Dear readers, the theme in 2016 is surviving in a volatile world. There are 2 shocker news: first Brexit and next Trump's election. But the market survived and blossom.
We are proud to announce we have grow from strength to strength. The company manage a dividend of $3849 in 2016, from a capital base of about $57000, giving a yield of about 6.5%. This is a 2.5% improvement in yield and 40% increase in dividend.
However, trading profits is flat or negligible. The small profits in 1H was gone as we increase cash by taking a loss of Lippomall.
However, as compared to a year ago, where the vested amount is 15% lower than market value, we now have a equity portfolio that is 3% in the green. As mentioned in 1H intern report, we are going to include cash in the calculation of our portfolio. Hence the total portfolio size increase 13% to 85K, where 35 K is cash.
As a result, there is a drag in total returns over total asset, which is only an return of 4.4%. The return of STI's dividend yield better at 6% with the STI asset value flat. While we did better and improve our performance compared to a year ago, our performance is sub-par and we will continue to improve ourselves.
It is the management's wish to be conservative in the years ahead. We do not buy Trumpocomics. We believe there are many perilous moments in the calendar 2017. We might further increase cash holding beyond the optimal 50% if the price is right for us to further liquid our portfolio. Beyond heightened political tensions, possible trade conflicts, and terrorist risks, the fate of Euro is a question mark if we look at the coming elections of major Euro countries. Of course, we do not pretend to know how the market will react to these event, just like the market rallied instead of falling post-Brexit and Post-Trump.
The sponsor and founder of company, greenrookie is confident of cashflow, pending unforeseen circumstances, and has pledge to continue with cash injection in 2017. As and when it happens, the company look forward to manage the expanded portfolio but will conservative in the deployment of cash into equity.
Appreciation to readers:
This is a year of readers' activism. The management met up with several bloggers and exchange various investment views. Hence, the management has decided to declare a maiden "coffee treat" to future meet-up, if any. Although management is on course, he might be able to do Wednesday or Friday lunch at the Jurong area from 1230 - 2 p.m. LOL.
While the management's main focus is still dividends, management will not hesitate to sell off profitable companies. The worst performing counter is still Sembcorp Industries followed by Lee metals. The best performing counter is Venture.
CM pacific is privatised, and we added YZJ and SIngpost to our portfolio. We view both counters to be company with growth potential for different reasons.
We sold M1, Lippomall trust, Sembcorp Industries, ST engineering and Silverlake axis for varying loss and the gain came solely from Cogent, excluding the privatisation profits of CM pacific.
It finally crosses the threshold of $150. Company see this segment as negligible and might stop reporting its numbers. Although readership has somewhat increased compared to a year ago, the company see no future growth drivers in this area since the management after much deliberation has decided to reject attempts at affiliation links.
There is no difference to the beneficiaries we are adopting and the sum donated remained the same. With the change in credit card, there might be some temporary disruption to Sasco