The strategy for 2025 has more or less stabilized. There are a few key segments in tracked portfolio:
- Income-Earning Stocks (Primarily Banks)
The first segment consists of income-earning stocks, mainly banks. These stocks have strong earnings and pay attractive dividends, making up more than half of the portfolio’s allocation. Currently, they are relatively cheap given the present risk levels. Whether this will change in the future depends on technological or regulatory impacts, if any.
The main position here is DBS, which has performed well so far this year. OCBC has been somewhat muted but remains a reliable dividend payer. Both positions may be reduced during rebalancing. Each time this happens, the overall dividend yield is affected, as replacements typically offer lower yields. There is a cost to this approach.
- REITs
The second segment is REITs. While there are several REITs in the portfolio, only two have core allocations: FCT and MIT. Both are defensive and strong dividend payers....
