The SRS Fund Mar 2025

The Virtue of Patience

The SRS Fund had its fair share of its misses. Two mistakes of omission were particularly costly in which yours truly sold iFast for a 20% gain at $1.20 and Propnex at 65 cents a little while after its IPO. Both were identified as good businesses but the lack of patience got in the way and the opportunity was lost after some turn of events.

The takeaway from these two rather painful episodes laid the groundwork for the much-needed patience. After all the shares of a company are a small ownership of a business and good businesses will thrive despite short-term headwinds.

Many investors were sceptical about the viability of Yangzijiang Financials when it was spun off by its shipbuilding parents. Back then much of its assets were in China invested in property-related debt. The SRS Fund invested based on value. I concluded that even if all investments in China were written off, their overseas investments would have justified the share price. It was a classical 50c for the dollar trade.

When the market finally realises the company’s value, it turns out that we may have a flower in the making. Not only has Yangzijiang Financials managed to recover most of its investments in China, but it is also making new viable returns in Singapore through investments in its Maritime Fund. We shall find out whether this investment turns out to be a multi-bagger in the SRS Fund.

The $500k Milestone

In the month that our benchmark the STI Index hit an all-time high of 4005.18 it is befitting of the SRS Fund to also reach its record milestone. This achievement is not an end in itself but a signal of the progress the SRS Fund has made through its 17 years of existence.

Yangzijiang Financials has made it into the SRS Fund’s 4th largest holdings just behind the three local banks with the surge in price. With financial companies taking the top spots in the SRS Fund, it should be concluded that the risk is heavily skewed towards the financial industry.

Portfolio Segments

I hope the SRS Fund will continue to find opportunities to diversify its reliance on the financial sector. Future investments should lean towards non financial companies but I have no intention of selling down our financial holdings as long as they are not overvalued.

Dividends

Dividends collected were somewhat less than the previous year likely due to portfolio mix. However, the SRS Fund is still expected to reap a record dividend in 2025.

SRS Fund Value

The SRS Fund value reached a milestone high of $500,872.38. I would not expect this valuation level to hold as drawdowns are features of the stock market. What I do expect is for its value to increase over the long term with dividend collection as well as contributions.

Cash Levels

The cash level closed low as the SRS Fund remains fully vested despite uncertainties going into a brewing trade war. On hindsight, it was probably wise to take some money off the table to outperform. However, with continuous dividend collections, our cash level should move up in tandem allowing for more investment opportunities if prices were to adjust.

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