My Investment Portfolio (January 2016)

STI ended the month at around 2629 points, continuing its downward movement from last month. Again, fears of China's economy hard landing and low oil prices were the major concerns. Investors sold down stocks across the board, making stock picking a difficult task in this market.

For this month, I have attended the following AGMs/EGMs/briefings - Transcorp, Frasers Commercial Trust, Frasers Centrepoint Trust, Envictus, Noble and F&N.

For my top 30 holdings, Jardine C&C moved back to the top of the list after it outperformed this month. A-REIT is another major mover upwards after I subscribed to its preferential offer. Koyo International dropped out of the list after I sold down the stock.

I have bought the following companies from the market this month - Advanced Holdings, Bonvests, CapitaLand, Chuan Hup, GK Goh, GL, Global Testing, Hong Fok, Hong Kong Land, Jardine Matheson, Jardine Strategic, Kencana, Keppel Corp, Khong Guan, Lantrovision, New Toyo, PM Data, SembCorp Industries, S'pore Shipping, Sunningdale, UIC, UOL, Wing Tai and YHI. I have also reduced my stake in Koyo International and closed my positions in OKH Global and Oriental Group.

I have subscribed to the following preferential offer - A-REIT. I have also participated in the following scrip dividend schemes - Boustead and UOB.

I have also accepted the following voluntary delisting/cash offer this month - Li Heng.

Next month will be a busy reporting season as most companies with financial year ending December 2015 will be reporting their full year results. I will (as usual) go through most of these results. With the market appearing oversold, I will continue to buy good quality stocks at a reasonable price. I might also switch out of lower quality stocks to finance some of these purchases.

My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 29 January 2016)

Top 30 Holdings (Sing$ Denominated shares)
1. Jardine C&C 
2. United Engineers
3. Bonvests
4. Metro Holdings
5. Sarine Technologies
6. Haw Par
7. Singapura Finance
8. A-REIT 
9. Hotel Royal
10. Hotel Grand Central
11. The Hour Glass
12. Hong Fok
13. SGX
14. Keppel T&T
15. Isetan
16. Bukit Sembawang Estates
17. ComfortDelgro
18. Hotel Properties
19. GK Goh  
20. Old Chang Kee
21. Sing Investment & Finance
22. Hong Leong Finance
23. Hiap Hoe
24. UOL  
25. Far East Orchard
26. CapitaMall Trust 
27. VICOM
28. Stamford Land
29. CapitaLand
30. First REIT

Top 5 Holdings (US$ Denominated shares)
1. Jardine Strategic
2. Hong Kong Land 
3. Mandarin Oriental  
4. Dairy Farm
5. Jardine Matheson

Top Holdings (HK$ Denominated shares)
1. Fortune REIT
2. Tan Chong International

Top Holdings (Aust$ Denominated shares)
1. AV Jennings

Top 5 Holdings (CPF OA investment)
1. Keppel Corp
2. Streettracks STI ETF
3. CapitaMall Trust
4. A-REIT
5. Challenger Technologies

My Hong Kong Stock Portfolio
1. Peace Mark Holdings - Under Voluntary Liquidation

My Australia Stock Portfolio
1. GPS Alliance Holdings Limited

My Unlisted Company Portfolio
1. Automated Touchstone Machines Ltd
2. Iconic Global Limited
3. Greatronic Limited
4. General Magnetics
5. Fastech Synergy
6. Beauty China- Under Liquidation
7. Memory Devices
8. Jurong Tech - In liquidation - Compulsory winding up (Insolvency)
9. FM Holdings
10. Japan Land - In liquidation - Members' voluntary winding up
11. Zhonghui - In liquidation - Compulsory winding up (Insolvency)
12. FerroChina - Under Liquidation
13. FirstLink Investments
14. NEL Group
15. Jets Technics
16. Guangzhao Industrial Forest - In liquidation - Compulsory winding up (Insolvency)
17. Hongwei Technologies Limited (In Provisional Liquidation)
18. FDS Networks Group
19. Aussino Group - In liquidation - Creditors' voluntary winding up
20. China Oilfield Technology

My Unit Trust Portfolio:
http://www.fundsupermart.com/main/community/Portfolio_View.svdo?id=P199

Investment Strategy for 2016

2016 is expected to be another tough year for investors, according to most analysts out there. With most bad news out there and expected lower corporate earnings for most S'pore listed companies plus lower GDP growth in S'pore, I do agree that it will be another rough year for investors. We have already endured a roller-coaster ride last year but be prepared to tighten your seat belts for another tough ride this year. As usual, stock picking becomes a crucial factor in this kind of market, and therefore I have identified some themes in 2016 that investors can take note of and hopefully pick some stocks that fit into these themes which can enhance your portfolio returns.

1. Transformation of public transport to bus contracting model. Already, LTA had started competitive tendering and awarded some contracts. I expect 2016 to be a transformative year as LTA continues to take over existing contracts to purchase buses and assets from transport operators. SBS Transit is expected to be the main player for this theme though ComfortDelgro as a whole and also SMRT should benefit as well.

2. Raising interest rate. We have seen some of the effects of this theme after Fed raises interest rate last December. REITs are expected to get hit from this theme but selected finance related stocks might benefit from the interest rate spread that they earn from raising interest rate.

3. Delisting and M&A. To play this theme, one have to identify companies which are being acquired or no longer needs the capital market. For delisting, I think it is worth looking at the s-chips space. I know that s-chips are not in favour now but there are a few delisting deals last year in this space and I expect more to come this year. Do look out for those s-chips which had been listed for many years and had not paid dividends for a long time and trading at depressed valuations with low or no volume being transacted everyday.

4. Market mis-pricing due to share consolidation. We have seen some of those stocks that had experienced high volatility after share consolidation. In fact, there are some stocks which had been mispriced immediately after consolidation and one can take advantage of this if he/she is sharp enough to acquire those stocks before they revert back to normal levels. With the deadline looming for stocks trading under 20cts in the MainBoard for the MTP requirement, they will have to consolidate or move to Catalist to avoid being on the SGX watchlist. Expect more share consolidations this year.

5. Commodity prices. It is difficult to play this theme as commodity prices had been very volatile in 2015. I have no idea whether commodity prices will recover this year or continue to go lower. Same for oil price and gold. Therefore, it is best to give this theme a miss unless you have the crystal ball to predict. I certainly do not have it. But for those who have the appetite for it, the pay off could be substantial if you made the right call.

As for my portfolio strategy, it will be as usual as per 2015. I will continue to:
1. Look for deep value stocks and overweight them.
2. Reduce/Eliminate underperforming and overvalued stocks.
3. Reduce the number of AGMs, EGMs etc.
4. Keep healthy.
5. The usuals.

Have a profitable 2016!