enough to boast of outperforming the market for 2015. Within days of posting my self-glorifying post, Mr Market made me regret putting that blogpost up :(
But hey! Not everything is dark and gloomy!
Initially, I thought that my portfolio would be down by about 20% in the recent market crash. However, thanks to two lucky buys (Saizen REIT and Fortune REIT), my overall portfolio loss has been kept to below 5%.
Although it can be claim that my asset allocation strategy is working as my portfolio did not do that badly as expected, I would rather attribute it to good luck.
Honestly, I did not do much analysis of the two buys other than ensuring that they fulfill the following metrics when I made my purchase:
- Purchase price lower than Net Assets Value (NAV)
- Gearing Ratio less than 35%
- Yield of more than 5%
- Consistent or improving Distribution Per Unit (DPU) on a year-on-year basis
- And some other general study of their management and the market trends.
So yea, those two were really lucky buys and I can claim no credit to that.
Anyhow, here's a look at my portfolio as of Jan'16.
Portfolio updates for the month of January'16:
- Purchase 400 shares of Sembcorp Industries at $2.65 apiece (and watched it drop by 20% in the next few days. Scary time indeed!)
- $400 in cash was injected into the portfolio.
Actions I will take for February'16:
- If the price of STI ETF drops below $2.40, I will make another purchase of about $2400 worth of STI ETF. This will bring the average price of my STI ETF purchase to below $3.
- Continue my purchase of VWRD by investing my second tranche of S$5000 when the price of the VWRD drops to USD$54.72, which is a 20% drop from my last purchase price of USD$68.40.
- The third and last tranche of S$4000 will be vested when the price of VWRD drops to USD$38.30, which is a drop of 30% from the last purchase price of USD$54.72.
- In the event that the VWRD and STI ETF does not drop to my target price, I will rebalance my portfolio in the month of May'16 and Nov'16 accordingly to my asset allocation strategy.