Towards Lower Risk Investing and Passive Income

I have been investing on the stock market for some years now. As presently I have less time to monitor my stocks, I have decided to transfer gradually my equities to those managed by regular fund managers. So far I have moved about 70% of my portfolio values to PNB related unit trusts, selected REITS and a hedge fund.

I am happy to note that the unfortunate "financial opportunity loss" on the so-called capital- protected CIMB structured fund (2008-2011) has been compensated by the sterling performance of my selected hedge fund within a year! I still can recall the letter from the CIMB Islamic fund manager who wrote upon the fund's maturity date...... " We are happy to report that the fund has managed to protect your investment's capital...." What audacity I thought! My 100k was dormant and lay wasted for three years and some foreign fund managers must have made money on it especially when market recovered in 2009 surely. I am avoiding this kind of fund like the plague.

It is exciting to make money on the stock market especially with your stock's dizzying rise in capital but the time has come for me to cut down the excitement and the fun and let the passive income take over. I used to have 18 portfolios and now I am left with seven. I am not given to frequent trading as I tend to hold my stocks for a longer period but emerging market volatility after 2008 and the current Eurozone debt crisis as well as the US's slow economic recovery are causing the strategy to be unsustainable and  have subsequently altered my investing behaviour for now.

A Raging Bull

I am working towards a passive income of 240k annually  and continue with my profession for the love and joy of it as well as  for a monthly pocket money.  My journey towards financial freedom has been and still is  educational and challenging. The most memorable was when the bull was raging with the bear nowhere in sight. What a time it was!

And despite all these, remaining caring and yet carefree has always been my wish.

Felda Global IPO - Acquisition through portfolio restructuring

Details on Felda Global IPO are still hazy at this stage though it has apparently been slated for listing on 10 May 2012. Investors are waiting for analysts to run through the offer and share their findings. As it is people do not appear as excited seeing that it would be joining  the already crowded plantation counters on Bursa. Nevertheless the IPO is touted to be the biggest so far this year.

Biggest IPO so far in 2012

While waiting for the prospectus, I am already making preparations to apply for the IPO. As usual the fund would come from my savings and the sale of my current stocks which have appreciated in values. I am now thinking hard which one of them to dispose off. Among my favourite holdings are Axiata,TM and Pchem, the first two have meteorically appreciated over the last couple of years. I am into that mood again, being in love with the performing stocks. I am rather sad to part with them. May be I could just sell a small proportion of shares of each stock? The problem now is the IPO price for Felda Global has not been announced yet for me to ensure I only sell the needed number of shares.

I have other stocks like Faber,MRCB and BSDReit. The first one has appreciated from 1.52 to 1.78. I am losing on MRCB purchased at 2.20 and now is at 2.01, quite a sizable amount! BSDReit, bought in 2009 at 1.40 has now risen to 1.72 and am highly reluctant to part with it as its annual dividend at more than 9% is rather attractive.

I might sell all of my Faber shares instead and spare TM because my relentless aim is to own 100k shares of the blue chip. Was elated beyond measures when I sold off all my Maxis  shares at 5.42 and acquired additional TM shares at 4.30 and which later climbed up to 5.19! But as my luck would have it, the minute I sold off Maxis,  its price sky rocketed  to 6.00 within 10 days! My only consolation is that TM's rise is bigger for a lower unit price.

Have to make the decision soon while the market is still in an exciting mode following Dow Jones reaching 13000 points last week, the highest since 2008. I might miss the boat otherwise.

 This portfolio restructuring would be fruitful if I were to be a successful applicant of the IPO. I am itching to own one plantation stock because I had sadly disposed off all of them back in 2010 at great losses which fortunately have been compensated by my new telco stocks. I have noted though that the prices of my old stocks like SwkPlant,THPlant,MHC,UNICO  and Kwantas  have all since recovered from their lows during the 24 months' period  (2008-2010)..... can't help looking back at old stocks and unconsciously emit that veritable sigh and then snap myself out of it.

I hope for a better luck with Felda Global.