Author: Risk N Returns

OUE Commercial REIT rights issue – a case study of value destruction

Regular readers would know that I have shifted to a more income approach over the past year and as part of that strategic shift, it involves purchasing more REITs for my portfolio. Also, I have in the past espoused my love of rights issues / preferential offering as seen in my participation in the Frasers L&I Trust preferential offering. Unfortunately, just as stocks are not born equal, REITs are also not born equal. Whether a rights issue is value accretive or destructive very much depends on the structure of the deal, with that heavily influenced by the REIT Sponsor...

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Keppel Corp Retail Shareholders Briefing 2018

Keppel Corp held a retail shareholders briefing in collaboration with SIAS at the SGX Centre yesterday. It’s the 2nd year this briefing was held and it presents a rare chance to interact with the C suite, with CEO Loh Chin Hua and CFO Chan Hon Chew in attendance. I joined a predominantly Merdeka/Pioneer Generation audience to find out more. Presentation slides used at the meeting can be found here. Presentation As previously described in my piece on Tianjin Eco City, Keppel has embarked on a strategy to be the one stop shop for sustainable urbanisation solutions. What this means...

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Retirement planning is as much about self sufficiency as it is about love

By now, at least some of you should have watched this heartwarming ad from NTUC Income about “The Worst Parents in the World”. [embedded content] In the ad, the groom at his own wedding dinner described how he had a “terrible” childhood, no piano lessons, no expensive tuition, no expensive overseas trips or birthday celebrations. However, he expressed his gratitude that they did it, so that they could be self reliant in retirement and not be a burden to him. Amid all the concern over Singapore’s cost of living and the cost of raising a family here, the ad...

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Portfolio @ August 2018

Another month, another portfolio review. Performance Indicators / Dividends YTD Time weighted return: 4.49% Dividends collected: $2,767.12 Upcoming Dividend Receipts: Yuexiu Transportation Infrastructure: HKD 900 AA REIT: SGD 150 Visa: USD 11.76 Commentary A month of milestones The past month was a month of a few milestones – turning 30 and revisiting an old goal, scaling new heights in portfolio value and today, 1 year of financial blogging. My first blog post was a porfolio review as at August 2017 1 year ago and...

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Shifting my investing style

Many people tend to pigeon hole themselves into a particular style of investing they identify with – Value Investors, Growth Investors, Income Investors, Index Investors, the list goes on and on. The talks and courses I’ve attended to date also tend to teach a singular method to investing, maybe because it is easier to sell and structure into a course / talk. I used to be very clear on what my style was – High growth stocks all the way. However, over the past year, I’ve transitioned to a more income approach as seen by my portfolio comparison below:...

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Tesla – Symptoms of poor governance pile up

US Tech stocks were my first love in my investing journey. That said, I’ve never felt compelled to jump on the Tesla (NASDAQ: TSLA) bandwagon. I initially didn’t bother because I hated the car manufacturing business. Slowly as the years went by, I saw Tesla as a company that at best was not operating to its fullest potential, at worst was a dysfunctional managerial mess. With the recent public controversies over CEO Elon Musk’s tweets over a potential privatisation of Tesla and his emotional stress, I thought I’ll run through some of the symptoms that kept me away from...

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Understanding Islamic banking principles and its application to investing

In the past few months, I’ve been sharing on-and-off with a Muslim colleague on generating passive income and my own journey to financial freedom. It was through these discussions that I was reminded of the existence of Islamic banking. As someone who has read next to nothing on this topic, I thought I’ll do some reading of my own and present my findings here. (Disclaimer: I’m a free thinker and do not presume to know everything about Islam or its guiding banking principles. While I endeavour to make sure the information is accurate as far as possible, take it with...

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5 things Singaporean investors should be thankful for this National Day

National Day has always been a time of patriotic celebration. For me, it tends to be patriotic reflection. This has been made more pronounced with my work travels over the past 1 and half years. Sitting here alone chilling in my Beijing hotel room having worked through yet another National Day overseas, I thought I’ll share my top 5 things I feel Singaporean investors should be thankful for this National Day. 1) Income tax regime The best part of being a Singaporean investor is the relatively low income taxes as well as no taxes on dividends and capital gains....

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If Professor Oak introduced Investing

Introduction Hello there! Welcome to the world of Pokemon Investing! My name is Oak! People call me the Investment Prof! This world has many instruments for investing! For some people, they invest to build passive cash flow. Others invest for capital gain. Myself… I study investments as a profession, and I’m here to provide you with a beginner’s guide to investing! How investments accumulate wealth There are generally 2 ways you can profit from investments – Capital gain and Dividends. Capital gain refers to the “Buy Low, Sell High” concept. Dividends refers to cash distributions to shareholders as and...

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“Save 100k by 30” goal review

Whenever you reach a milestone in life, you tend to reflect on what has been and sometimes, what could have been. As I celebrate the 5th anniversary of joining the workforce yesterday and my 30th birthday today, I am reminded of a goal I once had but have not tracked for a long time. Back in July 2013, as a young fresh graduate about to embark on my career as a legal sweatshop worker auditor at a mid sized audit firm, I read an article in the Sunday Times entitled “Is it possible to have $100k by 30?“. Author...

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“Save 100k by 30” goal review

Whenever you reach a milestone in life, you tend to reflect on what has been and sometimes, what could have been. As I celebrate the 5th anniversary of joining the workforce today and my 30th birthday tomorrow, I am reminded of a goal I once had but have not tracked for a long time. Back in July 2013, as a young fresh graduate about to embark on my career as a legal sweatshop worker auditor at a mid sized audit firm, I read an article in the Sunday Times entitled “Is it possible to have $100k by 30?“. Author...

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Portfolio @ July 2018

July is almost in the books, so it’s once again time for a portfolio review. Performance Indicators / Dividends YTD Time weighted return: 3.24% Dividends collected: $1,497.64 Upcoming Dividend Receipts: Frasers Logistics & Industrial Trust: SGD 151.50 SingTel: SGD 652.70 Keppel Corp: SGD 195 Capitaland Mall Trust: SGD 106.78 AIMSAMP Capital REIT: SGD 150 Starhill Global REIT: SGD 163.50 Commentary All dogs have their day July has been kind to me, with portfolio value rising to an all time high of $129k. If you...

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IPO Analysis: Koufu Group Ltd

Singapore food court operator Koufu Group Ltd has filed for a IPO on the SGX Catalist board. Summary of listing details as follows: Offer price: $0.63Total shares offered: 97,008,000Placement shares: 90,675,000Public shares: 6,333,000Closing date for application: 16 July 2018 12pmCommencement of training: 18 July 2018 Full prospectus can be found here. Here’s my thoughts on the salient points of this listing. 1. Company Profile and Business Model Koufu operates 2 key divisions, Outlet and mall management, and F&B retail largely in Singapore, with 1 food court in...

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Dual class shares and their implications

SGX recently announced that they will be allowing companies with dual class share structures to list on the SGX with immediate effect. This prompted a friend to ask me what this meant, so I thought I’ll write an article about it this week. What are dual class shares? Singaporean investors should be familiar with the traditional company share structure – the concept where owning 1 share entitles you to 1 vote. This essentially means there’s only 1 class of shares. On the other hand, dual class shares means there are 2 or more classes of shares in the company,...

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Portfolio @ June 2018

Time flies, half of 2018 is over. As usual, its time for another portfolio update. Performance Indicators / Dividends YTD Time weighted return: -2.20% Dividends collected: $1,475.06 Upcoming Dividend Receipts: Frasers Logistics & Industrial Trust: SGD 103.50 SingTel: SGD 652.70 Bank of America: USD 16.80 Visa: USD 11.76 Commentary The battle between Bulls and Bears rage on I was preparing my portfolio update with a slight tinge of fear as I felt June had not been great for me. To my...

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