We have a choice

As I read about the state of US Presidential Election 2020, I get very flabbergasted. How come the most powerful nation on earth has come to this sorry state of play in her politics?

I ask myself why should I be affected? The citizens of US choose their own President. No outsiders have a say. Whatever the outcome, the citizens bear the outcome of their choices. The rest of the world has to adapt with the US administration of a new President when the time comes.

We have a choice. Choose to read less on the commentaries and daily news of the US election. The less we read, the less we will get frustrated.

Politics is not for everyone. We can be caught up with taking side and hence become critical of the opposing side. In order to keep our sanity, we can be more removed from politics. Leave politics to politicians. We live our lives beyond politics.

Copyright © 2020, limkimtong for Living Investment

Posted in Living Tips

One Realisation on Life

Most of us work super hard, spending hours on a computer or a mobile device. It is easy to just work work work. Until one day, we realise that we have a critical illness or an illness that is not curable.

Have we asked these questions when we were pushing ourselves during our work life?

What if I were to fall seriously ill that was stress induced?
Does wealth or personal properties going to get my health back?
Have I neglected my family because of obscene hours put into office work? When we become incapacitated, do we still care for the uncompleted work in the office?

Someone else has to pick up our unfinished work. Remember that no one is indispensible.

So next time when we are caught in the whirlwind of work pressures, remember to take a step back and ask the questions above. It can save a lot of our heartaches. It is simply not worth it.

Sharing what I have been through this road.

Copyright © 2020, limkimtong for Living Investment

Posted in Life Journey

There is hardship felt among people

This Covid-19 pandemic not only affects health of an infected individual. People are fearful of losing their jobs. 11,350 people were retrenched in the first half of this year. This kind of fear can cause mental stress. Whether a worker is a foreigner or a citizen, they felt similar kind of anguish of losing a job. Some have families and some have financial commitments. One never knows how it is like to be in this situation unless the person is the one retrenched.

My heart goes to all people in this difficult environment during this horrendous time. During this time of hardship, spare a thought for everyone and not forgetting yourself.

Be kind.

Copyright © 2020, limkimtong for Living Investment

Posted in Life Journey | Tagged

Time to slow down

There is never a correct time or perfect time. What is important? It is now.

I will be writing less from now on.

Thank you.

Posted in Life Journey

REITs and Business Trust owned

Besides investing in retail bonds and preference shares, I have 3 real estate investment trusts (REITS) and 1 business trust.

All four provide a steady stream of income based on the distributions declared during the year. These are listed below.

REIT/Business Trust Date Purchased Average Cost ($)
Keppel Reit 2013 1.484
SPH Reit 2013 0.947
Lion-Phillip S-REIT ETF 2017/2018 1.017
NetLink NBN Trust 2017 0.811

The income yields over 3 years are shown in the table below.

  2018 2019 2020 *
REIT/Business Trust Yield (%) Yield (%) Yield (%)
Keppel Reit 3.79 3.70 2.83
SPH Reit 5.85 5.90 2.38
Lion-Phillip S-REIT ETF 2.59 4.80 4.91
NetLink NBN Trust 7.00 6.10 3.12

* For 2020, the distributions were as at 2 September 2020.

The market values have declined over the years for two Reits: Keppel Reit and SPH Reit.

REIT/Business Trust Average Cost ($) Market Price Change (%)
Keppel Reit 1.484 1.110 -25.2
SPH Reit 0.947 0.880 -7.0
Lion-Phillip S-REIT ETF 1.017 1.096 +7.7
NetLink NBN Trust 0.811 0.970 +19.6

The distribution yields based on my costs of investments over three years were good.

As for valuation of investments, Keppel Reit and SPH Reit were lower than my costs of investments (-25.2% and -7.0% respectively). NetLink Trust and Lion-Phillip S-REIT ETF did well (+19.6% and +7.7% respectively).

The distributions received over the years for Keppel Reit and SPH Reit more than covered the valuation losses of both Reits. I consider both still do good for me.

Copyright © 2020, 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.

Posted in Financial Management

SembCorp Industries offered Dividend in Specie at $0.8938 per SCI share

With the completion of the Rights Issue of SembCorp Marine (SCM), the parent company SembCorp Industries (SCI) divested its shareholdings of SCM on 11 September 2020. This is done by distribution in specie of ordinary shares of SCM to SCI shareholders.

The distribution ratio is 4.911 SCM shares for every 1 share of SCI held by its shareholders.

Based on the closing price of SCM on 10 September 2020 of $0.182, the cash equivalent amount of dividend in specie was equal $0.8938 per SCI share.

On this basis, the shareholder cost of owning SembCorp Industries should be reduced by $0.8938 per SCI share.

As a shareholder of SembCorp Marine shares because of this dividend in specie, shareholder must attribute $0.182 to each SCM share he/she now has. That will be his/her cost of owning these SCM shares.

As to the stock market reactions to this SCM shares given to SCI shareholders, it appeared that SCI shareholders off-loaded their SCM shareholdings in the stock market. The closing price of SCM on 11 September was down 10.44% (-$0.019) to end at $0.163. Value traded was $40.2 million.

Copyright © 2020, 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.

Posted in Financial Management

Stocks indices brought down in Two Weeks

After a good run in August, some high-flying stock indices were brought down to earth. Nasdaq lost 7.8% followed by S&P 500 index losing 4.6%. Shanghai Composite Index lost 4.0%.

Stock Indices 31-Aug-20 11-Sep-20 Change (%)
Nasdaq (USA) 11,775.46 10,853.54 -7.8%
S&P 500 (USA) 3,500.31 3,340.97 -4.6%
Shanghai Composite 3,395.68 3,260.35 -4.0%
Australia All Ordinaries 6,245.90 6,038.90 -3.3%
Dow Jones (USA) 28,430.05 27,665.64 -2.7%
Hang Seng (HK) 25,177.05 24,503.31 -2.7%
STI (Singapore) 2,532.51 2,490.09 -1.7%
Mumbai BSESN 38,628.29 38,854.55 0.6%
UK FTSE 100 5,963.57 6,032.09 1.1%
Nikkei 225 (Japan) 23,139.76 23,406.49 1.2%
CAC 40 (France) 4,947.22 5,034.14 1.8%
Germany DAX 12,945.38 13,202.84 2.0%

Singapore’s Straits Times Index (STI) continued the downward trend, losing 1.7%. The STI is now below 2,500 points at 2,490.09 points.

The Year-to-Date changes from end of 2019 are shown below.

Stock Indices 31-Dec-19 11-Sep-20 Change (%)
Nasdaq (USA) 8,972.60 10,853.54 21.0%
Shanghai Composite 3,050.12 3,260.35 6.9%
S&P 500 (USA) 3,230.78 3,340.97 3.4%
Germany DAX 13,249.01 13,202.84 -0.3%
Nikkei 225 (Japan) 23,656.62 23,406.49 -1.1%
Dow Jones (USA) 28,538.44 27,665.64 -3.1%
Mumbai BSESN 41,253.74 38,854.55 -5.8%
Australia All Ordinaries 6,802.40 6,038.90 -11.2%
Hang Seng (HK) 28,189.75 24,503.31 -13.1%
CAC 40 (France) 5,978.06 5,034.14 -15.8%
UK FTSE 100 7,542.44 6,032.09 -20.0%
STI (Singapore) 3,222.83 2,490.09 -22.7%

Nasdaq was still high, up 21.0% for the year to date! Shanghai Composite Index was up 6.9%. S&P 500 Index was up 3.4%. The Dow was close to last year’s closing down by -3.1%.

Singapore still languished at the bottom with the STI down 22.7%. It did not look good. My Singapore equities took a hit.

Copyright © 2020, 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.

Posted in Financial Management

SembCorp Industries Divests SembCorp Marine

With the completion of the Rights Issue of SembCorp Marine (SCM), the parent company SembCorp Industries (SCI) will divest its shareholdings of SCM. This is done by distribution in specie of ordinary shares of SCM to SCI shareholders.

The distribution ratio is 4.911 SCM shares for every 1 share of SCI held by its shareholders.

If you hold 1,000 SCI shares, you are entitled to receive 4,911 SCM shares at no cost to you.

As a result, Temasek Holdings will now have direct holding of SembCorp Marine Ltd. SembCorp Industries will not be parent company of SembCorp Marine Ltd.

Update: With this divestment of SembCorp Marine from SembCorp Industries’ accounts, SCI gave out the equivalent of 4.911 SCM shares for each 1 SCI share. Assuming that 1 SCM share is worth $0.20, then 4.911 x $0.20 = $0.9822 is shaved off the value of SCI per share theoretically. The trading of SCI on 9 Sep 2020 (ex entitlement) resulted in $0.74 per share reduction in share price of SCI. This is to be expected.

Copyright © 2020, 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.

Posted in Financial Management

SembCorp Marine Rights Not that Hot

After the subscription of SembCorp Marine (SCM) Rights Shares, the result is a follows.

Entity SCM Rights Percentage (%)
SembCorp Industries (SCI) 7,500,000,000 71.68
Temasek Holdings 1,028,498,258 9.84
Other SCM shareholders 1,934,192,612 18.48
Total 10,462,690,870 100.00

Parent company SembCorp Industries (SCI) took up its pro-rata portion of SCM Rights Shares and Excess Rights Shares to make up 7.5 billion SCM Rights Shares.

Under the underwriting agreement, parties of Temasek Holdings took 9.84% of Rights Shares. The other SCM shareholders took up 18.48% of the Rights Shares. Temasek Holdings had to come in to buy up the unsubscribed SCM Rights Shares.

After the exercise of SCM Rights Shares, the final shareholding proportions of SCM shares before and after are shown below.

Before SCM Rights Issue:

Entity Percentage of SCM Shares (%)
SembCorp Industries (SCI) 60.90
Other SCM shareholders 39.10

After SCM Rights Issue:

Entity Percentage of SCM Shares (%)
SembCorp Industries (SCI) 69.89
Temasek Holdings 8.19
Other SCM shareholders 21.92

The Other SCM shareholders (that also include retail shareholders) reduced their shareholding in SCM from 39.10% to 21.92%, after the Rights Issue. Quite significant number of these shareholders gave up their rights to buy these Rights Shares.

Copyright © 2020, 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.

Posted in Financial Management

Retail Bonds and Preference Shares owned

I have invested in four retail bonds and one preference share during IPO (Initial Public Offering).

They were doing well offering good coupon rates (interest income). They held up well in market values during this turbulent time.

Counter Coupon rate (%) Mkt Value (%) Date purchased
DBS Preference Shares 4.70 2.50% 22 Nov 2010
Astrea IV PE Bonds 4.35 6.50% 14 June 2018
Astrea V PE Bonds 3.85 4.20% 20 June 2019
Capitamall Trust bonds 3.08 0.70% 20 Feb 2014
Temasek Bond 2.70 5.90% 25 Oct 2018
       
Average 3.95% 3.10%  

Market value is based on 4 September 2020 price. The difference is in percentage term above IPO price. On average, the market value was up 3.10%.

The average coupon rate is 3.95% for all five counters. This is a good return on investment.

This is a good performance and hopefully it will hold up well in the future.

Copyright © 2020, 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.

Posted in Financial Management