Strategy: Oct 2020

 

Accepted my entitlement for Frasers Centrepoint Trust Preferential Offering but didn't apply for excess - share price promptly dropped to $2.25 region. Oh well.

I prefer to buy when the market is going down, so October I have been buying quite a bit, including the UK market, but mainly focusing on my core ETFs VUKE & CS51. Also bought GSK due to its defensive qualities. I buy WQDV when it drops below $5, so bought some tonight as well. 

On the Singapore front, today Singtel was cheap at $2.10 and Capitaland $2.64 so I bought more, together with Frasers Hospitality Trust at $0.41. 

The catalyst for the drop appeared to be Coronavirus fears with US numbers going up and some European countries on the verge of lockdown. Plus I guess election uncertainties.

Frasers Centrepoint Trust Preferential Offering

Fraser's Centrepoint Trust is one of my top 10 largest holdings, mainly because I bought it under $1 during GFC and it doubled in price. For 10 years, FCT never had rights issues and preferential offerings then it starting joining the crowd. Now in 2020, there's a PO of 290 new shares for every 1,000 shares held in order for FCT to buy the remaining interest in AsiaRetail Fund from Fraser's Property (via a subsidiary). With this acquisition, FCT establishes itself firmly as a local suburban mall play unlike some REITs that seem to be randomly acquiring properties. 

I like patronising suburban malls though the suburban malls I regularly visit seem to all be linked to Capitaland, probably because I live in the West. But from the foot traffic that I've seen, suburban malls seem to be doing pretty ok.

Unfortunately, the PO price of $2.34 is pretty close to the market price (on 11/12 Oct, the low price was $2.35, just $0.01 but as of 13 Oct it seems to have inched upwards).

I'm holding FCT in CPFIS and CDP, and I have applied for 9,000 which is more or less equal to my entitlement. Don't feel the need to apply for excess given the small gap between PO price and market price.

Dividends: September 2020

 

A number of UK dividends this month including Aviva and SSE. SSE's dividends are pretty high - as a utilities counter I guess their income is stable. Also dividends from Telstra. Many Singtel analyst reports saying that Optus is losing to Telstra. Always good to diversify.