Half a year has passed and it’s time to report on portfolio performance again. Happy to report a good half yearly performance with a good second quarter riding on an exceptional first quarter.

Performance
NAV of portfolio grew from $3.78 (30 Dec 2016) to $5.17 (30 Jun 2017), providing a return of 36.6% for 6 months. This is above my stretched target of 12% and also beats my benchmark STI ETF which returned 14.6% inclusive of dividend over the same period. The charts below show the past 6 quarters and past 3 half-yearly performances. The drop in prices of a few counters in the past few weeks have weakened Q2 results but nonetheless a 9.0% return is a good one which I will take for any other year. The exception Q1 performance has also led to the best half yearly performance.













The strong performance is attributed to a combination of positive sentiment in the local market and good results reported from my top ten counters over the past two quarters. A summary of my top ten counters’ last quarter performance can be found here.

The top performers continues to be Best World. After stock split and dividend, it has returned 127% this year. This is supported by core stock such as Valuetronics (47%), Food Empire (35%), Micro-Mechanics (32%), Straco (19%), Parkway Life Reit (15%), and Frasers Centrepoint Trust (14%).

ISEC which is not in the top ten also did well with an increase of 10%.

Allocation
While there were some changes in the counter, portfolio allocation has more or less stayed similar to what was planned. Current dividend yield of portfolio based on cost is about 4.7%.
Planned
Actual
Dividend
~ 60%
58.0%
REIT/ Business Trust
<= 30%
25.8%
Growth
~ 40%
40.1%
Punt
<=10%
9.4%
Cash
0%
1.9%

Earlier in the month, I have also wrote about asset allocation in which I have written that I am going for 30% cash and 70% stock allocation. A check on my spreadsheet shows that it is at this allocation. So no action will be taken to put in or take out cash from the portfolio.

Action
For the month of June, 
I have divested
  • A-REIT at $2.65 for a gain of 19%. Bought last December for a tantalising 7% yield for industry leader. With the recent gain, I have received more that 2 years of distribution and yield has dropped below 6%. 
  • Techwah at $0.515 for a gain of 10%. Reason for sale is to raise cash for other counters.

I have added

  • more Frasers Logistic and Industrial Trust at $1.03 after news of its latest acquisition. I take this as sign of how things will be like in the years to come.
  • Japan Food at $0.46 for its consistent dividend. If it can maintain its dividend, it will give me a return of 4.3%. Not fantastic, so hope it will be higher in future.
  • Duty Free International at $0.35 for its increase cash hoard and possible expansion in the next few years.
  • Valuetronics at $0.77 to round up my holdings. Also, I am satisfied with the 4.7% dividend yield it is giving me.
You can click on April and May for my actions taken in those two months.

Core holdings
Based on initial cost, the top 10 holdings take up 74.9% of the portfolio. With the purchase of Food Empire and Valuetronics, they have moved up in positions. The rest has remains pretty stable.
  1. Food Empire (9.7%) @ $0.43
  2. Raffles Medical (9.5%) @ $1.48
  3. Parkwaylife REIT (8.9%) @ $2.32
  4. Valuetronics (8.6%) @ $0.54
  5. Straco (8.1%) @ $0.84
  6. Best World (7.7%) @ $0.30
  7. Fraser Centrepoint Trust (6.4%) @ $2.01
  8. SingTel (6.1%) @ $3.82
  9. Micro-Mechanics (5.8%) @ $0.91
  10. Starhill Global (4.3%) @ $0.67
Looking Ahead

It has been a wonderful ride so far this year. Not sure how long the good time is going to last but enjoying it while it lasts. Looking forward to the release of next round of quarterly results from my holdings and am confident of good results from most of my holdings.

Similar to first half, I do not think there will be much action on my core holdings. However, I might tingle a bit more with my none-core. 

Up next, I will post on a short visibility report of my various holdings for the next few years.

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