Thursday, July 2, 2020

Jun 2020- Monthly and Mid-Year Passive income update(YTD Dividend/Interest collected ~ 31k)

 In the month of June 2020 , the stock market continued to fluctuate wildly so is my portfolio. June monthly passive income collected from my investment portfolio is around $5.8k despite missing out 1.3k from dividend suspension of my UK/EU finance stocks. This brings my half yearly passive income total to 31k. The passive income is so far my only consolation in 2020 as I have written off 42k of realized loss from selling some of my risky counters like MLP and retail Reits.  My liquid networth recovered by another 1% in June even though my liquid networth is probably still down by more than 100K.  Current investment portfolio is also sitting on a -9.5% paper loss end of June however the loss will be much reduced if I factor in the dividend yield.

As a result of volatile market throughout 2020 and dividend suspension/cut , most of my new positions have been bonds purchase. Comparing my portfolio distribution between Feb and June, I have increased my cash ,investment grade bond and bonds significantly to 70% of my liquid networth. With the huge re-balancing of my portfolio in the last 3 month, I am currently holding about 681K cash and 201K investment grade bonds which contribute about 45% and 13% respectively of my liquid networth. I will remain prudent for the remaining of the year with mainly bond purchase or stock that can still pay their dividends.

The passive income from dividend/interest is currently projected to generate about 60kSGD in 2020. When I started my blog, I have set a target of 100k passive income for fatFIRE and I have been chasing yield. After some hard thought , I analyze that my expense has been much lower than 50K pa, there is really no need to take excessive risk. This prompted some change in my retirement strategy to be as conservative as long as I have achieved a passive income that is more than my expense.

Dividends received in Jun2020 from Foreign Investment: USD $1411
Interest received in Jun2020 from Foreign Investment (bond): USD $1024
Interest received in Jun2020 from banks interest/FD/others in US: USD $397
Realized gain/loss : USD: 0
Dividends received in Jun2020 from SGX:SGD$2277
Interest received in Jun2020 from banks interest/FD/others in Spore: SGD $224
SGX Realized gain/loss SGD: 0
Total dividend and interest from my investment portfolio + bank/money market account + trading gain/loss generated in Jun2020 SGD$6325
YTD Passive income earned from investment only: SGD $31026
Detailed Dividend/Interest received from investment portfolio in Jun2020 :

Liquid Networth distribution:

Monthly Dividend/Interest earned Y-to-Y changes from 2017 to 2020:

6 comments:

  1. hi, recently found your blog and it inspired me to look at the fixed income investing. Currently my allocation is Cash, Equities and Real Estate whereby the "fixed income" portion is CPF. Are there any particular Bond ETF you would recommend?

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    1. Only iShares USD Asia Credit Bond Index ETF (N6M /QL2 SGX Quote) as I find this etf has enough investment grade bonds and still yield around 4%. I did a high level review https://globalincome50.blogspot.com/2020/06/review-of-ishares-usd-asia-credit-bond.html

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    2. Thanks for the link. With bonds there is no withholding tax but how about for this bond ETF?

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    3. I just received my interest payout for N6M in June.. There is no wht for bond etf listed in Spore.

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  2. Sorry nvm my question re witholding tax its an ETF traded on SGX, but dont you feel the AUM is a bit on the low side i.e. USD 46m?

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    1. No, I am not too worry about the AUM as this etf is well diversified with 200 bonds holding. Bond etf is not popular in Spore so the fund manager probably only bought 1-2 lots at USD250k per bonds. You can check all its bond holding and weighting in this link https://www.blackrock.com/sg/en/products/251825/ishares-jp-morgan-usd-asia-credit-bond-index-etf/1480664165281.ajax?fileType=csv&fileName=N6M_holdings&dataType=fund. Remember most of these individual bonds are not accessible for retail investor like us. After some research, I find this etf is better suited for myself taking account of risk diversification that I could not replicate if I would to buy individual bond.

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