In the last post, I talked about how the portfolio has performed. With the continued selling, the performance has drifted lower over the past week and portfolio is now -22% down for the year and 23% up since inception in 2020.
Now let’s take a look at how the individual counters have contributed to the above numbers.
2022 Top and Bottom 5
As expected, the percentage dropped by the losers are much more than the percentage gained by the winners. Surprisingly, Sheng Siong was able to perform better than the banks. Capitaland China Trust made it to the list primarily due to the dividend. The Hour Glass has its up and down but managed to squeeze into top 5 ahead of HRnetGroup.
All the bottom 5 come from the US market. The market had gone from overly optimistic about their growth in 2021 to overly pessimistic in 2022, hence the large drop for the year. Another interesting observation is that despite the selldown of Reits in the second half of the year, none of them made it to the bottom 5. The volatility of Singapore counters definitely pales as compared to US counters.
By Absolute Value
The list looks slightly different when ranked by absolute values. Sheng Siong and the banks remain in the Top 5 but surprise surprise FLGT and TTD actually squeezed into the list! A check shows that they were divested in February and April respectively before the carnage. *Hiak* If only I was more decisive then, I would have a better return.
The bottom 5 are familiar names in my portfolio. iFAST, Micro-Mechanics and Parkwaylife were in the top 5 in 2020 and 2021. If only I have sold them last year? Maybe but these are companies that I am familiar with and the reasons for my investment in them have not changed, so I don’t regret holding on to them (I did partially sold some iFAST last year). I also have no qualm holding on to Mapletree Industrial Trust and Shopify. They will do well eventually.
With the exception of SHOP, none of the bottom 5 based on percentage appears in the absolute values list. This is simply because of small position size. I invested in them for their potential growth but it might not turn out that way. So it is better to build up the position slowly along the way. If I am right, it will grow into a sufficiently large position but if I am wrong, the loss would be minimised.
Top and Bottom 5 Since Inception (2020 to 2022)
These are the numbers that I am more interested in. It takes time for investment to bear fruit and a 3-yr period serves as a good initial check point. Including realised amount and dividend, twenty counters are in the green, with sixteen in the red. Not ideal but with a larger individual gain than loss, the portfolio continues to stay green for the moment. At the time of writing, portfolio TWRR is 22.8% during this period which is equivalent to 7.1% annualised return. In terms of XIRR, it is at 8.0%.
The top 5 has a good mix of growth and income counters. iFAST definitely plays a major part in boosting the return of the portfolio despite current year’s weakness. I am glad that investment in ANET turns up well too and getting a 55% from AAPL speaks volume as it shows that one can still get good return in investing in a mammoth! I invested in Micro-Mechanics and UMS for dividend and am fortunate that the two have benefitted from the demand surge for semi-conductor in the past few years.
On the other end, these are companies which I still think will do well in the long term. Again with the exception of SHOP, their position size is small and the large loss in percentage is beatable from a portfolio’s perspective. I still like the business model of SHOP and am confident that it will come around in the future. What I could probably do better is to build up my position slower.
By Absolute Value
The gain from iFAST dwarfs the rest, so it is more of an exception than the norm. The other counters show a low 5-figure return over 3 years which is satisfactory. Without leverage, the loss can be controlled by position size. So I am glad that has limited the maximum loss from each counter and I believe that in a way has resulted on average, smaller absolute loss as compared to absolute gain.
Just in case you are wondering what happens to the Reits which occupied about 30% of my portfolio? It hasn’t been the best of time for them in the past year. Nonetheless the consistent dividend payout has compensated the capital reduction since the inception of this portfolio. The table below summarises the absolute gain or loss.
|REITs||Gain/Loss (include realised & dividend)*|
|Capitaland Ascendas REIT||+ $1.1k|
|Capitaland China Trust||– $3.8k|
|Frasers Centrepoint Trust||– $4.1 k|
|Frasers Logistics and Commercial Trust||– $0.8k|
|Mapletree Industrial Trust||– $4.4k|
|Mapletree Logistics Trust||– $2.7k|
|Mapletree Pan Asia Commercial Trust||– $5.1k|
|Parkwaylife REIT||+ $8.1k|
* I have CLCT, FCT, MINT, MPACT and PLife for longer than 3 years and all 5 are still in the green.
While borrowing cost will increase, I think the managers can mitigate the impact once interest rate stabilises. I am just going to hold on to what I have and I am hopeful that with a few more years of dividend, all of them will be in the green for this portfolio.
Merry Christmas and enjoy the week ahead!