29 July 2013 marks the end of the OCBC 5.1% Non-Cumulative Preference Share (NCPS). I had held this stock steadfastly since its inception 5 years ago, only liquidating it partially to raise cash for the equities and REITs during the Global Financial Crisis (GFC) in Oct 08. I seldom think about this stock, but now that it is gone, I’m beginning to remember its importance to my portfolio and investment strategy. This blog post is dedicated to this stock which has served me so well in the past 5 years.
Firstly, to understand its importance to my investment strategy, you have to understand that I have an equity-centric investment strategy. This means that I think of asset allocation primarily as between equities and non-equities. As to what the non-equities should comprise is a second-order question, so long as I can liquidate the non-equities when the equities portion calls for …