This month I added more UMS shares to my portfolio, making it my top 3 holdings. There are both pros and cons for both strategies. Diversification reduces the risk and volatility of the overall portfolio, but concentration may help to build on the yields from the existing higher yielding stocks.
In my opinion, during the initial stage of portfolio-building, diversification is more effective since the portfolio starts out with only a few counters and the portfolio volatility can be significantly affected by each of them. But as the portfolio grows, diminishing returns kicks in, and the advantages of diversification can only go so far.
On 9 May, CM Pacific has announced a conditional cash offer to acquire its shares. As such, I will need to look out for replacements to deploy the sales proceeds in the event of divesting CM Pacific.
- Note: P/L computation only takes into account the current holdings in the portfolio, and excludes capital gains/losses and dividends from divested shares, and commission charges/fees
Dividends for May:
- Kep Infra Trust: $0.0093/share
- UMS: $0.02/share
- First REIT: $0.0211/share
- QAF: $0.04/share
- SoilbuildBiz REIT: $0.01557/share
- CMPacific: $0.035/share
- Keppel Corp: $0.22/share
- StarHub: $0.10/share
- SembCorp Ind: $0.06/share
Recent Portfolio Changes:
- Added UMS @ $0.565 (18 May)