• jeffreyleezq

My Portfolio & Dividend Updates (End Aug 2020)

Monthly update on my Portfolio percentage breakdown and dividends received (if any).

It’s once again the end of the month, so time for a portfolio update. (:

My portfolio listed here consists purely of equities only, and excludes social security (CPF & SRS), debt instrument holdings (i.e. bonds & SSBs etc), emergency funds, as well as personal savings.

As such, any returns from the excluded items above (e.g. dividends from CPFIS, bond coupons and interests from CPF/savings accounts etc) will be excluded in the total amount in the 'Dividend Updates' section below as well.

Portfolio Breakdown by Securities

For the month of August, I added some new shares of Phillip SING Income ETF (OVQ) and Singapore Telecommunications Ltd (Z74) to my existing pile, as well as took up a small position of Lion-Phillip S-REITS ETF (CLR) in my portfolio, as part of my plan to further diversify the local portion of my portfolio. With this, local counters now account for about 19% of my equity portfolio, an increase of 4% from the 15% previously. As a Growth investor myself, 19% feels kinda too high for my preferred growth strategy, so I would likely be looking at selling some of my other local counters in the subsequent months if I get a good price.

I talked about OVQ (i.e. Phillip SING Income ETF) briefly in my July 2020 portfolio update, so if you are interested you can refer to it here. Either way, it is an ETF that tracks the Morningstar Singapore Yield Focus Index, which comprises of 30 SGX listed high-yielding companies screened for good quality and sound financial health. The index calls this the 'quality income strategy'.

As for CLR (i.e. Lion-Phillip S-REIT ETF), it is an ETF that invests in Singapore REITs listed on SGX. It is designed to provide investors with a low-cost access to a total of 28 high-quality Singapore-listed REITS (S-REITs) that offers a sustainable income stream. It is passively managed to fully replicate the Morningstar Singapore REIT Yield Focus Index.

As such, CLR is great for you if you want a REITS ETF that fully comprises of Singapore-listed REITS. Note that although CLR comprises fully of Singapore-listed REITs, it does not mean that your investment is fully confined to Singapore. For instance, Suntec REIT, one of the holdings in CLR, also holds properties in the Australian cities of Sydney and Melbourne.

CLR is also primarily concentrated in the industrial (~30%), office (~23%) and retail (~22%) sectors, with these 3 sectors making up a total of ~75% of the entire ETF. Total expense ratio wise, CLR stands at around 0.60% per annum, which is slightly more than the ES3's 0.30%. (Note: ES3 = SPDR Straits Times Index ETF)

All in all, my take is that CLR is an attractive investment for those who wish to invest in a portfolio of blue-chip S-REIT counters (especially those with little capital and can't afford the luxury of buying these S-REITS individually), while achieving good diversification within local REITs. This convenience does entail paying a fee of 0.60% per annum though. Nonetheless, as usual, this is just my own personal take. Please do your own due diligence - this is not a buy call.

For US counters wise, I will likely be making some transactions this week since I still have some unused funds left, but I guess I would lump that in my September portfolio update post. Otherwise, I would probably continue leaving the remainder of my war chest in my Singlife account that pays 2.5% interest per annum.

Dividend Updates

Received a lower-than-expected dividend payout for the month of August, in part largely due to the 60% dividend cap by all the local banks, and hence consequently a lower dividend payout from DBS Group Holdings Ltd (D05), and the SPDR Straits Times Index ETF (ES3).

My total amount of dividends received since the start of 2020 now stands at S$3,126.15, giving me an average dividend amount of S$390.77 monthly from January till August 2020.

Note: Dividends are recognised after ex-dividend (EX) date.

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Disclaimer: All information contained herein this blog is solely the writer's personal opinion, and does not constitute an offer, recommendation or solicitation of an offer of any kind. Readers are also advised to do their own due diligence, and to consult a financial adviser for any financial advice.