Jan 2022 Portfolio Update

S&P 500 Index Fund: -7.61%
Hong Kong Tracker Fund: +3.63%
Straits Times Index Fund: +2.92%

My portfolio: -2.64%

Notable Transactions:

1. Complete divestment of Mapletree North Asia Commercial Trust
With the merger with Mapletree Commercial Trust, the pricing of MNACT would be correlated to it. Since MCT is largely priced in, there is unlikely any possible value. MCT's yield, post-merger, would be bigger, but the gearing would similarly increase. Overall, MNACT has not been a satisfactory investment. It was unable to fill up vacancies in its China properties and a long-drawn COVID has not been kind to Festival Walk. Annualized returns are in the region of 15%, dividends included.

2.Complete divestment of Genting Singapore
Divested this for my mum in order to purchase more Alibaba.

3. Increase of Alibaba
Increased holdings for mum and dad's portfolio.

4. Slight increase of Central China Real Estate Ltd
Increased holdings for mum and dad's portfolio.

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Comments
Investment returns is expectedly poor as the last two years were too good to be true. For someone doing value investing, the concept of reversion to mean is palatable. Hence, this performance is kind of expected. 

STI and Hong Kong (sans the tech firms) underperformed last year, and it was not surprising that they are outperformers so far.

There is nothing to suggest that the downtrend for China property, developer and services firms would cease anytime soon. Particularly for CCRE, the worry was again debt, since there is a likelihood that companies, and not just CCRE alone, is procuring debt from other means. Could we trust what is stated in the financial statements? We can only hope.

In the last few weeks, sell down in tech stocks has been overwhelming. The NASDAQ is down 11% as of writing; and several tech stocks got sold down very badly the night before. 

SE limited was down by 10% or more but recovered just 3% lower than last close.
Futu Limited has a similar story.
Tesla, the darling of 2021, had fairly similar chart patterns.

I do not have strong opinions and affinity to tech stocks, particularly those who had done by well since 2020-21. IMO, they are largely priced in, or should I say the stock is priced to perfection. 

Going forward to 2022, looking at my portfolio, the returns will be impact by recovery on both COVID, Chinese debt crisis, as well as the outcome from OKP's impending arbitration proceedings, which the management cited as material.