My stock portfolio return is 33.6% in 2017, beating STI return of 21% (which incl dividends).
(The 33.6% return refers to the return of my 60% allocation to stocks. It exclude the 40% non-stock which are in different (mental) account.)
Dividends provide 2.77% return; hence my return mainly comprise of capital gains. This is not surprising, as I don't consider myself as an income investor.
As at end 2017, my stock portfolio has 25 stocks. The 2 stocks with largest stake are Cogent and DBS; both comprise 10% each in my portfolio.
In 4Q 2017, I sold the following Singapore stocks
- Dutech: I sold all my stake in Dutech at a loss, as I think that Dutech results may not improve in the short term.
- Nordic: I continue to pare down my position in Nordic to reduce my portfolio allocation to this stock
- DBS: Sold a small portion at $24.90. This is also to reduce my portfolio allocation to this stock
I also sold a few stocks listed in HK.
- Aimamps Reit: I bought this in Oct 2017, before their placement announcement. Hence, this position is at a loss currently.
- Roxy Pacific: Added to my stake in Roxy, after the positive DBS analyst report.
- Cromwell Reit: Bought smallish position at around 0.54 euros on average. This is bought for the dividend yield
- Ausgroup: Bought at 4.2cents, so this is a losing position now. I am treating this as a turnaround. If it manages to turnaround, its share price should rise way above 4.2 cents. If no, then I am prepared to lose a large portion of my stake here. Hence my position here is a small part of my portfolio.
- Fraser Commercial Trust: Bought at $1.44. This idea is from Kyith at Investment Moat, as he has bought into it in Dec 2017. To me, this reit has the possibility of some dividend growth 5 years down the road. And its annual report shows that the management has a record of growing its dividends.
I also bought some HK stocks, mainly China banks.
What I am looking at in 2018
I will continue to add to my positions on China banks if their prices fall. So far, China banks comprise less than 15% of my portfolio. For diversification purpose, my self-impose limit for China banks is 20% of my portfolio.
I will also be looking for reasonable Reits to buy. I will exclude Reits with less than 6% yield. A possibility is Cromwell. I probably will not add to my position in Aimamps Reit and Fraser Commercial Trust, which comprise 6% and 4% of my portfolio respectively. I view Reits as 'place-holder' to soak up, as I think it is hard to find good stock ideas in 2018 and I want to stick to 60% stocks allocation where possible.