Change in Asset Mix of Investable Funds – December 2017

Asset allocation of investable funds is an important aspect of investments. One should not put all money in one basket. The risk is too high should the single asset collapses. Remember the Lehman Brothers’ minibonds went kaput in September 2008. I heard horror stories of people losing a fortune back then.

Some 10 years ago, I took more risks with my investments. I took advice from my relationship managers on how to invest my money. I tried out currency-linked investments betting on the future of currency movements. I went into credit-linked notes that were not the same as plain vanilla corporate bonds. The risk was high. I saw with horror how the Global Financial Crisis of 2008/09 affected my portfolio then.

As I get older and now in retirement, I could not afford to risk my money on assets that carry higher risks. My asset allocation in my portfolio reflected that.

  1. I sold off all foreign currency denominated investments this year.
  2. I invested in a corporate bond to bring my exposure to fixed income investments to 47% of total portfolio.
  3. I reduced my equity exposure to 17.7%.
  4. Insurance related products remained stable at 11.0%.

Cash and cash equivalent were reduced to 24.3% after putting more into the corporate bond above. Of this 24.3%, my cash amount is 18.4%, ready to deploy when the investment climate is less volatile.

Investment in Singapore equity is 14.4%, slightly lower than 2016.

Asset Mix in percentages (%) Dec-16 Dec-17 Change
Equities (see below) 28.0 17.7 -10.3
Fixed Income/Bonds 26.1 47.0 20.9
Forex related investments 4.2 0.0 -4.2
Insurance related investments 10.3 11.0 0.7
Cash & Equivalent 31.4 24.3 -7.1
       
Equities – Singapore 15.8 14.4 -1.4
Equities – Others 12.2 3.3 -8.9
  28 17.7  

With 47.0% in fixed income investments, I was aiming for more stable interest income. This is a more cautious portfolio mix when compared with a more volatile equity investments. I am at this stage of my investment life cycle in trying to reduce volatility in investment income.

I just want to rest easy at nights and not to worry about my investment portfolio.

Copyright © 2017, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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“Crooked House” by Agatha Christie – A Book Review

I can understand why “Crooked House” was one of personal favourites of Agatha Christie. The title does not mean much to tell one that it was a brilliant story of murderer’s fertile mind albeit one that was deployed for evil ends. Besides the crooked house where death occurred in the family of Aristide Leonides, the mind of the killer was “crooked” to the extent of not normal for an average person.

Agatha Christie revealed it in the end as to the psyche of this mind of the killer. This was the forte of Agatha Christie when she wrote many murder stories in her lifetime. She could dissect and explain why the killer acted in the way he/she did. It was logical and calculated. The police could not get it based on surface evidence such as oral or physical evidence.

I enjoyed this book for the twist and unexpected ending.IMG_5789

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Where to recycle electronic waste?

When you are doing spring cleaning during this time of the year, you may have old and unused electronic items that you may want to dispose of. There is a way we can do that. Head down to a PA Community Club/Centre and look out for electronic waste recycling box. (Do check with that CC and confirm that it has it.)

The photo below shows what electronic items can be deposited into the box.

This is a great idea supported by NEA with DHL, StarHub and TES-AMM.

We can do our parts to Save This Earth.

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Calculating actual dividend yield

It would be informative to know what is the ACTUAL dividend yield based on cost of purchase.

I tracked actual dividend received each year by security counter. I have the actual cost of purchasing a security. With these two numbers, I can calculate the actual dividend yield based on my investments. Below are some of investments held with dividend yields compared with last year.

Counter 2016% 2017%
SPH Reit 5.81% 5.84%
Singtel 4.33% 4.33%
StarHub 4.70% 3.99%
Keppel Reit 4.42% 3.88%
SPH 4.37% 3.64%
Comfort Delgro 3.15% 3.55%
M1 4.15% 3.01%
Keppel Corp 3.04% 2.03%

 

Overall   2.72%
STI ETF 2.86% 3.11%

Despite the decline in dividend yields this year, most counters gave above 3.00% yield based on my actual cost of investments. Granted some of these stocks had declined in market value, the dividend yields were still attractive for me.

On the whole portfolio basis, the dividend yield was 2.72% for this year.

I had bought SPDR STI ETF substantially; the dividend yield was 3.11% on my cost of investments. It is much better than my pick of individual stocks in my portfolio.

Copyright © 2017, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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“Postern of Fate” by Agatha Christie – A Book Review

“Postern of Fate” was the last of Tommy and Tuppence Mysteries written by Agatha Christie. Tommy and Tuppence were a husband-and-wife team that did secret service work for the government as private individuals. In this last book, Tommy and Tuppence were in their seventies and were retired from such investigative and spy work. However when they chose to move into an old house in a quiet English village, their investigative adventures began once again.

Tommy and Tuppence began to investigate a mystery that happened sixty years ago (1914). It came in a form of a cryptic message underlined in a very old story book “The Black Arrow” found in the house. The message read: “Mary Jordan did not die naturally …”

The search for clues and information on an event that happened sixty years ago was near impossible. It took all the skills of Tuppence and Tommy to get to the bottom of it. From a wish of a quiet retirement, it turned out that the couple was thrown into the world of espionage and of political leaning of a certain group out to stop them.

Read the “Postern of Fate” to see how Tommy and Tuppence cracked the case for the government secret service.

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Wise saying – Virtue of Savings

“赚到的钱不是你的,存下的才是你的.”
电影:我是路人甲

“What you earn is not yours, until you save it.”
Movie:  I Am Somebody

 

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Remembering my mother 77 (七七)

Today is 49th day.
7th week of my mother’s passing.
Memory of my mother had faded a bit
until I saw her photograph again today…

My mother wanted Buddhist rites.
Today is the last rite at Buddhist Lodge for her.
The next time round will be Qing Ming Festival (清明节).

Putting her years beside her name in the family tree,
gave me a feeling of finality on this earth.
I will not be an exception.

What was left of my mother is my memory of her.
She had been good to all of us.
She had been thoughtful and considerate.

This is how I will remember her.

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