(Post 56/week 43)Investment project update part 2:Posb invest saver OCT 2018 summary

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Posb invest saver(OCT 2018)

My POSB invest saver update for the month of May, read here
My POSB invest saver update for the month of June, read here
My POSB invest saver update for the month of July, read here
My POSB invest saver update for the month of Aug, read here
My POSB invest saver update for the month of Sept, read here

Regular saving plan updates for ABF Singapore Bond Index Fund(A35)

Breakdown of my regular saving plan(A35) this month(Oct 2018)
Total amount(regular saving plan)A35:$100
Price per share:$1.123100
Gross sales charge:0.5%
Net sales charge amount:0.5% of 100=$0.50
Net amount invested: Total amount-net sales charge amount=$100-$0.50=$99.50
Units issued: Net amount invested/price per share=$99.50/$1.123100=88 units

Summary: As of 22Oct, the share price of A35 was at 1.121, has not changed much from last month, which is quite at the middle with its maximum at 1.25(2011) and its lowest 1.00(2008). Will be watching it for any further movement, once below 1.100 will make a bulk purchase

Regular saving plan updates for Nikko AM Singapore STI ETF(G3B)

Breakdown of my regular saving plan(G3B) for this month(OCT 2018)

Total amount(regular saving plan)A35:$100
Price per share:$3.163600
Gross sales charge:0.82%
Net sales charge amount:0.82% of $100=$0.82
Net amount invested: Total amount-Net sales charge amount=$100-$0.82=99.18
Units issued: Net amount invested/price per share=$99.18/$3.3163600=31 units

Summary: As of 22 Oct 2018, the share price of G3B is at 3.19 and ES3 is at 3.117. Both ES3 and G3B has been on a downtrend,with ES3 hitting this year low 3.077 at Oct, have brought quite a few at 3.1. Will reveal more about it in a future post and may purchase more. Hence, Will be watching it along with A35

(Current regular saving plan portfolio)

(When you trade long term through dollar cost averaging, no need to worry about the red:D)

Don't forget to DYODD(Do your own due diligence!)

(Post 55/week 41)Investment project updates(Peer to peer lending):Moolahsense(My eighth campaign)

Moolahsense(My eighth campaign with Moolahsense)

Note*the company name will not be revealed just like the previous post as my money are still inside moolahsense, haha(this is not a sponsored post by the way)

Issuer summary
Date of listing:FEB 2018
Amount:$73,000
Tenor: 63 days
Note type: Invoice financing

Quoting from let's crowd smarter website...

Link:http://letscrowdsmarter.com/p2p-invoice-financing/

• Equal installment: Invoice financing refers to the sale of accounts receivables by a company for immediate cash. It is a form of short-term financing often used to improve a company’s working capital position. Invoice financing is similar to short-term loans, although there are some differences.
  In a p2p context, there are 4 parties: the company (or seller of the invoice), the company’s client (or debtor), the p2p platform and the investor.A very useful chart from let's crowd smarter is shown below

Repayment frequency: End of maturity

• Repayment frequency: Will be paid at the end of the campaign

Target interest rate:12%P.A

Quoting from Moolahsense website

• Target interest rate: The maximum rate the issuer is willing to provide the interest on the principal subscription amount which the issuer wished to obtain, as notified in writing by the issue to Moolahsese

Purpose: Working capital

Quote from valuepenguin:https://www.valuepenguin.sg/what-is-working-capital

• Working capital: It is a concept to describe a business ability to cover its short-term operating costs
• E.g For this campaign, I have funded $200 into it
• As the target interest rate is 12%, this means that at the end of the tenor, which is only 63 days/2months I will expect to receive $204
• 100%=$200
• 1 year=12%
• 2month=(12/1)*2=2%
• 2%(Interest for 2 month)=($200/100)*2=$4
• 102%(The Principal + the interest for six month)=$200 + $4=$204
• Since the payment will only be made at the end of the campaign,i will expect to receive the lump sum of $204 at the end of the campaign

Summary company profile

• The issuer is a company incorporated in Singapore in 2011. 
• The Issuer is in the building and construction industry and has around 20 employees. 
• The Issuer is specialized in electrical engineering works and is registered with the Building and Construction Authority of Singapore as a Registered Contractor for Electrical Engineering 

Detail of purpose

• Invoice Financing- The Issuer seeks to obtain short-term financing and working capital through this loan, which is expected to be repaid from the proceeds of the Issuer.

Financial statement

Due to it being a invoice financing,no financial statement is presented,except a summary

Turnover(the amount of money taken by a business in a particular period):$2,594,655,.00
Debtor industry: Construction
Invoice Face Value:$135,850,00
Invoice Payment Terms: 63 days

Why did I invest in this loan?

• The invoice financing period is only 63 days(due to late payment, the company still owes me about $30)

Repayment schedule

Net repayment is almost the same as the working capital that I have calculated above:$204

The downside for invoice financing is that both principal and interest are only payable at the end of the campaign

Stay tuned to my next week post:moolahsense(my ninth campaign)!

(Post 54/week 39)Learning trading/investing together part 5:REIT (Real Estate Investment Trust)

What is a REIT?

• Reit are investments in a portfolio of income-generating real estate assets such as shopping malls, office, hotels or serviced apartments, usually, establish with a view to generate steady income and long-term capital growth for unitholders

8 main type of REITs

Link:https://www.fool.sg/2018/07/12/8-different-types-of-reits-and-stapled-trusts-listed-in-singapore/

1. Industrial 
2. Residential                                  
3. Retail
4. Hotel and resort
5. Office
6. Healthcare
7. Specialized
8. Diversified

1. Industrial

• Ascendas Real Estate Investment Trust (SGX: A17U) and Mapletree Industrial Trust (SGX: ME8U) 

2. Residential

• Ascott Residence Trust(SGX: A68U) 

3.Retail

• CapitaLand Mall Trust (SGX: C38U), Frasers Centrepoint Trust (SGX: J69U)

4.Hotel and resorts

• Frasers Hospitality Trust (SGX: ACV) and OUE Hospitality Trust (SGX: SK7)

5.Office

• CapitaLand Commercial Trust (SGX: C61U)

6.Healthcare

• First Real Estate Investment Trust (SGX: AW9U) and Parkway Life REIT (SGX: C2PU)

7.Specialized 

•  Keppel DC REIT (SGX: AJBU) *owns a data center

8.Diversified

• Viva Industrial Trust (SGX: T8B) and Suntec Real Estate Investment Trust (SGX: T82U)

Benefits of REITs

Income distribution

REIT asset are professionally managed and revenues generated (primarily rental income)normally distributed at regular intervals as dividends to shareholders

Diversification

REIT typically own multi-property portfolios with diversified tenants pool. This reduces the risk of relying on a single property and tenant, which we face when we directly own a real estate company

Liquidity

Compared to investing directly in real estate properties.REITs offer the significant advantage of liquidity-the ease of converting assets into cash. because REIT are listed on the stock exchange, we can buy and sell shares easily.and in much smaller amounts than buying physical property

Did you know?

The 35 REITs listed on Singapore exchange generated an average total return of 3.98% in the year to date with an average dividend yield exceeding 7.4%;

We can invest in prominent shopping malls like ngee ann city, paragon,vivocity and plaza singapura via REIT, invest in them to enjoy the rental returns and capital growth, while shopping!

REITs                                                     Asset

Starhill global REIT                              Ngee ann city             
SPH REIT                                             Paragon
Capitaland mall trust                             Plaza Singapura
Mapletree commercial trust                  Vivocity



Office space is getting expensive and rentals are climbing. ever thought of investing in prime office space like Marina Bay Financial Centre or Raffles City?

They are managed by Keppel REITs and Capitaland Mall Trust respectively

Singapore is well poised as a top tourist destination.we can be part of Singapore tourism growth by investing in hospitality REIT like OUE Hospitality Trust(which manages Mandarin Orchard Singapore) and Frasers Hospitality Trust(which manage Intercontinental Singapore)





(Source Bloomberg data as of 18 March 2016)

Will got into the respective REIT more in details in the near future!

part 6 here!