My holding period return was -2.98% in the month of May 2013. Since the beginning of the year 2010, my overall holding period returns translate to 10.99% in annualised return.

There were 4 transactions in the month of May 2013.

Sold Keppel Reit (Bonus shares from Keppel Corp)

Sold partial Silverlake, at 65.81% gain (excluding dividends)

Sold partial Sabana, at 39.41% gain (excluding dividends)

Sold partial Kingsmen, at 27.25% gain (excluding dividends)

	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	FY
2010	-1.75%	1.36%	2.98%	4.36%	-7.12%	4.40%	4.49%	-1.38%	6.76%	3.09%	-1.61%	3.93%	20.38%
2011	-0.03%	-4.77%	2.07%	1.29%	-0.32%	-2.39	-0.33%	-8.34%	-6.53%	7.52%	-7.05%	0.52%	-17.85%
2012	9.41%	5.52%	2.62%	-0.22%	-3.13%	2.55%	2.84%	1.99%	4.27%	-0.34%	0.11%	2.75%	31.67%
2013	5.18%	2.33%	3.02%	1.95%	-2.98%
Annualised Return = 10.99%

Stock	Mode	Unrealised P/L (SGD)	Stock	Mode	Unrealised P/L (SGD)
ARA	CASH	54.66%	SABANA REIT	CASH	26.78%
BH GLOBAL	CASH	-25.24%	SARIN	CASH	56.86%
CAPITAMALL TRUST	CASH	24.68%	SATS	CASH	9.85%
CDL HOSPITALITY	CASH	14.57%	SGX	CASH	10.53%
CHINA MILK *	CASH	-100.00%	SIA ENGG	CASH	37.79%
FIBRECHEM *	CASH	-100.00%	SILVERLAKE AXIS	CASH	66.24%
FAR EAST HOSPITALITY	CASH	3.89%	SPDR GOLD	CASH	-16.23%
FIRST REIT	CASH	60.58%	STARHILL GLOBAL	CASH	-1.39%
FRASERS CENTREPOINT	CASH	23.17%	STARHUB	CASH	54.53%
FRASERS COMMERCIAL	CASH	7.27%	ST ENGINEERING	CASH	15.24%
GMG	CASH	-30.99%	TAI SIN	CASH	7.66%
GUTHRIE	CASH	57.14%	TAT HONG	CASH	10.85%
KEPPELCORP	CASH	199.12%	TECK WAH	CASH	20.73%
KINGSMEN CREATIVES	CASH	21.44%	UOB-KAY HIAN	CASH	-9.82%
MAPPLETREE GCC	CASH	8.91%	VALUETRONICS	CASH	-20.20%
NOBLE GROUP	CASH	-29.45%	BH GLOBAL	CPF	-49.52%
OKP	CASH	-25.19%	CAPITAMALL TRUST	CPF	11.69%
PARKWAY LIFE	CASH	31.44%	PARKWAY LIFE	CPF	25.27%
RAFFLES MEDICAL	CASH	42.31%	SIA ENGG	CPF	6.78%
RIVERSTONE	CASH	11.35%	SPDR GOLD	CPF	-12.36%
ROXY PACIFIC	CASH	97.37%

My holding period return was 1.95% in the month of April 2013. Since the beginning of the year 2010, my overall holding period returns translate to 12.29% in annualised return.

There were 5 transactions in the month of April 2013.

Sold Nam Cheong, at 3.55% gain (excluding dividends)

Sold partial Tat Hong, at 11.31% gain (excluding dividends)

Sold partial Tai Sin, at 12.85% gain (excluding dividends)

Sold partial Sarin, at 55.85% gain (excluding dividends)

Sold partial ARA, at 49.91% gain (excluding dividends)

	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	FY
2010	-1.75%	1.36%	2.98%	4.36%	-7.12%	4.40%	4.49%	-1.38%	6.76%	3.09%	-1.61%	3.93%	20.38%
2011	-0.03%	-4.77%	2.07%	1.29%	-0.32%	-2.39	-0.33%	-8.34%	-6.53%	7.52%	-7.05%	0.52%	-17.85%
2012	9.41%	5.52%	2.62%	-0.22%	-3.13%	2.55%	2.84%	1.99%	4.27%	-0.34%	0.11%	2.75%	31.67%
2013	5.18%	2.33%	3.02%	1.95%
Annualised Return = 12.29%

Stock	Mode	Unrealised P/L (SGD)	Stock	Mode	Unrealised P/L (SGD)
ARA	CASH	50.30%	SABANA REIT	CASH	41.84%
BH GLOBAL	CASH	-22.86%	SARIN	CASH	55.19%
CAPITAMALL TRUST	CASH	34.54%	SATS	CASH	6.15%
CDL HOSPITALITY	CASH	24.53%	SGX	CASH	11.73%
CHINA MILK *	CASH	-100.00%	SIA ENGG	CASH	37.52%
FIBRECHEM *	CASH	-100.00%	SILVERLAKE AXIS	CASH	53.29%
FAR EAST HOSPITALITY	CASH	14.53%	SPDR GOLD	CASH	-14.78%
FIRST REIT	CASH	77.94%	STARHILL GLOBAL	CASH	9.38%
FRASERS CENTREPOINT	CASH	36.52%	STARHUB	CASH	82.27%
FRASERS COMMERCIAL	CASH	17.43%	ST ENGINEERING	CASH	23.98%
GMG	CASH	-30.99%	TAI SIN	CASH	9.49%
GUTHRIE	CASH	67.03%	TAT HONG	CASH	10.85%
KEPPELCORP	CASH	204.52%	TECK WAH	CASH	19.05%
KINGSMEN CREATIVES	CASH	24.17%	UOB-KAY HIAN	CASH	-8.22%
MAPPLETREE GCC	CASH	19.64%	VALUETRONICS	CASH	-20.20%
NOBLE GROUP	CASH	-23.69%	BH GLOBAL	CPF	-47.91%
OKP	CASH	-13.15%	CAPITAMALL TRUST	CPF	20.53%
PARKWAY LIFE	CASH	40.94%	PARKWAY LIFE	CPF	34.33%
RAFFLES MEDICAL	CASH	47.04%	SIA ENGG	CPF	6.57%
RIVERSTONE	CASH	1.71%	SPDR GOLD	CPF	-10.84%
ROXY PACIFIC	CASH	95.72%

Presentation Style 1

Initial Capital = USD150k+SGD430k+EUR14k = USD517,428.40 equivalent (at month-end FX rates)
End 2013 January Net Portfolio Value = USD506,264.29
End 2013 February Net Portfolio Value = USD508,659.81
End 2013 March Net Portfolio Value = USD493,682.75
End 2013 April Net Portfolio Value = USD505,713.88

Year to Date Portfolio performance = -2.26%

Presentation Style 2

Initial Capital = USD521,393.82  / SGD635,773.20
End 2013 January Net Portfolio Value = USD506,264.29 / SGD626,449.03
End 2013 February Net Portfolio Value = USD508,659.81 / SGD628,810.34
End 2013 March Net Portfolio Value = USD493,682.75 / SGD612,561.56
End 2013 April Net Portfolio Value = USD505,713.88 / SGD622,786.64

Year to Date Portfolio performance = -3.01% (USD terms) / -2.04% (SGD terms)

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Gross coupons received in the month = USD13,457.62 (Cloverie 8.25%, CNP 7.5%, and GLP 5.5%)
Gross coupons received YTD 2013 = USD20,520.12

Projected net leveraged coupon yield = 15.99% p.a.*

Comments for the month
With the 10Y UST yield remaining significantly below 2% (UST price up) and the expectation that interest rates will continue to remain low for extended periods, coupled with no end in sight to QE, bonds have continue to maintain their upward momentum as investors hungry for yield continue to pile into fixed income as well as high yielding equities. My big bet on Unicredit 5.5% SGD continues to drag on my portfolio performance with its price in the 94 region. Although Italy had re-elected their President as well as Prime Minister, the market needs to see definitive action taken resulting in stability before we can see any significant rally in the Italian bond market. Italian sovereign bonds have rallied a bit in recent weeks but the effect has not flowed down to the Corporate Bonds. Although the price of my Unicredit bond continues to be below par, as long as I do not sell it (hold till maturity), I would not be too concerned with the price as I continue to receive the high 5.5% p.a. coupons (high for investment grade 10NC5 SGD bond) and will receive 100% back upon maturity (assuming no default).

The benefits of regular coupons being received from a fixed income portfolio can be observed from my example. Even though I am losing 6%+ on paper on my Unicredit bond purchase price, the coupons received from all my bonds as well as paper gains from my other bonds have significantly offset the Unicredit paper loss, resulting in just a 2-3% overall paper loss for my portfolio. Even if my Unicredit bond continues to remained depressed, I would expect my portfolio to breakeven soon from the continued receipts of coupons from the bonds.

Known portfolio measurement weaknesses
1. I had converted SGD500k of loans into USD @ 1.239 in order to save on loan interest costs in this new portfolio. Simultaneously, in my main portfolio, I had switched USD loans into SGD (loan interest rate arbitrage across my main and new portfolio). Although there is no Net FX exposure when I look across my main and new portfolios, I have created Net Short USD exposure in my new portfolio. Based on my estimations, every 0.01 upward movement in the USD/SGD rate will result in an artificial SGD5k loss in my new portfolio, and vice versa.
2. Bank pricing valuations for bonds, particularly SGD, may not be accurate. For instance, GLP is priced at 102.25 as at End February when traders are quoting 103.5/104.
*. I am aware that the projected net leveraged coupon yield does not factor in the losses I would suffer in the event my premium bonds are called or redeemed (conversely, gains on discount bonds are not included as well). This is just a projection of my Net Coupons received annually.

My holding period return was 3.02% in the month of March 2013. Since the beginning of the year 2010, my overall holding period returns translate to 11.96% in annualised return.

There were 2 transactions in the month of March 2013.
Sold Lippo Malls, at 26.85% gain (excluding dividends)
Bought Mappletree Greater China Commercial Trust (IPO), average price at $0.93

	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	FY
2010	-1.75%	1.36%	2.98%	4.36%	-7.12%	4.40%	4.49%	-1.38%	6.76%	3.09%	-1.61%	3.93%	20.38%
2011	-0.03%	-4.77%	2.07%	1.29%	-0.32%	-2.39	-0.33%	-8.34%	-6.53%	7.52%	-7.05%	0.52%	-17.85%
2012	9.41%	5.52%	2.62%	-0.22%	-3.13%	2.55%	2.84%	1.99%	4.27%	-0.34%	0.11%	2.75%	31.67%
2013	5.18%	2.33%	3.02%
Annualised Return = 11.96%

Stock	Mode	Unrealised P/L (SGD)	Stock	Mode	Unrealised P/L (SGD)
ARA	CASH	52.28%	ROXY PACIFIC	CASH	107.24%
BH GLOBAL	CASH	-20.00%	SABANA REIT	CASH	31.45%
CAPITAMALL TRUST	CASH	21.20%	SARIN	CASH	57.42%
CDL HOSPITALITY	CASH	27.65%	SATS	CASH	2.44%
CHINA MILK *	CASH	-100.00%	SGX	CASH	15.01%
FIBRECHEM *	CASH	-100.00%	SIA ENGG	CASH	28.82%
FAR EAST HOSPITALITY	CASH	19.09%	SILVERLAKE AXIS	CASH	37.09%
FIRST REIT	CASH	55.00%	SPDR GOLD	CASH	-6.31%
FRASERS CENTREPOINT	CASH	29.85%	STARHILL GLOBAL	CASH	0.88%
FRASERS COMMERCIAL	CASH	6.14%	STARHUB	CASH	67.63%
GMG	CASH	-24.99%	ST ENGINEERING	CASH	21.44%
GUTHRIE	CASH	68.13%	TAI SIN	CASH	14.96%
KEPPELCORP	CASH	218.45%	TAT HONG	CASH	13.46%
KINGSMEN CREATIVES	CASH	21.44%	TECK WAH	CASH	25.76%
MAPPLETREE GCC	CASH	11.59%	UOB-KAY HIAN	CASH	-9.02%
NAM CHEONG	CASH	7.89%	VALUETRONICS	CASH	-20.20%
NOBLE GROUP	CASH	-17.58%	BH GLOBAL	CPF	-45.98%
OKP	CASH	-13.15%	CAPITAMALL TRUST	CPF	8.58%
PARKWAY LIFE	CASH	33.55%	PARKWAY LIFE	CPF	27.28%
RAFFLES MEDICAL	CASH	41.02%	SIA ENGG	CPF	-0.17%
RIVERSTONE	CASH	7.07%	SPDR GOLD	CPF	-1.99%

Presentation Style 1

Initial Capital = USD150k+SGD430k+EUR14k = USD514,503.06 equivalent (at month-end FX rates)
End 2013 January Net Portfolio Value = USD506,264.29
End 2013 February Net Portfolio Value = USD508,659.81
End 2013 March Net Portfolio Value = USD493,682.75

Year to Date Portfolio performance = -4.05%

Presentation Style 2

Initial Capital = USD521,393.82  / SGD635,773.20
End 2013 January Net Portfolio Value = USD506,264.29 / SGD626,449.03
End 2013 February Net Portfolio Value = USD508,659.81 / SGD628,810.34
End 2013 March Net Portfolio Value = USD493,682.75 / SGD612,561.56

Year to Date Portfolio performance = -5.31% (USD terms) / -3.65% (SGD terms)

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Gross coupons received in the month = USD2,000.00 (Aviva 8.25% and Prudential 7.75%)
Gross coupons received YTD 2013 = USD7,062.50

Projected net leveraged coupon yield = 15.94% p.a.*

Comments for the month
Bond prices, particularly longer dated bonds and perpetuals have recovered from January 2013's lows as the 10 year UST yields retraced below 2% (price of UST rose). My big bet on Unicredit 5.5% SGD continues to drag on my portfolio performance with its price in the 95 region. European sentiment continues to be weak with inconclusive Italian elections proving to be a drag on both Italian Sovereign and Corporate bond prices.

Known portfolio measurement weaknesses
1. I had converted SGD500k of loans into USD @ 1.239 in order to save on loan interest costs in this new portfolio. Simultaneously, in my main portfolio, I had switched USD loans into SGD (loan interest rate arbitrage across my main and new portfolio). Although there is no Net FX exposure when I look across my main and new portfolios, I have created Net Short USD exposure in my new portfolio. Based on my estimations, every 0.01 upward movement in the USD/SGD rate will result in an artificial SGD5k loss in my new portfolio, and vice versa.
2. Bank pricing valuations for bonds, particularly SGD, may not be accurate. For instance, GLP is priced at 102.25 as at End February when traders are quoting 103.5/104.
*. I am aware that the projected net leveraged coupon yield does not factor in the losses I would suffer in the event my premium bonds are called or redeemed (conversely, gains on discount bonds are not included as well). This is just a projection of my Net Coupons received annually.