Portfolio Update 1H 2026

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 We have crossed the halfway mark of 2026!

Our portfolio delivered a solid 11.17% total return YTD. This performance landed exactly in line with the broader benchmark Straits Times Index (STI). 

To build long-term resilience in my portfolio, I executed a major portfolio restructuring as 1H 2026 came to a close. I scaled back my individual exposure to DBS and rotated capital into diversified index and sector vehicles, namely G3B STI ETF and CFA REIT ETF.

My current portfolio exposures are as such:

  • 20% in G3B STI ETF: Our broad market anchor, capturing corporate earnings from Singapore's top 30 blue-chip companies.
  • 20% in CFA (NikkoAM-StraitsTrading Asia ex Japan REIT) and CLR (Lion-Phillip S-REIT) ETFs: Diversified exposure to REITs, with recent price underperformance providing attractive yields and valuations.
  • 20% in individual SREITs
  • 24% in SBanks
  • 16% in non-REIT, non-financial constituents

Monthly Dividends in 2H 2026

My portfolio is also geared to generate monthly dividends for the rest of the year. My expected number of dividends in each month are as such:

  • July (2): G3B STI ETF, Kimly
  • August (12): CFA REIT ETF, OCBC, Singtel, UOB, DBS, CLR REIT ETF, Suntec REIT, CDG, PLife, Sembcorp, Keppel Infrastructure Trust (KIT), YKGI 
  • September (9): CICT, CLAR (Ascendas REIT), MIT, MLT, Lendlease REIT, Genting Sing, HRNet, KDC REIT, AIMS APAC REIT
  • October (1): Riverstone
  • November (5): CFA REIT ETF, DBS, FCT, Suntec REIT, Netlink
  • December (5): Singtel, MIT, MLT, Riverstone, AIMS APAC REIT

Growing Allocation In S-REITs

My portfolio allocation to REITs has gone up since the last quarter. The rationale for this was a divergence between earnings and share price, as reported earnings and DPU have improved across the board for S-REITs in 1H 2026, while share price has underperformed on news of sticky inflation and possible rate hikes. 

On the other hand, 3-Month Compounded SORA showed its year-to-date peak on 02 January 2026 at 1.1797% and has normalized down to 1.08% as of 30 June 2026. Refinancing debt at lower rates continues to be a near-term catalyst for S-REITs, with lower financing costs helping to increase DPU. Lower rates has also driven S-REITs' M&A activity in 1H 2026. 



 Interest rates continue to be the crucial macro factor for S-REITs, with a recent selldown driven by higher interest rate expectations and higher Singapore bond yields. I view S-REITs as structural compounders driven by rental reversions and active asset optimizations. All Huat !!

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