Author: Risk N Returns

Hype, Trust and Greed do not make good investment strategies

Over the 6 years of my investing journey so far, I’ve seen a decent number of examples of how people suffer significant losses of their investment capital. It can be due to company mismanagement and excessive debt. It can be due to buying way overvalued stocks. In more nefarious cases, it can also be due to fraud. 3 common causes stands out from these cases: Believing in Hype, Blind Trust and Pure Greed. Today, I will run through some Case Studies highlighting these causes and discuss how you can avoid these biases. Believing in Hype Companies love to sell...

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Keppel-KBS US REIT 2019 AGM & Results Highlights

Keppel-KBS US REIT (KORE) held its inaugural AGM yesterday afternoon at Suntec Convention Centre. It also announced its Q12019 results the day before. KORE is one of my newer positions in the portfolio that has performed pretty well this year. Management had drawn a lot of flak due to its dilutive rights issue last year, as such I will need to keep a closer eye on this REIT. To do just that, I attended the AGM yesterday and here are some highlights. Financial & Operational Performance CEO David Snyder took the attendees through a slide deck during the meeting...

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SG Open Electricity Market Guide – Updated Q2 2019

The Open Electricity Market is currently rolling out in phases to Singapore consumers. As with anything relatively new, many have a lot of questions and a general lack of answers online. Having burnt much of my video gaming time researching this topic, here are my findings and views about choosing an electricity retailer for your home. Disclaimer: While I strive to ensure all information below is accurate, I too am human and may mess up from time to time. For the most accurate information, approach the respective retailers directly. For those who are only interested in price plan comparisons,...

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Capitaland Mall Trust FY2018 AGM Highlights

AGM Season is upon us. Companies with December year ends are all having to their AGMs so that they can meet ACRA reporting deadlines and approve their final dividend payouts scheduled in May. As such, I’ll be taking some half days of leave to attend a couple of the AGMs of companies / REITs that I own. The first AGM I attended this year is Capitaland Mall Trust (CMT) which was held yesterday morning at The Star Performing Arts Centre. Here is a quick summary of the things I learnt at the meeting. Special Distributions As this is my...

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Flash Note: OUE Commercial REIT and OUE Hospitality Trust Merger

OUE Commercial REIT (C-REIT) and OUE Hospitality Trust (H-Trust) announced a mega merger that involves C-REIT absorbing H-Trust. Given OUE’s dodgy history as a REIT sponsor, I was interested to see if this merger would be beneficial to C-REIT and H-Trust Unitholders. Here are my findings. Merger Summary Merger announcement information can be found here (C-REIT) and here (H-Trust) Consideration The merger will be effected via scheme of arrangement, with C-REIT issuing 1.3583 units and $0.04075 in cash per H-Trust stapled security. Using C-REIT’s latest price of 52 cents, this translates to a consideration of approximately 75 cents per...

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Earn Cashback / Miles on your public transport expenses with SimplyGo

Since starting work all those years ago, I’ve always been finding ways to charge my public transport expenses to my credit cards to earn cashback. My first hack was to use an EZ Link card with EZ Reload activated such that it will automatically charge my reload to my credit card. The downside was a 25c admin charge per reload, however this would be more than offset by the cashback I would get. Unfortunately, people started abusing all the prepaid card top-ups to earn cash back or satisfy minimum spending requirements. This resulted in the banks excluding these top...

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Singapore Savings Bonds (SSBs) – May 2019 Issue

At Risk N Returns, I’m passionate about promoting sensible DIY investing through sharing my thoughts or documenting my investing journey. While I love to take calculated risks, I recognise that most Singaporeans don’t. So here’s a relatively risk free way to invest your warchest or emergency funds with almost no lock-up period and generally higher yields than fixed deposits – the Singapore Savings Bond. Here’s the latest issue details: 1. Latest SSB issue details Issue Code: GX19050AAmount Available: $350 millionIssue Date: 2 May 2019Coupon Date: 1 May & 1 OctoberMaturity Date: 1 May 2029Application: 1 Apr 6 pm to...

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Portfolio @ March 2019

Performance Indicators / Dividends YTD Time weighted return: 11.05% Dividends collected: SGD 929.91 Cum-Dividend: Keppel Corp: SGD 195 DBS: SGD 60 Hang Lung Properties: HKD 1,160 Yuexiu Transport Infrastructure: HKD 1,440 A Strong Quarter My portfolio continued its strong start to the year, setting another record high of $160k in the process. Performance It was bonus payout month at my company so my portfolio received a nice bump in capital contributions. Lower US treasury interest rates coupled with unexpected catalysts underpinned a broad upswing in SG REITs that I own. Some unexpected catalysts include: URA Draft Masterplan 2019 –...

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The dreaded Inverted Yield Curve – What it means to you

Photo by Jeremy Thomas on Unsplash Investors are sometimes like astrologers, they are constantly on the lookout for signs of a coming windfall or disaster. The field of technical analysis (studying charts to determine future price movements) is pretty much the embodiment of that. One indicator that historically signaled a coming recession occurred recently, with the longer term US Treasury bond yields falling below the 1 year bond yield. This phenomenon is known as the Inverted Yield Curve. This prompted a sell off in equities last week. Today I’ll explore the history of this phenomenon, possible reasons why it happens and how...

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3 Lessons from my Top Investment Losses

The guys at the Fifth Person held their monthly webinar this week. This month’s theme was about lessons from Ong Kang Wei’s (one of their blog contributors) personal investing journey. Interestingly, he started investing when he was 15 and like me, started in the US market. [embedded content] Listening to him talk about US stocks that he, and coincidentally I, used to own and the mistakes he made in his investing journey was like taking a trip down memory lane for me. Inspired by his sharing, I fired up StocksCafe, sorted through all my closed positions with large losses...

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Why you should treat Singapore Airlines’ 3.03% bonds with caution

Following Temasek’s footsteps, Singapore Airlines (SIA) will issue a tranche of bonds yielding 3.03% targeted at retail investors. This is part of (my guess) the Government’s broader push for Singaporeans to invest in other instruments, other than property, something I’m very much supportive of. With that said, I feel Singapore Airlines being the first corporate candidate to follow Temasek’s lead is, in my opinion, not an ideal one. Investors should tread lightly with this one. To illustrate my view, let’s take a deep dive into SIA’s financials and business. Bond Issuance Details Bond issue details and FAQ can be...

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Flash Note: New Master Tenancy Agreements for Starhill Global REIT’s KL Properties

The first of the anticipated master tenancy agreement re-negotiations for Starhill Global REIT (SGR) came to a head yesterday. The REIT shared the details of the new Master Tenancy Agreements for their KL properties (Starhill Gallery and Lot 10 Property) yesterday. As a unitholder, I have a vested interest for diving into the details of the deal. So let’s take a look. Master Tenancy Agreement Details The agreement involves 2 elements bundled together – A new lease and an asset enhancement initiative (AEI). AEI Details Starhill Gallery will be undergoing some pretty significant renovations including a revamped mall entrance,...

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REIT Unit Buybacks – Boon or Bane?

REIT Unit Buybacks has been a recent topic of debate. In Hong Kong, Link REIT created minor controversy in 2018 by buying back units from the open market to boost DPUs to existing shareholders following the sale of some of its properties. Closer to home, Keppel REIT initiated the first unit buyback programme among all the S-REITs in Singapore. They have also been quite active in exercising their buyback mandate in the market in recent months. Lastly, I recently received the notice for AGM for Capitaland Mall Trust in the mail. I read through the document and was mildly...

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Why I won’t invest in Starhub at the moment

Starhub’s share price has taken yet another tumble in recent weeks following the announcement of a dividend cut. Management really took a sledgehammer to their dividend, cutting it by 44% from 16 cents to 9 cents per annum. Now that the stock has settled in a rough trading range in the $1.50s, I decided to ask myself if the worst is over. Balance Sheet Review As with any income stock, I start with the balance sheet. Let’s be frank, the balance sheet isn’t pretty. Here are some balance sheet extracts and ratios I calculated based on their FY2018 year...

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4 tax planning tips to consider when filing your taxes

Tax season is upon us again. For the first time since I started working, I was informed by IRAS that I was not eligible for No Filing Service and had to e-File my taxes this year. I blame this on my honesty for declaring my P2P lending interest in my taxes last year 🤣 I’ve written extensively on tax planning during tax season last year, so I thought I’ll give you some reminders instead. Here are my 4 tax planning tips to consider when filing your taxes for YA2019. Claim all your due personal reliefs No Filing Service has...

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