Wednesday, August 21, 2013

2013 Portfolio Component Change (20 Aug)

As REITs, perceived by market as risker assets now ahead of US Federal Reserve decision for QE tapering, are sold down to discount level from their recent highs, I am seeing value more in REITs now that they can be picked at higher yields. I think most of the risks of QE tapering in Q3 might have been already priced into the market, or at least they are more fairly valued now compared to May this year.

I have divested Rickmers fully (after collecting 1 round of dividend) and SPH partially to fund purchase into First REIT @ average entry of $1.035. First REIT has been dealt a double blow from rising interest rate and weakening rupiah due to its Indonesian portfolio. In the long term, I see possible upside in healthcare as a growing demand.

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