As a recap, I was tasked to startup a new Investment Portfolio using SGD400k cash. I started construction of the Investment Portfolio around Mid-November 2019. This is the Overview as at End November 2019:
1. Mark to Market losses of some of my investment positions.
2. Mark to Market prices for Fixed Income usually is "Mid Price" whereas an Investor usually buys Fixed Income closer to "Ask Price".
3. Trading fees and commissions.
So what are the Investments that I had made to start off the portfolio? I had started off with one Fixed Income and one Equity:
More details of the Fixed Income can be found at this website: HSBC 5% SGD Coco Perp Factsheet
I am not affiliated with FundSupermart. However, I would recommend Investors who do not have access to a Bloomberg machine to use FundSupermart for their informative webpages. Whether you want to use FundSupermart for trading would be your own choice.
My entry yield for the HSBC 5% SGD Coco Perp is: 4.3% YTC 4.9% YTM.
For the Keppel Corp equity trade, I was mainly jumping on the bandwagon after Temasek announced that they are going to increase their stake in Keppel Corp to 51%. Details here: Temasek to increase stake in Keppel to 51%
For me, it's a straightforward case where I would have the opportunity to sell at least 1/3 of my Keppel Corp holdings to Temasek at SGD7.35. The other 2/3 would be exposed to fluctuation in prices but I am confident that Temasek would bring forth significant changes to Keppel Corp that would result in the share price above current levels.
How did I arrive at 1/3? Temasek currently has about 20% stake in Keppel Corp. They need to purchase another 31% out of 80% outstanding shares. 31/80 = 39%. Further, it is possible that other investors who had bought Keppel Corp at prices above SGD7.35 would refuse to sell to Temasek (hence I might be able to sell more than 39% of my holdings to Temasek in the tender process).
An article on how to react to Temasek increasing their stake in Keppel Corp that I particularly liked (I am not affiliated to him) can be found here: Article by Drwealth
OK, so what's next Newbie? You started with SGD400k cash. You used up almost all of it within a few weeks. What else can you do?
STAY TUNED for End December 2019 updates where you can see what other tricks I have up my sleeve.
Regards,
Newbie
This blogpost is provided to you for general information only and does not constitute a recommendation, an offer or solicitation to buy or sell the investment product mentioned. It does not have any regard to your specific investment objectives, financial situation or any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of your acting based on this information.
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