The best time to buy is probably the worst time to sell and vice versa. Lesson was learned the hard way as both MNACT and Ascott Trust cost the fund $4k in profits when both was sold to beef up cash for the Chinese equity ETF.
While I believe the cash will be well deployed, timing could really have been better as I will avoid doing both buying and selling at the same time in the future.
The focus for the month would be to prepare the SRS fund to weather a higher interest rate environment. While banks will likely expand their net interest margin to around 2% I simply do not see this margin expanding beyond 3% as bank will eventually have to pay depositors their dues by increasing fixed deposit rates.
With the impending launch of digital banks in Singapore, competition is expected to heat up in the banking sector which will likely cap their profitability even with higher interest rates.
REITs will likely face increasing interest cost over time as they begin refinancing at a higher rates. Those with lower debt will likely out perform as the Singapore economy open up further with reduced restrictions as well as tourist contributions.
My view on REITs will be for DPU to trend upwards over the year while price maintain stable thus compensating for the higher interest environment.
SRS Fund Portfolio
There are quite a few activities during the month of March as the HS Tech ETF was a new position in the portfolio together with addition to Ascendas iTrust. Both MNACT & Ascott Trust position were liquidated. The SRS Fund value reach an all time all of $350,500.26 and a dividend of $2,197.39 was collected during the Q1 2022. Cash level remain elevated at 18% as I wait for more opportunities to deploy these funds.
LATEST POSTS
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The SRS Fund Aug 2023 Update
In 2022 I made a decision to cease contribution to the SRS Fund in order to avoid paying any taxes upon withdrawal. I was wrong and short sighted for that matter.
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The SRS Fund Jul 2023 Update
Recently I decided to made some changes and separate my monthly article with the SRS Fund update. This change enable me to better focus on the fund itself as well as the underlying companies.
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Tuning Out the Noise
There are simple too much news and data out there in the investment world for an investor to consume everyday. To become an effective investor, one got to tune out the noise, that is to differentiate what is useful and what is not.
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The Revenge Travel Boom
When Covid hit major economies in 2020 a group of companies like the FANNGs got a major boost due to the physical lock down of cities all over the world.
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Worst Investment Ever
I made this investment at the stage when the biggest mainland property firm China Evergrande defaulted on its offshore debt. From then on the property sector took a dive bringing many property related companies stock to new lows. Sensing an opportunity I did some research and zoom in on this company called Sunac.
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Mind Changing Facts
When the facts changed a flexible mind should have the ability to accept the changed facts and adjust accordingly. For some time now, it has become clear to me that the low interest rate environment that we enjoy for the past many decade has come to an end.
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