Performance of Securities Wrap Portfolio for 2017

Performance of Securities Wrap Portfolio for 2017
Performance of Securities Wrap Portfolio for 2017

Since 2016, I have been talking about this Securities Wrap service which some of my clients had adopted. Let me briefing explain how this Securities Wrap service works. Traditionally, it has been part of the securities regulations that Trading Representatives like me are not allowed to give advices on client’s investment positions. Trading advices like what and how much to buy or sell are not allowed. Hence, it is tough for Trading Representatives like me, whom practises prudent financial investment management, to help clients to improve their investment strategies. At the end of 2015, Phillip had introduced this Securities Wrap service which allows Trading Representatives to advice their clients. This empowers me to have an overall view of client’s investment portfolio as their share holdings are to be transferred into custody by Phillip. This allows me to keep track of the corporate actions of the investment holdings and properly advice the client the actions needed. Comparing to the traditional “CDP” way, I have a very clear picture of the positions in my client’s investment portfolio as oppose to relying on my manual tracking of client’s investment portfolio. With clearer overall picture of the investment portfolio, it will allow me to set up investment objectives and position sizing that is tailored to individual client’s need. This is where trading advices to buy and sell are recommended.

 

In this posting, apart from sharing the performance figures of these Securities Wrap clients, I will also like to highlight the advantages of having Securities Wrap account under me. These figures represent a group of 8 clients from all walks of life that agreed with my investment strategy. They used to manage their investment portfolio by themselves while relying of occasional opinions that I shared with my clients group. Over time, they understood the principle of my investment strategy which generated them good level of income. However, they also realise that they are lacking of one element in the whole investment formula. The lacking element is the lacking of time to manage their investment. Many investment opportunities were lost; ranging from profit taking opportunities to even loss cutting measure to even simple task like rights subscription. They need an extra eyes and hands to help them to manage their portfolio. I became their extra eyes and hands

 

There are some terms that I need to define before we look into the statistics:

*Capital – It means the intended portfolio size that the client aims to build during the year. They may or may not fully utilize their portfolio.

* Invested – It means the invested amount that the client has invested currently. It might not best represent the statistic results if the client liquidates the positions and did not reinvest the amount.

 

*Nett Profit / Loss – It means the realised returns (Dividend gain + Capital gain) +/- unrealised returns (Based on 31 dec closing price) – fees related with Securities Wrap service. This will better help to compare the returns with the index performance.

 

Here are the earnings statistics:

 

Earnings from Dividends only -

Average: 
(Capital) 4.50% 
(Invested) 5.43%

 

Max: 
(Capital) 5.72% 
(Invested) 9.23%

 

Min: 
(Capital) 3.11% 
(Invested) 4.71%

 

Median:

(Capital) 4.49% 
(Invested) 5.41%

 

What do these figures mean to you as an individual investor?

My Securities Wrap clients are getting an average dividend return of 4.50% for last year; ranging from 3.11% - 5.72%, this sets a baseline of regular return for their investment made. This regular return is partly used to finance the fees related to maintaining the Securities Wrap service. Comparing to the group of clients I am tracking, it is clear that more dividends are achieved through this Securities Wrap service.

 

Total Earnings from both Dividend and Capital gain/loss-

Average: 
(Capital) 9.62% 
(Invested) 11.60%

 

Max: 
(Capital) 20.07% 
(Invested) 32.50%

 

Min: 
(Capital) 7.25% 
(Invested) 8.26%

 

Median:

(Capital) 8.75% 
(Invested) 11.03%

What do these figures mean to you as an individual investor?

My Securities Wrap clients are able to attain an average overall realised profit of 9.62% in 2017. Ranging from 20.07% to 7.25%, it is clear that to see that even the minimum achieved, it is pretty close to the average. Comparing to the group of clients that I am tracking, there is a large gap being seen. This highlights that the Securities Wrap service under me will be better performing than managing the investment portfolio by themselves.

 

What is more exciting is the amount of profit they can achieve if they choose to liquidate their investment portfolio on the last day of the year. An average of 16.40% can be achieved if the unrealised profit are being realised. If the Securities Wrap fees are excluded, the average performance of Securities Wrap portfolios will be tracking closely to STI’s performance. I am glad to be able to see this results happening since the day this service started.

 

Going forward into this year, I am very eager to continue to maintain the performance of these investment portfolios. Last year, I found it hard to fully utilise the investment funds as it is hard to find quality high dividend yielding stocks due to lack of correctional movements in the market. This year, I do hope for correction to happen so that I will be able to increase the overall dividend yield. However, I am expecting more profit taking actions to happen this year. Capital gains will likely to be the main bulk of the earnings for this year instead of dividend returns. But if the stars align, I might be able to see good returns from both capital and dividend returns.

 

With this, I hope you have better understood how Securities Wrap service has helped my clients whom have hopped on to this service. I definitely do want to help more of my existing clients to be able to achieve more sustainable returns from their investment. To find out more, I am just a message away.
 

Disclaimer: This statistic study is based on historical records. It may or may not represent future performance. Hence, any comments stated will just be a personal opinion. This opinion might not be the best representation for your own investment risk profile.

Do also take note that past performance might not be a good indication of future performance. Any figures stated above do not constitute an advice of any form. Performance attribution has not been verified by an independent party.

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