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Webinar – How to build your Investment Portfolio and Ride Big Trends in 2021 by Kenny Loh

Post author:Marubozu
Post published:March 15, 2021

On the 9th March 2021, Kenny Loh held a webinar organized by WealthEnjoy, with the title Big Trends To Ride in 2021 & Beyond To Build Your Resilient Portfolio.

In this webinar, Kenny Loh covers his investment strategy in 2021. He covers events that will affect markets worldwide, including the impact that 5G will have on current markets, the COVID-19 pandemic, China growth, Emerging Market growth, Artificial Intelligence etc. He will also cover the many different types of Investments in 2021, from alternative investments such as Cryptocurrency and Gold, to Investment Properties such as REITs and Unit Trusts, and how to start building your very own portfolio.

To find out more about this webinar, do visit this page on WealthEnjoy.

Alternatively you can watch the webinar below (with timestamps included).

Timestamps:

11:55 Start of Webinar

12:32 About Kenny Loh

13:52 Introduction: things to take note of

15:01 Investment Strategy

19:23 Summary of the Current Macro Environment

22:30 Thematic Portfolio 2021 (& explanation of Investment Portfolio)

26:01 Thematic Investing 2021 (Core Portfolio and Satellite Portfolio)

27:35 China’s Growth Story

29:43 China Equity

31:07 Technological Disruption

32:42 Artificial Intelligence

34:37 5G Networks

39:33 Internet of Things (IoT)

40:27 Effects of 5G

42:50 APAC ex Japan Equity

43:30 Financial Sector

44:45 Emerging Markets

47:41 Private Equity

49:01 Singapore REITs

50:22 Gold

51:46 Cryptocurrency

54:28 Uses for cryptocurrency

1:00:25 Digital Currency Funds

1:02:17 Thematic Portfolio 2021 (Past Year Performance)

1:03:29 Thematic Portfolio Example (Kenny’s own portfolio)

1:04:29 Why and who should build a diversified portfolio?

1:06:15 How to build a diversified portfolio? (and ways to do it)

1:09:03 How to start investing now?

1:11:23 End of Webinar

1:12:49 Advisory and managed account services

Start of Q&A

1:14:39 Why is there a rotation from big cap industrial REITs to other stocks?

1:17:06 Will you manage accounts for your clients?

1:18:59 Mapletree REITs got beaten down this year. Is it a good time to buy?

1:20:31 Which REITs sectors do you think will be bullish in the near term?

1:22:15 What would be the minimum amount required for your advisory service and/or managed account service?

1:25:08 Are you looking only into Unit Trusts and not Stocks/ETFs?

1:27:39 Right now, is the market focused on recovery or inflation?

1:29:25 What is your personal view on the spike of yield spread and how to take advantage of it?

1:31:25 If I already have an investment portfolio, will you help to advise on my portfolio as part of your advisory service?

1:33:01 Gold prices have dropped substantially recently. Do you see a rebound on the gold price soon?

1:34:20 What are the fees for the advisory/managed account services?

1:35:05 Do you have any cryptocurrency assets in your portfolio and what percentage?

1:37:45 I noticed that you did not include US in your asset allocation. Is that true?

To find out more about Kenny Loh’s advisory and managed account services, please submit the online form here. 1st consultation fee will be waived!

To view more past webinars, do visit the events page here.

Kenny Loh is a Senior Consultant and REITs Specialist of Singapore’s top Independent Financial Advisor. He helps clients construct diversified portfolios consisting of different asset classes from REITs, Equities, Bonds, ETFs, Unit Trusts, Private Equity, Alternative Investments and Fixed Maturity Funds to achieve an optimal risk adjusted return. Kenny is also a CERTIFIED FINANCIAL PLANNER, SGX Academy REIT Trainer, Certified IBF Trainer of Associate REIT Investment Advisor (ARIA) and also invited speaker of REITs Sympsosium and Invest Fair.

You can join my Telegram channel #REITirement – SREIT Singapore REIT Market Update and Retirement related news. https://t.me/REITirement

Build your Diversified Investment Portfolio Today!

Will Crypto Forks Affect Your Crypto Trading Platform?

Post author:Marubozu
Post published:March 12, 2021

Yes. But also no, and in general– sometimes. Want some real answers on how any of the latest forks could affect your favorite trading platform? You’ll have to keep reading.

Cryptocurrencies have long been the face of technological innovation in finance. While Fintech has seen a small share of the headlines, nothing has shifted the way we think about and use finance in the ways that cryptocurrencies have. But with near constant innovation, comes change. And in crypto, with change comes forks. Don’t start counting tines just yet, as many of the forks that cryptos employ go largely unnoticed. Which means that your holdings and your favorite crypto trading platform will go largely untouched.

Platforms like Bitvavo snag and retain their clientele by helping to guide newer users through the often confusing avenues of crypto. Helping to get novice buyers and retail investors a more solid footing in the market. So when it comes to new types of innovation, these crypto trading platforms are some of the best to look towards when you need more continuity and less continual change. Moreover, many of these newbie focused platforms will also trade in forked coins and still interface with original systems and protocols. Which is super helpful to anyone who wants to enjoy both the way things were, and all the ways they could be.

What is a Crypto Fork?

A crypto fork is simply a change in the existing protocol of a given cryptocurrency. The design of any crypto is based off of a protocol– a digital set of instructions that tell a crypto how it works and what it should be doing. These rules establish how data is shared, how the blockchain or other associated ledger system is structured, and how validation systems work. When a cryptocurrency wants to advance their existing structure, or change the way a given network works in order to better keep up with evolving technology– they have to create a fork.

Crypto forks are more akin to a ‘Fork in the Road’ than they are related to the ones you eat your dinner with. In the world of digital finance, there are two types of forks you’ll want to concern yourself with: Hard forks and soft forks.

Soft Forks

Soft forks are changes to the protocol that don’t really affect how the network functions. These are considered ‘backward compatible’, where the new protocols will still be able to interact with older protocols. This means that any block (or chunk of transactional information) that is validated under the new protocols, will still be recognized by the old nodes (validating computers) connected to the network. However, the information processed by old nodes will not be recognized as valid by newly updated nodes. So in order for soft forks to eventually become accepted by the entire network, the majority of the nodes connected to the network will eventually update to the new protocols. Like going from Windows XP to Windows 10.

Soft forks happen all the time and generally include changes to the protocols that look to add security updates or attempt to address any scaling issues the original protocols may have presented. However, sometimes, soft forks aren’t embraced by the majority of the network. This is how hard forks happen.

Hard Forks

Hard forks happen when the majority of a network decides to stick to old protocols, meaning that nodes that have opted to pick up newer protocols will eventually become invalidated by the majority of the network still functioning under old protocols. Remember that new nodes don’t recognize old protocols. So if the majority of your network is functioning under old protocols, the spare few that have upgraded will become the anomaly, and the information they process will be useless to the network as a whole.

When this happens, new protocols are either abandoned, or the nodes that have decided to keep the upgrade will essentially branch off and become a new type of crypto token. This is what happened with Bitcoin and Bitcoin Cash. When a hard fork occurs, it can be a blessing or a curse for the network, depending on how the newly minted token performs. In the case of Bitcoin Cash, the hard fork performed very well. Offering a new token for investors to consider.

Can They Affect Your Trading Platform or Habits?

So as you can see, most soft forks are unlikely to affect your crypto trading platform, or any network you engage with, by much. It’s really the hard forks that you need to keep a keen eye on. For some networks, a hard fork can signal the end of a lucrative token. For others, it can mean the encouraging enterprise of two new investment options.

Perhaps most recently, the ethereum networks hard fork has presented the crypto world with one of the most anticipated hard forks ever recorded. “The Beacon Chain” is the long anticipated next step in the evolution of Eth2.0, or “Serenity”. Serenity looks to completely overhaul the way that the ethereum network functions, hoping to improve many security and scalability issues that have long plagued the original blockchain model.

The network hopes that eventually, the original ethereum platform will be entirely absorbed by Eth2.0, integrating the original Ethereum blockchain into the new ledger system that Serenity uses. Which means that there won’t be any big changes for investors or trading platforms to worry about, but it could mean that there will be new and innovative ways to invest in crypto in the future.

Singapore REIT Monthly Update (Mar 04 – 2021)

Post author:Marubozu
Post published:March 4, 2021

Technical Analysis of FTSE ST REIT Index (FSTAS8670)

FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) decreased from 877.59 to 826.65 (-5.80%) compared to last month update. Currently the Singapore REIT index is moving sideway after a false breakout at the resistance of 874.

As for now, Short term direction: Sideway.
Immediate Support at 825, followed by 775.
Immediate Resistance at 874.

Previous chart on FTSE ST REIT index can be found in the last post Singapore REIT Fundamental Comparison Table on Jan 24, 2021.

Fundamental Analysis of 40 Singapore REITs

The following is the compilation of 40 Singapore REITs with colour coding of the Distribution Yield, Gearing Ratio and Price to NAV Ratio.

Note 1: The Financial Ratio are based on past data and there are lagging indicators.
Note 2: This REIT table takes into account the dividend cuts due to COVID-19 outbreak. Yield is calculated trailing twelve months (ttm), therefore REITs with delayed payouts might have lower displayed yields, thus yield displayed might be lower.
Note 3: REITs highlighted in blue have been updated with the latest the Q4 2020 business updates.

(Source: https://stocks.cafe/kenny/advanced)

Do sign up for the REIT screener at only ~$8.33 per month! (limited time only). Normal price $120 per year.

Price/NAV decreased at 0.98
- Decreased from 1.01 in January 2021
- Singapore Overall REIT sector is at about fair value now
- Take note that NAV is adjusted downward for most REITs due to drop in rental income (Property valuation is done using DCF model or comparative model)

TTM Distribution Yield increased to 5.68%
- Increased from 5.45% in January 2021
- One Third of Singapore REITs (13 out of 39) have distribution yields of above 7%.
- Do take note that these yield numbers are based on current prices taking into account the delayed distribution/dividend cuts due to COVID-19, and post circuit breaker recovery.
- Exclude Eagle Hospitality Trust due to suspension.

Gearing Ratio at 37.44%.
- Reduce from 38.19% in January 2021.
- In general, Singapore REITs sector gearing ratio is healthy but started to increase due to the reduction of the valuation of portfolios and increase in borrowing.

Most overvalued REITs (based on Price/NAV)
- Keppel DC REIT (Price/NAV = 2.28)
- Parkway Life (Price/NAV = 2.09)
- Mapletree Industrial Trust (Price/NAV = 1.55)
- Mapletree Logistics Trust (Price/NAV = 1.45)
- Ascendas REIT (Price/NAV = 1.34)
- No change from January 2021 for top 5 overvalued REITs ranking

Most undervalued REITs (based on Price/NAV)
- Lippo Malls Indonesia Retail Trust (Price/NAV = 0.36)
- First REIT (Price/NAV = 0.42)
- OUE Commercial REIT (Price/NAV = 0.63)
- Starhill Global REIT (Price/NAV = 0.64)
- BHG REIT (Price/NAV = 0.67)
- Sabana REIT (Price/NAV =0.73)
- Suntec REIT (Price/NAV = 0.73)

Highest Distribution Yield REITs (ttm)
- First REIT (19.76%)
- KepPacOak US REIT (9.16%)
- Prime US REIT (8.73%)
- Manulife REIT (8.42%)
- Sasseur REIT (7.65%)
- Reminder that these yield numbers are based on current prices taking into account delayed distribution/dividend cuts due to COVID-19.
- Some REITs opted for semi-annual reporting and thus no quarterly DPU was announced.

Highest Gearing Ratio REITs
- Eagle Hospitality Trust (65.5%) * Filed for Chapter 11 Bankruptcy Protection *
- First REIT (49%)
- ARA Hospitality Trust (48.2%)
- Suntec REIT (44.3%)
- Lippo Malls Retail Trust (42.4%)
- ESR REIT (41.6%)
- Mapletree NAC Trust (41.3%)
- OUE Commercial REIT (41.2%)

Total Singapore REIT Market Capitalisation = S$104.9 Billion.
- Decreased from S$107.2 Billion in January 2021.

Biggest Market Capitalisation REITs:
- Capitaland Integrated Commercial Trust ($13.91B)
- Ascendas REIT ($11.64B)
- Mapletree Logistics Trust ($8.48B)
- Mapletree Commercial Trust ($6.73B)
- Mapletree Industrial Trust ($6.70B)

Smallest Market Capitalisation REITs:
- BHG Retail REIT ($296M)
- United Hamsphire REIT ($327M)
- First REIT ($328M)
- ARA Hospitality Trust ($380M)
- Sabana REIT ($400M)

Eagle Hospitality Trust is currently suspended

Disclaimer: The above table is best used for “screening and shortlisting only”. It is NOT for investing (Buy / Sell) decision. To learn how to use the table and make investing decision, Sign up next REIT Investing Workshop here to learn how to choose a fundamentally strong Singapore REIT for long term investing for passive income generation.

Top 20 Performers of the Month (Source: https://stocks.cafe/kenny/advanced)

SG 10 Year & US 10 Year Government Bond Yield

SG 10 Year: 1.391%
US 10 Year: 1.45%

Summary

Fundamentally the whole Singapore REITs is close to fair value now based on simple average on the Price/NAV. Below is the market cap heat map for the past 1 month. In general, the Singapore REITs sector is going through a correction now caused by a spike in 10 Years US Treasury Bond Yield due to the fear of inflation. However, I think it is still too early to talk about inflation now as the world is still at the early economy recovery phase. This is probably a knee jerk reaction to let go some weak investors. This correction presents another entry opportunities for investors who miss out the entry during the market crash in Mar-May 2020. Next US FOMC meeting is on Mar 17, 2021 and it is 95.2% probability the US fed will keep the current low interest rate.

(Source: https://stocks.cafe/kenny/overview)

Yield spread (reference to 10 year Singapore government bond of 1.391%) tighten from 4.449% to 4.289% . However, the risk premium are still attractive to accumulate Singapore REITs in stages to lock in the current price and long term yield after the recovery. Moving forward, it is expected the increase of DPU due to the recovery of global economy.

Technically the REIT Index is currently trading in a sideway consolidation after the false breakout. However, current macro factors such as low interest rate environment, aggressive M&A for future DPU growth and recovery of global economic support the bullish breakout.

Note: This above analysis is for my own personal research and it is NOT a buy or sell recommendation. Investors who would like to leverage on my extensive research and years on Singapore REIT investing experience can approach me separately for REIT Portfolio Consultation.