Portfolio Review 2012: Portfolio 30.2% vs STI 20.6%

The Straits Times Index opened at 2,646.35 on the first trading day while my portfolio started at SGD 42,053 at the start of the year. In the beginning, I had bought some Etika International and sold my holdings of Asiatic Group. More recently, I bought some Petra Foods and sold off China Animal Healthcare, Stratech Systems and TPV Technology. But for convenience, let me use those values I have given.

The Straits Times gained 20.6% to end on December 28, 2012 at 3,191.8 points while my portfolio now stands at SGD 49,083, or an increase of 16.7%. That is because a huge chunk of value of Elite KSB (35.5 cents per share or SGD 5,680 in total) went into a special dividend. Including that special dividend but not the ordinary dividends, I am up 30.2% for the year.

Does the global stock market have the strength to continue the run into 2013? I have mentioned before somewhere before that leading to the American Presidential Elections, markets tend to trend higher because the the incumbent president vying contesting for re-election will be more generous. Although Obama to some seems a bit miserly on what he intends to do on the economy front, markets have moved in the expected direction.

It has not been a spectacular year for the portfolio. The two top performers were Auric Pacific and Elite KSB. Auric Pacific has doubled its price since the start of the year and I attribute it to the fact that SMRT's former CEO, Saw, moved to Auric. Aside from that, nothing much has changed to improve the company's fundamentals although it will be noted that Saw was formerly with DFS and maybe the market is giving Auric a chance in hope that the new CEO can turn things around.

Elite KSB, if we were to include the special dividends, also doubled in terms of share price during the period under review. The company disposed of its meat processing and distribution business and has since distributed the gains from disposals. It is now pretty much a shell company looking for new although it still has  property and some investments waiting to be sold. It could also be a target for delisting or RTO but chances of an RTO in my opinion of is much lower.

Most of the shares ended slightly higher than a year ago due to the strong run up in share prices after the American elections. Etika International was mostly in the red during the year but gained at least 8 cents in the last two months due to a share placement to Sam Goi. Biosensors International lost about 20 cents on year but the impact of the portfolio was limited as I held only two lots. 

Plans versus Reality

Here were some of the plans for 2012 summarised:

Blog. I will blog less, but when I do post, I will make sure they are of quality and at least 400 words in length.

Reality. I am definitely blogging less now that my work has picked up and my Master's programme has started. Quality-wise, I am not sure, some of the posts have been twit-like while the rest tend to ramble on. 

Investments. Unless there is a sudden change in my income level, I do not think I will be committing more money into the stock market for 2012.

Reality. I have put in SGD 4,000 more (bought some Petra Foods) bringing me to SGD 34,000 invested. This has been due to savings and a slight change in income.

Career. I will be spending a bit more on improving my knowledge. The main event for 2012 would be whether my planned part-time Master's will materialized. I plan to use 2012 much better than 2011. 

Reality. I have spent a bit on improving my knowledge (more recently on Pokemon cards). The part-time Master's has materialised and because of a change in internal position, my time has been very tight to the extent I feel stretched and stressed out. The last quarter of 2012 has definitely been utilised more effectively than 2011.

I will post my 2013 plans seperately.