Author: Investment Moats

What is the Projected Internal Rate of Return of AIA SmartRewards Saver Insurance Endowment?

I was at a stage where I was unsure if insurance endowment plans are really that bad for wealth building. So I crowd-sourced from friends, family members, relatives their past matured policies. And I put them in one nice article. The summary is shown above. While the duration is different, the pitch by agents are different, the amount of premiums are different, if we compute the internal rate of return (XIRR) of the stream of cash inflows and cash outflows we can compare against each other. So a reader was thinking of purchasing this AIA SmartRewards Saver. I told...

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Reflecting on the Problem with FIRE Bloggers

I worked in the technical role in the IT industry for most part of my working career. In the past, I can’t believe why we get some horrendous projects thrown to us. What is the back story there. As I get more senior, my project manager started throwing me to coordinate more with the sales side of the business. That is when I start to understand why things are so horrendous. Why Projects Fxxk Up A lot of the times, the project eventually take longer than expected to deliver. This can be due to projects being more complex than...

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Capitaland Mall Trust’s Sale of Sembawang Shopping Centre Looks Awesome. And Some Thoughts on its Cash Flow

Singapore’s oldest retail real estate investment trust (REIT) is Capitaland Mall Trust (CMT). It owns some of the retail malls that you would have visited, had you been in Singapore. Over the past 10-12 years, had you been invested in Capitaland Mall Trust your internal rate of return (XIRR) would have been around 5%. It seems CMT is very bond like. As we moved into the digital age, e-commerce have challenged the identity and viability of malls around the world. CMT have been aggressively doing asset enhancement, where they renovate and rationalize their mall space in order to stay...

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Can Hutchison Port Holdings Trust (HPHT) Pay that 7.8% Dividend Yield

Hutchison Port Holdings Trust (HPHT) have been in a downtrend since its IPO days. Investors like myself were attracted to the dividend yield. Its net asset to debt is comparatively lower than the REITs, so its in a good situation there. Unfortunately, unlike a lot of the REITs the results in these transhipment ports have been very challenging. HPHT just announced their latest first quarter 2018 results and net profit is down by 12.9%. That isn’t surprising. What we find interesting would be the slight change in narrative in the commentary. If we start reading from 1st quarter 2017...

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How Does the Perfect REIT Look Like in the Eyes Of Experienced Investors

In our universe of Real Estate Investment Trusts (REITs), the REITs can be structured in different ways. There is a few areas of differentiation Property Types. You have REITs investing in retail malls, commercial offices, overseas commercial offices, local industrial, local and overseas industrial, healthcare, data centers, hotels, hotels and service apartments, or a mixture of these. Tenant Lease Tenure. WALE stands for weighted average lease expiry, which measures the average time period in which all leases in a property will expire. For a long time, the local properties have a relatively short lease. The overseas properties market tends...

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How Lippo Malls Indonesia Retail Trust LMIR and First REIT is affected by the 10% Income Tax on Earned Income from Land and Building

There is some change in Tax Regulations that on first glance, will affect 2 REITs listed on the SGX. Lippo Malls Indonesia Retail Trust (LMIR), an Indonesian Retail Mall trust that provides a 9.4% dividend yield, announced that the Indonesian Government passed certain amendments to the regulations regarding payment of income tax on income received or earned from land and/or building leases in Indonesia effective from 2nd Jan 2018. This means if you are like LMIR, which received or earned from land or building leases, there will be a 10% income tax on the gross amount of the land...

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ComfortDelGro makes Small Acquisition of Australia Non-emergency Patient Transport Company

ComfortDelGro makes an acquisition of an Australia transport business. This will be a business targeting a different segment of needs. With 144 vehicles. It offers a range of healthcare transport services to major metropolitan hospital networks including walker, hoist and stretcher transport services, and specialist services for high acuity and complex patients. NPT also operates a registered training organisation that is qualified to deliver and assess a range of non-emergency healthcare transport, first aid and resuscitation courses in Australia. The purchase price is SG$30 mil, which likely will be internally finance. NPT was purchased at 5.6 times EBITDA. This looks...

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My Co-Worker fulfilled a 15 Year Plan and Semi-Retired. A lesson on Motivation, Luck & Frugal Saving

My co-worker told me he is leaving our office shortly in the next 2 weeks. Let’s call my co-worker J. A person leaving our office is not something new. Working in a place where most of us are deployed from different companies to work in different projects for the same organization, we see turnover a fair bit. Some of the projects were short. Some found better employment opportunities. Some don’t like to be attached out and be away from the main office because this reduces their visibility, and hence career progression. Some work in scope that they do not...

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How Currency Movements Affect Singapore Interest Rates And Your Interest Rate Sensitive Stocks & Financial Assets

There is a rather good summary in Bloomberg on why Singapore’s Central Bank do not hold a Key Interest Rate. I think its a good read, a good refresh to go through some thought process when it comes to how externalities affect your Singapore investments, your investments in other parts of the world. I do get a fair bit of question as to why do the interest rate in the rise affects Singapore’s interest rate. By no means am I good at this so this article is a good read for me to go through some of these scenarios....

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Singapore Savings Bonds SSB May 2018 Issue Yields 2.39% for 10 Year and 1.65% for 1 Year

Here is a higher yielding, safe way to save your money that you have no idea when you will need to use it, or your emergency fund. The May 2018’s SSB bonds yield an interest rate of 2.39%/yr for the next 10 years. You can apply through ATM or Internet Banking via the three banks (UOB,OCBC, DBS) However, if you only hold the SSB bonds for 1 year, with 2 semi-annual payments, your interest rate is 1.65%/yr. $10,000 will grow to $12,416 in 10 years. This bond is backed by the Singapore Government and its available to Singaporeans. A...

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Controlled Progress Creates Happiness in Your Life

I was triggered by Property Soul’s latest post exploring whether property is the reason Singaporeans are not the among the happiest bunch of people in the world. The stats do indicate we are not very happy: We are ranked only 34th in 2018 World Happiness Report In 2015 World Health Organization survey, Singaporeans have the highest depression rates in Asia Home ownership in Singapore rose from 58.8% in 1980 (where Kyith was born!) to 90.6% in 2016. Those in the top 25 positions in the same World Happiness Report did not have a higher home ownership percentage Property Soul...

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Singapore Savings Bonds (SSB) Oversubscribe: Some Thoughts on My Allocation

The application for the April 2018 tranche of Singapore Savings Bonds is closed and we have the application results. It would seem that this is the second tranche that is oversubscribed. It seems we are not getting all our fills. This is a far cry from the days were the SSB was under-subscribed. This is surprising to me because, I thought the reason for the low interest was due to low awareness that there is such a product out there. Turns out this might not be true. It is just that the Yields were not Attractive! When the yields...

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An Unstable Wealth Position and A Snake Oil Salesman is a Recipe for Disaster

Everyone will have their day to become a sheep. Sheep usually gets eaten up by predators like Lion. I have a skin problem for the past 23 years of my life and since 18 years ago I been searching for some imaginary cure to my problems. And I spent shit tons of money that would otherwise be put to much productive use in wealth building, or other areas of my life. Why do We Spend so Much On Things & Services that Others can Easily Tell are Scams Thinking back to why I might have done what I did,...

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Sasseur REIT – My Short Take on this Messy China Retail Outlet REIT

砂之船 Sasseur REIT is a REIT that is currently in progress of IPO. If you wish to, you can apply for it. The end date is on 26th Mar 2018, Monday. It seems that many people are interested in this REIT, they give me the idea that I am missing out on the REIT of the year. I believe many bloggers have covered it extensively. Thus, there is not much value for me to cover it in detail. This post will be short, and consist of some of the things that I could pick out. The REIT: Has an...

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7 Thoughts on this Negativity Surrounding Facebook

The result of Brexit and USA election, has put the weaponization of our personal data on social media platforms in the forefront. We always know that marketing, when done successfully, have a way of altering our perception on certain products and services. However, with greater amount of data, that was previously difficult to collect in traditional media, marketing can be carried out in a more effective manner. The problem is that its not use so much to make us poorer immediately, but used to advance organization’s power and purpose. In particular, the whistle blowing in Cambridge Analytica on their...

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