Tuesday, November 23, 2010
Friday, November 5, 2010
The portfolio gained 1% in October, slightly underperforming the STI's 1.5% rise. On a YTD basis, we are up 5.7% (assuming accrual of a 20% performance fee on outperformance of a 6% annual hurdle rate). The STI is 11.2% higher over the same period.
Other than our monthly Sharebuilder additions, we added Gallant Venture to the portfolio, on the basis of low valuations (on a Price to book basis) and the potential for multi-fold gains as the company's Bintan landbank is carried at cost, while land sales have been locked in at prices far higher.
We did not sell any holdings in the month, while Guocoleisure and Cambridge Industrial Trust went ex-dividend in the month of October. CIT's distribution includes an advance distribution due to the Trust's plan to issue new units to existing investors (1 per 25, at $0.531 a unit), as well as via a private placement. We applied for excess units to top up our holdings to 25,000 units.
TAT HONG W130802
FRASER AND NEAVE
Best World W130705
Our new addition, Pan United Corp, returned 14.1% in the month of October, while Keppel Corp benefitted from strong oil prices. Capitaland fell amidst widespread weakness in property stocks. Cash is now 14.2% of the portfolio, and will weigh on returns against the benchmark if the market continues to trend up strongly, but we are comfortable with adopting a more cautious stance when asset prices rise too quickly. A pull-back at this juncture may be seen as healthy, and will allow the market to consolidate for further gains.