Newbie Portfolio - End 2020 05

Portfolio updates are now back, as I managed to add 2 equities into my portfolio, making it back into a diversified portfolio with no Concentration Penalties.

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

Portfolio performance is looking very bad as this new portfolio crawls back from the damage done by the Coronavirus market crash. Month-on-Month performance, Absolute Performance, and Annualised Performance remain negative. Bulk of the damage had been done by Keppel Corp where I cut loss on the entire holdings when both stock markets and oil prices crashed.

No changes to my Fixed Income portion where I continue to hold 2 Investment Grade Fixed Income instruments paying a decent yield. It is noted that they are both Coco Instruments (higher risk) but in order to obtain a decent yield, such heightened risk will no doubt have to be taken. Comparatively, an Investment Grade rated bond (non China) issued in May 2020 would probably yield 3% only.

I had added 2 Mega Caps to my Equities portion: BNP Paribas and Royal Dutch Shell. Both have 80% lending value as they are well recognised by FIs to be highly liquid and with massive market capitalisation. These are the 2 equities which I hope I would be able to cover back my Keppel Corp loss with.

BNP Paribas

One of the largest banks in the world. I had traded this equity very frequently in the past and I believe that it is one of the more well capitalised banks in the world that does not take excessive risks.

Royal Dutch Shell

One of the Oil Majors. I have no experience trading this equity. I was lured by the attractive 10% dividend yield when I bought it. Unfortunately, my timing was poor, and the company announced a 67% dividend cut soon after my purchase. Nevertheless, I do see the long term potential of this company. I pump Shell petrol, do you?

Current Portfolio Margin Value:

a) Cash of SGD68,806.21

b) SGD270,703.94 x 0.6 = SGD162,422.36

c) SGD247,885.27 x 0.5 = SGD123,942.64

d) SGD91,242.97 x 0.8 = SGD72,994.38

e) SGD63,870.24 x 0.8 = SGD51,096.19

Total Portfolio Margin Value = SGD479,261.78

Total Liabilities = SGD436,988.87

Margin Ratio = 436,988.87 / 479,261.78 = 91.2%

Margin Ratio is currently above my target level of about 80-85%. But I do expect upward trajectory in my portfolio from now on.

Regards,

Newbie

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