Investment Review for 2013

2013 is an average year for my investment. I have not been spending enough effort to watch and research into potential investment, especially after many life events in 2013.

Dec 2013 NAV per unit = S$508.55 
Dec 2012 NAV per unit = S$465.32. 

The end of the year seems like a good opportunity to take stock and carry out a review of what went right and wrong.

A key mistake is SMRT.

1) There is a lack of understanding of the details of the business. The core business revolves around maintaining our public transport in Singapore. In fact, this is implicitly assumed. Based on the annual report, there is a lack of emphasis on engineering and maintenance but on financial returns. I should have picked this up during my analysis of the company. 

2) There is a lack of effort done to critic the management of the company. SMRT is a company with its core business revolving around engineering and maintenance. This company should naturally be ran by management familiar with these principles. Needless to mention, there is a lack of technical personnel in the senior management.

3) This company provides public service and revenues are closely tied to the recommendations of the Public Transport Council. Any fare increase to offset business cost can be hampered due to various reasons (such as political motivation during election period). The upside of the business is therefore limited.

Unfortunately, there are no major investment success this year. I did not manage to identify the big winners in our market to make huge investment returns.

Coming 2014, I will focus on the following methodology to increase the returns of my investment.

Firstly, the investment will be made from a top down approach. Identify the key investment sectors that will benefit from the macro trends and business will benefit from it. 

Secondly, perform financial analysis to gauge the operating efficiency and financial attractiveness of the investment. 

Lastly, enter the position at the right price. Its all about price

Wish all readers a wonderful year of investment in 2014. Watch out for the hike in fed funds rate. It will be an incredible opportunity for investors !

My current portfolio

After reviewing my portfolio, I did a major reorganization to it. These are what remains in the portfolio.

Equities
RMG

Foreign Currency FD
CNY

Unit Trust
Indonesia - Fidelity
USA - Fidelity
Japan - Fidelity



Equities
RMG - Raffles Medical Group has always been a stellar performer in the STI. The efficient operations management in Raffles Hospital and expanding RM clinics generate solid FCF for the group. With Singapore's population expanding and increase demand for private healthcare services, this counter will likely deliver exceptional performance in the future.

FCFD
CNY - China had been keeping its exchange rate undervalued in the past years in line with an export led growth strategy. A revaluation of the CNY with the major exporter countries will lead to an adjustment in the nominal exchange rate of the currency. It is only a matter of time before China revalues its currency against its major trading partners.

Unit Trust
USA - A USA recover is likely, given that confidence is returning to USA's consumers. An improved unemployment rate is likely to improve consumer sentiments.

Japan - Japan's large monetary expansion had led to a large run in up in equities prices since the past year. Structural reforms are still necessary for a permanent transform of Japanese economy. Keeping exposure to Japan

Indonesia - The widening deficit and high inflation in Indonesia still remains difficult issues to be resolved by the government. The recent devaluation of the rupiah vs major currency had put a strain on exporters but is necessary to maintain the level of foreign exchange reserve in Bank Indonesia.

Wiping out my portfolio - Starting on a blank page

Hi all,

My portfolio needs an extreme make over. My current portfolio has mainly Singapore Equities, Unit Trust, Foreign Currency Fixed Deposits. I am doing reasonably well but off my benchmark (STI).

What is fundamentally wrong with my portfolio? Is it due to a lack of planning in Asset Allocation? Poor Research? Should I plow most of my asset into ETFs in the future? This questions keeps me puzzled for this few weeks? What should I do?....