The Boy who Procrastinates (TBWP): 2019

Portfolio Review for Dec 2019

By The Boy Who Procrastinates - December 31, 2019

The heat on the US-China trade war has finally been turned down as the two countries have reached an agreement on their "phase one" trade pact. Under the deal, the United States has agreed to suspend tariffs on Chinese goods in exchange for Chinese purchase of American farm products over the next two years.

The US Federal Reserve has taken down its benchmark rate for the third time on 30 Oct, setting the fund rate in the target range of 1.5% to 1.75% which was cited to "provide some insurance against ongoing risk" facing the US economy. The recent decision to hold the interest rate steady in Dec could be a signal by the Fed to move into an extended pause for 2020.

Now with the Fear & Greed Index standing at 90, it could possibly be seen as a bellwether for an overheated market in the US.

Hong Kong has seen months of pro-democracy protests rumbling for the sixth straight month. To ring in the new year, a mass march is said to take place in 2020, signalling more unrest to be expected at the start of a new decade.

In this quarter, the local STI has whipsawed from 3,146.03 at the beginning of October to a high of 3,285.72 in November before closing the year at 3,222.83, marking a increment of 2.44%. Overall, the STI has recorded an increment of 6.05% in 2019, a stark contrast to the 2018 bear market with a decline of 10.54%.

On the other hand, the SGX S-REIT 20 Index has closed at 1,456.945 for the year, with a -0.03% change in the last quarter. Taken as a whole, the index has recorded a remarkable gain of 20.17% in 2019.

Action in Q4

In the last quarter of the year, I have accumulated positions in Eagle HTrust at USD 0.46, averaging down my entry price.

The recent plunge in its share price comes after a slew of negative events with the allegation of sponsor not meeting its lease obligations to maintain Queen Mary taking the centre stage. In addition, insiders and substantial unitholders, including the Yuan family, have been paring down their stakes.

In its entirety, I do consider this to be more of a risky position for my portfolio and I am keeping it to less than 10% of the overall portfolio size.

Portfolio

(Click to enlarge)

The capital injection to the portfolio in Nov has been represented by the green portion which helps to provide a better picture of the change in portfolio value.

Despite the mini bull run, I have mostly been taking a backseat with my portfolio seeing a dearth of action this year. Perhaps the one saving grace is that the portfolio value has crept past the $120,000 mark amid the intermittent injection of capital throughout the year.

Dividend

(Click to enlarge)

The 4th quarter has recorded the collection of dividends at $1,021.80 which is relatively low compared to that in the 1st and 3rd quarters. This could mainly be attributed to October being a dry month for dividends. Benchmarked against 4Q2018, it is still a modest 9.85% increment.

The dividend acquired in this quarter is contributed by the following securities:

Month	Payment Date	Security	Dividend
October	-	-	-
November	22 Nov	SIA Engineering	$90.00
	26 Nov	Netlink Trust NBN	$403.20
	29 Nov	Starhill Global Reit	$192.10
December	2 Dec	SSB Dec 2018	$47.25
	12 Dec	Far East HTrust	$124.80
	16 Dec	Astrea IV Bond	$87.24
	20 Dec	Astrea V Bond	$77.21

This year, the total dividends collected have grown by approximately 103.90%, primarily due to the active injection of funds into the portfolio in 2018. However, it is still short of my short-term goal of reaching dividend income of $500 per month. A little room for advancement in the new year.

Total Dividend Collected : $ 4,902.07
Average Dividend/Month : $ 408.51 (over 12-months period)

* Exchange Rate

1 EUR : 1.510537 SGD
1 USD : 1.34831 SGD

To wind up the last post of the year, thank you for reading and a happy new year to everyone! It is time to unfold new pages and start a new chapter in your life. A new year, a new start and infinite possibilities!

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CHAS

All Singaporeans can now apply for CHAS!

By The Boy Who Procrastinates - December 14, 2019

If you have not gotten the memo, all Singaporeans are now eligible to register for CHAS and stand to enjoy medical subsidies at participating CHAS GP and dental clinics.

From November 2019 onwards, the new Green CHAS tier was introduced for the benefit of middle to high income earners with chronic conditions. Additionally, the medical benefits for the existing Blue and Orange CHAS tiers have been enhanced.

Community Health Assist Scheme (CHAS)

The Community Health Assist Scheme (CHAS) allows Singaporeans to enjoy subsidized treatment for common illnesses, chronic health conditions and dental issues at GP and dental clinics.

The type of CHAS card that one may receive depends on the household monthly income per person (for households with income) or the annual value of home (for households with no income).

As illustrated the quantum of medical subsidies varies according to the household income per person.

Green CHAS cardholders may be able to enjoy subsidies for chronic conditions which includes high cholesterol, high blood pressure and diabetes.

In addition to chronic conditions, the Orange and Blue CHAS cardholders are able to enjoy subsidies for common illnesses and selected dental services.

You may refer to the following categories of common illnesses and chronic conditions to have a better picture of what is being covered. For example, subsidies for scaling and polishing is only applicable for Blue CHAS cardholders.

^ Not applicable for CHAS Green Tier

* Not applicable for CHAS Orange Tier

+ Only claimable at selected clinics

How to apply for the CHAS card?

The application process is really simple and straightforward. Citizens aged 21 years and above can apply for CHAS on behalf of their household members. Each household is required to submit only one CHAS application.

Online application is definitely the most convenient method of all. Upon logging in with SingPass, applicants will be directed to verify the information (names, NRIC and contact details) of the household members pre-filled based on Government records. There is no need to declare the incomes of the household members as the information will be assessed by records from CPF/IRAS.

Once completed, the application will be processed within 15 working days. Successful applicants will receive their individual CHAS cards by mail.

CHAS cards typically have a validity period of 2 years and a renewal application will have to be submitted if there is significant changes in the household composition.

Personal Experience with CHAS

In November, I have applied for CHAS on behalf of my household, which was shortly approved the following day. And in about a week's time, the Orange CHAS card has reached my doorstep. That is to say that my medical bill will be subsidized for common cold or fever, etc.

Even though I have yet to utilize my CHAS card (touch wood!), I have come across a sample of the application of CHAS subsidy which covers 84% of the medical cost.

CDMP here refers to Chronic Disease Management Programme which covers 20 chronic conditions.

For most of us at this age, the advantage of CHAS card might be limited but it would definitely be beneficial for family members who are part of the baby boomer generation and fall under neither the Merdeka nor Pioneer Generation (ie. those born after 1960).

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Disclaimer: Kindly note that this is not a sponsored post. The author is in no way affiliated with MOH or CHAS and does not receive any form of remuneration for this post. The Boy who Procrastinates has compiled the information for his own reference, with the hope that it will benefit others as well.

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Savings

Revision of Terms and Conditions for Citi MaxiGain Account from 2 Dec 2019

By The Boy Who Procrastinates - November 30, 2019

It was with disappointment and dismay that I have received the letter from Citibank, notifying the upcoming changes to be made to their prized savings account. Following the recent change on 2 January, Citibank will be revising the terms and conditions on the Citi MaxiGain Account for the second time with effect from 2 December 2019.

This article aims to provide an overview of the upcoming changes and how the existing account holders may be affected by the revision. You may also wish to refer to the revised Terms & Conditions for more information.

Revision of Interest Rates for Citi MaxiGain Account from 2 Dec 2019

The base interest rate will be revised to 50% of the 1-Month SIBOR.

The 1-month Singapore Dollar Interbank Offer Rate (SIBOR) forms the main component for the base interest rate. Now, with a 20% decline in the benchmark, the existing account holders will inevitably find their shares of the pie shrank substantially.

As of 29 November, the 1-month SIBOR as reflected on the ABS website is 1.73933%. To put it into perspective, a 20% decline in the benchmark equates to a 0.35% absolute decrease in the base interest rate, which is definitely a considerable adjustment!

The bonus interest rate will be revised to step up of 0.05% each month, up to a maximum of 0.6%.

Operated via a counter mechanism, the bonus interest rate will now increase by a mere 0.05% each month, up to a maximum of 0.6% at Counter 12. This unappealing change effectively halves the current bonus interest rate component.

In absolute term, the maximum bonus interest rate that one can earn will be pared down by a whopping 0.6%! Talk about a drastic change with just a month's notice.

Overview of the Revision

(Click to enlarge)

The table summarizes the revision made to Citi MaxiGain Account since its inception. As illustrated, each alteration to the savings account appears to be for the worse with consistently declining percentage of 1M SIBOR as the benchmark for base interest rate.

Even though the Jan 19 revision has been undesirable, the impact to the effective interest rate is less pronounced with a slight reduction of 0.17%.

Taking 1-month SIBOR to be 1.73933%, the real deal-breaker that proves to be detrimental to the interest of account holders, comes from the upcoming change with the effective interest rate taken a nosedive of close to 1%. As outlined above, the base interest rate and potential bonus interest rate was cut by 0.35% and 0.6% respectively.

SIBOR

After the Federal Reserve cut its benchmark interest rate for the third straight time this year, the SIBOR has too, taken a turn from its high of 1.8% — 1.9% and has been inching downwards as evidenced in the chart below.

Amid the slower global economic growth with economic outlook trending towards lower interest rate, Citibank has followed suit and lowered the rate on its savings accounts. Similarly, fixed deposit rates may have come down at some financial institutions.

(Click to enlarge)

Comparison with other Active Savings Accounts

Once a dark horse that is able to offer competitive interest rates among the active savings accounts and without the need for salary crediting or credit card spending, the Citi MaxiGain Account has certainly fallen from grace with this upcoming revision.

(Click to enlarge)

UOB One Account still offers the best bang for the buck at 2.44% effective interest rate. This is followed closely by OCBC 360 Account at 2.43% but it comes with the need to sustain the cycle for Step-Up bonus. The BOC SmartSaver also packs a punch at 2.35% effective interest rate, with an additional 0.60% p.a. extra bonus interest for balance above $60,000.

I understand that many prefer Citi MaxiGain Account due to its relatively less onerous prerequisite to earn interest. Some may have been unable to fulfill the salary criterion for active savings accounts, putting them at a disadvantage.

For the self-employed or those who have credited their salaries elsewhere, the UOB One Account can be considered to be an alternative. Salary crediting is an optional requirement and can be substituted by the payment of 3 bills via GIRO to obtain competitive interest rate.

Comparison with other Passive Savings Accounts

(Click to enlarge)

In its own league of passive savings accounts, the Citi MaxiGain Account still offers the highest interest rate at 1.47%. For those who seek to be released from the shackle of withdrawal restriction, the CIMB FastSaver Account offers a reasonable interest rate at 1.325%.

To tide through December, the Maybank iSAVvy Account currently offers a promotional rate of 2.1% on incremental balance until the end of year. As interest is credited on incremental balance, some may consider alternating funds between Maybank iSAVvy Account and Standard Chartered e$aver Savings Account which offers 1.75% interest rate until Jan 20.

Comparison with other Saving Instruments

Running the risk of having an over-simplistic comparison, I have picked a few other conservative financial products to have a general idea of the yields across various instruments.

(Click to enlarge)

Singapore Savings Bonds: Using the data of the Dec 19 issue, the interest rates for Year 1 to 3 remain fairly constant at 1.56%. The minimum investment amount is $500 for each issue.
Fixed Deposits: Maybank currently offers fixed deposits at one of the highest interest rate of 2%. However, this comes with a minimum deposit amount of $50,001 and a tenure of 24 months. For deposits with shorter terms, CIMB is advertising its promotional rate of 1.7% and 1.8% p.a. on a 3-months and 12-months SGD time deposits respectively with a minimum placement of $10,000.
ABF Singapore Bond Index Fund: The ETF invests in the constituents of the iBoxx ABF Singapore Bond Index which tracks a basket of high-quality bonds issued primarily by the Singapore government and quasi-Singapore government entities. Based on its declared 2019 dividend of $0.0262 and the recent price of $1.190 (as of 29 Nov), the dividend yield is approximately 2.20%. Kindly note that this is excluding any capital gain/loss due to price movement on the bourse.
Stashaway Simple: Recently launched this month, the cash management portfolio invests equally in the LionGlobal SGD Money Market Fund and LionGlobal SGD Enhanced Liquidity Fund, both are funds that invest in short-term debt instruments. While the net returns is projected to be 1.9% with no minimum balance, investors should be informed that the returns is not guaranteed and may fluctuate in volatile economic conditions. As with other investment products, it is not totally risk free and there is possibility, albeit remote, of losses. Furthermore, the invested capital is not insured by SDIC. There are other factors to be considered and we would probably leave that to another post in its entirety.

Things to note if you are closing your Citi MaxiGain Account

With the potential interest rate that one can earn on the Citi MaxiGain Account dipping to a mere 1.47%, it is probable that we may witness an exodus of yield-hungry depositors seeking out greater returns on their cash.

So if you are looking to maximize the returns on your funds and would like to close your Citi MaxiGain Account as soon as possible, there are some areas that you should take note of.

An account closure fee of $50 will be incurred if the account is closed within 6 months from date of opening.
The account service fee of $15 will apply at the end of the month if the Total Relationship Balance falls below $15,000.
Minimum balances of $70,000 and $1 are required to earn the base and bonus interest respectively.
Even though the base interest is accrued daily, it will not be pro-rated if a minimum of $70,000 is not maintained in the account. Therefore, it is preferable to close the account at the start of a month after receiving interest for the previous month.
For the transference of funds via FAST, it should be noted that there is a transaction limit of $50,000 and daily transaction limit of $100,000. For an account holder who has stashed $150,000 in his MaxiGain account, he has to make 3 FAST transfers over 2 days in order to transfer the funds elsewhere.
Theoretically, an account holder should still receive bonus interest on the lowest balance in the preceding month (e.g. $150,000) even if he were to withdraw all his funds but $1 on 2nd December and close his account in January. This will equate to approximately $37. In any case, one can always leave $15 in the account for the incurrence of account service fee and prevent overdraft. However, I cannot say with certainty that it will work the way it should as I have yet to test it out myself. But of course, the most straightforward way is to transfer the funds out and close the account at the branch and not be penny wise, pound foolish.

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Disclaimer: Kindly note that this is not a sponsored post. The author is in no way affiliated with the stated financial institution and does not receive any form of remuneration for this post. The Boy who Procrastinates has compiled the information for his own reference, with the hope that it will benefit others as well.

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Health

National Steps Challenge Season 5 Is Back!

By The Boy Who Procrastinates - November 23, 2019

It sure has been a while since I last wrote a post as I have been caught up with travel plans and fulfillment of the annual NS obligation. To reignite the writing momentum, this will be about something lighthearted — the National Step Challenge!

In order to combat the growing epidemic of sedentary lifestyles, I strive to maintain a regular exercise regime. Now, with HPB dangling rewards for keeping fit, it could certainly serve as an added incentive to keep those legs moving.

National Steps Challenge Season 5

Started on 26 Oct, the new season of the National Steps Challenge will be ongoing until 30 April 2020.

To participate, you can sign up via the Healthy 365 app on your smartphone. For those who have not received a heart-rate monitoring tracker in the last season, you can collect the fitness tracker from roadshows or appointments at 7-11 and Community Centres.

For those who are unfamiliar, the intention of the challenge is to encourage Singaporeans to stay physically active. This can be achieved by clocking progress in 2 categories, namely the Steps and Moderate to Vigorous Physical Activities (MVPA).

Steps Category

Using the fitness tracker issued by HPB, you are able to earn HealthPoints on your HPB app based on the number of steps you have taken in a day.

For an active participant who manages to hit 10,000 steps every day, he should be able to complete Tier 1 in 19 days and Tier 2 in 38 days.

Based on the rewards system on the HPB app, 750 Healthpoints equate to the value of $5, which can be used for Ez-Link top-up or to redeem vouchers for Fairprice, Klook, Lazada, etc.

MVPA Category

Participants have to attain at least 64% of the maximum heart rate as the required intensity for MVPA. As a guideline, an individual's maximum heart rate is estimated to be (220 — individual's age). That is to say, at age 30, my heart rate has to reach at least 122 beats per minute in order to achieve MVPA minutes.

Compared to Steps, it is definitely more demanding to complete the MVPA category. In order to reach 64% of the maximum heart rate, one has to be engaging in a moderately strenuous exercise such as brisk walking or jogging. As such, progress in this category can be rather elusive for someone who exhibits prolonged sedentary behavior.

Personal Experience with the National Steps Challenge

As a staunch supporter of National Steps Challenge, I could still vividly recall my involvement since the 2nd season back in 2016.

It was during my lunch break when I was lured by a snaking queue formed just right outside my office lobby. As a typical Singaporean, the innate fear of missing out ("kiasu-ness") has prompted me to join at the back of the queue without the faintest idea of what was going on.

Having approached by a promoter to assist with the downloading of Healthy 365 app, it was then that I was introduced to this initiative by HPB. Thus begins my journey to attaining more steps and MVPA with an upgraded fitness tracker each season and HPB app in my smartphone.

Season 2
Before the end of Season 2, I have managed to complete all 6 tiers of the Steps Category and redeem $35 worth of Fairprice vouchers.

The fitness tracker that I have collected was the Actxa Stride (as pictured below). As the MVPA category has yet to be introduced then, its function is solely limited to the tracking of steps. To be frank, it is far from being aesthetically pleasing with the bright blue strap but I guess beggars can't be choosers. It's free anyway. 😅

Season 3
Having completed the 6 tiers of the Steps Category, I was eligible to commit to a pledge as a Completer. Basically, the objective is to achieve a daily target number of steps over a stipulated number of days. There were 12 options to choose from and the rewards commensurate with the difficulty of the pledge.

Among the choices, I had committed to a pledge of 120 days of 10,000 steps in order to receive $30 HPB vouchers.

For this season, I had made a trip to HPB to pick up the Completer's kit. It came with the fitness tracker — J Style Tempo, a black Completer t-shirt and a 2018 desktop calendar.

Season 4
The previous season hasn't been a productive one for me as I have only managed to complete 2 MVPA tiers and receive 1,500 Healthpoints which is equivalent to $10.

I was issued the Actxa Tempo 2 at a roadshow, which has the function to monitor one's heart rate. The tracking of fitness activities was pretty reliable and accurate. As the device would require charging every 5-6 days depending on usage, I would say that the battery life is pretty long-lasting.

Closing Thoughts

Personally, I would think that the incremental rewards offered by National Steps Challenge have been diminishing with each new season. Only 2 additional tiers have been added to the MVPA category this season. For someone who has completed the Steps and MVPA categories in the previous season, he will only be unlocking a maximum of 3,000 healthpoints, which is equivalent to $20 in value.

As much as I had hoped for the inclusion of more categories and greater rewards, the launch of this event, nevertheless, still offers adequate incentive for me to stay active.

Coined by Dr James A. Levine, a professor of medicine at the Mayo Clinic, sitting is now the new smoking. Undoubtedly, prolonged sitting — be it at a desk, behind the wheel or in front of the screen — can wreak havoc on our health. Being sedentary has been found to be associated with increased risk of obesity, cardiovascular diseases, among others.

The impact of movement, even taking a leisure stroll, can be profound. So it's now time to put on your shoes and have a go at being active. The biggest bang for the buck comes from the moment we get off the couch.

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Disclaimer: Kindly note that this is not a sponsored post. The author is in no way affiliated with Health Promotion Board and does not receive any form of remuneration for this post. The Boy who Procrastinates has compiled the information for his own reference, with the hope that it will benefit others as well.

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Portfolio

Portfolio Review for Sept 2019

By The Boy Who Procrastinates - September 28, 2019

Even though Xi and Trump have agreed to a trade truce at the G20 Summit in late June, the tit-for-tat trade war appears to resume with greater intensity. At one point, the PBOC has let the Chinese yuan fall about 4% to cushion the blow of US escalating trade tariffs. In response, China was labelled a currency manipulator by US Treasury.

At this stage, there does not seem to be a respite insight for this ongoing trade war as both sides have threatened with new tariffs and hikes to the existing duties in the months to come.

This quarter, the US Fed has lowered the interest rate on 2 occasions on 31 July and 18 Sept respectively, putting the range of the fed fund rate at 1.75% to 2% amid uncertain economic outlook.

Back at home, the STI has fallen from 3,372.26 at the start of July to a low of 3,054.84 in August before recovering to 3,125.63 in September, accounting for a relatively substantial drop of 7.31%.

The SGX S-REIT 20 Index has behaved in a similar fashion, declining from 1,446.659 in July to a low of 1,374.699 in August before climbing back to to 1,460.161 in September, recording an overall gain of 0.93% in the short span of 3 months.

Action in Q3

With the escalating trade war, I have been taking a back seat this quarter and have not taken any action to load up or sell any positions.

Portfolio

The portfolio value has not really fluctuated much against the backdrop of decreasing interest rate and bitter trade battle between US and China. Overall, the market value of my portfolio has dropped by approximately 0.68% in this unexciting quarter.

Dividend

The dividends collected this quarter is 61.16% greater than that of 3Q2018, with it being the quarter with the highest dividends this year thus far and hitting the goal of $500 per month.

The dividend collected from this quarter is contributed by the following securities:

Month	Payment Date	Security	Dividend
July	1 July	SSB Jan 2019	$49.97
	3 July	Far East Orchard	$24.00
	31 July	Cromwell European REIT	$609.30
August	8 August	SIA Engineering	$240.00
	21 August	STI ETF	$96.00
	29 August	Starhill Global REIT	$187.00
	30 August	Raffles Medical	$187.00
September	13 September	Far East HTrust	$109.20
September	27 September	CapitaRetail China Trust	$314.50

Total Dividend Collected : $3,880.27
Average Dividend/Month : $431.14 (over 9-months period)

* Exchange Rate
1 EUR : 1.508804 SGD
1 USD : 1.382125 SGD

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Portfolio Review for Dec 2019

Action in Q4

Portfolio

Dividend

All Singaporeans can now apply for CHAS!

Community Health Assist Scheme (CHAS)

How to apply for the CHAS card?

Personal Experience with CHAS

Revision of Terms and Conditions for Citi MaxiGain Account from 2 Dec 2019

Revision of Interest Rates for Citi MaxiGain Account from 2 Dec 2019

Overview of the Revision

SIBOR

Comparison with other Active Savings Accounts

Comparison with other Passive Savings Accounts

Comparison with other Saving Instruments

Things to note if you are closing your Citi MaxiGain Account

National Steps Challenge Season 5 Is Back!

National Steps Challenge Season 5

Steps Category

MVPA Category

Personal Experience with the National Steps Challenge

Closing Thoughts

Portfolio Review for Sept 2019

Action in Q3

Portfolio

Dividend

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