Yale Endowment Fund

The opportunities laid out for endowment funds benefit the students; as well as, the school itself.  In general, a university will be able to generate necessary funds through annual revenues generated from endowment funds.  Although particular schools will vary as to how these funds are allocated, it has remained to be an integral part in drawing out prestige and maintaining a status among the best of the best.  There are numerous endowment funds that support a wide range of programs within a university.  Some examples include: scholarships, fellowships, loans, professorships, research and development projects, and countless other special programs. There is no doubt that these donations; which may reach to the millions of dollars, have made an enormous impact on the school’s quality of education and enrollment.  One such school that maintains these high ideals and brings to reality the possibilities of acquiring excellence in all respects is Yale University.

Building the Foundations

Yale University and its law school has established several successful ways to place endowment funds at the peak of their purpose, accepting gifts that merit different programs and facilities to enhance teaching and offer students every resource to succeed.  As it were, certain amounts in gifts will merit a particular program to be named.  $500,000.00; for example, will allow the creation of a research fund.  A gift of several millions will name a certain position within the faculty, depending on the amount.   Most endowment funds will go toward continuing advancements in student opportunities; both for undergraduate and graduate courses.  Under the graduate program, $7 million will name students as tutors, scholars, and program directors.  While some gifts will create an endowment fund that will directly benefit the law school and its initiatives to sustain innovative programs, others will impact the surrounding facilities.  These endowment funds may encompass the development, renovation, or construction of different buildings, classrooms, halls, library, and other structures within the scope of the learning environment.

Shaping the Future

One of the main objectives of endowment funds; at least within Yale, is to create a future that is rich in educational resources and to create career opportunities.  This is done through various forms of development found by way of endowments.  Perhaps the most important aspect would be in establishing scholarships programs to assist in the growth and development of students.  In fact, a pledge of $10,000.00 to $50,000.00 will undoubtedly aid in the payment of tuition fees, which can be spread in increments within a period of approximately five years.  It is financial aid; in this respect, that sets standard for progress and ultimate success; especially for Yale University.  In its rich history, Yale has proved itself to be among the top universities in the world.  Its efforts in establishing endowment funds have truly made the school shine above many others.  It has used resources appropriately to the advantage of its students and those who dream of getting quality education.  Endowments given are not only gifts to the school, but they are gifts to ensure a more successful future.

What makes Yale Endowment Fund interesting is that its asset allocation model could perhaps offer us insights into our own asset allocation and how we ought to manage our investment portfolio.  But that is perhaps best left to another posting.

Investing in United States Real Estate

Many people are beginning to commit long term resources in the United States Real Estate market. The current US Dollar value is not as strong, and mortgage rates have plummeted. This has made it difficult for property owners to see good selling rates; however, buyers and investors are taking advantage of this to grow their business reach, and future fall backs. Many see real estate as a smarter form of investment, as compared to stocks and other unstable riskier ventures. Sales have been increasing over the years, and as an investor, it is important to get a real estate broker in the market to get you solid options before you make an offer. 

Naturally, the coastal areas of the United States have seen the most action in real estate activity. The East coast drew most Europeans, and the west saw more Asians flock to invest in their real estate options. The reason for this is probably proximity of the East to Europe and the West to Asia.

The exchange rate is definitely a great determinant of United States real estate activity, and many foreigners and even locals are looking to cash in on this window that is closing by the day. Mortgage rates are equally on the cards; a three decade fixed rate can hit an 8 month high of over seven percent. 

The United States real estate market has gotten great advertisement from the internet. MLS listings and other resources have brought more options on; Just listed homes, sold homes and new construction on duplexes, condos and other properties to the table. Investors can now take a property tour from their desktops and see just what is on the menu for them. 

Colorado and other cities in the States are booming in real estate sales and acquisitions. Foreclosures are slowly being replaced by short sales, and sincerely speaking, there hasn’t been a better time to invest in United States real estate. Investments like golf properties, resorts and other recreational real estates are equally on sale in the United States. 

Phoenix and Florida are other areas that have seen great influx of investments in real estate lately. These areas have some of the best environments and technological advancements that encourage people from all over the country, and the world in fact to settle down here. Real estate listings show lots of properties to you in the States, and you can be sure that these listings are not unscrupulously refreshed. They are listed to give you the ideal listings to pick from. You can choose from many cities, and go with a serene, tranquil real estate to settle down in. Access to essential amenities is well thought of before listing these properties. The children can go to school with ease, you can navigate to work and around town with relative ease, and many other investment opportunities are open to you as you reside in the states. You can easily raise a family and grow a business in these cities and provinces. So get your funds together and jump on this wagon, because real estate investment in the United States of America has become a cake worth taking a bite if you live in today. 

Investing in Emerging Markets

The emerging markets are often referred to the markets in the developing economies. These markets offer investors, great returns, high profits and long time safe investments. The question why investing in developing economies or emerging economies is profitable has a simple and a logical answer.  These economies as the name suggest are growing; still there are lots of market share and the customer buying potential, which is not properly tapped. This is why all developed economies and investors from strongly established economies like United States of America prefer to invest and reap beneficiary returns from their investment in the emerging markets like; Chine, India, Brazil, Colombia, Argentina and many more.

In last few years United States of America have been able to sustain growth in their markets due to their investments in the growing economies; their investors have gained good profits with their calculated investments in these booming markets. There are many sectors where an investor depending upon their interest and keenness can look to invest their share and increase their profits; one of the most preferred and beneficial investment sectors that have always given a good profitability equation to its investors is the Real Estate. In developing economies, the growth in the economy is directly proportional to the growth in the Real Estate, and the rise in the property rates with the high demand in the market always brings a good return on the investment. A part from real estate; Pharmaceuticals, insurance sector and power sector offers good opportunity to invest as these sectors offer a great scope of return to the investors.

A part from investing in the emerging economies; the investors can also look for the investment in the already established economies like Unites States. No economy can come close in guaranteeing a successful return on investment than the United States, with strong government support and powerful financial banking one thing, which an investor is always sure while investing in this strong market is the fact that their investment are always going to be safe and secure. Even in the global slowdown era, where world has seen a dip in all the major economies; united States have been able to hold its fort and have made sure that the investors are not losing their money.

A good economy for investment is one that can offer investors the options and is strongly and ably backed by the government; it must have a good foreign investment policy in place and have a healthy political atmosphere in the country because the political disturbances have a daunting consequences on the rate of the economy growth, and no investor would like to have an overnight change in the government policy structure, therefore political stability of the country is must. This is the reason why investors all over the world enthusiastically eye United States and other emerging economies as their favored destination to invest as one thing these markets ensure is the continuous dynamic growth in their growth rate which is good for both the investors and the economy.

When Is The Best Time to Invest?

When is the best time to invest?  This is probably a question that many new (or even old) investors might ask.  After all, market timing seems like an important factor when it comes to making investment decisions.  And most people won't want to be buying into a stock when its share price seems to be so high.

Perhaps I will share this quote that I saw recently.  It is by Sir John Templeton.





"The best time to invest is when you have money".
- Sir John Templeton




So probably the important question is not when to invest but what or where to invest one's money in.

This monthly dividend paying REIT gives more than 10% yield

Yes.  Chasing high yields is risky business.  But with my risk appetite, I think I fall under the super high risk category - that means I can stomach great volatility in my portfolio). Anyway, I added another 200 shares of Armour Residential REIT recently.

Other monthly dividend stocks I am watching are PIMCO High Income Fund (approx 10% yield) and Cross Timbers Royalty Trust.  But with little bullets left in my pocket, perhaps all I can do is sit and watch till the opportune time comes along.

Risk of Mortgage REITs

At some point in building a wealth portfolio you may come across the option of purchasing mortgage REITs. Mortgage REITs can be an extremely powerful investment in real estate. These are highly risky investments that can sometimes produce a significant return on your overall investment portfolio. However, how much risk are you actually willing to take to get rewards that may never come? When building your portfolio how smart is the choice of adding mortgage REITs? To answer this you must first understand not only the basics of what a mortgage REIT is but also what the hazards involved really are.

Mortgage real estate investment trusts, or REITs, simply put are investments in residential mortgages that have been grouped together into a security known as a Mortgage Backed Security or MBS. The main difference between a regular REIT and a mortgage REIT is that a mortgage REIT owns no actual physical property. This is where the risk factor comes into play. You will then receive your income from payments that the borrowers make towards the mortgages that you own in your REIT package. Because of this Mortgage REITs are more similar in nature to bonds and therefore have more risk involved then regular real estate investments that are backed by actual property. There are two types of Mortgage REITs, called as the agency funded and non-agency. An agency REIT is backed by the government through either Freddie Mac, Fannie Mae which makes them creditworthy. Non-agency REITs are backed by investment banks. Non-agency debts hold more risk because they are less credit worthy and also less liquid, therefore if there is a default by the issuer, the holder of the loan is the one that is at a loss due to this.

Other risks involved include the fact that REITs do not allow for appreciation of collateral since there are no actual physical assets and they are in fact just instruments of debt. Interest rates cause significant fluctuations in dividends making them unstable and sometimes nonexistent. Due to their unpredictable nature the investor has to weigh how much they are willing to risk for a possible short term gain. Even in the best of circumstances, hefty payments that you may receive from a Mortgage REIT are not guaranteed and have the additional problem of being short lived.

When investing in Mortgage REITs one must also consider that if they are using a non-agency held bond the risk becomes even greater. The yields can also become much higher for the investor of a non-agency bond. Unless one is willing to deal with the inherent risks, it might be safer to go with an agency held bond. When using non-agency held bonds there is a certain amount of leverage that must be used. This leverage also increases the risk. By having to utilize leverage (such as the hazard of default), as well as deal with prepayment and interest rates an investor would be wise to understand and be well advised when weighing their options.

ARMOUR Residential REIT and Investing Risks

Managing Risk At ARMOUR 

Risk management at any corporation, particularly a securities firm is inevitable. This is particularly the case at ARMOUR. At ARMOUR Residential REIT, risk management is critical to successes and failures. Involved mostly in hybrid variable rate, and fixed rate of mortgage-backed securities, risk happens every day. Risk at ARMOUR is never something that is taken lightly by quality assurance managers. Risk is something that is carefully weighed, examined, and mitigated.

ARMOUR has strategic policies in place to help mitigate risk. These are firm policies committed to lowering risk and improving cash available in the event interest rates rapidly increase, or in the event a financial collapse were to occur. ARMOUR’s investment strategies also involve some risk; therefore policies are set to help protect investors from risk.

The primary risks involved with ARMOUR include risks associated with early payment, increasing interest rates, and concerns associated with ARMOUR’s ability to fund portfolios. Each of these risks are addressed below.

1. Managing prepayment risk. To assist with prepayments ARMOUR has in place a policy that allows ARMOUR to purchase mortgage securities at prices in excess of 100 cents on the dollar. This allows the company to pay top dollar prices for all securities. ARMOUR will also review delinquencies and refinancing to help address premiums traditionally associated with prepayment premiums.

2. Increasing interest rates. Interest rates are sometimes beyond the control of ARMOUR. At present ARMOUR would put into place a systematic program that would increase the cost of funding but allow asset yields to remain constant or allow them to change at a rate that remained slower than the rise in interest rates. This would allow a total decrease in net interest spread earned and accompanying potential dividends that ARMOUR would pay out. If funding costs and asset yields still resulted in a discrepancy, ARMOUR may consider selling assets at prices far lower than the original payment price to help offset costs and fees associated with high interest rates.

3. Funding portfolios. There are currently several strategies in place to protect portfolios and earnings from rising rates, including a strategy that focuses on shorter duration assets. The objective of ARMOUR’S current hedging program is to promote cash flow if rates rise, and decrease cash flow and decline in value if rates decline. ARMOUR’S goals include protecting assets and liabilities for all clients.

ARMOUR also seeks to help mortgage borrowers or homeowners pay off their loans at any time. This is a challenging task, and must take into consideration many factors including different interest rates. It is possible that a company including ARMOUR may over hedge, and under hedge. ARMOUR’s primary
goals include maintaining proper hedging that will protect against these factors and interest rate fluctuations as best as possible.

ARMOUR insists on paying out all dividends monthly and conducting all business in an honorable fashion. All business matters are handled in a transparent manner. This also contributes to the legitimacy and risk management potential of the company.

Shares Investment Conference

Dear Readers,

Some of you might be interested in an upcoming shares investment conference.  Speakers include Jim Rogers.  Details are as follows:

Below will be the details - Speakers: Jim Rogers and Mike Bellaflore

Date - 01 September 2012, Saturday (English Session)

Time - 9am - 1pm (AM Session Pass)

          - 2.30pm - 7pm (PM Session Pass)

          - 9am - 7pm (Fold Full Day/Platinum VVIP Pass)

Adding on, we do have Chinese session as well. 

Please see the below details. - Speakers: Professor Chan Yan Chong and Hu Li Yang

Date - 15 September 2012, Saturday (Chinese)

Time - 9am - 1pm (AM Session Pass)

          - 2.30pm - 7pm (PM Session Pass)

          - 9am - 7pm (Fold Full Day/Platinum VVIP Pass)

For more information, you may visit - www.sharesinv.com/sic2012

                                                          - www.sharesinv.com/sic2012chn 

Enerplus Corporation - An Overview

Enerplus Corporation is a North American energy producer with a varied asset base of top-quality, low-decline oil and gas assets well complemented by growth resources with greater economics. The company focuses on strengthening value for its investors by developing properties in a successful manner and managing a disciplined balance sheet. By carrying out its various activities the company strives to provide a good return of income and growth to its investors.

Enerplus has been resilient even in a very competitive environment and unstable market conditions just because of being a responsible producer of resources. The Enerplus executives pay a close attention and are very responsible towards their employees, their shareholders, their partners and the communities engaged with them. This responsible outlook has been incorporated in the Enerplus foundation and has added to the company’s success.

In 2010, the company generated a revenue of more than1.2 billion from oil and gas sales of 82, 138 BOE/day. These figures placed Enerplus among the top traded gas and oil producers. The picture of Enerplus has been quietly changed from its early times.  Enerplus was founded through investments in gas and oil assets in 1986 with about two dozen employees. The company continued to acquire assets while yielding a high income sharing model. With good progressive plans, the company turned into a high oil and gas producer with about 800 employees.

Enerplus has a low risk and a good return on its investments because of its focus on generating cash flows from the oil and gas industry. The entrepreneurial spirit of the company has helped it in acquiring more attention by providing high yields to its shareholders. Enerplus says that “you are not buying assets but a company with organized people and a well built system”.  Enerplus promises no change in its fundamental values.

Another reason for taking note of  Enerplus is its employee feedback program in which a survey is being conducted every two years by the company. The company compares its performance with its industry peers and studies the survey closely to find the areas which need to improvement. These programs are carried out for empowering the employees and uncovering the ideas for yielding high and profitable results. Enerplus possesses a technical toolkit of a large firm but is quiet small to move decisively with a team of talented experts who have the power of harnessing new technologies to unleash the best resources.

The best time to be a part of a company is when it is in the stage of growth.  Enerplus has already made deep foundations in North America’s various resource plays. A lot of drilling is already going on and the company is trying its best to find out how large can these plays be. The company’s main focus is on Oil and liquids rich gas which has a very high market, so investing in this company could probably yield very high returns.

Dividends from Armour Residential REIT

Received a cheque for the dividends from Armour Residential REIT.  Based on my holdings of 500 shares, I am given $38.13.  Not a bad amount if you ask me.  Just the day before receiving this cheque, I also just banked in the cheque that I received for my investment in Gamco Global Gold and Natural Resources Trust.

Feng Tian Wei Wins Bronze Medal

Congratulations to Feng Tian Wei who has won the bronze medal in the Olympics for Singapore on 1 Aug 2012.  Watched the match last night and was impressed with how she completely dominated her opponent.  A medal is a medal is a medal.

Stock Portfolio Update (July 2012)

It has been a long time since I did an update of my stock holdings and I thought it was timely to do so after I just bought some Sabana REIT today.  This is the list of my current holdings:

1. Ascott Residence Trust
2. Cambridge Industrial
3. Suntec REIT
4. Sabana REIT
5. AIMSAMP REIT
6. Fortune REIT
7. Capitaland
8. Innotek
9. China Aviation Oil
10. Unifood
11. Kingboard
12. Pacific Andes
13. Citigroup (US)
14. Armour Residential REIT (US)
15. Gamco Global Gold & Natural Resources Trust (US)

Breadtalk and Sheng Shiong

Recently, I wrote about investing in things I use - Mapletree Commerical Trust and Breadtalk.  The idea was really to look out for investment opportunities based on the goods and services that I come across in Singapore.  If one thinks about it, there are probably many goods and services that I use or come across during my daily life.  And that probably should get me thinking on whether this presents itself as a good investment opportunity.

Breadtalk


I frequent Breadtalk and Toastbox quite often.  So it is not surprising that I am pretty well acquainted with their business.  While you won't be able to find a toast box located side by side with Breadtalk all the time, most store outlets now usually have both Breadtalk and Toastbox located together.  In terms of crowds, Toastbox is always crowded.  It should be profitable.  Each Toastbox outlet probably only hires 4 to 5 staff. And the number of people ordering takeaways also seem to be quite a lot.  For Breadtalk, it is just a bakery but the morning crowds usually throng the place.  I like Breadtalk's business from how I view it.  At least the Singapore side of the story.  I remember seeing Breadtalk shops in Malaysia that looked quite empty.

Sheng Shiong

Well, perhaps this is a stock that I better start putting in my shortlist.  Sheng Shiong is Singapore's third largest(?) supermarket store.  It has stores located at many neighborhoods all around Singapore and caters to the heartlanders.

Most Sheng Shiong supermarkets that I go to are always crowded.  That is a general observation and so their business should be good though I recognise that profit margins for retail outlets always tend to be lower.  It is a competitive business afterall.

If Sheng Shiong commits to paying 90% of its profit after tax as dividends, the stock will probably be quite attractive. This is however unlikely as it probably looks to expand in Singapore and the region.  Nevertheless, its dividend yield at 90% payout is a very attractive 6%.

Investing in Silver

Silver is a metal that has been known and used since the beginning of the civilization. Its use increased remarkably for the past 200 years in various fields that had contributed to the development of our society. The reason for its vast use is because it is the best conductor of electricity and heat, smooth reflector of light and has various health benefits. Silver is an important industrial material combined with both strength and softness and the ability to get stretched. It is wear resistant, has a high tensile strength, reflects light and reduces friction. It has great unique properties.

This strategic metal has infinite uses. The silver alloys are used to manufacture the disposable and rechargeable batteries. More than millions of silver zinc oxide batteries are manufactured worldwide annually, that include very small batteries for cameras, watches and other electronic devices. The high purity silver for electroplating steel bearings have great load carrying strength and capacity for heavy duty work. The bearings coated with silver provide great durability and safety in jet engines. The use of silver solders helps to join materials and makes leak tight, smooth and corrosion free joints. The silver alloys are used in refrigeration, air conditioners, power distribution, aerospace and automobiles. Silver membrane switches are used in most keyboards of laptop and desktop computers. Due to their durability and wide use, the market of silver-contact membrane switch is a multi billion industry in America.

The Silver demand hit about 880 million ounces last year, and the worldwide mining production contributed only 670 million ounces creating a deficit of 210 million ounce. A lot of people are unaware that the silver is the most used commodity in industry after oil. One of the best investments at this point of time is Silver. If you are looking for a profitable investment then you might want to consider investing in Silver.

If you are thinking of investing in silver, then the Silver bullion produced in America is a good option with the American Silver Eagle of one ounce. This coin is known all around the world and traded in various countries. They can be bought in a combination of 20 stacks or in a Monster box of 500 pieces. The second option will be 100% silver bars that are made in various sizes, designs and weights ranging from  bars of 1 ounce, 5 ounce and 10 ounce. The two popular silver refiners producing bars in different sizes are Johnson-Matthey and Englehard.

You might also be interested in reading the recent article on Investing in Gold or How Silver is Made.

[This article is a guest post.  Investors should carry out their due diligence prior to making any investment decisions]

Anchor Point and FCT

I visit Anchor Point from time to time and have always wondered whether I should be investing in Frasers Centrepoint Trust.  OCBC recently maintained a buy rating on FCT. On one hand, I am tempted to buy but on the other, I am a little skeptical since many of FCT's assets are in suburban areas.  Having witnessed the shoppers and traffic flow at Anchor Point, I am not so certain whether tenants there are profitable or not.  Have also seen the bookshop change hands a few times over the past years. The crowd on weekends are good but nothing fantastic.

Will probably just continue to monitor this before making any decision.  Not vested yet.

3 Monthly Dividend Stocks I Am Watching Right Now

There are 3 Monthly Dividend Stocks that I am watching right now.  The reason I am watching them is simply because I am bullish on resources and also because I like the fact that this stocks pay monthly dividends.  Of course, the stocks listed here are highly risky and might not be suitable for many investors.  

1.  Gamco Global Gold and Natural Resources Trust (GGN)

Well, GGN used to be called "Gabelli..." and then there was a name change to "Gamco...".  But GGN's dividend history since 2005 has been pretty neat to me.  To invest in this stock, you need access to the US market which should be readily available through most of the brokerages in Singapore.  Do note that there is a withholding tax of 30% for foreign investors so that means you have to deduct whatever dividends you are supposed to receive by 30%.  Do add in another few dollars for the processing/admin charges and you will realise that you actually need a sizeable investment for the yield to justify itself since there are so many REITs listed in Singapore that might give a better yield.  Nevertheless, as I am bullish on resources (especially Gold), I am thus thinking of accumulating more of this stock.

2.  Armour Residential REIT

If the above stock is risky, Armour Residential REIT I believe falls into the "super don't ever touch it " kind of risky.  It is frankly speaking not a REIT like one would expect it to be.  It is a mortgage REIT so there are many risks involved associated with interest rates and stuff.  Still, it pays out a neat dividend.

3.  Enerplus Resources

After divesting my canroys when there were all the tax changes and stuff, I am starting to zoom in again on "energy plays".  Enerplus Resources is one of those stocks that still pays monthly dividends.  It is an independent North American energy company with a diversified asset base of oil and gas properties across a variety of resource plays.  The monthly dividends for this are still good though they seem to have reduced recently.

[Note: This post should not be read as an invitation/recommendation/advice to invest in the stocks listed above.  The writer is vested in both GGN and Armour Residential REIT.]

GGN - Gamco Global Gold Trust Dividend History

GGN's (Gamco Global Gold & Natural Resources Trusts) dividend history is listed below.  They have been paying stable dividends over the past few years.  Though of course, past history is not indicative of future performance.  Vested.


Ex Dividend Date                                                    Dividends

• Jun 13, 2012
   
  $0.14
• May 14, 2012
   
  $0.14

• Apr 12, 2012
   
  $0.14
• Mar 14, 2012
   
  $0.14
• Feb 10, 2012
   
  $0.14
• Jan 12, 2012
   
  $0.14
• Dec 09, 2011
   
  $0.14
• Nov 10, 2011
   
  $0.14
• Oct 13, 2011
   
  $0.14
• Sep 14, 2011
   
  $0.14
• Aug 15, 2011
   
  $0.14
• Jul 13, 2011
   
  $0.14
• Jun 14, 2011
   
  $0.14
• May 12, 2011
   
  $0.14
• Apr 12, 2011
   
  $0.14
• Mar 15, 2011
   
  $0.14
• Feb 09, 2011
   
  $0.14
• Jan 12, 2011
   
  $0.14
• Dec 10, 2010
   
  $0.14
• Nov 10, 2010
   
  $0.14
• Oct 13, 2010
   
  $0.14
• Sep 14, 2010
   
  $0.14
• Aug 13, 2010
   
  $0.14
• Jul 14, 2010
   
  $0.14
• Jun 14, 2010
   
  $0.14
• May 13, 2010
   
  $0.14
• Apr 14, 2010
   
  $0.14
• Mar 15, 2010
   
  $0.14
• Feb 09, 2010
   
  $0.14
• Jan 12, 2010
   
  $0.14
• Dec 10, 2009
   
  $0.14
• Nov 10, 2009
   
  $0.14
• Oct 14, 2009
   
  $0.14
• Sep 14, 2009
   
  $0.14
• Aug 13, 2009
   
  $0.14
• Jul 15, 2009
   
  $0.14
• Jun 12, 2009
   
  $0.14
• May 12, 2009
   
  $0.14
• Apr 14, 2009
   
  $0.14
• Mar 13, 2009
   
  $0.14
• Feb 10, 2009
   
  $0.14
• Jan 13, 2009
   
  $0.14
• Dec 10, 2008
   
  $0.14
• Nov 10, 2008
   
  $0.14
• Oct 15, 2008
   
  $0.14
• Sep 12, 2008
   
  $0.14
• Aug 13, 2008
   
  $0.14
• Jul 15, 2008
   
  $0.14
• Jun 12, 2008
   
  $0.14
• May 13, 2008
   
  $0.14
• Apr 14, 2008
   
  $0.14
• Mar 13, 2008
   
  $0.14
• Feb 12, 2008
   
  $0.14
• Jan 14, 2008
   
  $0.14
• Dec 27, 2007
   
  $0.25
• Dec 10, 2007
   
  $0.14
• Nov 13, 2007
   
  $0.14
• Oct 15, 2007
   
  $0.14
• Sep 12, 2007
   
  $0.14
• Aug 15, 2007
   
  $0.14
• Jul 13, 2007
   
  $0.14
• Jun 13, 2007
   
  $0.14
• May 14, 2007
   
  $0.14
• Apr 12, 2007
   
  $0.14
• Mar 14, 2007
   
  $0.14
• Feb 09, 2007
   
  $0.14
• Jan 12, 2007
   
  $0.14
• Dec 27, 2006
   
  $0.06
• Dec 11, 2006
   
  $0.14
• Nov 13, 2006
   
  $0.14
• Oct 13, 2006
   
  $0.14
• Sep 13, 2006
   
  $0.14
• Aug 15, 2006
   
  $0.14
• Jul 13, 2006
   
  $0.14
• Jun 14, 2006
   
  $0.14
• May 12, 2006
   
  $0.14
• Apr 11, 2006
   
  $0.14
• Mar 15, 2006
   
  $0.14
• Feb 09, 2006
   
  $0.14
• Jan 12, 2006
   
  $0.14
• Dec 28, 2005
   
  $0.18
• Dec 13, 2005
   
  $0.14
• Nov 10, 2005
   
  $0.14
• Oct 13, 2005
   
  $0.14
• Sep 14, 2005
   
  $0.14
• Aug 15, 2005
   
  $0.14
• Jul 13, 2005
   
  $0.14
• Jun 14, 2005
   
  $0.14

Crossed 300,000 Pageviews

Phew!  This blog has crossed 300,000 pageviews.  While other blogs easily cross that mark in a matter of months, it has taken this blog a solid few years to cross that mark.  Or either that, Google must have tweaked something to reset my pageviews to zero when I started to notice my pageviews this year.  Anyway, it has taken only less than half a year in the year 2012 to climb from 200,000 pageviews to 250,000 pageviews to finally over 300,000 pageviews.

I guess the next challenge will be to cross the half a million pageviews mark. At the rate things are going, I should cross that mark mid-2013.  That will be amazing for me just as a personal achievement.

SAF Group Term Life Insurance Gives Rebates

Just received a letter not long ago from Aviva.  It is basically a cash rebate of over $120 for my term insurance coverage under the SAF Group Term Life Plan.  I really do enjoy getting this rebates as it reminds me again that this is probably one of the cheapest term insurance plans available to most Singaporeans.

Considering that my monthly premium is around $50, it means that I have gotten almost 2 months of free coverage!  Insurance is a cost at the end of the day and where possible, it is always best to keep the cost as low as possible.

Query from Reader - $20K to Invest

I don't usually do this but I got a query from a reader recently asking me what safe instruments one could invest in that will provide a better return than fixed deposits (FD).  Based on the sketchy information provided, here are the following facts that I got from the very brief email:

•  $20K cash
• "Invest on something safe"
• Earn more than FD (which I assume stands for fixed deposits).

Firstly, I think the reader must ask himself whether the $20K in cash is really spare cash.  Has he/she set up an emergency fund of 6 months expenditure (or for the kiasu ones - 6 months income).  Without questioning too much, I assume that he/she has already set aside money for an emergency fund and this is really SPARE cash to invest.

Secondly, I deduce that the reader is probably risk adverse.  Capital protection is probably key to him/her.  Stocks with their high volatility are perhaps not suited for everyone (even though I strongly recommend it to most people).  

One of the few options I can think of is to invest in SGS bonds.  That will give a better return than FD.  However, at the same time, the returns from bonds are not spectacular at all (at least to me).  Personally, I don't invest much in bonds (not directly anyway).  

Any thoughts from other readers?

One Stock that Pays Monthly Dividends

Have been holding on to this stock that pays monthly dividends for a few months now.  The stock is Gamco Global Gold & Natural Resources Trust (GGN).  It pays a dividend of US$0.14 every month and is currently trading at US$13.69.  After accounting for withholding tax rate of 30% (since I am not a US citizen), the dividends is slightly less.  There are of course exchange rate fluctuations to account for too.

I just bought another 200 shares recently bringing my total holdings to 500 shares.

GGN is a close ended fund (CEF).  The fund's objective is as follows:

The GAMCO Global Gold, Natural Resources & Income Trust by Gabelli is a non-diversified, closed-end management investment company that seeks to provide a high level of current income. The Fund's secondary investment objective is to seek capital appreciation consistent with the Fund's strategy and its primary objective.

Under normal market conditions, the Fund will attempt to achieve its objectives by investing at least 80% of its assets in equity securities of companies principally engaged in the gold industry and the natural resources industries. The Fund will invest at least 25% of its assets in the equity securities of companies principally engaged in the exploration, mining, fabrication, processing, distribution or trading of gold or the financing, managing, controlling or operating of companies engaged in "gold-related" activities. In addition, the Fund will invest at least 25% of its assets in the equity securities of companies principally engaged in the exploration, production or distribution of natural resources, such as gas, oil, paper, food and agriculture, forestry products, metals and minerals as well as related transportation companies and equipment manufacturers

The dividends declaration for July, August and September 2012 also remains at US$0.14.

• The distribution for July 2012 will be payable on July 24, 2012 to common shareholders of record on July 17, 2012. 
• The distribution for August 2012 will be payable on August 24, 2012 to common shareholders of record on August 17, 2012. 
• The distribution for September 2012 will be payable on September 21, 2012 to common shareholders of record on September 14, 2012. 

Voltaire's Thoughts About Labour

Labour holds off three great evils:  tedium, vice and poverty.

True?

Work as boring as it seems wards off tedium or boredom.  Boredom can drive people mad.  Imagine having no purpose in life and having absolutely nothing to do.  So yes it does ward off tedium.  But work can sometimes be boring too after a while.

Of vice, it does ward off to a certain extent.  After all, it is during idleness that the children start disturbing the cats.

And with work, rightly should come some form of income.  Thus one who works ought not to be poor.

Armour Residential REIT

Have bought 500 shares of ARMOUR Residential REIT (ARR). ARR pays out US$0.10 per month in dividends. Its current share price is around US$7.00

Harvard Classics - Herodotus and Book of Job

I must have done at least 6 hours of pure reading yesterday.  And I sure covered a lot of ground though some of my reading was outside the "canon" of the Harvard Classics.  I spent most of time reading the Book of Job though I spent a greater part of the time wondering why this had been placed under the History of Civilizations section since the Book of Job was clearly a book that discusses about suffering (or in particular, why do good people suffer).  I guess it was helpful to see what the wisdom was about why suffering occurs and how some times, human wisdom has its limitations.

Reading Herodotus' Histories is tiring.  In the harvard classics, it is his second book that is inside and it gives an account of Egypt.  Or should I say ancient Egypt.  As much as I love history, the way it is told is actually a bit too detailed for my liking.

Harvard Classics - Five Foot Shelf of Books

I have started  into my reading habit once again.  And what better way to start by doing it in a structured manner rather than the current haphazard way in which I conduct my reading.  Have been reading Harvard's Classics, which is supposed to be the "Western Canon" of books worth reading in order to attain "a liberal frame of mind or way of thinking".  I was tempted to try Adler's Great Books but then decided to start with the original so-called "canon" first before I proceed on.

This whole exercise is just a way of educating myself for free. Almost like obtaining a liberal arts education except without the need to attend lectures/tutorials/etc And besides,  I love to read.. (Oh gosh, how much I miss school).

Well, it will certainly be a challenge as there are a total of 50 volumes worth of books. You can find all the books online (which means you save lots of money too) in this link:  http://archive.org/details/harvardclassics

 I am getting started on the section regarding History of Civilization (refer to Volume 50 for the introduction to the Readers Guide).  I guess it sure beats reading from Vol 1 to Vol 51.  

If anyone else is interested in getting started on reading the Harvard Classics too, feel free to comment!

Investing in things I use - Mapletree Commercial Trust and Breadtalk

It is always good to have some insider insight to stocks that one will like to invest in.  One simple way to do that is to invest in retail REITs.  There are many REITs in the retail/commercial sector and many of them own shopping malls in Singapore.  Just take a walk at one of the malls and it might give you a good sense of how business might actually be doing for the REIT, whether there is potential for rent increase, whether asset enhancement initiatives are ongoing, etc, etc.  It is almost like an insider's view of the business.

Mapletree Commercial Trust

One of the properties owned by Mapletree Commercial Trust (listed on the Singapore stock exchange) is Vivocity.  To those who are not familiar with Vivocity (or Singapore), it is one of the largest malls around located at the southern tip of Singapore just at the entrance to Sentosa (where one of the integrated resorts - Resorts World - is located at).

Vivocity has 1,038,000 sq ft of net lettable area and 2,179 carpark lots. The occupancy rate stands at slightly above 98% and has 300 over tenants.  More recently in the news, PageOne bookshop closed citing high rental costs.  When PageOne moved out, the space was quickly taken up by two other retail outlets - Franc Franc and Cotton On.

Just walking around Vivocity, you will be quite amazed at the shoppers who are there.  Families, teenagers, tourists, office workers, etc.  One would expect it to be less crowded during the weekdays but it is not.  Sited just beside harbourfront, tourists from cruise ships often go there to shop.  Not to mention that Sentosa is just conveniently located by a monorail from Vivocity to Resorts World.  

The shops are also wide and varied.  There is Giant and Cold Storage (supermarkets) for those who want to do grocery shopping, a cinema, many food outlets and restaurants and lots of retail shops.  The shops cater to a wide mix of shoppers whether they are shopping for electronic products, home furniture, clothes, luxury goods, etc, etc

I think Vivocity will continue to do well but I am not certain what the impact of the new cruise terminal at Marina will have on the business it gets from tourists. Nevertheless, since it is conveniently located at the doorstep of Sentosa, I am certain it will continue to get lots of business from travellers who are staying at Sentosa.

BreadTalk

Well, it is easy to analyse a business if you can see how many customers there are.  Breadtalk is one of those business that has been expanding abroad.  While I am not too certain how the overseas outlets are doing, I can say that the outlets in Singapore are doing pretty well.  Breadtalk sells bread and together with many of the Breadtalk shops are Toast Box (basically a cafe like shop that rivals another famous Singapore brand Ya Kun).  

Anyway, let us focus on Breadtalk first.  Many of its outlets are conveniently located where there are office crowds.  Just walk into a Breadtalk outlet in the morning and you will be surprised to see the number of people queuing up to buy breakfast back to eat in office.  I figure that a typical Breadtalk shop can easily have more than 200 customers just during a one-hour window in the morning peak hour where office workers are streaming to the office and need to grab some food to eat.  Each customer probably spends $3 to $4 on their breakfast.  Many of them are repeat customers.

Conclusion

So there you have it.  Two businesses that are listed in the Singapore stock exchange that you can easily observe to determine how well they are doing.  At my writing, Mapletree Commercial Trust was trading at S$0.965 and Breadtalk was trading at S$0.50.

Michael Vincent Performs on Penn and Teller Fool Us

Michael Vincent performs wonderful sleight of hand techniques on Penn and Teller's show "Fool Us".  Unfortunately, it is classical magic and there is no way Penn and Teller will get fooled by it.  Entertaining nonetheless.  Teller even kisses Vincent's hand at the end to show how much respect he has for him

Canadian Royalty Trusts Post 2011

During the mid-2000s, Canadian Royalty Trusts (or Canroys) grabbed the minds and attentions of many retiree investors with their double-digit dividend yields. Structured as trusts, they were exempt from federal tax as long as they paid out dividends to their shareholders.

All this changed in 2011 when a new law was passed that these trusts would also be taxed like normal corporations and taxed at the corporate tax rate.  I wrote about this sometime back in the post "Future of Canroys".   This new law made little sense for the trusts and many of them converted to corporations, merged with other companies or chose the easy way out of liquidation.  The dividends of most of these Canroys have also declined sharply as they no longer enjoyed the tax exempt status.  Likewise, share prices also dropped.

Today, most of these canroys trade at only around 10% yield.  Pengrowth Energy Corporation (PGH) now trades at around US$7 but pays only a monthly dividend of Canadian $0.07.  That puts Pengrowth at a nearly 11-12% yield.  Still pretty decent for a monthly dividend stock or if one's purpose of investing is for income.  However, there have been recent talks that even Pengrowth might have to follow the path of Enerplus which cut its dividends by 50% recently. Enerplus shares have taken a beating since.

Canroys will probably face challenging times ahead.  

Life is So Much More Interesting

Life will be a whole lot more interesting if we take ourselves less seriously and start dreaming.  Unfortunately, due to pressures from friends,family,society, etc, we often stop dreaming.

Buy Which REIT?

There are actually quite a few REITs now listed in the Singapore stock exchange.  Have been thinking of investing a bit of my money again since there is some spare cash sitting around.  There are really so many options to choose from: industrial, retail, office, hospitality, etc etc.

I am having a difficult time deciding what to buy.  Have been thinking that maybe I should get a handful of Saizen REIT, Sabana REIT and Starhill Global REIT.  What do you all think?

What a Toilet!

New Look for This Blog

After contemplating for some time, I decided that it was time to shed the "bluish" look that has stuck with this blog for the past 1 to 2 years.  So I am trying out something new and sticking to a really clean look which I hope readers will actually find more soothing to the eyes.  I am not a design kind of person so do bare with me.  I remember that there were some offers to help me design the blog (for a fee of course), but I could not afford it. Anyway, the look is new but the content remains the same.

 I must admit that I am guilty of not pushing out  enough posts to satisfy my readers.  There is always this fear that I am boring readers to death and that there is really nothing interesting I can write about.

Okay, question of the day:  Will Greece default on their debts?  

If so, how can we profit from it?

Good Stuff to Share

Just an old posting that I will like to share =>  we are powerful beyond measure.  Really good a reminder whenever I feel low or suffer from a bout of low esteem.

Another good stuff that I will like to share =>  Two Ideas that Every Investor Should Know.  Just plain old wisdom from plain old me.

Anyway, the month of April and May were bountiful in terms of the dividends that I received.  April dividends was $700plus while month of May was around $1400plus.  Good stuff if you ask me.  The money is already being spent or at least I am thinking of investing it again.  Stock prices are low but I bet that they will go lower.

Dividends and Passive Income for May 2012

The month of May 2012 was a bonus month for me as I received quite a bit of dividends/passive income.  The main contributor came from some of my small cap stocks.

Total dividends/passive income for May 2012 is $1483.26


Probably one of the better months for me thus far.

Investing in Consumer Staples

Read a book recently about investing in consumer staples.  I think the ideas presented were fairly new to me as I have never ever thought of investing in consumer staples before.  I guess there are not many consumer staples kind of stocks in Singapore other than the telcos and the transportation companies.

Well, if one has access to the US market, one could invest in stocks like Colgate-Palmolive, Proctor and Gamble, Coke, etc.  These are really defensive play stocks and the businesses should do reasonably well even if the economy tanks.  Afterall, people still need to brush their teeth and wash their hair even if the economy is bad.

Cambridge Industrial Trust - I could Do With Some

Bought 5 lots of Cambridge Industrial Trust today at $0.515.  Have been eyeing it for some time and decided that I couldn't wait any longer.  So clicked a few buttons, it was in the queue list, and after that, got it.  Just part of my effort to diversify my holdings in reits to cover office, residential/hospitality and industrial.

Bill Ng Rangers Bid

Glad to read in the newspaper about a Singaporean, Bill Ng, who made a bid for Rangers football club and is now in the running again to buy the club despite earlier suggestions that he was out of the race. Reminds me of Peter Lim, the billionaire who was also bidding for Liverpool football club sometime back.

Bill Ng apparently does not love football.  He came to the game for the love of his two sons who had to teach him the offside rule.  Not new to purchasing football clubs, Mr Ng had also purchase Hougang United and Tiong Bahru United in 2010 and 2005 respectively.  Both these football clubs are in the S-League (Singapore's version of the English Premier League).

Now that Bill Ng is back in the running to buy the Rangers, let's wish him luck.  May he do Singapore proud.

Why I Write

I was sad to discover that a fellow blogger had stopped writing.  He gave his farewell posting a few months back and I chanced upon it while I was just surfing around.  I am happy for him that he has decided that there are more important things to tend to.

Anyway, it got me questioning myself on why I even write this blog.  I have better things to do.  I have in fact too many things to do.  But writing is a form of relaxation for me.  A way to express myself.  A way to converse since I am not really gifted in talking (and there is nobody to talk to me in the real world).  Writing is my form of escape.  It is my way of voicing my thoughts.

Sometimes, it is good to just get something off my chest.  To know that I have voiced out my opinion on a matter and that somebody (whoever it is) is reading it.  And though I don't often reply to the comments that are left (sometimes, I just have no time to reply), I treasure each one deeply even as I read the encouraging words and thoughtful remarks that are left on this blog.

In a sense, this blog is like a living organism that has grown with me.  It contains memories and words that people have left, captured eternally on this faceless internet page.  And at the very same time, it is as if this blog reaches out to people and some how, probably in some small way, makes a positive impact on somebody's life.  I don't know.  Maybe it does, maybe it doesn't.  But the idea that such a thing can happen even without me meeting the person face to face is surreal.  It is like making a deposit in somebody's life.  Loving a person without actually knowing him or meeting him.

So I hope that you the reader knows why I write.

Drop me a comment.  Will love to hear from you.

GAMCO Global Gold and Natural Resources Income Trust (GGN)

Just bought another 200 shares of Gamco Global Gold and Natural Resources Income Trust.(GGN).  GGN pays out a monthly dividend of US$0.14.  The dividends have been paid out steadily over the years so I thought I should just load up more of it when the market is down.  Bought 200 shares at US$14.60 which is slightly lower than my previous purchase price.

Dividends and Passive Income for April 2012

Dividends and passive income for April 2012 was close to $600.  This was contributed mainly from selling off my Pacific Andes rights and collecting the dividends that were also paid out by Pacific Andes.  Pacific Andes is a stock that I have been holding for some time now but I just did not feel comfortable taking a bigger position so I did not subscribe to the rights issue.

The rest of the money actually comes from the monthly dividends that I receive from Gamco Global Gold and Natural Resources Trust (previously called Gabelli but now re-named as Gamco).  GGN (the stock ticker symbol) provides me with $30+ dollars per month.  That is after the 30% withholding tax deduction which is quite huge if you ask me.

Nevertheless, I am satisfied with April 2012's dividends and passive income received. May 2012 should also be a good month for me.

[17 May 2012 Update:  Actual dividends for April was actually above $700.  Realised that I underestimated the dividends and sale of rights arising from Pac Andes]