Easy Step By Step Guide to Applying for Singapore Saving Bonds Online (Using POSB)

Details of SSB can be found here

The risk free 10 year bond will pay around 2.63% average interest per year if held to maturity and the principal can be returned any month if u wish to exit.

Why am I investing in SSB? 

I tend to keep an emergency cash fund of at least 12 months expenses, its usually kept 100% liquid in my savings account so that I can use it anytime, however the interest rates are pretty low.

Given the flexibility of SSB, I decided to take a portion of the emergency cash fund to put into the SSB for the higher interest rates. The majority of the cash will still be in my savings account.

Easy Step By Step Guide to Applying for Singapore Saving Bonds Online (Using POSB)

At the main page of your internet banking, go to the top columns and select Invest
under the drop down, select Singapore Government Securities (SGS)

 Select Singapore Saving Bonds Application and click Next

 Select the first Issue Code, then Tick to accept the agreement and click Next

Select your Nationality and key in your CDP account number (12 digits)

 Key in the amount that you wish to invest

 Select which savings account to deduct the money from

 double Check all your details and if correct Submit to complete the application

You will get a confirmation and congrats, you are done ^_^

NamePrice WeightagePEYieldPayout RatioIndustry
ARA1.4313%16.83.5%59%Property Management
CapitaCommercial Trust1.3015%15.16.6%100%Commercial Reit
OCBC8.8215%9.44.1%38%Banking & Finance
Sembcorp Industries3.408%9.74.1%40%Marine & Utilities
ST Engineering2.988%17.55.0%88%Defense & Engineering
STI ETF2.927%11.73.3%39%Exchange Traded Fund
UOB19.2013%9.83.9%38%Banking & Finance

Total WeightPortfolio PEPortfolio YieldPayout Ratio


Portfolio Update - Added OCBC, STI ETF & SCI

NamePrice WeightagePEYieldPayout RatioIndustry
ARA1.5814%18.63.2%59%Property Management
CapitaCommercial Trust1.3415%15.66.4%100%Commercial Reit
OCBC9.4815%10.13.8%38%Banking & Finance
STI ETF3.107%12.43.1%39%Exchange Traded Fund
Sembcorp Industries3.407%9.74.1%40%Marine & Utilities
ST Engineering3.038%17.85.0%88%Defense & Engineering
UOB19.8113%10.23.8%38%Banking & Finance

Total WeightPortfolio PEPortfolio YieldPayout Ratio


The STI is struggling near the 3000 level, I have recently written a few tips to help survive this bear market. 

As the market continues its decline, I feel that valuations are even more attractive... as such I did not hesitate to add more stocks in hopes of growing my passive income. In the beginning of the year I was 90% vested and 10% in cash, well now I'm currently full vested and have depleted all my cash reserve into the falling market. The only cash I have on hand is my emergency funds of 12 month's living expenses, in which I hope I would be discipline enough not to touch.

OCBC showed a good set of results, yet the stock got sold down so badly along with the 2 other local banks. As UOB's results were disappointing, I decided to focus fire on OCBC instead of spreading it out between the 2 banks.

SCI's recent results was way above my expectation, as such I took the opportunity to add more at close to 1 times book value (excluding perpetual securities). I put a bearish forecast of earnings falling from 43 cents to 35 cents for FY15 along with a 40% payout ratio, yet this still shows a attractive valuation of 10 times earnings along with a decent 4% yield.

The STI is only trading at close to 12 times earnings along with a 3% dividend yield, in which I'm also delighted to add more. Do note that the STI is selling at 1 standard deviation below its historical mean of 15 times earnings.

If you ask me whether the market will continue to decline and how long will it take to recovery, my honest answer is that I really don't know. But what I'm certain of is that I have selected a portfolio of high quality companies with over 10 years track records that should be able to maintain/grow their earnings and dividends, as such I would be comfortable holding on to them as I slowly ride out this bear market. Even if it takes 2-3 years so be it, as I would still be collecting a decent annual yield of 4.7% as I wait for the recovery.

7 Quick Tips To Survive This Bear Market! Rawrrrr!!!

In the 2007 global financial crisis, the STI fell from the 3800 level all the way down to the 1500 level.

In the 2011 european crisis, the STI fell from 3200 level down to the 2700 level.

In 2015, the STI fell from 3500 level and is approaching the 3000 psychological support level, with 2700 european crisis level being the next support level.

Here are 7 tips for you to survive yet another Bear market!

1) Forget Capital Gains

Stocks generally provide you 2 type of returns, either in capital gains or dividends.
In the current market, its really difficult to get any sort of capital gains....  you should filter out those companies that are still maintaining earnings and paying out good dividends as usual, these are the ones that you really wanna keep.

2) What to Sell?

If you really must sell some stocks, I would prefer that you sell those that pay little to no dividends. No point holding on to stocks that doesn't pay u at all if you have to wait 1 to 2 years to ride out the bear. The cash would be making better returns even in fixed deposits.

3) How much to Sell?

The market keeps falling and you are worried that you are gonna lose all your money, you can't sleep at night and wonder if you should just sell all your stocks? Don't be a fool and go all out to cash, only to see the market eventually rebound and slamming you right in your face!

If you are really worried and can't sleep, sell a bit by bit until u reach your sleeping level. Sell 10%... still can't sleep? sell another 10% tomorrow until you sleep well.

4) Look at Passive Income

Stop checking your stock prices every hour! Instead of looking at the total market value of your stocks, look at your total dividends to be received for the year. If your companies are still maintaining earnings and paying out the same or more dividends, then be happy about it ^_^

5) Ignore the DoomSayers

Many will be overwhelmed in fear and telling you to sell out as the market is gonna crash to 2000 or even 1000 points! Just ignore the noise and look at the fundamentals!

Is this another GFC which blue chips like Citi, General Motors and Farnie Mae are going bankrupt? The answer is a big NO! and we really can't logically see the STI going down to 1500 levels again

However is this as bad as the european crisis? Well, to be honest I would say maybe... that's why I would put the key support level at 2700.... the same level we had when facing the european crisis.

6) Look Long Term

In the long run, if you hold stocks for 20 years or more... you are expected to make any average of 8 to 10% annual returns. In every 10 year business cycle, there will be ups and downs... its like a roller coaster ride.. you will enjoy some uprides and be scared in some downrides... this is normal.

7) Be Greedy When Others Are Fearful

The legendary saying by Warren Buffet, do you want to buy stocks when they are cheap or when they are expensive?


Portfolio Update - Added more OCBC/CCT/STI ETF

Only individual stock picks are shown in this table, ETFs are not shown

NamePrice WeightagePEYieldPayout RatioIndustry
ARA1.6416%18.63.0%57%Property Management
CapitaCommercial Trust1.3716%15.96.3%100%Commercial Reit
OCBC9.5017%10.13.8%38%Banking & Finance
Sembcorp Industries3.595%10.33.9%40%Marine & Utilities
ST Engineering3.179%18.84.7%89%Engineering
UOB19.9814%10.23.8%38%Banking & Finance

Total WeightPortfolio PEPortfolio YieldPayout Ratio


ARA First Half Results - Earnings Down 8%

EPS for 1st half was down 8% from 4.57 cents to 4.19 cents. Recurring management fees actually increased however the results this year looked weaker due to lack off one-offs as compared to last year, in which the dragon fund 1 was mostly divested.

Going forward I think they will make around 9 cents per share this full year and around 10 cents per share next year.

Dividend payout was maintained at 2.3 cents with full year payout likely to total 5 cents again. Management has stated during AGM that they would like to keep it at this level so that they can deploy the extra cash into newly created property funds in which their partners prefer ARA to also own a meaningful stake.

AUM is up 0.9 billion for the first half this year, quite on track with their target of 2 billion in AUM growth per year. Going forward, I think AUM will grow at around 5% per year. Current valuations of 19 times earnings do not make ARA attractive at all, however the yield of close to 3% is still decent. I would rather much put fresh $$ into the index at 3% yield and 12+ times earnings.

Looking at the index, I think 3200 looks cheap with all the negative news already factored in... be it the china bubble worries, greece default or US rate hikes. If US doesn't raise rates in sept, I think the STI has a pretty good chance of recovering and closing at 3500 level by year end.

However on the downside, the immediate support would be the key 3000 psychological level followed by the 2700 european crisis level. If a market crash comes so be it, I will hold my shares tight while collecting the dividends, and maybe add more STI ETF.


NamePrice WeightagePEYieldPayout RatioIndustry
ARA1.7116%19.02.9%56%Property Management
CapitaCommercial Trust1.4216%16.56.1%100%Commercial Reit
OCBC10.2015%10.93.5%38%Banking & Finance
Sembcorp Industries3.725%10.63.8%40%Marine & Utilities
ST Engineering3.269%19.44.6%89%Engineering
UOB21.5515%11.13.5%38%Banking & Finance

Total WeightPortfolio PEPortfolio YieldPayout Ratio


Starhub First Half Results - As Usual

 For Q2, net profits were up 5% and revenues were up 2%, pretty decent results indeed.

However for the first half of FY15, net profits were down 3% and earnings per share came in at around 10 cents. I'm expecting full year earnings to be around 20 cents, the same amount as their dividends of 20 cents for a 100% payout ratio.

Looking at the net profit trend, starhub screwed up badly in Q1 of FY15, I do hope for Q3/Q4 to be rather table and in the 90+mil range.

Outlook remains the same, I'm expecting zero earnings growth for this mature stock. I'll be happy to keep collecting the 20 cents dividends like how I did over the last 5 years.

Update on Portfolio

I added 3,000 shares of STI ETF today, as I feel that the index is pretty cheap at 3% dividend yield and 12+ times earnings. This will go into my ETF portfolio which is not shown in the table below. The ETF portfolio only has STI ETF and 2800HK, any ETF that go in will never come out... as the holding period is forever!

NamePrice WeightagePEYieldPayout RatioIndustry
ARA1.7316%16.62.9%48%Property Management
CapitaCommercial Trust1.4417%16.76.0%100%Commercial Reit
OCBC10.2015%10.93.5%38%Banking & Finance
Sembcorp Industries3.765%10.73.7%40%Marine & Utilities
ST Engineering3.269%19.44.6%89%Engineering
UOB21.5715%11.13.5%38%Banking & Finance

Total WeightPortfolio PEPortfolio YieldPayout Ratio