(Post 47/week 34)Investment project updates part 2:Posb invest saver AUG 2018 summary

6.Posb invest saver(Aug 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

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

Breakdown of my regular saving plan(A35) this month(Aug 2018)
Total amount(regular saving plan)A35:$100
Price per share:$1.12700
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/$1.12700=88.28748891=88 units

Summary: As of 22 Aug, the share price of A35 was at 1.133, a slight increase from last month,1.127(July update) 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 may 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(Aug 2018)

Total amount(regular saving plan)A35:$100
Price per share:$3.352100
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/$3.352100=29.58742281=29 units

Summary: As of 22 Aug 2018, the share price of G3B is at 3.32 and ES3 is at 3.24. Both ES3 and G3B has been on a downtrend and ES3 has broken the support line at 3300, could be some signs that the economy is slowing down but will probably recover temporary. 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)

(Post 46/week 33)Investment project updates:Moolahsense(My fifth campaign)

6.Moolahsense(My fifth 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)

My first default loan!!!:(

Issuer summary
Date of listing: DEC 2017
Amount:$500
Tenor:6 months
Repayment type: Equal installment

Quoting from the moolahsense website

• Equal installment:A promissory note by which an installment of the principal subscription amoung and/or interest accrued and due up to the date of payment shall be payable on such dates as set out in a repayment schedule specified in the promissory note, and on the maturity date, the principal subscription amount would have been paid in full

Repayment term: Monthly

• Repayment term: Will be paid monthly

Target interest rate:24%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 $500 into it(which is the amount I actually funded, which is the minimum sum that moolahsense accept for the campaign at that time)
• As the target interest rate is 24%, this means that at the end of the tenor, which is 6 month I will expect to receive $560
• 100%=$500
• 12%(Interest for 12 month/1 years)=$60
• 112%(The Principal + the interest for six month)=$500 + $60
• Since the tenor is 6 months, each month I will receive $(inclusive of interest) in payment/equal installment
• 1month=$560/6=$93.33

Summary company profile

• The issuer is a company incorporated in 2006
• The Issuer is in the building and construction industry and has around 10 employees
• The Issuer is a specialist in mechanical engineering project and has been engaged by government hospitals in Singapore to implement various automation projects.
• The Issuer is registered with the Building and Construction Authority of Singapore

Detail of purpose

• The Issuer seeks working capital to perform automation projects awarded by a government hospital in Singapore to the Issuer.

Financial statement

Will only reveal a part of the financial statement due to confidentiality. As I have mentioned a few weeks ago in my post, that I only mainly use this three ratio: current ratio, quick ratio and debt to equity ratio to decide in investing in a campaign, hence I will be showing its ratio below

The ratio is as follow(left side of the column is for the year 2016/right side of the column is for the year 2015)

Year 2016/Year 2015

(Current ratio 2016:3.62),(Current ratio 2015:49.79)

• A simple ratio of current asset divide by current liabilities
• Current liabilities are debt that needs to clear in the short term(in a year)
• If a company has a current ratio less then 1.0, do not invest in it
• If a company has a current ratio more then 2.0, May consider investing in it
• The higher the current ratio, the better
• For the current ratio of 2015:49.79, it is higher than the recommended range(>2.0)
• For the current ratio of 2016:3.62, it is higher than the recommended range(>2.0)

(Quick ratio 2016:3.62),(Quick ratio 2015:49.79)

• The quick ratio is almost similar to current ratio except that it is assumed that the company does not sell its inventories(e.g Toyota inventory is its car) or stock, it is still able to fulfill its debt
• If the company has a quick ratio of 0.75 and below, do not invest in it
• If the company has a quick ratio of 1.25 and above, May consider investing in it
• The higher the quick ratio the better
• For the quick ratio of 2015:49.79, it is higher than the recommended range(>1.25)
• For the quick ratio of 2016:3.62, it is higher than the recommended range(>1.25)

(Total liabilities/equity 2016:0.19),(Total liabilities/equity 2015:0.01)

• The debt ratio is calculated by total liabilities divided by the equity
• If the company has a debt ratio of 1.5 and above, do not invest in it
• The company should essentially have a debt ratio of 1.0, if the debt ratio is below 0.75, do consider investing in it
• The lower the debt to equity ratio the better
• For the Total liabilities/equity of 2015:0.01, it is out of the recommended range(<0.75)
• For the Total liabilities/equity of 2016:0.19, it is in the recommended range(<0.75)

Why did I invest in this loan?

• Both the current ratio 2015(49.79), quick ratio 2015(49.79) are above the recommended ratio of >2.0 and >1.25 respectively(This default loan is the epitome that if something is too good to be true, it probably is)
• The current ratio 2016(3.62), quick ratio 2016(3.62) are above the recommended ratio of >2.0 and >1.25 respectively and its Total liabilities/equity 2016(0.19) is in the recommended range of <0.75, as the financial statement ratio it met all of the above-recommended ratios, I would invest in the campaign(again if something is too good to be true, it probably is)
• The Total liabilities/equity (2015) is 0.01 while the Total liabilities/equity (2016) is 0.19, suggesting it is increasing and this most probably means that the company are taking more on their liabilities/debt

• Even though this loan has defaulted, nevertheless below is the supposed repayment schedule so far(I only got dec and Jan repayment, by the way)

link on how too read the effective interest rate for moolahsense:http://letscrowdsmarter.com/understanding-interest-rates/

Monthly interest rate:interest/start balance=$10.00/$500=2%(Percentage conversion must *100)

Effective interest rate:2%*12=24%(Same as the target interest rate)

From the above picture, you can see that the Net repayment is at $89.26 instead of the $93.33 that I have mentioned above at the working capital, hence I will do a calculation here again

1-month repayment:$89.26

6-month repayment:$89.26*6=$535.56

$500(the amount I put in this campaign=100%

$535.56=(100/500)*535.56=107.112%

107.112%-100%=7.112%

The target interest rate as you can see in my above post is at around 24%P.A, after taking into account of the tenor rate being 6 months (12% only), compare to 7.112% its almost 5% difference(i shall call this net interest rate instead)in this campaign. To conclude, this means that if you invest in a (24%P. A) high-interest rate campaign in moolahsense, you will get only about 7.112%.

And of course, I was a bit depressed at that time because after all seeing your hard earn money go down a drain...there was simply no words to describe...

Nevertheless, after that incident, I pick myself up and since then I had switch to investing in other areas such as stocks, bond etc(e.g  Learning investing/trading together part 1(Why invest in stocks?)

But of course, at that time I still didn't know that this loan was going to be eventually defaulted, hence leading to me investing in my sixth campaign...

(Post 43/week 32)Investment project updates part 2:Posb invest saver JULY 2018 summary

6.Posb invest saver(JULY 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

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

Breakdown of my regular saving plan(A35) this month(June 2018)
Total amount(regular saving plan)A35:$100
Price per share:$1.129700
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/$1.129700=88.07648048=88 units

Summary: As of 22 July, the share price of A35 was at 1.127, 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.

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

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

Total amount(regular saving plan)A35:$100
Price per share:$3.306500
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/$3.306500=29.997882958=29 units

However, this month is special as the dividend from G3B come in this month!!

Fund name: NIKKO AM SINGAPORE STI ETF
Units held:55.0000

Dividend per share:$0.05200
Dividend amount:$2.76

Summary: As of 23 July 2018, the share price of G3B is at 3.36 and ES3 is at 3.345. Both ES3 and G3B has been on a downtrend for the last days and I think highly likely it will continue its downtrend, this could be a sign that the economy is slowing down. Will be watching it along with A35

(Current regular saving plan portfolio)

(Post 42/week 31)Investment project updates:Moolahsense(My fourth campaign)

6.Moolahsense(My fourth 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:OCT 2017
Amount:$500
Tenor:6 months
Repayment type: Equal installment

Quoting from the moolahsense website

• Equal installment:A promissory note by which an installment of the principal subscription amoung and/or interest accrued and due up to the date of payment shall be payable on such dates as set out in a repayment schedule specified in the promissory note, and on the maturity date, the principal subscription amount would have been paid in full

Repayment term: Monthly

• Repayment term: Will be paid monthly

Target interest rate:24%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 $500 into it(which is the amount I actually funded, which is the minimum sum that moolahsense accept for the campaign at that time)
• As the target interest rate is 24%, this means that at the end of the tenor, which is 6 month I will expect to receive $560
• 100%=$500
• 12%(Interest for 12 month/1 years)=$60
• 112%(The Principal + the interest for six month)=$500 + $60
• Since the tenor is 6 months, each month I will receive $(inclusive of interest) in payment/equal installment
• 1month=$560/6=$93.33

Summary company profile

• The issue is a company incorporated in Singapore in 1995. 
• The Issuer is in the food and beverage industry and has around 10 employees. The issuer offers Korean cuisine at its restaurant.

Detail of purpose

• The Issuer seeks funds to invest in marketing campaigns and to hire additional chefs and waitstaff at its restaurant to support an anticipated increase in business volume following the marketing campaigns

Financial statement

• No data in its financial statement due to the restaurant bankrupt and all data relating to its financial statement is deleted

Why did I invest in this loan?

• No comparison of financial data due to restaurant bankrupt, hence I will use the DP credit rating disclaimer
• DP credit rating disclaimer: DP8
• >16.15%

• As this campaign has already been finished, below is the repayment schedule so far

link on how too read the effective interest rate for moolahsense:http://letscrowdsmarter.com/understanding-interest-rates/

Monthly interest rate:interest/start balance=$10.00/$500=2%(Percentage conversion must *100)

Effective interest rate:2%*12=24%(Same as the target interest rate)

From the above picture, you can see that the Net repayment is at $89.26 instead of the $93.33 that I have mentioned above at the working capital, hence I will do a calculation here again

1-month repayment:$89.26

6-month repayment:$89.26*6=$535.56

$500(the amount I put in this campaign=100%

$535.56=(100/500)*535.56=107.112%

107.112%-100%=7.112%

The target interest rate as you can see in my above post is at around 24%P.A, after taking into account of the tenor rate being 6 months (12% only), compare to 7.112% its almost 5% difference(i shall call this net interest rate instead)in this campaign. To conclude, this means that if you invest in a (24%P. A) high-interest rate campaign in moolahsense, you will get only about 7.112%.

Nevertheless, despite being bankrupt they manage to pay all of the loans which is quite remarkable and commendable, unlike my other default loan.

The next funding campaigns that I will update soon have a target interest rate of 24%P.A and will be the first default loan that I will touch on

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

(Post 39/week 29)Investment project updates:Moolahsense(My third campaign)

6.Moolahsense(My second 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: NOV 2017
Amount:$80,000
Tenor:6M
Repayment type: Equal installment

Quoting from the moolahsense website

• Equal installment:A promissory note by which an installment of the principal subscription amoung and/or interest accrued and due up to the date of payment shall be payable on such dates as set out in a repayment schedule specified in the promissory note, and on the maturity date, the principal subscription amount would have been paid in full

Repayment term: Monthly

• Repayment term: Will be paid monthly

Target interest rate:24 % 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 $500 into it(which is the amount I actually funded, which is the minimum sum that moolahsense accept for the campaign at that time)
• As the target interest rate is 24%P.A, this means that at the end of the tenor, which is 6 month(12%) I will expect to receive $560
• 100%=$500
• 12%(Interest for 6 months)=$60
• 112%(The Principal + the interest for the two years=$1000+$60=$560
• Since the tenor is 6 months, each month I will receive $93.33(inclusive of interest) in payment/equal installment
• 1month=$500/6=$93.33

Summary company profile

• The issuer is a company incorporated in Singapore in 2006. The Issuer is in the building and construction industry and has around 10-20 employees. The Issuer specializes in the installation, servicing, and maintenance of fire prevention and protection systems as well as fireproofing materials. The Issuer is registered with the Building and Construction Authority of Singapore as a Registered Contractor for Fire Prevention & Protection Systems. 

Detail of purpose

• The Issuer seeks funding to provide working capital for existing and new contracts which have been awarded to the Issuer.

Financial statement

Will only reveal a part of the financial statement due to confidentiality. As I have mentioned a few weeks ago in my post, that I only mainly use this three ratio: current ratio, quick ratio and debt to equity ratio to decide in investing in a campaign, hence I will be showing its ratio below

The ratio is as follow(left side of the column is for the year 2016/right side of the column is for the year 2015)

Year 2016/Year 2015

(Current ratio 2016:1.41),(Current ratio 2015:3.53)

• A simple ratio of current asset divide by current liabilities
• Current liabilities are debt that needs to clear in the short term(in a year)
• If a company has a current ratio less then 1.0, do not invest in it
• If a company has a current ratio more then 2.0, May consider investing in it
• The higher the current ratio, the better
• For the current ratio of 2015:3.53, it is higher than the recommended range(>2.0)
• For the current ratio of 2016:1.41, it is higher than the recommended range(>2.0)

(Quick ratio 2016:1.41),(Quick ratio 2015:3.53)

• The quick ratio is almost similar to current ratio except that it is assumed that the company does not sell its inventories(e.g Toyota inventory is its car) or stock, it is still able to fulfill its debt
• If the company has a quick ratio of 0.75 and below, do not invest in it
• If the company has a quick ratio of 1.25 and above, May consider investing in it
• The higher the quick ratio the better
• For the quick ratio of 2015:3.53, it is higher than the recommended range(>1.25)
• For the quick ratio of 2016:1.41, it is higher than the recommended range(>1.25)

(Total liabilities/equity 2016:1.79),(Total liabilities/equity 2015:0.17)

• The debt ratio is calculated by total liabilities divided by the equity
• If the company has a debt ratio of 1.5 and above, do not invest in it
• The company should essentially have a debt ratio of 1.0, if the debt ratio is below 0.75, do consider investing in it
• The lower the debt to equity ratio the better
• For the Total liabilities/equity of 2015:1.79, it is out of the recommended range(<0.75)
• For the Total liabilities/equity of 2016:0.17, it is in the recommended range(<0.75)

Why did I invest in this loan?

• Both the current ratio 2015(3.53), quick ratio 2015(3.53) are above the recommended ratio of >2.0 and >1.25 respectively, however, its Total liabilities/equity 2015(1.79) are out of the recommended range of  <0.75.
• The current ratio 2016(1.41), quick ratio 2015(1.41) are above the recommended ratio of >2.0 and >1.25 respectively and its Total liabilities/equity 2016(0.17) is in the recommended range of <0.75, as the financial statement ratio it met all of the above-recommended ratios, I would invest in the campaign
• Furthermore,the Total liabilities/equity (2015) is 1.79 while the Total liabilities/equity (2016) is 0.17,sugggesting it is decreasing and this most probably mean that the company are paying off their liabities/debt

As this is still an ongoing campaign, below is the repayment schedule so far

link on how too read the effective interest rate for moolahsense:http://letscrowdsmarter.com/understanding-interest-rates/

Monthly interest rate:Principal/start balance=$10.00/$500=2%(Percentage conversion must *100)

Effective interest rate:2%*12=24%(Same as the target interest rate)

As you can see the status of the payment is completed, making this my first completed campaign in moolahsense, will continue with my next week post of moolahsense(my fourth campaign).

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(Post 36/Week 27)Investment project updates part 3:Moolahsense(My second campaign)

6.Moolahsense(My second 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: September 2017
Amount:$100,000
Tenor:12M
Repayment type: Equal installment

Quoting from the moolahsense website

• Equal installment:A promissory note by which an installment of the principal subscription amoung and/or interest accrued and due up to the date of payment shall be payable on such dates as set out in a repayment schedule specified in the promissory note, and on the maturity date, the principal subscription amount would have been paid in full

Repayment term: Monthly

• Repayment term: Will be paid monthly

Target interest rate:18%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 $1000 into it(which is the amount I actually funded, which is the minimum sum that moolahsense accept for the campaign at that time)
• As the target interest rate is 18%, this means that at the end of the tenor, which is 12 month I will expect to receive $1180
• 100%=$1000
• 18%(Interest for 12 month/1 years)=$180
• 118%(The Principal + the interest for the two years=$1000+$180=$1180
• Since the tenor is 12 months, each month I will receive $(inclusive of interest) in payment/equal installment
• 1month=$1180/12=$98.33

Summary company profile

• The issue is a company incorporated in Singapore in 1999. 
• The Issuer is in the security services industry and has more than 50 employees. The Issuer provides security services (including the placement of security guards) to industrial, commercial and residential properties. 
• The Issuer is registered with the Singapore Police Force as an Approved Security Agency. The Issuer also holds a Level Star bizSafe Certification (the highest level of such certification) issued by the Workplace Safety and Health Council of Singapore. 
• The Issuer is also a member of the Singapore Business Federation and the Association of Certified Securities Agencies.

Detail of purpose

• The Issuer seeks funding to provide working capital for security services contracts that have been awarded to the Issuer.

Financial statement

Will only reveal a part of the financial statement due to confidentiality. As I have mentioned two weeks ago in my post, that I only mainly use this three ratio: current ratio, quick ratio and debt to equity ratio to decide in investing in a campaign, hence I will be showing its ratio below

The ratio is as follow(left side of the column is for the year 2016/right side of the column is for the year 2015)

Year 2016/Year 2015

(Current ratio 2016:0.5),(Current ratio 2015:4.39)

• A simple ratio of current asset divide by current liabilities
• Current liabilities are debt that needs to clear in the short term(in a year)
• If a company has a current ratio less then 1.0, do not invest in it
• If a company has a current ratio more then 2.0, May consider investing in it
• The higher the current ratio, the better
• For the current ratio of 2015:4.39, it is higher than the recommended range(>2.0)
• For the current ratio of 2016:0.5, it is lower than the recommended range(>2.0)

(Quick ratio 2016:0.5),(Quick ratio 2015:4.39)

• The quick ratio is almost similar to current ratio except that it is assumed that the company does not sell its inventories(e.g Toyota inventory is its car) or stock, it is still able to fulfill its debt
• If the company has a quick ratio of 0.75 and below, do not invest in it
• If the company has a quick ratio of 1.25 and above, May consider investing in it
• The higher the quick ratio the better
• For the quick ratio of 2015:4.39, it is higher than the recommended range(>1.25)
• For the quick ratio of 2016:0.5, it is lower than the recommended range(>1.25)

(Total liabilities/equity 2016:0.16),(Total liabilities/equity 2015:0.41)

• The debt ratio is calculated by total liabilities divided by the equity
• If the company has a debt ratio of 1.5 and above, do not invest in it
• The company should essentially have a debt ratio of 1.0, if the debt ratio is below 0.75, do consider investing in it
• The lower the debt to equity ratio the better
• For the Total liabilities/equity of 2015:0.41, it is in the recommended range(<0.75)
• For the Total liabilities/equity of 2016:0.16, it is in the recommended range(<0.75)

Why did I invest in this loan?

• From the above, you can see that the current ratio for 2016 and quick ratio 2016 is out of the recommended range(>2.0 for current ratio 2016) and (<0.75 for the quick ratio 2016), however, the Total liabilities/equity is in the recommended range(<0.75). Looking at it now I will probably not invest in this as only Total liabilities/equity ratio is in the recommended range, But!!...
• I wanted to test out more of the moolahsense platform
• My previous campaign has a term of about 24 months, hence I wanted to find a campaign that has a shorter term like this campaign(12 months)
• Also, the target interest rate of this campaign is 18%P.A, much higher than my previous campaign of 10%, but of course higher interest rate comes with higher risk

As this is still an ongoing campaign, below is the repayment schedule so far

link on how too read the effective interest rate for moolahsense:http://letscrowdsmarter.com/understanding-interest-rates/

Monthly interest rate:Principal/start balance=$15.00/$1000=1.5%(Percentage conversion must *100)

Effective interest rate:1.5%*12=18%(Same as the target interest rate)

From the above picture, you can see that the Net repayment is at $91.68 instead of the $98.33 that I have mentioned above at the working capital, hence I will do a calculation here again

1-month repayment:$91.68

12-month repayment:$91.68*12=$1100.16

$1000(the amount I put in this campaign=100%

$1100.16=(100/1000)*1100.16=110.016%

110.015%-100%=10.6%

The target interest rate as you can see in my above post is at around 18%P.A, however, that is misleading, as I only gain about 10.6%(i shall call this net interest rate instead)in this campaign. To conclude, this means that if you invest in an 18%P. A campaign in moolahsense, you will get only about 10.6%.

The next few funding campaigns that I will update soon have a target interest rate of 24%P.A and you will see that the net interest rate will varies

As the current status of payment is late, as such, I will continue to update this campaign 

Stay tuned to my next week post:Moolahsense(my third campaign)!

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(Post 35/week 26)Investment project updates part 2:Posb invest saver JUNE 2018 summary

8.Posb invest saver(JUNE 2018)

My POSB invest saver update for the month of may, read here

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

Breakdown of my regular saving plan(A35) this month(June 2018)
Total amount(regular saving plan)A35:$100
Price per share:$1.11700
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/$1.117.00=89.0778872=89 units

Summary: As of 22 June 2018, the share price of A35 was at 1.117, has some sign of going up due to STI ETF going down. Will be watching it for any further movement, could also be a warning sign that economy is slowing down.

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

Breakdown of my regular saving plan(G3B) for this month(June 2018)
Total amount(regular saving plan)A35:$100
Price per share:$3.452300
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/$3.452300=28.72867364=28 units

Summary: As of 22 June 2018 market closing time, the share price of G3B is at 3.43 and ES3 is at 3.345. Both ES3 and G3B has been on a downtrend for the last days and I think highly likely it will continue its downtrend, this could be a sign that the economy is slowing down. Will be watching it along with A35

(Current regular saving plan portfolio)

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(Post 34/week 25)Investment project updates:My first funding societies campaign experience/financial statement breakdown part 3

6.first funding societies campaign experience/financial statement breakdown part 3

Read part 1 here:https://sonicericsg.blogspot.com/2018/05/post-29week-22investment-project.html

Read Part 2 here:https://sonicericsg.blogspot.com/2018/06/post-32week-24investment-projectmy.html

To further understand more about reading financial statements, here is the pdf copy of a guide to reading financial statements: Download here

Financial statement as below:

Financials FYE 30 Jun
30 Jun 2015(audited),30 Jun 2016(audited),30 Jun 2017(audited)

(Revenue 2015:$22,121,189),(Revenue 2016:$40,818,446),(Revenue 2017:$58,522,060)

• Revenue: It is also known as sales, is how much money a company brought in for a particular quarter or year. A solid company could see its revenue increasing year by year unless there is a one-off event
• As you can see down the financial statements, the revenue is gradually increasing year by year making this a solid company, hence I will give it another +1

(Cost of sales 2015:$27,135,367), (Cost of sales 2016:$42,795,026),(Cost of sales 2017:$51,009,862)

• Sometimes known as the cost of goods sold, it is the expenses directly involved with creating the revenue such as raw materials, service, and labour
• E.g in a factory, cost of sales refer to electricity bill require to operate the machinery, fuel for transporting the workers etc(A little unsure about it myself also as there are many factors affecting the costs of goods)
• Increasing cost of sales throughout 2015-2017, hence -1

(Gross profit 2015:-$5,014,178),(Gross profit 2016:-$1,976,580),(Gross profit 2017:$7,512,198)

• Gross profit=revenue+cost of sales(cost of sales is considered as it is the expenses)
• E.g 2015 (-$5,014,178)=$22,121,189+(-$27,135,367)
• E.g 2016 -$1,976,580=$40,818,446+(-$42,795,026)
• E.g 2017 $7,512,198=$58,522,060+$51,009,862
• Gross profit is the difference between revenue and cost of sales, the number gives an indication of the company financial health and how well the company is able to price its product. Higher gross profit also indicates that the company is also able to fend off competitor within the same industry. With high gross profit, the company is able to pay for its operating costs and other expenses
• Even though the gross profit start off in the negative zone it is generally increasing, this could be a +1 factor

(Depreciation 2015:$39,197),(Depreciation 2016:$11,416),(Depreciation 2017:$5,517)

• It indicates how much of an asset value has been used up due to wear and tear. Depreciation usually applies to assets such as vehicles, machinery, computer, and furniture. Companies spread the cost of the assets over the periods they are used in
• Basically, this means machinery, computer may break down in a company and expenses to repair the machinery or computer occurs
• If you look through the financial statements below, you can see that the depreciation is generally decreasing over the years which is a good thing, another +1

(Staff Cost 2015:$14,563,597),(Staff Cost 2016:$3,931,966),(Staff Cost 2017:$2,611,415)

• Also known as staff salary and related expenses or operating expenses, it also involves other expenses like administrative, marketing, distribution, and R&D. Please bear in mind that operating expenses are different from the cost of goods sold as they are not linked to the production of a product that brings in the company revenue
• You can see that generally, the staff cost is decreasing over the years, some people may see this as the company saving money but if the company is constantly cutting cost to drive up the revenue, it is not a solid company as its revenue may become stagnant, hence a "not sure factor ",0 pt here

(Other operating expenses 2015:$72,692),(Other operating expenses 2016:$442,103),(Other operating expenses 2017:$42,885)

• See staff cost, probably for miscellaneous stuff such as entertaining client, purchase of office equipment etc, quite a lot of other factor are also involve
• What causes the sudden jump from 2015 to 2016? unknown factor hence +0

(Operating profit 2015:-$19,689,664),(Operating profit 2016: -$6,362,065),(Operating profit 2017:$4,852,381)
Link:https://www.investopedia.com/terms/o/operating_profit.asp

• Operating profit=Gross profit + depreciation + staff cost +other operating expenses
• E.g 2015 19,689,664=(-$5,014,178)+(-$39,197)+(-$14,563,597)+(-$72,692)
• E.g 2016 (-$6,362,065)=(-$1,976,580)+($11,416)+($3,931,966)+($442,103)
• E.g 2017 $4,852,381=$7,512,198+$5,517+$2,611,415+$42,885
• Operating profit is an accounting figure that the profit earned from a company's ongoing core business operations, thus excluding deductions of interest and taxes. This value also does not include any profit earned from the firm's investments, such as earnings from firms in which the company has partial interest.
• Operating profit can be calculated using the following formula:
  Operating Profit = Operating Revenue - Cost of Goods Sold (COGS) - Operating Expenses - Depreciation - Amortization
• Initially, you can see that the operating profit in 2015 is in the negative zone but it is increasing gradually over the years into the positive zone, hence I believe they will be able to pay their debt and this loan, hence I will give it a +1

(Add: other income 2015:$227,998),(Add: other income 2016:$386,118),(Add: other income 2017:$24,935,046)
Link:http://www.investorwords.com/3522/other_income.html

• Term on an earnings report used to represent income from activities other than normal business operations, such as investment interest, foreign exchange gains, rental income, and profit from the sale of non-inventory assets
• This part is also a little mystery to me, I think its probably due to them being listed in the sgx and gaining fund from the shareholders as being a civil engineering company, I think it is unlikely to gain other income in the form of rental income and profit from the sale of non-inventory assets or maybe the management is using the fund to invest, as I am unsure about this part, I will probably give it a +0 point

(EBIT 2015:-$19,461,666),(EBIT 2016: -$5,975,947),(EBIT 2017:$29,787,427)

Link:https://www.investopedia.com/terms/e/ebit.asp

• EBIT stands for: Earning before interest and tax
• EBIT=Operating profit + Add: other income
• E.g 2015  -$19,461,666=(-$19,689,664)+($227,998)
• E.g 2016  -$5,975,947= (-$6,362,065)+$386,118
• E.g 2017 $29,787,427=$4,852,381+$24,935,046
• Earnings Before Interest & Taxes (EBIT) is an indicator of a company's profitability, calculated as revenue minus expenses, excluding tax and interest. EBIT is calculated as:EBIT = Revenue - Operating Expenses (OPEX) or EBIT  = Net Income + Interest + Taxes
• EBIT is also referred to as Operating Earnings, Operating Profit, and Profit Before Interest and Taxes (PBIT)
• The same stand with operating profit, the EBIT is increasing gradually over the years, hence I think this is another +1 factor

(Less: other loss 2015:$31,874,460),(Less: other loss 2016:$4,349,182),(Less: other loss 2017:$2,594)
Link:https://www.reviso.com/accountingsoftware/accounting-words/loss

• Loses can result from a number of activities such as; sale of an asset for less than its carrying amount, the write-down of assets, or a loss from lawsuits
• Losses on Sale of Assets: This is known as a nonoperating item resulting from the sale of an asset (excluding inventory) for less than the amount shown in the company's accounting records. Meaning that the asset was sold for less than it was worth in the company's books.
  Since the loss is outside of the main activities of a business, it is reported on the income statement as a nonoperating or other loss.
• Loss from Lawsuit: A reduction in net income that comes from a judgment against the company. 
• In my opinion,most of the loss that this company have is probably from litigation that I mention in part 2 of this campaign, as this company nature is in the construction and civil engineering business it probably have to pay out some compensation to the workers or pay a fine to MOM(ministry of manpower) for failing to adhere to safety practice
• This definitely gets a -1

(Net Profit (Loss) for the year 2015:-$51,336,126),(Net Profit (Loss) for the year 2016: -$10,325,129),(Net Profit (Loss) for the year 2017:$29,784,833)
Link:https://www.investopedia.com/terms/n/netloss.asp

• Net Profit(Loss) for the year=EBIT+Less: other loss(Less: other loss is counted as negative due to it being a loss)
• E.g 2015  (-$51,336,126)=(-$19,461,666)+(-$31,874,460)
• E.g 2016 (-$10,325,129)=(-$5,975,947)+$4,349,182
• E.g 2017 $29,784,833=$29,787,427+$2,594
• Net loss also referred to as a net operating loss (NOL), is the result that occurs when expenses exceed the income or total revenue produced for a given period of time. Businesses that have a net loss don't necessarily go bankrupt because they may opt to use their retained earnings or loans in order to stay afloat. This strategy, however, is only short-term, as a company without profits cannot continue surviving for a long period of time.
  
• The same stand with operating profit and EBIT, the net profit and loss is decreasing gradually over the years and this means that the business is gradually getting better, hence this get a +1

(Fixed Asset 2015:$12,293,719),(Fixed Asset 2016:$11,572,250),(Fixed Asset 2017 :$6,631,746)

• Fixed asset are property, plant equipment, and vehicles. These assets are used to operate the business but are not available for sales.
• Decreasing fixed asset may be a bad sign or perhaps the company is cutting cost, hence +0

(Current Asset 2015:$51,415,834),(Current Asset 2016:$20,220,709),(Current Asset 2017:$28,853,352)

• Current asset are asset that is expected to convert into cash for the company such as cash and short-term deposits(sometimes known as cash and cash equivalents or cash and bank balances), inventories, trade receivables, and the money for the companies is expected to collect as part of the progressive payment for a project (applicable to a project based company). under current assets, a few important you should know are:
• Cash and cash equivalents are the amount of money the company has in the bank. Remember, cash is KING!if the company has more cash, it will either mean that the company may not need to borrow or need only to borrow a little to operate the business Investors love to invest in a company that has low or no debt(borrowing). With little to no borrowing, the companies will be spared from high-interest expense or the probability of running into problems repaying the debt if the business is not profitable or not growing. However, if the company is sitting on a pile of cash but is not returning the cash as the dividend to the shareholders or expanding the business, the management is not putting the money to good use and generating a better return for shareholders )
• Being a SGX listed company,some of the current asset is probably paid to shareholder as dividend and probably used to pay their debt,the current asset has decreased over the years,however a low current asset not necessary be a good thing(as it may mean that they do not have enough cash for emergency used )nor a high current asset (as it may mean that the company is currently sitting on a pile of cash but is not returning the cash as dividend to the shareholders or expanding the business as such this is also another "not sure factor", so I will give it +0 point here

(Total Asset 2015 :$63,709,553),(Total Asset 2016:$31,792,959),(Total Asset 2017:$35,485,098)

• Total asset=Fixed asset +Current asset 
• E.g 2015  $63,709,553=$12,293,719+$51,415,834
• E.g 2016  $31,792,959=$11,572,250+$20,220,709
• E.g 2017  $35,485,098=$6,631,746+$28,853,352
• The total asset that a company have, as its above factor are +0, this will be +0 too

(Fixed Liabilities 2015:$0),(Fixed Liabilities 2016:$0),(Fixed Liabilities 2017:$0)
Link:https://en.wikipedia.org/wiki/Fixed_liability

• A fixed liabilities are debts, bonds, mortgages or loans that are payable over a term exceeding one year. These debts are better known as non-current liabilities or long-term liabilities. Debts or liabilities due within one year are known as current liabilities.
• No liabilities at $0? ,+1 point!

(Current Liabilities 2015:$98,426,519),(Current Liabilities 2016:$76,835,054),(Current Liabilities 2017:$26,543,565)

• Current liabilities: current liabilities are what the company owns and must be repaid within the current accounting year. These include trade and other payables(also known as trade creditors), loans and borrowing, amount due to customers for contracts and contract work in progress(applicable only to a project based company) and other financial obligations
• Basically, this includes this loan too!
• As the current liabilities is decreasing year to year, I will give it +1

(Total Liabilities 2015:$98,426,519),(Total Liabilities 2016:$76,835,054),(Total Liabilities 2017:$26,543,565)

• Total liabilities=Current liabilities + fixed liabilities
• E.g 2015 $98,426,519=$0+$98,426,519
• E.g 2016 $76,835,054=$0+$76,835,054
• E.g 2017 $26,543,565=$0+$26,543,565
• As its above factor are both +1, I will give it +1 too

(Equity 2015:-$34,716,966),(Equity 2016:-$45,042,095),(Equity 2017:$8,941,533)

• Shareholders equity refer to the company's value or net worth. It basically means the money that is left if a company sold all of its assets and paid off all its liabilities. This leftover money belongs to the shareholders, or owners of the company
• Equity= assets - liabilities
• The most important section of equity is retained earning also known as retained profit or accumulated profits. As the word suggests the company will retain earning for investment purposes, distribute them as a dividend or pay off its debt. If the company is making a loss it will be called retained losses.
• Retained earnings do not represent the free cash flow of the company
• The retained earning has increased from negative to positive, hence another +1

(Total Liabilities and Equity 2015:$63,709,553),(Total Liabilities and Equity 2016:$31,792,959),(Total Liabilities and Equity 2017:$35,485,098)

• Total Liabilities and Equity=Total liabilities + equity
• E.g 2015 $63,709,553=$98,426,519+(-$34,716,966)
• E.g 2016 $31,792,959=$76,835,054+(-$45,042,095)
• E.g 2017 $35,485,098=$26,543,565+$8,941,533
• As both of its factor has +1,this will get a +1 too

Total num of -1=2

Total num of +0:5

Total num of +1:11

Total score=9/18(passed!)

Will continue with part 4 the last part next week!

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