Persistent high inflation of everything from food, transport, housing and utilities are essentially diluting value from all walks of life. Many have blame the war, supply chain issues and pandemic for this problem. However, I believe the truth lies with the record monetary stimulus the world had ever seen.
Warren Buffett recently reiterated that in the environment of high inflation, the best thing one can do is to be exceptionally good at something. The best doctor, lawyer or barber will still be able to charge prices above inflationary rate due to the scarcity of such skills. The same can also be said in investing for companies that are the best in their fields.
As a large portion of the SRS funds consist of REITs and so the question to ask is whether REITs will continue to do well in a high inflationary environment. The most important factor lies in the skill the REIT manager.
The exceptional REIT manager will be able to first increase revenue through careful planning of tenants mix that position rent to scale much faster than inflation. Second, the manager will also carefully devise capital management strategy to cater for all likely interest rate scenarios.
In a difficult environment the skill of the REIT manager will shine through resulting in better DPU growth compare to their peers. This skill similar to a good doctor will be worth paying a premium for exceptionally well managed REIT.
SRS Fund Portfolio
The SRS fund portfolio remains stable despite market volatility especially in foreign markets. The fund added additional units in Mapletree Com Trust as well as HS Tech ETF during the month. Q2 dividend started to trickle in starting with $540 from DBS. The bulk of dividend will be receive in May and June which should easily exceed the amount received in Q1.
LATEST POSTS
-
The SRS Fund Dec 2025
If someone had told me at the start of the year that the Singapore stock market would deliver returns in excess of 20%, I would have shrugged it off as wishful thinking.
-
MyNest US Fund Dec 25
MyNest US Fund rounded the first year of inception with a slight outperformance to our benchmark the S&P 500. The first year of operation tested to resolve in knowing what we own as we navigated volatility which started on Trump’s Liberation Day.
-
The SRS Fund Nov 2025
If you’ve been watching the Singapore market this past month, the narrative has been impossible to ignore: it is a tale of three banks, and unfortunately for UOB, it has found itself lagging its peers.
-
MyNest US Fund Nov 25
November tested the patience of the broader market, defined by a distinct shift in sentiment regarding Artificial Intelligence. The narrative of an “AI Bubble” finally took hold,
-
The SRS Fund Oct 2025
Many of us in Singapore watch in dismay as interest rates from T-bills, fixed deposits and high-yield bank accounts plummet to new lows in recent months. Three months Sora now stands at 1.29%.
-
MyNest US Fund Oct 25
October is usually the worst month of the year for stocks but somehow this year the stock market failed to provide any opportunities for us to deploy meaningful cash to work.
MYNEST.SG 