Friday, March 6, 2020

Newbie Portfolio - End 2020 02

Ah, Coronavirus.... how much damage have you done?

Portfolio Performance (Start Date: End November 2019 with SGD400k Cash)







Definitely not a good month with the Coronavirus situation blowing up around the world. My new portfolio took a significant hit, causing Month-on-Month performance, Absolute Performance, and Annualised Performance to all be negative now.







Fixed Income portion of the portfolio is still registering gains and the Equities portion was the main culprit for dragging the portfolio into negative terrority.

I was surprised Keppel Corp had declined so much in price even though the Temasek $7.35 partial offer is still in progress. Perhaps this period of uncertainty led some Investors to think the partial offer might be cancelled. I, however, have strong faith that Temasek will carry through with its intention to raise its stake to 51% to have more control over Keppel Corp's business strategy.

Current Portfolio Margin Value:
a) SGD282,422.77 x 0.6 = SGD169,454
b) SGD262,876.71 x 0.5 = SGD131,438
c) SGD253,600 x 0.7 = SGD177,520

Total Portfolio Margin Value = SGD478,412

Total Liabilities = SGD411,576

Margin Ratio = 411,576 / 478,412 = 86.0%

I didn't work out any sensitivity analysis scenarios as the Market Decline is a good enough measure already. It can be observed that after the February market decline, my portfolio took a 7.4% month-on-month decline and my Margin Ratio only went up slightly from 83.7% to 86.0%.

We will probably see the effects of the Fed 50bps rate cut on 3rd March 2020 in my End March Portfolio update. My belief is it remains a Golden Period for Investment Grade Fixed Income for the next few years.

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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