Tuesday, 7 August 2018

Making sense of CDP Portfolio Breakdown

Every beginning of the month I will log on to my CDP account online to download the E-statement and that's more environmentally-friendly than before, when CDP used to send paper statements. The online portal also allows you to keep track of your security holdings easily (if you don't already have a portfolio list on stocks cafe, yahoo finance, excel sheet etc) through 'My Portfolio' page. By inputting the prices at which you bought the shares, you could see the profit/loss in the right-most column. With the information, it will also give you a breakdown of your portfolio, something like what is shown in the screenshot below.

I find this particularly useful for a quick overview of how well-balanced and diversified is my securities portfolio. If you find your 'By Products' pie chart is monotonous or highly skewed to one colour, you may be running a concentration risk and it could be time to consider doing some portfolio re-balancing or diversification. How your should diversify and what percentage of your assets to allocate would depend on your risk appetite, the sectors' performance and also the market outlook (e.g. in a bearish market, you might want to have more defensive stocks and bonds).




I find it perplexing that there's no definition page within the portal stating which stock belongs to which sector. I could only go into the SGX website and do a 'stockfind' to see its industry type. However, most sectors as you can see above, are quite straightforward, e.g. if you hold bank stocks like DBS, then that is classified under 'Finance', telcos like Singtel would be under 'Tranport, Storage and Communications'. REITs are classified under 'Properties' in Sector and 'Trusts' in 'By Products'. Bonds (except SSB) are classified under 'Loan Stock' (hey that's the funny one).

So far I have not come across 'Others'. If you know of more sectors or what falls under 'Others', please leave a comment below.

For now I am quite happy with my allocations. ~Ciao


My holdings to date: 17 stocks + 3 retail bonds + 1 CFD

***

No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...