Portfolio Allocation Review (November 2020)

Core Stock Allocation

Total Portfolio Allocation


Transaction Summary for November 2020
  • SOLD SPDR GLD US$
  • APPLIED ASCENDAS REIT PREFERENTIAL OFFERING
The month of November is probably one of the best months for anyone who is invested in the local market. STI gained over 400 points from the start of the month to its peak, before encountering slight profit taking towards the end of the month. 

With the strong rally, I didn’t do any purchase for the month. I did apply for the Ascendas REIT PO although I only did a recent purchase in October. One of the reasons is that my holding for it is still relatively small at around 4%, so I think that I can accommodate more of the shares. But the PO price is not very attractive, so the total shares applied, including excess rights, was less than what I bought in October.

I also took the opportunity to do some reallocations by closing all of my position in Gold. The main reason is that I felt holding Gold was a bit too conservative and I should be able take on more risk. Gold does not provide any dividends and is used purely to hedge against the USD for me. There is also an increase in the take up of cryptocurrencies which may further depressed the price of Gold. The only catalyst for Gold now is the stimulus from US government, but I think I am not waiting for that anymore.

Overall, I am still able to close my position in Gold with some gains although it would have been higher if I did not purchase more recently. With this transaction, I am no longer holding on to any commodities as I have also sold my Silver holding earlier this year. With the exit in commodities, I am looking for another asset class to replace it. So far, I am thinking of adding the recent listed China Government Bond as replacement.

There is only one month left to the end of the year. I have topped-up the max amount for SRS and I am not expecting any more purchase for the year. Most probably will only subscribe to CaptiRetail China Trust PO. As for SRS, I will only start to invest them next year.


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