My holding period return was 1.36% in the month of February 2014. Since the beginning of the year 2010, my overall holding period returns translate to 8.64% in annualised return.
There were 3 transactions made in the month of February 2014.
Bought MTQ, average price at $1.584
Sold partial Sabana Reit, at 5.72% gain (excluding dividends)
Sold Pacific Radiance, at 3.96% gain
|Annualised Return = 8.64%|
|Stock||Mode||Unrealised P/L (SGD)||Stock||Mode||Unrealised P/L (SGD)|
|CAPITAMALL TRUST||CASH||4.90%||ROXY PACIFIC||CASH||73.34%|
|CDL HOSPITALITY||CASH||-1.11%||SABANA REIT||CASH||6.51%|
|CHINA MILK *||CASH||-100.00%||SATS||CASH||0.75%|
|FAR EAST HOSPITALITY||CASH||-21.45%||SIA ENGG||CASH||28.28%|
|FIRST REIT||CASH||23.85%||SILVERLAKE AXIS||CASH||68.36%|
|FRASERS CENTREPOINT||CASH||5.13%||STARHILL GLOBAL||CASH||-6.64%|
|JAYA HOLDINGS||CASH||8.79%||ST ENGINEERING||CASH||-0.17%|
|KINGSMEN CREATIVES||CASH||20.49%||TAT HONG||CASH||-38.33%|
|LOW KENG HUAT||CASH||-0.26%||TECK WAH||CASH||24.08%|
|PARKWAY LIFE||CASH||20.88%||SIA ENGG||CPF||-0.59%|
End February 2014 (against 31st January 2014), 1 month = +4.57% (annualised 54.82% p.a.)
Comments: The Leighton bond jumped 2% in the OTC market the moment I transferred it into IB. Slight concerns about IB's bond valuation prices, but I guess that will even out in the long run. Unlikely for the extrapolated 55% annualised return to materialise since a large chunk is from Leighton bond's paper gains.
Return measurement is using the formula: (Net Liquidation Value - Initial Capital) / (Initial Capital). Initial Capital is in the form of $150k notional of Leighton bonds transferred in on 20th February 2014 at clean price of 98.7 with accrued interest of approximately 1.5%, hence Initial Capital is deemed as USD150k.
Portfolio 2 - Bond Portfolio (Started in January 2013) - No screenshot being shared
End February 2014 (against 31st December 2012), 14 months
Style 1: +16.39% (annualised +14.05% p.a.)
Style 2: +13.56% (annualised +11.62% p.a.)
End January 2014 (against 31st December 2012), 13 months
Style 1: +11.39% (annualised +10.51% p.a.)
Style 2: +9.38% (annualised +8.66% p.a.)
Comments: Nothing extraordinary to highlight. This bond portfolio is going towards my steady-state projected yield of 12-16% p.a.
Style 1 is calculated by first converting the various currencies of my Initial Capital (which was never converted into any other currency) into USD equivalent based on the CURRENT month-end FX rate and the result compared against the current month-end USD Net Portfolio Value.
Style 2 is calculated by first converting the various currencies of my Initial Capital into USD equivalent based on the PORTFOLIO INCEPTION FX rate and the result compared against the current month-end USD Net Portfolio Value.
The above figures have incorporated a manual adjustment for SGD500k of loans that were switched into USD loans to take advantage of lower USD loan rates. I had simultaneously switched USD loans into SGD loans in my main portfolio. Although this has no FX impact looking at the overall picture across my portfolios, this results in an artificial loss of SGD5k in my new portfolio for every 0.01 movement in the USD/SGD rate above USD1.239.
Finally Newbie is able to put his money where his mouth is and SHORT GOLD!
Using IB platform, I have today SOLD 10 ounce of XAUUSD (termed London Gold in IB) at a price of USD1,344.14, with commission charges of just USD2.
Thus, every USD1 movement in the XAUUSD price would have a USD10 P&L impact for me.
The USD cash that you received from shorting the Gold cannot be used for anything!
a) It cannot improve your Excess Liquidity.
b) It cannot offset your current USD loan (e.g. I have a USD150k loan, I received USD20k cash from the Short Gold position, I still have to pay loan interest on the full USD150k loan).
Reason for this according to IB is because the metal trades are done in the UK account which is separate from the main securities account, blah blah blah.
So long story short, the USD cash you received from shorting the gold is trapped in the UK account and is useless and sitting idle in the UK account.
To add insult to injury, after I realised the USD20 profit from closing out my short position, IT DOES NOT AUTO CREDIT my main securities account. Tomorrow, I have to go into the UK account and manually transfer the USD20 cash from the UK account to my main securities account.
I closed my short position by buying back XAUUSD at USD1,341.69. Yeah! My first realised profit in IB, and I now see a USD21 realised P&L in my Account Screen.
Conclusion: No more gold trading with IB, especially since I am a bear on gold, and it makes no sense to short gold in IB when I cannot do anything with the USD cash I receive.
REMINDER: HSBC 8% is going to XD on 26th February, so tonight is the last night to grab it. I managed to grab $45k notional worth at 27.17 yesterday!
So here we go on my new purchases:
6,000 units of 2822 HK at HKD8.51 (I will eventually get rid of this as my intention is for this IB portfolio to be a bond portfolio).
HKD250k notional of HK Government Ibond 2014 at 100.648.
HKD100k notional of HK Government Ibond 2015 at 102.30.
HKD100k notional of HK Government Ibond 2016 at 103.60.
1800 units of AVV 8.25% at USD27.17.
1800 units of HSBC 8% at USD27.17.
Excess liquidity is still above USD100k at this point in time, which I feel is a very comfortable buffer. I will probably continue adding securities into this portfolio whenever I spot anything interesting.