Selected client's investment portfolio performance for 2017

Selected client's investment portfolio performance for 2017
Selected client's investment portfolio performance for 2017

Many of us had gone through the bountiful year of 2017 as the market rallied more than 18% in the year. As I have already reported my personal investment portfolio returns for 2017, I will also be reporting the portfolio performance of my client’s group whom I have been tracking for years. This will help us to understand whether general investors will be able to rip the kind of return that we have always imagined off during the bullish market.

As stated in the previous year, the main objective of these statistic figures is to showcase that investing in stock market will produce an average return regularly. It will be useful for people whom do not dare to invest in the market. It can be very useful for people whom want to know how well their investment’s performance for the year comparing to the “norm”.

These figures represent a group of 34 clients from all walks of life. This group’s dynamics range from young graduate to working adults to retirees and also from new investors to experienced traders and investors. Their capital size has large variation since they are from all walks of life. They make their own investment decisions based on their own experiences or take considerations from my personal opinion on the market.

There are some terms that I need to define:

*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). This will better help to compare the returns with the index performance.

Here are the earnings statistics:

Earnings from Dividends only -


(Capital) 2.95% 
(Invested) 4.15%


(Capital) 8.27%
(Invested) 8.82%


(Capital) 0.00% 
(Invested) 0.00%


(Capital) 2.71% 
(Invested) 3.85%

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

If you have a dividend return of around 3% for the whole year, it means that you are doing well as you managed to have a good dividend return.

If you have dividend return of close to 8%, it means that you are adopting dividend yield strategy. Well done! Keep it up!

Total Earnings from both Dividend and Capital gain/loss-


(Capital) 2.72% 
(Invested) -1.21%


(Capital) 16.69% 
(Invested) 33.15%


(Capital) -24.03% 
(Invested) -108.22%


(Capital) 3.79% 
(Invested) 4.33%

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

If you have total earnings of around 3% for the whole year, it means that you are doing okas you managed to have some earnings for the year.

If you have total earnings of close to 16%, it means that you are doing well. Well done!

If you achieve negative returns, I think it is obvious. Do spend time to understand the reason why you failed to achieve a good level of returns.

*Note: There is a vast difference between the Capital and Invested percentages. This is due to the client not reinvesting back the sale amount after liquidation.

With this, I hope you have better understood how your own personal investment portfolio performs. As for those whom have yet to start investing, I hope that it will give you confidence in investing.

This year will be the 3rd year tracking the performances of this group. This year is an interesting year to me as I analysed the statistic results. It is very clear that the performance of this group had dropped over the year despite strong performing market. I will attempt to answer why this weaker performance had happened for last year.

I have included further data this time round to further understand the dynamics. Some of the key changes / observations of the data used are as follows:

• Total capital had reduced by 15.9%. Due to the reduction of portfolios monitored.

• Number of portfolios has been reduced to 34 portfolios instead of 38. This is due to switching of clients’ portfolio to Securities Wrap and I had decided not to add more clients’ portfolio into this group. 

• There are numerous delisting that had happened last year. Some of the clients are being forced to “close” their positions due to delisting. This has resulted in extreme losses being incurred in some cases. 

Comparing to 2016, it is very clear to see that the realised returns from this group had dropped from 5.21% to 2.72%. I found out that one of the reasons why there is a drop in realised returns is due to the “forced closure” of some client’s positions. Some also took the opportunity in the bullish market to exit their losing positions. Furthermore, there is a slight reduction of dividend returns due to either lower dividend returns or more cash in hand. This weakened result seems to be going against the expectations of many whom think that when market goes up, people will make more money. In this case, from my statistic results, it seems running the opposite way. I attempted to understand why this group behaves this way.

Looking into the nett profit/loss figures, I think I know the reason for such disparity. The nett loss of -6.38% had reversed to nett gain of 5.3%. This translates to an increment of more than 11.68% of portfolio value at the end of 31 Dec. This means that there are profits that have yet to be realised. The bullishness of the market did indeed help to increase the value of their investment portfolio. The issue now is whether this unrealised profit will be translated to realised profit.

Looking back to the engagement levels with this group of clients, I have realised that I have shared a lot less opinions of buying or selling. Most of the time, I encouraged most of them to hold their positions with expectations of further upside room in the market. As the market gets higher, it is clearly more difficult for me to share quality high dividend yielding stocks for them to capture; hence, leading to a drop in dividend returns. Reviewing back on the objective that I had set for this group of clients, I will say that part of the objective was met. Unrealised losses were made to realised. However, I do wish to improve on their dividend yield but in this bullish market situation, it will be much harder to find high yield stocks.

So, for this year, my objective will be different. I hope that unrealised profit will be converted into realised profit this year. But it will be pointless if this does not translate into higher dividend yield which gives a more regular return. It is of my wish to be able to identify the right point to take profit off the market this year and wait upon a correction to happen; where I will be able to market use of the correction to find quality high dividend yielding stocks. This is my plan. What is lacking will be the co-operation of the market. Lastly, I will continue to attempt to convict this group of clients to convert their account to Securities Wrap account where I can do full advisory on their investment portfolio. Clients whom hopped on the Securities Wrap have enjoyed far better returns than what they have achieved by themselves. I will be reporting the performance of the Securities Wrap group as I now have enough data to show the achievements. Stay tuned!

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.