SG Electricity Market Guide – Q1 2019

opening splash

The Open Electricity Market is currently rolling out in phases to Singapore consumers and my home is part of the latest batch of eligible homes in January 2019. So now I can gamble on electricity as well 🤣

As with anything relatively new, I had a lot of questions and a general lack of answers online. Having burnt much of my video gaming time researching this topic, here are my findings and views about choosing a plan.

Disclaimer: While I strive to ensure all information below is accurate, I too am human and may mess up from time to time. For the most accurate information, approach the respective retailers directly.

For those who are only interested in price plan comparisons, here’s are the links:

  1. Standard Plans
    1. Fixed Rate price tables
    2. Discount off Tariff price tables
  2. Non-standard Plans
    1. Peak & Off peak plans
    2. Fixed consumption plans
    3. Floating rate plans 

1) Background

To understand whether you should change retailers from SP Group, you should first understand the electricity market and why the Government is opening it up.

how-electricity-market-works

Source: Energy Market Authority

Essentially the electricity market has a couple of players:

  1. Power generation companies (GenCos) who own the power plants
  2. Power grid management company – SP Assets which owns and maintains the infrastructure to deliver electricity to your home
  3. Wholesale market operator – Energy Market Company (owned by EMA, basically the Government) who maintain the operation of the wholesale market GenCos sell their electricity in.
  4. Retailers – Retailers buy electricity from the wholesale market and sell it to the end consumer, a bit like a commodity trader. Previously, this was exclusively SP Services territory for the residential sector. With the liberalisation, private companies can now enter this space and sell electricity to residential consumers.

Why is the market being liberalised?

The main thinking behind this move is mainly to reduce electricity prices, which is advantageous to the consumer. The reason this is possible is that SP Services is regulated by the EMA and the prices they set, known as the regulated tariff, have to follow EMA regulations. These prices tend to be high as they are the default retailer for all Singaporean homes and businesses. They have to deliver electricity to all locations, even if the customer is potentially a bad debtor, or if the customer switches in and out of SP Services at a moment’s notice. The price set is higher to take into account the added risk.

A private retailer would not have these issues as they can be more picky with their customers. Also, as the prices they set are less regulated, they can be more creative in their pricing.

Other reasons include potential to shape the electricity demand and habits throughout the day (through peak and off-peak plans for eg) and to allow environmentally conscious residents to gain access to green energy.

2) Price Plans

There are currently 13 retailers offering price plans. Price plans can be split into 2 types – Standard and Non-standard plans.

Standard plans

Standard plans can be further split into 2 types – Fixed Price and Discount off Regulated Tariff (DOT) plans.

i) Fixed price plans

Fixed price means just that, you pay the contracted price per kWh throughout the entire contract period.

fixed price chart

The key risk to fixed price plans is that the regulated tariff drops below your fixed price during your contract as illustrated above.

Price Comparison

Fixed price table.jpg
Prices highlighted in green are cheapest in category
*Inclusive of prompt payment discount
#Plans are actually for 18, 25 and 36 months

ii) DoT Plans

Discount off tariff means that you pay a fixed discount off the prevailing regulated tariff for the quarter.

dot chart

Essentially your price will always be better than the SP services price as you pay a fixed discount off of the tariff price.

Price Comparison

DoT table.jpgPrices highlighted in green are cheapest in category
*Inclusive of 5% prompt payment discount
#Starts at 20%, increases to 21% in the 4th month, increases to 22% in 8th month

Do also note that there are 2 creative DoT plans available:

1. Best Electricity Supply offers a cash rebate upfront DoT 24 month plan called Home Saver Upfront that pays you cash when you sign up. Cash rebate is calculated by the average electricity usage of the past 3 months prior to signing up times the percentage of cash rebate chosen. How much DoT you contract for is dependent on that choice per below:

home saver upfront

This plan is best if you intend to reduce you electricity consumption going forward.

2. iSwitch also offers a free iPad (Silver 6th Gen Wifi 32GB) upfront but only a 5% DoT for the contract period for 36 months.

b) Non-standard plans

Non-standard plans bear features of fixed and DoT pricing but are more complex and creative than Standard plans. Not all retailers offer non-standard plans and generally new Advanced Metering Infrastructure (AMI) meters are required for these plans. If you live in the old estates, you may need to change your meters as part of switching to these plans.

I would broadly classify these plans into 1) Peak & Off-Peak plans, 2) Fixed consumption plans and 3) Floating rate plans.

i) Peak & Off-Peak plans

Peak & Off-Peak plans offer dynamic pricing depending on when the electricity is consumed, ie during the peak period it is one price, during the off peak period it is another price.

Here are the available price plans, in the format (Peak price / Off Peak price):

Peak Off Peak table.JPG*Inclusive of 5% prompt payment discount
#Keppel & PacificLight Plans have a 7am-11pm peak period and SembCorp has a 7am-7pm peak period.

These plans are best for working couples who are generally not at home during the peak period.

ii) Fixed consumption plans

Fixed consumption plans refers to you buying a fixed amount of electricity monthly at a contracted rate, with consumption excess of the contracted amount charged at a different rate.

Only 2 retailers currently offer such plans:

fixed consumption table

These plans for best for households who have very consistent electricity usage.

iii) Floating rate plans

Floating rate plans have no fixed rate and fluctuates according to a benchmark or a price determined by the retailer. However, the upside is that there are no contract lock-in.

Currently only Ohm energy offers such plans:

  1. Simply Ohm – All inclusive floating rate + $10.70 per month. Currently at 17.39 cents/kWh. Prices/Monthly fee can change with 14 days notice. No contract lock-in.
  2. Market Ohm – Floating wholesale rate + $10.70 per month. Third party service fees are passed on to you. Monthly fee can change with 14 days notice. No contract lock-in.

These plans are best for households who believe rates will decline in the future and would like to have the flexibility to wait for rates to drop. Long story short – best for gamblers 🤣

Considerations when choosing a plan

Here are my views on what to consider when choosing a plan (in personal order of importance):

1) Electricity usage pattern

To best take advantage of the non-standard plans, it is best to understand your electricity usage pattern before switching. If you are working household with nobody at home during the day, a Peak & Off peak plan might be best for you. If you have extremely consistent kWh usage, a fixed consumption plan might be best for you.

Understand your electricity usage pattern before considering non-standard plans.

2) Expectation of future prices

Selecting a electricity plan is similar to shopping for a fixed or floating rate housing loan. If you expect the future regulated tariff to increase, you might want a plan with fixed prices. If you expect the future regulated tariff to decrease, you might want a DoT plan.

3) Retailer relation to a GenCo

If you are somebody who prefers stability and hates handling switching, it might be best to choose a retailer who is related to a GenCo. This is because the company is vertically integrated and more stable as a result. The retailer is less likely to collapse and force you to switch again midway through your contract.

A retailer who is purely a middleman between the wholesale market and the customer is more susceptible to price fluctuation and planning risk.

4) Customer Service Standards

With all the headaches that can potentially occur due to the infancy of the market, its best to be with a retailer with good customer service. Research reviews online to determine customer service standards.

5) Credit card promotions, rebates, freebies and referral programmes

A lot of the standard plans have similar pricing and profile from each other. As a result, the minor difference between each plan is simply the current promotions available to each retailer. Some have credit card promotions when you sign up to pay using a particular credit card. Some offer rebates on your electrical bill for a particular month. Some offer vouchers and free air-con servicing. Some have referral programmes where both referrer and referee get bill rebates.

Weigh all these promotions before ultimately taking the plunge.

6) AMI Meter requirements

If you are considering a non-standard plan and living in an old estate, you might need to change your electricity meter. Some retailers charge a fee for changing meters, some absorb the cost.

7) Billing preference

Most retailers require you to be billed separately from the SP Services bill. Currently, only Best Electricity and Ohm Energy offers an integrated bill with SP services.

8) Environmental Consciousness

If you are environmentally conscious, you may consider signing up for plans that use 100% solar energy like Sunseap-100 or are carbon neutral like ES Power’s plans.

My personal strategy

I currently stay in a home where there are people in the home most of the time. I personally expect future electricity prices to increase in the long run. I am somebody who hates handling admin work frequently. I would prefer to have a single SP services bill but it is not a deal breaker if my electricity is billed separately. While I am environmentally conscious, I am unwilling to pay too much of a difference in rates.

Based on this assessment, I will most likely go with the cheapest 2-3 year fixed price plan with a retailer who has a relation to a GenCo, which I believe is the option most Singaporeans will end up with.

Final thoughts

My general recommendation for most Singaporeans who do not wish to “hack” their electricity consumption extensively is to consider the standard plans. If you feel electricity prices will go up or if you want stability, sign up for a fixed price plan. If you have no view on electricity prices and willing to take some volatility, sign up for a DoT plan.

Only if you’re adventurous or if the plan fits your lifestyle should you consider the non-standard plans.

Which electricity plans have you signed up for and why? Do let me know in the comments.

Happy Hunting,
KK

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Initial thoughts on the Capitaland – Ascendas-Singbridge acquisition

Singapore investors woke up today to some pretty blockbuster business news – Capitaland’s proposed acquisition of Ascendas-Singbridge (ASB) from Temasek Holdings to create Asia’s largest diversified real estate group.

While I am not a shareholder of Capitaland, curiosity got me reading the announcement circular and snooping around Ascendas-Singbridge’s site. Here’s some of my initial thoughts.

Announcement details can be found here.

Acquisition Rationale

Simply put, the deal is highly synergistic and beneficial to the overall business. Capitaland and ASB operate in similar businesses and geographies, with the only difference being the type of real estate they develop and manage.

Capitaland has a more residential, office and retail mall focus, while ASB has a more business space / industrial park and hospitality focus. The combined entity will cover almost the entire spectrum of conventional property listed on the SGX.

This in my opinion, is the best part of the deal.

Deal structure and known financial effects

The deal consideration is worth about S$6 billion, which will be 50% from cash funded from debt, 50% from equity. The equity component is satisfied by issuing 862,264,714 shares at $3.50 to Temasek Holdings.

The equity funding portion is the part that is concerning. Temasek Holdings’ effective holding in Capitaland increases to 51%, becoming the controlling shareholder in the process. At the same time, the other shareholders are diluted down.

This in itself, may not be a problem from a valuation standpoint if the combined entity’s per share Net tangible assets or Earnings per Share increases.

A quick check of the announcement document proves otherwise.

eps

nta

These figures were derived if the transaction had occurred on 31 December 2017, presumably because the latest figures are not available.

This doesn’t look good at all, with a small increase in EPS while a substantial drop in NTA. This is partly because the shares issued to Temasek were priced at a significant discount to Capitaland’s NTA ($3.50 < $4.20).

To be fair, we do not know the latest figures as these are 2017 figures. However, based on these figures, there has be substantial synergies in order for this acquisition to make commercial sense.

Cursory reading of ASB’s Annual report

Despite it technically being a private entity, I was pleasantly surprised that ASB publishes an annual report on its website here.

Nothing really jumped out at me from the financials other than being pretty well capitalised, with growing revenues and net profit. One peculiarity I noticed was the existence of a 10 year unsecured bond held by JTC.

debt ratios

Source: FY17/18 Annual Report

My understanding of this bond was that back in 2015 when Ascendas merged with Singbridge, Ascendas had to issue a 10 year fixed rate bond to JTC as consideration for acquiring Singbridge. For some reason, this bond is being treated internally as quasi-equity instead of debt, resulting in the bifurcation of ratios shown in the table above.

This caught my eye mainly due to its uniqueness and the resulting debt to equity ratio of 254.3% if the JTC bond was treated as debt.

Haven’t been able to find much explanation of the nature of this bond beyond what I’ve written above. To be clear, this in itself may not be a deal breaker, just something for me to watch out for and read about later.

Final thoughts

Commercially, this acquisition is a no brainer to me. Unfortunately, if you look at some of the figures published in announcement, it doesn’t exactly feel like a good deal for existing shareholders.

I’ll be interested to see how Capitaland’s share price performs tomorrow once the trading halt is lifted, as it will inform me about investors’ views of the acquisition.

What do you think of this megamerger? Are there any other areas of consideration I should be looking at?

Happy Hunting,
KK

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Health is a form of wealth

heart rate

The turn of the new year brought a reminder in our pursuit of financial freedom – health is ultimately the most important wealth. No amount of scrimping, saving and income can replace your health. You may be wealthy financially, but if you do not have a healthy body to spend that wealth, you might as well not have it.

At the least, your financial wealth will be drained by your medical bills. At the worst, you are not alive to even spend it.

Here’s a story of what happened to my dad over the past week.

Background

My dad was self-employed in a trade that often required him to wake up in the middle of the night. Although he had the option to relax and forgo the night income (as he was self employed), he persisted out a drive to make more money. This resulted in him being very tired during the day and the weekends.

He claims to be retired now that the children have all graduated and are working now, but I know that he cant help at least keeping tabs and engaging in that trade from time to time.

Strike One

His condition first reared its ugly head about 1 – 2 years ago. Luckily for him, it was not fatal and he was able to undergo a procedure to alleviate the condition. However, he had to strictly observe his lifestyle and diet from that day onward.

After undergoing the procedure, he felt better than ever before. His regular follow-up check-ups with his doctor were also positive. So he started pushing his limits once more, especially in the second half of 2018.

Strike Two

It was the morning of the second day of 2019. On the way to the grocery store on his own, he called my mom and complained of a sharp pain that threatened to overwhelmed him. The condition had made its presence known again. Luckily for him, he was still conscious enough to call a cab to send him to hospital. My mom rushed down in a separate cab from home.

So began a whirlwind 3 days of medical testing and observation, ultimately resulting in another procedure to alleviate the condition yet again.

I accompanied him while he queued for medication on the last day. I took the opportunity to ask him if he feared not having enough for retirement, as the reason for him still pushing himself to make money in his retirement years. He replied that there was always the risk of that, no matter how tiny the possibility.

“But is it worth your health?”, I thought to myself.

My reflections

It’s funny how the world always finds a way to kick your ass to remind you to wake up. Seeing my dad’s mortality first hand has reminded me once again of my lazy attitude towards my own health and almost single-minded focus on attaining financial freedom.

So for this year, I have only 1 resolution above all others – close the rings on my Apple Watch as far as possible (90% of the year or more). I’ll report my ring closure progress as part of my future portfolio updates going forward.

After all, health is wealth.

Happy Hunting,
KK

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2018 Performance Scorecard

2018

With only 1 trading day remaining in 2018, its time to review how 2018 went for me.

Career

2018 has been a busy and transitional year for me. My company went through a restructuring exercise which resulted in my team in Singapore going down from 2 to 1 (Yup I’m the only person in my global team based here LOL) so I had to try to pick up the slack where ever I can. I shared my views on corporate restructuring here if you want to know more.

I had my crazy 7 weeks 7 cities work travel recently so that’s another one for the list of memories I’ll carry with me. I shared part 1 of my insights from my work travel here and will get to part 2 next year.

One plus side I feel was that I’m more bonded with my other colleagues both locally and overseas as I have more airtime and more opportunity to show my abilities to them. This also resulted in simple collaborative work that I wouldn’t have imagined doing in 2017. Slowing building bridges with my limited time in the office.

Investments

As previously mentioned, it was a tough year for me as I transitioned from a growth at all cost strategy to a hybrid income strategy. While it has not been an absolute nightmare performance as I avoided most of the horror shows (OUE Commercial Trust, Keppel KBS REIT (which incidentally looks really interesting now) and Asia Pay TV Trust to name a few), you never feel good when you make losses for the year.

Going forward I’ll be relying heavily on my StocksCafe figures instead of my own calculations as previously in 2017.

Let’s kick things off with a portfolio review.

Portfolio

PortfolioPortfolio GraphAnnual Portfolio Value

There were no transactions this month, other than scrip dividend for AA REIT, which I opted for due to the relatively attractive offer price. I took 100 units and the remaining dividend in cash so that I can avoid holding odd lots.

December was a particularly difficult month as the Santa rally did not materialise due to China economy worries, the Fed raising rates yet again while striking a more cautionary tone and of course, the US Government shutdown. As long as Trump keeps acting stupidly, Government shutdown is something we’re going to have to keep dealing with.

2018 Dividends

  • 2018 Dividends collected: $4,377.71
  • 2017 Dividends collected: $1,136.42
  • Upcoming Dividends:
    • SingTel: SGD 489.60 (XD)
    • Frasers Property: SGD 186 (CD)

Dividends has significantly increased y-o-y due to a more income focused approach.

XIRR and Time Weighted Returns

After clawing back to almost even in November, the broader market correction in December ultimately determined my investment performance for the year. XIRR moderates to 12.24% over 5.5 years (2013 figures are only for 4 months).

Conclusion

Overall, it was a disappointing but satisfactory year. Not too many highlights but I’m glad to complete the year unscathed in my career and outperforming the STI and S&P 500 in my investments. It could have been way way wayyy worst.

That’s it from me. Good riddance 2018 and Hello 2019! Happy New Year everyone!

Happy Hunting,
KK

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Last chance to plan your taxes for 2018

tax

As 2018 draws to a close, it’s that time of the year again where I access my tax position and decide if I wish to use any of the limited tools to manage my tax bill. I’ll encourage you to do so as well as efficient tax planning can help you save on unnecessary taxes.

To help you get through this quickly, here’s a guide to access your tax position and what you need to do should you decide to manage your taxes for 2018.

Step 1: Prepare a rough tax computation

Don’t know how to prepare a rough tax computation?

Well, I was bored over the holidays and decided to come up with my own Personal Tax Calculator for your use absolutely free. Download it, edit it however you like, use it. Just follow the instructions inside the excel file, answer all the questions and fill in the relevant blanks in the Raw Input Data tab and viola! You have automatically created a fairly accurate tax computation for your own reference.

I must say that the calculator was created as a quick tool for your reference and I’ve endeavoured to make the information presented and formulas as accurate and as bug-free as possible. That said, I am human so do reach out to me if you find any unforeseen errors / bugs by dropping me a comment / email.

Step 2: Assess your tax payable

Now that you have done a tax computation, does that tax payable figure presented in the computation seem too high? Do you wish to reduce your tax bill further?

My taxes are quite minimal at the moment so I am quite happy to sit on it till I hit higher income tax brackets.

Step 3: Manage your taxes

I’ve written quite extensively on this topic in the past. Here are some tax planning articles I’ve written for your quick reference:

  1. Tax reliefs
  2. CPF Cash Top Up
  3. Supplementary Retirement Scheme
  4. Bringing it all together – How to best utilise these reliefs to your advantage

TLDR Summary

  • Maximise your family support reliefs as these are gone if you don’t claim
  • Decide if you wish to utilise retirement support reliefs to manage your taxes further
  • There are mainly 3 retirement support reliefs available, CPF Medisave account Cash Contribution, CPF Special / Retirement account top up for you and your family and Supplementary Retirement Scheme account top up.
  • Deciding which avenue to utilise depends on your needs and goals, see Part 4 for a decision flowchart to help you decide
  • Each dollar topped up to each of these accounts will entitle you to a dollar of tax relief

You simply need to top up the respective CPF / SRS accounts before year end to qualify for the reliefs.

Summary

Tax planning can be complicated, but with my articles and now my tax calculator, I hope to help reduce the hassle and make tax planning more accessible for you. Do feel free to drop me an email or comment if you have any clarification questions on this.

Wishing all a belated Merry Christmas and an early Happy New Year.

Happy Hunting,
KK

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Market insights from my travels – India

As promised in my last post, I’m finally back! And pretty timely too, as I’ve started to feel pretty worn out from all the travelling and really needed the rest over the past week. Looking forward to all the rest I can get over the holidays.

I’ve said in the past that by making investing a way of life (where you get investing ideas from your personal experience), you can make investing fun and interactive. In a 2 part series, I’ll illustrate these principles by writing about my observations from 2 of the places I visited for work – India and Zhongshan – starting with India in part 1.

Doing business in India

As you may know, doing business in India is notoriously complicated. The business and regulatory environment can be very volatile. The population is diverse and unique, with over 20 major languages spoken and unique dietary requirements (a significant portion of the population are vegetarians and do not take beef). Prime Minister Modi has been trying to reform the business environment and tax system since assuming power but the problems facing India are deep and resistance to change is strong.

To illustrate this difficulty, here’s are a hilarious example I experienced firsthand.

Highway alcohol ban

TLDR Background

  • India’s Supreme Court issues a court order to prohibit the sale of alcohol within 500m of State and National highways on 31 Dec 2016 to tackle the drink driving problem in India
  • Enforcement began on 1 Apr 2017
  • The short timeframe to prepare led to widespread confusion and scrambling to clarify / circumvent / comply with the court order.
  • Many creative solutions were developed to circumvent the order.
  • This article summarises the issue pretty succinctly.

I first experienced this when I commuted from my hotel to my company’s office in New Delhi. Everyday, I would see my cab driver drive past my company’s office building, take the next highway exit, drive back toward the building, take a roundabout before finally reaching the building.

Hotel commute

Excellent image editing skills, I know

When I asked my India-based colleagues about this, I was told that the highway exit closest to the building had been sealed to force drivers to take the next exit to lengthen the travel distance from the highway to the building. What’s more, apparently it was still less than 500 m, so the building management actually went out and built a roundabout to extend the distance further. This was so that restaurants in the compound could sell alcohol.

That’s right, apparently the 500 m rule was Travel Distance and not Linear Distance from the highway.

🤦

Therein lies the basic loophole that led to many of the creative solutions. You had buildings intentionally sealing off entrances that were closest to the highway, highways closing exits and my personal favourite solution, a bar building a maze around their establishment, just to circumvent the rule

Bar maze.jpg

I’m pretty sure drunk people will never be able to leave the bar

You also had State Governments re-designating highways as to avoid the “state and national highway” definition.

What does this indicate?
All jokes aside, this is an example of regulation, while well-intentioned, was poorly thought out and implemented. The worst part is that it can have a real impact of your business. Imagine owning a bar / hotel and suddenly you are given only 3 months to comply with a bulls#@t ruling or face the threat of closing your business.

On the flip side, the way the State governments got involved to circumvent the order also shows the difficulty facing the Federal government in enforcing their own reform.

Singapore companies in India

During my trips overseas, I’m always on the lookout for Singapore companies that operate in overseas markets. So here’s some examples I came across during my visits.

SATS

If you didn’t know, SATS has a Joint Venture with Air India to manage ground services for 5 airports in India, one of which is Indira Gandhi International Airport in New Delhi, which I naturally visited as part of my trip to New Delhi.

AirIndiaSATSDelhiairport
The airport had a ok design that reminded me of Changi Airport’s older terminals – T1 or T2.

Funnily, the thing that reminded me the most of Changi Airport were the signs in the airport.

Airport signs

Exactly the same font and icons

So SATS investors, remember your exposure to the India market when determining your company’s prospects.

Singapore Airlines

Other than SIA’s direct flights to India’s major cities, SIA also has a Joint Venture with the Tata group in India to operate domestic flights under the brand Air Vistara.

IMG_1249.JPG

Unfortunately, I didn’t get to fly Air Vistara on any of my domestic transfers so I can’t comment on service quality. A colleague who flew Air Vistara for a short trip didn’t have any complaints about the airline.

SingTel

I’m pretty sure all SingTel shareholders like myself know about their Indian associate Bharti Airtel and their continued struggles amid an all out price war in the India telecom industry.

I took the chance to quiz my Indian colleagues about this and was amazed at how cheap the price plans were by the major competitor Reliance Jio.

Struggling to keep your data usage below the 2 GB limit for SingTel Combo 2? Well Reliance Jio offers 25 GB a month postpaid plan for INR 199 (Approx. $4) a month.

Jio Postpaid Pogchamp

Ridiculously cheap.

As a result, most Indians have 2 phones, 1 for their old line, 1 for their Reliance Jio line to stream videos on. They swear it is even faster and smoother than their home internet connection.

They also said that Reliance’s business strategy tends to be to use their deep pockets to engage in price wars in the respective industries they enter to kill off the weaker players and consolidate the industry. This is something very much evident here.

So SingTel investors will need to buckle up and be prepared for continued headwinds in the India market.

The Last Word

Your personal experiences can help define your investment insights. As seen from my overseas experience, you can educate yourself on the market dynamics from something as simple as a daily commute to office or conversations with colleagues.

Stay tuned for part 2 about Zhongshan! 🙂

Happy Hunting,
KK

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Portfolio @ November 2018

NovemberPortfolio DetailsPortfolio Value

Performance Indicators / Dividends

  • YTD Time weighted return: -0.16%
  • Dividends collected: $3,145.21
  • Ex-Dividend:
    • AIMSAMP Capital Industrial REIT: SGD 150
    • Capitaland Mall Trust: SGD 165.30
    • Frasers L&I Trust: SGD 503.72
    • Starhill Global REIT: SGD 172.50
    • Visa Inc: USD 14
  • Cum-Dividend:
    • SingTel: SGD 489.60
    • Frasers Property: SGD 186

Commentary

7 weeks, 7 cities

Apologies to regular readers (if there are any haha), its been 5 weeks since my last post. As mentioned in my previous post, it’s been a busy end to the year for me. I currently in the midst of my “Asia tour” for the past 5 weeks, with 2 more weeks of work travel to go.

So where have I been? I’ve been to (in order) Bandung, Bangkok, Chennai, Jaipur and Nha Trang, and will be going to Beijing and Zhongshan to finish off my work for the year. Pretty insane if you ask me haha. At least the people are nice and welcoming and I’ve learnt a lot of how business is conducted in all these countries/locations. Will share my insights when I’m back in 2 weeks time.

Portfolio transactions and thoughts

It’s been a relatively busy month on the transactions front, with my purchases made in late Oct/early Nov in the depths of the sell off. I initiated a small position in SPDR STI ETF (SGX: ES3) with the STI was below 3,000 points, added SingTel (SGX: Z74) at 3.03 and bought 1 share of Amazon (NASDAQ: AMZN) for the lols during the sell-off.

The market has staged a mini recovery, adding m-o-m capital gains of about $2+k. Main contributors of gains relate to Hang Lung Properties, Capitaland Mall Trust and Frasers L&I Trust. Coupled with about $2k of capital injections, porfolio value is almost back to peak levels while time weighted returns has returned to almost flat for the year.

Looking ahead

The G20 summit this weekend will be in focus, with Trump and Xi meeting. My personal guess is that it will be a non-event, causing the market to collapse again on Monday.

This year has been a tad disappointing but 1 more month to go to bring myself back into positive territory. Here’s to a great end to the year!

Happy Hunting,
KK

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