Cory Diary : Aug Performance '20

Is already Mid-Aug and I was pondering whether to do a performance tracker update. The reason I did not do one early part of the month because I knew the coming price adjustment with Accordia Golf Trust and I am also in the process of mitigating the dividend income loss from the Golf Course sales. So with the news more or less definite near term and coming up with a plan on driving returns the chart may returns.

As below Chart, the gap widens to 19.1% against STI Index. I think one partial reason is due to ETF dividend just distributed. Cory returns -1%. Theoretical fund annual dividend has come down to 59k Covid returns.

Chart : Returns Comparison

As the yield gets lower with recovering market, new fund injection has to work much harder for the same dollar amount. However I need to compensate the dividend loss from AGT, and that's easier said than done. For one I try to avoid USD denominated counters as I find it a hassle which Reits are driving higher yields. Then I have enough banks exposures so any increase will be over allocation percentage. I also have same issue with increasing my stake in CMT.

There are few things I could do now.

1.    Increase my fund injection to drive higher dividends

2.    Re-balance my STI Index ETF to something else of higher yield.

3.    Not renew my Fixed Deposits that expired

4.    Reduce my cash holdings

5.    Exchange my foreign fixed deposits to local currency

I hope to do all above partially in measured ways.

Cory

2020-0818