ValueBuddies.com : Value Investing Forum - Singapore, Hong Kong, U.S.

Full Version: Mum retirement portfolio
You're currently viewing a stripped down version of our content. View the full version with proper formatting.
Pages: 1 2 3
Hi all,
I had been managing my mum retirement fund since 08.
Recently I had been thinking of re-balancing her portfolio, esp on Pref Shares

Initial amt @ 2008: $100k
Current value: $150k
Guaranteed payout annually: $12k ( This is a personal guarantee)

Pref shares (UOB): value- $50k /dividend-$5k
REIT (AIMSReit, FraserComm, Suntec) : value-$100k/dividend-$7k

Any comments?
Thanks in advance.
(05-05-2013, 10:40 PM)funman168 Wrote: [ -> ]REIT (AIMSReit, FraserComm, Suntec) : value-$100k/dividend-$7k

The yield for the 3 counters are lower than 7%, so either your market value is understated or your yield is overstated....
(06-05-2013, 08:09 AM)HitandRun Wrote: [ -> ]
(05-05-2013, 10:40 PM)funman168 Wrote: [ -> ]REIT (AIMSReit, FraserComm, Suntec) : value-$100k/dividend-$7k

The yield for the 3 counters are lower than 7%, so either your market value is understated or your yield is overstated....
i agree. Why?
(05-05-2013, 10:40 PM)funman168 Wrote: [ -> ]Hi all,
I had been managing my mum retirement fund since 08.
Recently I had been thinking of re-balancing her portfolio, esp on Pref Shares

Initial amt @ 2008: $100k
Current value: $150k
Guaranteed payout annually: $12k ( This is a personal guarantee)

Pref shares (UOB): value- $50k /dividend-$5k
REIT (AIMSReit, FraserComm, Suntec) : value-$100k/dividend-$7k

Any comments?
Thanks in advance.

UOB Pref Share gives 10% dividend? I never know that!
These are approx yield. Got them at much lower prices than current
If i based all my counters by yield on cost, most probably i would not sell anything.
(06-05-2013, 12:08 PM)funman168 Wrote: [ -> ]These are approx yield. Got them at much lower prices than current

If current yield is still 8%, I don't think you can get much better than that. How I wish I have such a current portfolio...
(06-05-2013, 08:09 AM)HitandRun Wrote: [ -> ]
(05-05-2013, 10:40 PM)funman168 Wrote: [ -> ]REIT (AIMSReit, FraserComm, Suntec) : value-$100k/dividend-$7k

The yield for the 3 counters are lower than 7%, so either your market value is understated or your yield is overstated....

Quote:These are approx yield. Got them at much lower prices than current

But isn't your Value of $100k for REITs using Market Value? We're assuming that since you also stated,

Quote:Initial amt @ 2008: $100k
Current value: $150k

None of the 3 REITs are giving more than 7% Market Yield right now. So, ya, agree with 'HitandRun' comments.



Anyway, whether to rebalance or not will depend on whether the original reason to buy is still valid. If not, by all means sell and switch to another stock that fits your original objective.

For eg., for my M-in-law portfolio, I recently did some rebalancing. I sold some stocks cos' the story for that stock had changed,

1. REIT "X" : Rights Issue. As M-in-law Fund is close ended ie. no new funds, I decided to sell as I won't be able to subscribe to the rights. Altho' I could have sold the rights, the Qty alloted may be too few to be meaningful ie. may be lower than min. $25 brokerage. At the same time, as I was able to identify another REIT of similar Yield (but better Gearing & lower NAV premium), I immediately switched to it.

2. Stock "Y" : I previously bought for its reasonable Yield and stable biz. But, over the years, altho' it stays profitable, EPS has been slowly declining. It doesn't look like it's going to get any better soon (from Mgmt Forward statement). My fear is that DPS will very likely be reduced soon if this trend continues. As the share price had gone up a fair bit recently (rising tide lifting all boats) and I have also identified a suitable replacement candidate, I did a switch.

PS. Your 12% Guaranteed Payout is very attractive! Cool
how old r u funman168?
The price when I bought when yielding abt >10%.
My initial capital was $100k

Btw, I am in my late thirties

I am thinking if it is worthwhile to switch to defensive counters using the pref shares fund or to accumulate more REITs.

(06-05-2013, 02:18 PM)KopiKat Wrote: [ -> ]
(06-05-2013, 08:09 AM)HitandRun Wrote: [ -> ]
(05-05-2013, 10:40 PM)funman168 Wrote: [ -> ]REIT (AIMSReit, FraserComm, Suntec) : value-$100k/dividend-$7k

The yield for the 3 counters are lower than 7%, so either your market value is understated or your yield is overstated....

Quote:These are approx yield. Got them at much lower prices than current

But isn't your Value of $100k for REITs using Market Value? We're assuming that since you also stated,

Quote:Initial amt @ 2008: $100k
Current value: $150k

None of the 3 REITs are giving more than 7% Market Yield right now. So, ya, agree with 'HitandRun' comments.



Anyway, whether to rebalance or not will depend on whether the original reason to buy is still valid. If not, by all means sell and switch to another stock that fits your original objective.

For eg., for my M-in-law portfolio, I recently did some rebalancing. I sold some stocks cos' the story for that stock had changed,

1. REIT "X" : Rights Issue. As M-in-law Fund is close ended ie. no new funds, I decided to sell as I won't be able to subscribe to the rights. Altho' I could have sold the rights, the Qty alloted may be too few to be meaningful ie. may be lower than min. $25 brokerage. At the same time, as I was able to identify another REIT of similar Yield (but better Gearing & lower NAV premium), I immediately switched to it.

2. Stock "Y" : I previously bought for its reasonable Yield and stable biz. But, over the years, altho' it stays profitable, EPS has been slowly declining. It doesn't look like it's going to get any better soon (from Mgmt Forward statement). My fear is that DPS will very likely be reduced soon if this trend continues. As the share price had gone up a fair bit recently (rising tide lifting all boats) and I have also identified a suitable replacement candidate, I did a switch.

PS. Your 12% Guaranteed Payout is very attractive! Cool
Pages: 1 2 3