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Telcos and REITs are top performers in May.

Tuesday, June 5, 2012

This is taken from an article in The Business Times today:

LMIR's Pluit Village.
The high dividend sectors of telcos and REITs performed the best in May. SGX highlighted the defensive nature of these two sectors in a market update on June 1.

In May, telcos declined 0.43% and REITs dropped 1.73%. The STI fell 7% from 2.979 to 2,773, the largest monthly drop this year.

SGX noted that the top performers year to date are FCOT, gaining 28.4% and AIMS AMP Capital Industrial REIT, gaining 20%.

Industrial buildings belonging to Cache Logistics Trust.

With 70% of my portfolio made up of S-REITs with good fundamentals, I sleep better at night, enjoying rather high yields and receiving regular income distributions.

Related posts:
1. Staying positive on S-REITs.
2. AIMS AMP Capital Industrial Trust: 4Q FY2012.
3. FCOT: DPU up 16.8% in 18 months.


14 comments:

FoodieFC said...

When I read this. The top performers means do not buy for now as they are due for correction. Hee

AK71 said...

Hi FoodieFC,

Haha.. That could indeed be the case. Then, I would be rolling out my war chest. ;)

JCK said...

i hope so too....but seems that the mkt likes the divs as well!

WE need more crises for sudden price dips! :)

AK71 said...

Hi JCK,

Actually, I do not hope for a worsening crisis and a stock market crash. That would cause severe hardship for many people.

However, if there should be a crash, then, I would buy more.

As majority of my portfolio is invested for income, I am relatively insulated from market panics which is all about sentiments. Even in a zero growth environment, a portfolio heavy in REITs is quite resilient. :)

JCK said...

Hi AK

The Euro crisis is happening.
Dont think anyone can deny that..alto some live in denial.
U.S isnt doing much better.
U.S treasuries are about to burst at the seams.
Gold will do fine.

Its just what morphed form the crises are gonna end up in.
And what impact thats gonna have on perception of the mkts.

i luv the divs!

AK71 said...

Hi JCK,

The eurozone is not a single nation and conflicts abound.

I read an article in The Economist that, actually, gearing within the Eurozone as a whole is lower than the USA's. A Euro-bond idea could save the Eurozone. However, Germany is not going to agree to this.

Why should Germany bear the burden of bailing out member countries? Economically, there is a solution but it would not be happening because of politics and nationalist interests.

Anyway, how will things turn out? I don't know. I can only say that doing what I do now would hopefully safeguard what little wealth I have or at least minimise the impact of a worsening crisis.

Yes, I like receiving regular income distributions too. :)

JCK said...

The idea of even tiny Greece leaving the zone is causing anxiety.
This is causing the perception of the euro to be unstable.

Compare Greece with poor U.S states like California!
Thats a crisis to be noted!

On U.S

Jim Rogers’ Most Dire Warning,
“Please Get Worried"

http://etfdailynews.com/2012/06/04/j...v-tza-faz-agq/

AK71 said...

Hi JCK,

Jim Rogers and Marc Faber are two gurus I follow. They make a lot of sense. Thanks to them, I also got into gold and silver two or three years ago.

USA has the advantage of being a single country without conflicting fiscal policies of the member nations of the eurozone. USA is a ship with a single helmsman, so to speak.

Anyway, we can only sit back and await results of the Greek election and see what follows next. :)

ivan said...

Took a position in LMIR again after completely divesting it earlier after the rights issue, as well as MIT.

What are your thoughts going forward, as ECB just announced to keep interest rates at 1%, AK?

Would like to know your thoughts on MIIF if possible.

Thanks!

Clueless Punter

AK71 said...

Hi Ivan,

I believe that low interest rates are here to stay for a few more years. The Fed and the ECB will make sure it stays that way. This means that investments which make use of leverage would benefit. REITs are natural beneficiaries. ;)

As for MIIF, I have a small long position in it. I hardly look at it but I recently read a report by AM Fraser which suggests that Mr. Market overeacted to the toll reduction in HNE Phase 1.

See it here:
AM Fraser on MIIF

We are not going to see HNE losing money for MIIF. It would still contribute positively to the fund's income. So, 50c or lower is a buy for me. Just don't ask me how low it could go to. ;)

ivan said...

Hi AK

Thanks for the input, am getting itchy fingers already now though I told myself to wait till after the greek elections to decide on buying.

AK71 said...

Hi Ivan,

What if the elections turned out well and Mr. Market should turn euphoric? ;p

I think you might want to ask yourself if you are happy with the projected distribution yield at current prices, given the income reduction from the development at HNE Phase 1. If you are happy enough, it might not be a bad idea to nibble. ;)

INVS 2.0 said...

Hi Ak71,

Managed to sell AIMS for a profit before the Greek election rattles the market. I believe the election would spell the collapse of the ruling party in Greece, like how French did to Sarkozy. :)

With the return of AIMS' divested funds + profts, I can make use of the next opportunity to buy at a discounted price. Hehe. ;)

But if it doesn't, there is always a second chance.

AK71 said...

Hi INVS 2.0,

As long as you have a well thought out strategy, stick to it and it should give you peace of mind. Of course, you should always have a plan in place for when things don't go your way. :)

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