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August 2022 Portfolio Update



Portfolio allocation as of Aug '22.

SG Shares: DBS, SGX, Valuetronics

SG Reits: Syfe Reit+

US Growth: BABA, INMD, PINS, PYPL, SHOP, TDOC, TTD, UPST


Well, how quickly things change in a month. In my last update I wrote about feeling frustration as the market went up. I got what I wished for in Aug, with markets turning south again. It was a good month to deploy capital. I increased my position in 2800HK (avg. 23.25HKD), added to my Syfe Reit+ portfolio, and bought more units of IQLT (avg. $32.3). 


2800HK is an ETF tracking the Hang Seng Index. It currently offers a ~3% yield and provides exposure to a good balance of financials and tech stocks. The Chinese economy is going through a rough patch right now, and the HSI is trading below Covid lows. Unless there's a complete implosion of the Chinese economy, it certainly looks cheap to me, and I'm being paid 3% annually to wait for a recovery. IQLT comprises of a broad range of companies in developed markets screened by "Quality" factors, with a significant exposure to Europe. With the Russian invasion of Ukraine, Europe is facing the consequences, especially in energy prices which will eat into profit margins. The relative valuation of European stocks against the S&P500 is at the lowest since the GFC, and I'm betting that screening for "Quality" stocks would somewhat mitigate the impact of margin compression. 


Closer to home, I'm looking to add a few SG dividend names to my portfolio. ComfortDelGro looks interesting as a recovery play, given that it's still trading at Covid lows, while fundamentals have largely recovered to pre-Covid numbers. Selling pressure due to it being removed from the STI Index may pose an opportunity. ThaiBev is another company that I've been following for some time; Re-opening tailwind, strong FCF, gradually de-leveraging and at a reasonable valuation.


That's all for this month's update!


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