Friday, 24 March 2017

Strategy Report: Feb-March 2017

Interest Hike Fully Priced in?

The interest rate hike on 15 March did not do anything significant to the market suggesting that it had been fully priced in.

Adding to Existing Positions

With the uncertainty out of the way:
  • I used my SRS funds to purchase CCT. 
  • Added to my GSK holdings, this time, buying the LSE listed GBP shares instead of the ADRs.
  • I also subscribed to the Ascott Residence Trust rights issue. I have a fair amount of ART so I have to come up with a fair amount of cash for the rights.

New positions

In late February, I initiated a position in S&P UK Dividend Aristocrats UKDV. While I like the WisdomTree offering more, the AUM for WUKD is a bit too small and the ETF is in danger of closing.

In March, I initiated a position in Telstra as it continued to drop and I felt that there was a sufficient margin of safety vis-a-viz its dividend yield. Previously I had a small position in Telstra which I bought using SCB at about $4.9x which I had to sell at about $5.05 because SCB was removing its minimum commission (at that time I did not have PB yet).

Of course, IB is a much better place to hold AU shares. Hopefully the withholding is at the treaty rate of 15% and not 30% (My Westpac ADR dividends were withheld at the treaty rate of 15%).

I also initiated a position in the iShares ASX200 ETF IOZ which also has a favourable dividend yield.

No comments:

Post a Comment