How I View My Portfolio Moving Forward?- Part 1

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This post is to join in the fun to see how I associate the shares in my portfolio to the famous generals and advisors in The Three Kingdoms era, more specifically, the generals and advisors of the Shu Kingdom (my favorite in the novel, followed by Wu and lastly Wei).  I have 2 portfolios, the SG Dividend Portfolio for accumulating Singapore listed shares to build up passive income, and the US Growth Portfolio for growth and hopefully generating capital gains.  I will share my thoughts on the SG Dividend Portfolio in Part 1, and US Growth Portfolio in Part 2.

For my SG Dividend Portfolio, I have 9 shares.  These 9 shares act as the base and foundation for my portfolio, which I will continuously accumulate to grow all of them.  As such, they are like the advisors of the kingdom, strategizing every move of the portfolio to see how the portfolio can eventually grow and expand, slowly but surely.  After much deliberations, I associate the shares as follows:

The top advisors of the kingdom that I adore are Oversea-Chinese Banking Corporation (OCBC-诸葛亮) and ParkwayLife REIT (PWLR-庞统).  They may not be the top performers of the portfolio in the year ahead, as OCBC are cyclical in nature, and PWLR is still very much dependent on interest rates, but they are the 2 shares that I have high conviction in, and I believe they will be stable performers with respect to dividends generated in 2024 and beyond.  I believe both OCBC and PWLR can complement each other in their performances, and if OCBC ever underperforms in the year ahead due to any decline in interest rates, PWLR should be able to remain stable or even eek out slight positives with stable income and lowering gearing.

The second tier advisors that I like are Mapletree Industrial Trust (MIT-邓芝), Mapletree Logistics Trust (MLT-蒋琬), Capitaland Integrated Commercial Trust (CICT-徐庶), Singapore Technologies Engineering (STE-马良) and Hong Leong Finance (HLF-法正).  These shares are performing up to expectations, with stable dividend growth.  I believe MIT, MLT and CICT will remain stable, with improving performances in the year ahead.  With their diverse tenant base, I will not be too worried if any incidents happen to any particular tenant, affecting their ability to pay rent, as seen in other REITs with concentrated tenant base.  HLF, in my opinion, is functioning more like a bond in the portfolio.  Its share price generally remains stagnant, with good dividends annually, making it a stable accumulative dividend payer.  STE, though its performance may be partly volatile due to its aviation business, the defense and technology segment of its business will form a stable portion of its revenue.  

The third tier advisors I continue to hold in my portfolio are Frasers Logistics and Commercial Trust (FLCT-孙乾) and Mapletree Pan Asia Commercial Trust (MPACT-简雍).  They are not the hot favorites, especially in 2023.  FLCT has underperformed majority of the REITs, mainly because their income is generated in foreign currencies, which, after conversion, caused their distribution per unit to decline year on year due to the strength of the Singapore Dollar.  Similarly, MPACT has underperformed due to its overseas properties.  MPACT (or more accurately, Mapletree Commercial Trust), is the REIT that I have held on for the longest period in my portfolio.  However, ever since the merger, its performance has been disappointing, and to date, Festival Walk and China's commercial properties has yet fully recovered from the pandemic stress.  Though pockets of recovery has appeared, but only time will tell when these overseas properties will regain its former glory, and we as investors, can either wait, or sell.

That's all for my SG Dividend Portfolio.  May the 'advisors' continue to help my portfolio to grow and thereby boost the dividend income in the years ahead.  Barista FIRE, here I come...!

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