FCL 3.65% Ballot Results

The demand was pretty strong, as such the issuer exercised their green-shoe option and enlarged the offering from 200mil to 500mil (2.5 times). As a result, the allocation % was way higher than the previous CMT 3.08% bonds and what I was expecting.

Those who applied 2 to 25 lots were 100% allocated.

The most popular bet sizes were

10 lots applied - 8.58% of demand- 10 lots allocated(100%)
20 lots applied- 12.79% of demand - 20 lots allocated(100%)
50 lots applied- 15.24 % of demand- 37 lots allocated(74%)
100lots applied- 14.26% of demand - 70 lots allocated(79%)

Like I previously mentioned that 10-20 lots would be the most optimal bet size, in which this time round both sizes were fully allocated. But what really caught be my surprise is the bigger orders of 50 and 100 lots formed close to 30% of the demand, it seems like Singaporeans are really too cash rich and have a strong appetite in parking their cash into corporate bonds.

FCL 3.65% will start trade on Monday 25th May under the counter name FCLTrea 3.65%b220522 and stock code AXXZ

There would be investors who got more than what they expected and they might be glad to throw some off at 1.005-1.01, while I would be happy to pick up more at 0.99 


NamePrice PEYieldIndustry
ARA1.7516.72.9%Property Management
CapitaCommercial Trust1.6516.55.1%Commercial Reit
FCL 3.65%1.0027.43.7%Property (Bond)
OCBC10.3811.53.5%Banking and Finance
ST Engineering3.5721.24.2%Heavy Industries
UOB24.1612.33.1%Banking and Finance

Portfolio PEPortfolio Yield


Poll Results on SSB and FCL 3.65%

The previous poll at HWZ forum was pretty informative. So this time round I decided to do polls on the interest levels of SSB and the FCL 3.65% bond at HWZ forum again.

Surprisingly SSB didn't seem as popular as I thought, as one-third of investors will not be applying for it. The general feedback is that the yield of around 2% for the 10 year period would be too low and investors were not appreciating its risk-free status.

Another one-third of respondents would be applying $10,000 to $50,000 worth. I personally think SSB is a useful place to park your cash while waiting for a  market crash (a fall of 20% or more from peak).

For details please head over here.

FCL 3.65% 7 Year bonds seems to be really hot! As close to half the investors would be applying for $10,000 or more worth! With demand being this strong, I think allocation of FCL bonds would be equal or tighter than the previous CMT 3.08% bonds.

This is the previous allocation table for CMT 3.08% bonds (7 years too).
- Those who applied 2 to 10 lots got fully allocated
- Those who applied 11 lots or more get around half allocated
- One-third of investors fell under 10 to 20 lots

So logically for FCL bonds, applying for 10 to 20 lots would be most optimal and would continue to be the most popular bet size

I personally have applied for 20 lots and may purchase more from the open market on the first trading day, 25th May.

For details please head over here.
And for Q&A or discussion feel free to visit here.

NamePrice PEYieldIndustry
ARA1.8017.22.8%Property Management
CapitaCommercial Trust1.6516.55.1%Commercial Reit
FCL 3.65%1.0027.43.7%Property (Bond)
OCBC10.4811.63.4%Banking and Finance
ST Engineering3.5421.04.2%Heavy Industries
UOB24.2012.33.1%Banking and Finance

Portfolio PEPortfolio Yield


Parking Your Spare Cash - Fraser Centerpoint Limited 3.65% Bonds (7 Years)

You can read more from the announcement here.
and prospectus can be downloaded here

Basic Details (Serious investors please read product prospectus before buying)

Duration: 7 years
Interest: 3.65%
Payment: Semi-Annual
Offer period: Now till 20 May Noon Close (Retail investors can apply via ATM or iBanking)
Min Sum : $2,000 ($1 per share, $1,000 per lot)
Trade date: 25th May

Currently what are other retail blue chip bonds trading at?

Genting perp 5.125% bonds trades around $1.055
CapMallAsia 10 year 3.8% bonds trades around $1.04
CapMallTrust 7 year 3.08% bonds trades around $1.015

As you can notice all these bonds are trading above their $1.00 PAR value, the reasons are because
1) There is limited supply of retail bonds listed on SGX
2) Low interest from bank deposits, currently its only 1%++
3) Worries of a stock market crash

I have applied for 20,000 units


NamePrice PEYieldIndustry
ARA1.7216.62.9%Property Management
CapitaCommercial Trust1.6316.35.2%Commercial Reit
OCBC10.3911.53.5%Banking and Finance
ST Engineering3.6021.14.2%Heavy Industries
UOB24.1612.33.1%Banking and Finance

Portfolio PEPortfolio Yield


Frasers Centrepoint launches its first retail bonds

Published on May 13, 2015 2:06 AM
 1  0  0  0 PRINT EMAIL
PROPERTY firm Frasers Centrepoint launched its first retail bond offering yesterday.
The company is issuing seven-year bonds of up to $200 million that carry a fixed interest rate of 3.65 per cent a year.
It will sell up to $150 million to the public and up to $50 million to institutional investors.
The public offer opens for subscription today at 9am and closes on May 20 at 12pm.
Applications may be made through the ATMs of DBS/POSB, OCBC and UOB.
Investors can also apply via the Internet banking websites of the participating banks and DBS's mobile banking interface.
The minimum investment amount is $2,000, or higher amounts in multiples of $1,000.
The company said in a statement yesterday that the move is its "latest initiative to diversify the group's funding sources".
DBS is sole bookrunner and underwriter of $50 million of the offering, if subscriptions fall short when the offer ends.
The issuer said it might cancel the offering if it receives orders of less than $75 million but could increase it to as much as $500 million if demand is good.
The bonds will be issued in the name of FCL Treasury with Frasers Centrepoint as the guarantor.
- See more at: http://www.straitstimes.com/premium/money/story/frasers-centrepoint-launches-its-first-retail-bonds-20150513#sthash.5EALFZ7c.dpuf

Polling Results from HWZ Forum

The Stocks, Shares and Indices sector of the HWZ forum is getting more active, you can visit it anytime over here to participate in our discussions.

I recently did some polls and I hope this can bring some insights as to how certain groups of retail investors are thinking. The first poll asked how many years have you been investing? The demographics were quite wide but still most of the investors in the HWZ forum  are still in their first market cycle and have not experienced the previous global financial crisis.

How much % of your portfolio is in cash? The majority (over 60%) were holding 10-40% in cash, meaning more than half of their money is vested in the market. This could mean that generally they are still positive on the market outlook and confident in staying more vested in the market..

How many counters do you hold in your portfolio? Close to 70% of them are holding between 1 to 10 stocks, as investors prefer to focus on their bets or have limited capital to diversify.

When do you think the next crash is coming? 40% of voters think that its coming in 1 to 2 years time, I think that investors are generally still worried about rising interest rates and that it will eventually pop the bubble.

NamePrice Price/EarningsDividend YieldIndustry
ARA1.7016.42.9%Property Management
CapitaCommercial Trust1.6316.35.2%Commercial Reit
OCBC10.4511.63.4%Banking and Finance
ST Engineering3.6521.44.1%Heavy Industries
UOB24.1612.33.1%Banking and Finance

Portfolio PEPortfolio Yield


Portfolio Update - SCI Fully Divested

SCI posted a horrible set of 1Q results, and my greatest disappointment was in their Utilities business which earnings fell by 19%! The Singapore segment just crashed and burned as its profits fell by 42%!

I had always thought that the Utilities business would be stable and predictable, maybe that only applies to countries in which power prices are regulated. For the Singapore market the increasingly competitive environment pulled everyone down.

I'm feeling relieve now as I have fully exited all my marine related positions, I made a 12% gain on Keppel Corp but a 7% loss on Semb Corp. Overall I think I would had done better by avoiding this industry as a whole and just sticking to my bets on banks and dividend stocks. A painful lesson learned indeed.

Currently my portfolio looks pretty screwed up as the PE ratio has increased to 16 times since the removal of the low PE marine related stocks. Banks are actually still decent at 12 times earnings but I think my weight-age for them had been too low. This ends up with me being too heavy on defensive stocks such as CCT, M1, Starhub, STE which are high PE but provides a dividend yield of 4.2% to 5.4%.

NamePrice DPSYieldEPSPEIndustry
ARA1.700.0502.9%0.10416.4Property Management
CapitaCommercial Trust1.650.0855.1%0.10016.5Commercial Reit
OCBC10.480.3603.4%0.90011.6Banking and Finance
ST Engineering3.600.1504.2%0.17121.1Land/Marine/Aerospace/Electronics
UOB24.210.7503.1%1.97012.3Banking and Finance

Portfolio Yield
Portfolio PE