July 2020 Update
Been really busy with work since the last update. Feeling stress due to the new position I am in, handling personnel problems and not having prior experience doing my current work. Just have to deal to bite the bullet and grind it through this period. On the bright side, my boss has been giving me additional projects to expose me which is good for my overall learning.
The virus seems to have stabilised in Singapore however the global cases continue to elevate. SG index is still languishing around the 2.6k mark, down about 20% from the peak. On the other hand, the SNP500 has experienced a V-Shaped recovery and is back to its pre covid levels.
On the portfolio front, the Index Portfolio managed to ride out the Covid crash and came up Green. The Yield Portfolio was lacklustre, with SATS being heavily affected as the entire tourism was put to a halt. ComfortDelgro was another counter in my portfolio who was severely impacted by this virus as people continued to WFH. In the near term, these 2 counters would likely experience weakness until a vaccine is created. Would be holding on to these as they are kind of a monopoly in their sectors. Banks have also recently announced their results and have followed the recommendation by MAS to cap their dividends for prudency given the uncertanties ahead. A friend has also alerted that banks might not be relevant in the future with the rise of fintech. However, I still believe that our local banks are aware of this transformation and are taking active steps to transform themselves digitally too.
Yield Portfolio
Time weighted returns: -21.76%
Index Portfolio
The index portfolio managed to outperform the yield portfolio without much effort. This goes to show the importance of diversification not only by sectors but geographical as well. My investment strategy remains unchanged: Invest a sum of money money into the Index Portfolio to ride the global tailwind (Growth), invest locally into solid companies that who continue to exist long term and pay dividends (Yield).
Til then stay safe, mask up. Hope for brighter days ahead and successful creation of the vaccine!
Cheers,
KO
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