Author: Financial Horse

The Weekly Horse: Debrief on Astrea IV Bonds

Source: The Straits Times Debrief on Astrea IV Bonds For those who are not aware, the retail offering of the S$121 million Class A-1 Bonds was 7.4 times oversubscribed. The allotment table is set out below: To be very honest, this take-up wasn’t as strong as I expected. I applied for S$10,000 and received S$4,000, which is actually pretty decent. It’s strange because literally everyone I knew applied for these things, which leads me to think that my social circle is not entirely representative of the retail investors as a whole. Perhaps it was the entire Hyflux saga that...

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Mapletree Logistics Trust vs Frasers Logistics & Industrial Trust

Source: Mapletree REITs have been getting a lot of flak recently due to the rising interest rates. A lot of investors out there have been swearing away from REITs in the belief that they will underperform in the coming months. To me, I’ve always viewed REITs as a long term investment in the underlying real estate. As the price for real estate drops, my appetite for real estate goes up, as long as they are quality assets. So I was very thrilled when I received this question below on the Financial Horse Forums (minor edits for clarity): “Hi FH...

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The Weekly Horse: Responding to Criticism on Temasek’s Astrea IV Bonds

Source: Azalea Criticism on the Astrea IV Bonds Given the massive debate over Temasek’s 4.35% p.a. Astrea IV Class A-1 Secured Bonds that is raging on this island currently, I wanted to take the opportunity to address some common criticism against the bonds. These things have really polarized investor opinion, with criticism ranging from: Bondholder’s get PE exposure without the upside 4.35% returns is too low in this climate The underlying assets are convoluted and toxic These things are overhyped and complicated, a bad combination 4.35% is too good to be true The rising interest rate environment is bad...

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Temasek’s 4.35% p.a. Astrea Bonds: A free lunch in investing?

Unless you’ve been living under a rock the past week, you’ve probably heard of Temasek’s 4.35% p.a. Astrea IV Class A-1 Secured Bonds. In fact, the 4 June Business Times article carried this headline: “Investors can invest in Temasek’s first retail bond to boost retirement income: Ho Ching”. With headlines such as this, my expectations were sky high when reviewing this bond. Because we dive into the details, do note that these bonds are incredibly complicated asset backed securities. While I have tried to simplify this as best as I can, there will inevitably be certain aspects that I...

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Straight from the Horse’s Mouth: Should you sell your Jurong Property?

Source: Freemalaysiatoday All Financial Horse does in his free time during the week is read financial news. With this new initiative (“Straight from the Horse’s Mouth”), hopefully some good can come out of it. During the week, I post articles that I enjoyed on the Facebook Group (do join if you want a sneak peak), and every Sunday I will collate the links for readers. I also take the opportunity to address queries from readers, or share any thoughts that I have for the week. If you enjoyed this post, do share your thoughts in the comments below! Should...

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Ideal Asset Allocation by Age for Singaporeans

Source: Toronto Carribean The very first article I wrote for Financial Horse was on the ideal net worth allocation by age for Singaporeans. Many times, we as investors fret over which stock or which REIT to buy, when actually what matters far more is the asset allocation. Each asset class comes with its own risk and reward, and a unique mix of each is required to achieve financial goals at each point in our life. With this in mind, I decided to revisit my asset allocation article, and rewrite it from the ground up. Do share your thoughts on...

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An Angry Email from AutoWealth, my thoughts on the FAANG, and top weekly links

All Financial Horse does in his free time during the week is read financial news. With this new initiative, hopefully some good can come out of it. During the week, I post articles that I enjoyed on the Facebook group (do join if you want a sneak peak), and every Sunday I will collate the links for readers. I also take the opportunity to address queries from readers, or share any thoughts that I have for the week. If you enjoy this post, do share your thoughts in the comments below! Weekly Thoughts from Financial Horse Angry Email from Autowealth This...

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Netlink Trust: A buy after the current dip?

At its current price of S$0.78, assuming a 4.64 cents yield for FY2019 (from the IPO prospectus), Netlink Trust (CJLU.SI) is trading at a forward yield of 5.95%, which is actually pretty decent. A lot of investors and pundits have commented that Netlink Trust is a boring counter. As you can see from the post-IPO chart below, its share price has truly gone nowhere. After accounting for the recent FY2018 distribution payout, investors who bought in at IPO are about breakeven after holding for almost a year. But when it comes to dividend plays, boring is exciting stuff to...

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Top weekly links and my thoughts on iQiyi (the Netflix of China)

All Financial Horse does in his free time during the week is read financial news. With this new initiative, hopefully some good can come out of it. During the week, I post articles that I enjoyed on the Financial Horse Facebook group (do join if you want a sneak peak), and every Sunday I will collate the top links of the week. I also take the opportunity to address queries from readers, or share any thoughts that I have for the week. If you enjoy this post, do share your thoughts in the comments below! A couple of readers have...

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Why Bitcoin has a place in my diversified portfolio

Source: CNET I know what many readers are probably thinking. Financial Horse has finally gone off the rafters. Bitcoin in his diversified portfolio alongside stocks, REITs, and bonds? What is this guy smoking? Trust me, when I first heard about cryptocurrency, I thought it was absolutely ridiculous as well. A virtual currency administered via distributed ledger and not backed by any income stream, government or commodity? Why would anyone want that? A lot of really important people, including Warren Buffet, JP Morgan’s Jamie Dimon (although he did regret making this statement later) and Bill Gates have all come out to state their...

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Stock Brokers I use to replace Standard Chartered Online Trading (S$500 referral bonus)

Source: Forexbrokers Like many of you investors out there, I was a huge fan of Standard Chartered Online Trading when it first opened. No minimum commission on stock trades, on any stock exchange in the world? Sign me up please! In my early days as an investor, I placed almost all my US and Singapore stock trades on Standard Chartered. The no commission allowed me to purchase S$1000 to S$500 worth of stock each time, and pay S$1 or S$2 in fees. Those were the golden days of stock trading. Eventually Standard Chartered probably figured out that this wasn’t...

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StashAway: Responses from the CEO and my thoughts

Source: StashAway My previous article on 3 Reasons Why I will not invest my life savings with StashAway must have ruffled some feathers, because shortly after, the StashAway team reached out to me for a meeting. I met up with the CEO, CIO and IR girl a couple weeks back for a really interesting lunch. Following the meeting, StashAway sent me an email that very nicely sums up the crux of our discussions. I have replicated it in its entirety below, no tricks here. I will then set out my personal thoughts, and readers can have a fuller picture...

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How I plan to invest my En-Bloc Proceeds

Source: Edgeprop I received this question recently on the Financial Horse Forums: Hi Financialhorse. My investment property is going enbloc. I do not intend to buy back another property because of the ABSD. Can you advise me how to do a safe investment to generate income? I am in my 60’s and my risk appetite is not high. Thanks. This really caught my eye because after my previous 10 Stocks to buy in the next market crash article, a reader also reached out saying that he planned to invest his en-bloc proceeds based off the suggestions in that article....

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10 Stocks to buy in the next market crash

Source: Seven Pillars Institute I recently chanced across an article by Turtle Investor where he described what he would do with his robo investments if the market crashed (Spoilers Alert: He would sell bonds and buy equities). It got me thinking, we have emergency plans for fires, earthquakes, aeroplane emergency landing, why not one for our investments? Where is the colourful brochure that tells investors what to do in the event of a 20% or 50% crash in share prices? The persistent flattening of the yield curve is starting to look quite worrying. An inversion of the 2s10s US...

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Part II: Can we do better than Robo-advisers?

Source: AutoWealth Financial Horse himself would not use a robo-adviser in its current form. But Financial Horse is an investing enthusiast who spends every waking hour reading up on investment strategies and annual reports. I recognise that not everyone is this obsessive. In this article, I will propose a simple DIY alternative that doesn’t require too extensive financial knowledge, or effort from the part of the investor. Let’s imagine a hypothetical investor John. John is 25 years old. He has just graduated from NUS (with an engineering degree!), and earns a nice S$4,000 a month that he is very...

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