JC Fund Report Card

Our portfolio has two legs, the main portfolio is coined JC Fund which comprises of equities in Singapore, Hong Kong, Thailand, London and United States.

The secondary portfolio is coined JC Options Fund, which uses options to enhance yield and uses premium as income.

I am learning everyday about investing, business and about myself. I am just a novice, trying to make sense on how to play this game. The best part of this game is I get to learn from my friends. The journey is more important than the end goal. I wish you all the best in your own journey towards financial freedom. Stay invested!

JC Fund Income Report as of FY 2018

(19 Jan 2018) I have read an article in the Edge, a financial advisor wrote an article about whether to hold cash and time the market. I have tried to time the market in 2017 by hoarding on to cash and missed a few opportunities. In the last recent 2 weeks, I started to deploy all the cash in Singapore, except for my wife's personal savings of about SGD 100k in Hong Kong and remaining SGD 18k in our POSB bank. My rationale is very dangerous, I will go for undervalue dividend stocks. I need dividend income as I am currently unemployed. I will start to accumulate SGD up to an amount of SGD 40k for emergency purpose. At this moment, my wife is putting food on the table and there are a lot of mixed feelings. Some good and some bad, you will know this feeling if you are the man of the house and you are out of job. It is an ego issue and social stigma in Singapore. Nonetheless, I have helped in terms of allocation of funds, if done correctly, it will not pale in comparison to my previous annual pay package. 

In my head, I am thinking JC together won't suffer for now. The maths go like this, in JC Fund, SGD (1.0m x 0.05% = 50k) + (Using margin 0.1m x 0.07% = 7k) + (0.1m x 0% interest = 0) = approximately SGD 60k dividend income which translate to SGD 5k per month. Worse case scenario, I will just use the dividend income to cover for expenses but this will slow down the compounding effect of reinvestment.  In JC Options Fund, mark to market value of SGD 0.1m generates a monthly premium of approximately SGD 2k on average. Total of SGD 7k will cover the present household expenses. Ah boy cannot go to Mind Champs and just choose PCF which will be good as well. Your dad (limpeh) went to PAP's nursery K1 - K2 as well, I grew up fine. Yes, I am just ranting. 

JC Fund Income Report as of FY 2017

Looking back on this year, JC Fund has achieved a new high due to bullish market sentiment. We are happy seating on a pile of cash and will deploy the cash only on stocks with more stringent criteria than before as the market is already pricing in for the tax bill to be passed through. We ask ourselves "what if we are wrong?". Therefore, we are taking a more cautious stance and incur opportunity cost while waiting for the right bet. At present, we are taking a more contrarian approach and prefer to look for defensive play and turnaround stories. We believe they are already forsaken by institution investors and they won't drop much more than present price level. However, we missed a lot of growth stocks in this wonderful bull run - another lesson learnt. For example, we did not buy APPL at USD 150 :(  

Looking ahead into 2018, we forecast our income level will drop by half as Jason is determined to leave his corporate life behind and pursue his personal interest. Jason will like to spend more time reading and learning how to become a better investor. Jason has already spent a decade working and saving every single dollar, he believes it is time to do something he likes. Asset allocation is a very important skill when you have money. You can save your way to SGD 1m but in order to reach SGD 10m, you need to be very sharp. To scale up to SGD 10m, you need to leverage by business or investment. We are not saying that we aim for SGD 10m or more. We are already contented with our blessings. Jason just feel that he lacks personal time to think and learn, a sabbatical year to learn investing will be critical for the future success of JC Fund.  

We have achieved a breakthrough in total dividend of SGD 99,527 which is an one off event due to special dividend events. 

We believe 2018 will continue to be a bull run for emerging market whereas companies in United States have limited upside. Happy New Year and may the new year be more prosperous than 2017.

The following AUM is net cash without any leverage

AUM as of 21/9/2017 (inclusive of Sep salary) : SGD $ 691,882
Cash as of 21/9/2017 : SGD 448,728
Non-Cash Producing Asset - HDB (house) as of 26/6/2017 : SGD $760,000 (ignore any appreciation if any)

Total SGD equivalent as of 21/9/2017 : SGD $1,900,610

AUM as of 26/6/2017 : SGD $ 928,943
Cash as of 26/6/2017 : HKD $ 591,000
Non-Cash Producing Asset - HDB (house) as of 26/6/2017 : SGD $760,000 (ignore any appreciation if any, it is fully paid off).  

Total SGD equivalent as of 26/6/2017 : SGD $1,792,000

15th May 2017 - JC Fund fully redeem property from HDB with book value of $760,000

This is a family decision to fully pay down the property loan. Although it is cheap to borrow at 1.8% from DBS and I can safely get a return of about 7-10%. 

AUM as of 7/1/2017 : SGD $ 771,786

Need to rebalance the portfolio by end of the year

Estimated Dividend Income for FY2017 : $69,213.20

Actual Q1 Dividend Income for FY 2017  : $22,852.44
Actual Q2 Dividend Income for FY 2017 : $17,107.77
Actual Q3 Dividend Income for FY 2017 : $55,734.26
Actual Q4 Dividend Income for FY 2017 : $3,833.28
Total Dividend Income for 2017 is S$99,527.75 

JC Options Fund 2017

JC Options Fund Overall Premium Income

JC Fund Income Report as of FY 2016

Money reserves were fully invested in 2016. Nothing is left on the sideline. Hence you see that AUM at the start of 2017 is all time high. That is the reason the dividend income forecast for FY 2017 is all time high as well. However, FY 2017 dividend has a lot of special dividend scenario which is just one off and not sustainable. My portfolio does not have REITs, they will boost my dividend income but it is not a strategy I am taking. Personal choice.

Dividend Income for FY2016:  $28,590.68 

Affiliate Marketing Income: NIL

Gentle Reminder:

The below picture is to show that one day this will happen to me again. When I first start this journey in 2007, I remember my shares dropped more than 40% in a few weeks. Stay calm and collect dividend, buy more shares when the next crisis come. Please remember not to cash out as your portfolio is different from before. Be GREEDY when everyone is FEARFUL.