Dividend Magic

Saving and Investing towards Financial Independence in Malaysia

Leigh

Kenanga Digital Investing

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Filed Under: Investment, Robo-Advisor 5

Fully Automated Robo Advisor

Another new addition to the Robo-advisor stratosphere! This time from Kenanga and it is called Kenanga Digital Investing (KDI). The platform is fully A.I.-driven with little to no human involvement. Most of the Robo-advisors we have in Malaysia right now are a mix of A.I. plus fund manager’s decisions. The only other similar one is from MyTheo.

Is Kenanga Digital Investing Safe?

First off, they’re licensed by the Securities Commission (SC). In terms of governance and licensing, that is as safe as it can get.

As for its execution, the algorithm used by Kenanga Digital Investing is fully A.I.-driven with machine learning capabilities. In the online briefing I attended, Kenanga mentioned that they’ve backtested all the portfolios from 2004. The results shown and presented to us were positive.

Kenanga Digital Investing – KDI Save and KDI Invest

KDI Save – Cash Management Fund

KDI offers two main products to clients and investors. The first is their Cash Management Fund (CMF) – KDI Save. They’re offering fixed returns at 3.0% p.a. with zero fees and calculated on a daily basis. This is one of the highest I’ve seen. And, you don’t have to start off with a huge amount, the minimum is RM100. However, it is capped at RM200,000, anything above that, it’ll be a 2.25% return p.a. Still decent.

KDI Invest – A.I. Driven Investing

KDI Invest is further broken down into five different funds based on your risk profile.

  1. Very Conservative
  2. Conservative
  3. Balanced
  4. Growth
  5. Aggressive Growth

From the backtesting results (from 2004 to 2021) I sighted during KDI’s briefing, the annualized return for the five funds ranges from 6% to 14%. The maximum drawdown was in the range of 10% to 16% for all five funds. Which is pretty damn good.

Kenanga Digital Investing – How to Start?

The steps from registration to execution are simple and straightforward. Before that, there is a special promotion for Dividend Magic readers.

Click Here to Sign Up
Referral code: 100108

Using the above link, you’ll receive RM20 for free upon successful activation of your account with a minimum transacted amount of RM100 into KDI Save or RM250 into KDI Invest. This RM20 will be paid out within 30 days.

Do also note that this promotion is only applicable to the first 500 successful referrals and valid up to 31st May 2022.

The next step to registering is to key in your personal details and to take a clear picture of the front and back of your IC.

You then answer a few simple questions regarding your investment goals and horizon. You’ll be recommended with one of the five portfolios based on your answers. However, you’re still free to pick one on your own. As I’ve still got a long time-horizon ie. 20+ years, I went with the KDI Invest – Aggressive Growth portfolio.

Benefits Kenanga Digital Investing (KDI) – What sets it apart?

Their cash management fund – KDI Save is currently one of the best I’ve found. No fees, a 3% return, and one-day withdrawals. It is perfect for my emergency funds now instead of placing them in fixed deposits or a savings account. I plan to move my funds here. Keep in mind that funds over RM200K earn a lower rate of 2.25%. Which is still higher than FDs!

As for KDI Invest, I’m happy with the returns shown from their backtesting. Would love to see them go further back than 2004 though. I’ll be trying this out for a year and then compare it to my returns from my investments in StashAway.

The fully A.I.-driven approach sounds good to me, and the maximum drawdowns, even for their most aggressive portfolio was only 16%.

Lastly, FEES! I know how everyone, myself included is always concerned about fees. KDI Invest employs a tiered system.

The fees are in line with other Robo-advisors, even cheaper at some tiers. They’re also not charging anything for investments RM3,000 and below.

Also to note, the minimum investment amount is RM250.

End.

I’m definitely going for their cash management fund – KDI Save. And I’ll be testing the waters first with RM3,000 in KDI Invest for a few months. If all is good, I’ll be doing DCA via Kenanga Digital Invest for the long term.

Dividend Income Update 2022

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Filed Under: Dividends 0

A list of my past dividend income and updates can be found below:

April

Freedom Fund as of April 2022
Dividend Income (Apr) –  RM2,362.94
Dividend Income (2022) –  RM6,796.94
Dividend Yield – 1.70%

The markets are in a downturn right now. I’ve been slowly adding my money to Vanguard’s S&P 500 ETF right now through Rakuten Trade. Individual stocks in the US and also locally are currently on hold because I want to try and catch the bottom. DCA will happen through my investments in the ETF.

Stay strong everyone and remember to stay invested, this might be a long dip but it is still an opportunity.

As always, Facebook, Instagram, and now YouTube! Follow, keep up to date. I use Rakuten Trade as my broker.

Acquisition and Disposals

Nil.

Thong Guan Industries Bhd

April 2022 Dividends – RM437.50
April 2021 Dividends – RM437.50
Total 2022 Dividends –  RM437.50
Dividend Yield – 1.23%

TNB Bhd

April 2022 Dividends – RM720
April 2021 Dividends – RM2,320
Total 2022 Dividends –  RM720
Dividend Yield – 1.53%

Malayan Banking Bhd

April 2022 Dividends – RM1,151.88
April 2021 Dividends – RM1,040.65
Total 2022 Dividends –  RM1,151.88
Dividend Yield – 3.96%

Sunway Bhd

April 2022 Dividends – RM195.41
April 2021 Dividends – RM129.80
Total 2022 Dividends –  RM195.41
Dividend Yield – 1.68%

Sunway Construction Bhd

April 2022 Dividends – RM14.40
April 2021 Dividends – RM10.40
Total 2022 Dividends –  RM14.40
Dividend Yield – 2.45%

March

Freedom Fund as of March 2022
Dividend Income (Mar) –  RM766
Dividend Income (2022) –  RM4,434
Dividend Yield – 1.08%

As always, Facebook, Instagram, and now YouTube! Follow, keep up to date. I use Rakuten Trade as my broker.

Acquisition and Disposals

Remember the IGB preference shares I opted for back in 2018? They’ve been redeemed early by IGB at close to their original price, been receiving 4.3% annually for 3 years and I’m a little sad to see it go. =(

I’ll be updating the aforementioned linked article soon to show you guys the calculations.

IGB Berhad -PB

March 2022 Dividends – RM227
March 2021 Dividends – RM227
Total 2022 Dividends –  RM227
Dividend Yield – 2.15%

Public Bank Berhad

March 2022 Dividends – RM539
March 2021 Dividends – RM910
Total 2022 Dividends –  RM539
Dividend Yield – 2.22%

February

Freedom Fund as of February 2022
Dividend Income (Feb) –  RM1,536.56
Dividend Income (2022) –  RM3,668.00
Dividend Yield – 0.89%

As always, Facebook, Instagram, and now YouTube! Follow, keep up to date. I use Rakuten Trade as my broker.

Acquisition and Disposals

Nil.

IGB REIT

February 2022 Dividends – RM721.03
February 2021 Dividends – RM691.51
Total 2022 Dividends –  RM721.03
Dividend Yield – 1.39%

Sunway REIT

February 2022 Dividends – RM776.63
February 2021 Dividends – RM223.69
Total 2022 Dividends –  RM776.63
Dividend Yield – 1.67%

Axis REIT

February 2022 Dividends – RM38.90
February 2021 Dividends – RM-
Total 2022 Dividends –  RM234.09
Dividend Yield – 1.35%

January

Freedom Fund as of January 2022
Dividend Income (Jan) –  RM2,131.44
Dividend Income (2022) –  RM2,131.44
Dividend Yield – 0.52%

As always, Facebook, Instagram, and now YouTube! Follow, keep up to date. I use Rakuten Trade as my broker.

Acquisition and Disposals

Nil.

Scientex (M) Bhd

January 2022 Dividends – RM1,500
January 2021 Dividends – RM1,144
Total 2022 Dividends –  RM1,500
Dividend Yield – 2.72%

Axis REIT

January 2022 Dividends – RM195.19
January 2021 Dividends – RM221.81
Total 2022 Dividends –  RM195.19
Dividend Yield – 1.12%

Thong Guan Industries Bhd

January 2022 Dividends – RM156.25
January 2021 Dividends – RM125
Total 2022 Dividends –  RM156.25
Dividend Yield – 0.44%

CBIP Bhd

January 2022 Dividends – RM280
January 2021 Dividends – RM280
Total 2022 Dividends –  RM280
Dividend Yield – 1.26%

MIDF Invest Review

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Filed Under: Dividends 8

This review of MIDF Invest will cover Malaysia’s first brokerage that gives us access to international stocks at a cheap and competitive rate.

I’ve long been advocating against using local brokerages for international stocks. But with MIDF Invest, I can finally change my stance. No longer will we be charged once locally, and then again internationally, and vice versa when we sell said stock.

I digress, back to our new favorite local broker – MIDF Invest.

MIDF Invest – Registration & Account Opening

To get started, you’ll first have to download the app here:
https://link-to.app/LeighLee

The registration process can be completed in 10 minutes to 24h in most cases according to MIDF.

Mine took less than 24 hours as I did it at night.

You have to:

  1. Submit front and back pictures of your IC;
  2. Record a 20 seconds video;
  3. Receive and submit SMS verification;
  4. Receive and submit email verification;
  5. Create your PW; and
  6. Answer questions.
THIS IS AN IMPORTANT OPTION
Done!

MIDF Invest – Brokerage Fees & Rates

MIDF’s rates are as above, which are pretty self-explanatory. You get 16 free trades if the trade value is <$1,000 per trade for the first 30 days. Thereafter, you move on to the Investor or Trader category depending on how often you trade.

The other fees you’ll need to pay attention to are the Stamp Duty and SEC Clearing Fees.

Stamp Duty is RM1 for every RM1,000 and capped at RM200.
Clearing Fee is 0.00051% of the total sale value, rounded up to the nearest cent.

The rates are pretty competitive when compared to our local brokers. It might be beneficial to make full use of your Explorer status during the first month.

From the calculator from MIDF above, a $1,932 trade will incur a $12.64 total fee. That’s about 0.65% in total fees per trade.

As for dividends, there are no extra charges there. Thank god. There will only be the standard withholding tax based on the country you bought the shares from.

Forex Rate

As I have yet to use MIDF’s platform at the time of this article, I cannot confirm the forex rates. However, the MIDF team has assured me that it is competitive and pretty standard. There are no forex fees charged by MIDF, just a straight-through conversion based on the day’s forex rates.

Interest on Cash Balances

Investors will also be given a small return in the form of interest for unutilized cash held in MYR in your MIDF Invest account. None for balances held in other currencies.

Another feature I confirmed with MIDF was that once your shares are sold, it will not be automatically converted back to MYR. For example, after selling a US stock, the cash will be held in USD. This is a good thing as we won’t be subject to unnecessary forex conversion.

Safety & Legitimacy

As far as I’m concerned, going through a local brokerage is as safe as it gets for us Malaysians. They’re of course regulated by the Securities Commission. MIDF is also wholly owned by our very own Permodalan Nasional Berhad (PNB).

If you didn’t already know, Permodalan Nasional Berhad (PNB) is one of the largest fund management companies in Malaysia with assets under management (AUM) of RM322.6 billion (as of 31 December 2020).

And the ASNB mutual funds we love so much are handled by PNB.

MIDF Invest – Comparisons

Right now, as a local broker offering access to international stocks, MIDF is in the lead in terms of fees (which matters a lot). Other local brokers ie Maybank, CIMB, Public Bank, HL Bank etc do offer us Malaysians access, however, the fees are way too high for retail investors like us. I cite a previous example where I received a net dividend of ZERO dollars after all the fee deductions for my investment in Vanguard ETF through Hong Leong.

So, vs local brokers, MIDF is top. If we look at online international brokers like eToro, Tiger Brokers TD, and Interactive Brokers, MIDF losses out in terms of fees.

The trade-off? You get a regulated broker and peace of mind as a Malaysian with a local broker. This is especially important if you’re planning a huge investment in international stocks.

Another advantage of using a local brokerage is the ease of transfer of funds. You can easily inject more capital within minutes.

Moving Forward

I have opened an account with MIDF but I have yet to deposit any money. I do plan to hold long-term ETFs and dividend stocks through MIDF.

With MIDF being the first (AFAIK) relatively cheap brokerage, we have with access to international stocks, it will be interesting to see if our other brokers step up their game in offering better rates.

End.

I’ll be giving MIDF a trial run soon. My plan is to purchase and hold ETFs through the platform for now. Vanguard’s S&P 500 ETF will be my first buy. Might even be building up a big portfolio of ETFs and some long-term dividend stocks.

I’ll also be updating and inserting MIDF Invest into my previous comparison post soon. So keep an eye out for that.

Once more, you can download the app here:
https://link-to.app/LeighLee

Applying for an IPO in Malaysia

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Filed Under: Investment 2

An Initial Public Offering, more commonly known as an IPO is when a private company is listed on the stock exchange and sells its shares to the public for the first time. They are usually met with much fanfare and anticipation.

To put it simply, there are 3 ways for Malaysians to apply for an IPO:

1) Manual via application forms;
2) ATMs; and
3) eIPO via online banking

I have never done number 1 and I don’t think anyone is doing it this way anymore. Maybe the older generation of stock investors used to do this. Applying via the ATM was the easiest method up until a few years ago. Now, I think the go-to and most convenient way to apply for an IPO in Malaysia is through online banking.

Most local banks offer this service and I myself use Maybank. I’ll be giving you a step-by-step guide below using Maybank because it can get a little complicated.

eIPO Application via Maybank2U

Things to Note When Applying for an IPO in Malaysia.

  1. It goes without saying but you’ll first want to make sure that you have a sufficient amount of money in your account before applying. Take note that some banks require you to maintain a minimum balance.
  2. Fees. I was charged RM1 by the bank as a processing fee.
  3. Only apply once. Duplicate applications are not allowed.
  4. Take note of the closing date and apply before 5pm that day.
  5. Take care to input the correct CDS number when applying.
  6. Only Direct CDS accounts can apply for IPO, nominee accounts unfortunately cannot.

CTOS DIGITAL BERHAD IPO

If you squint hard enough at the image earlier, you can make out HAILY GROUP BHD and CTOS DIGITAL BHD. And as you might have guessed, I’m actually applying for CTOS this time around. I’ve tried applying for a few companies prior to this and never got any shares. So I’m not keeping my hopes up.

End.

Keeping this article short and simple for those of you who want to apply for IPOs in Malaysia. Hope this helped and thank you for reading!

Tudor Black Bay GMT – My Investment in a Luxury Watch

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Filed Under: Investment, Other Investments, Travel, food and the finer things in life 4

Brand: Tudor
Model: Black Bay GMT
Reference Number: 79830RB
Material: Stainless steel
Crystal: Scratch-resistant sapphire
Movement: Cal. MT5652
Case Diameter: 41mm

This will be more of an unconventional and personal article detailing my recent purchase and investment in a luxury watch.

Why a Luxury Watch?

I’ve always loved watches and had throughout the years taken to wearing my dad’s watches. As most of you know, I’m not a big spender but I think watches are my kryptonite. But, I do have the following justifications.

A Goal

Getting myself a quality watch has always been a goal of mine. I promised myself a long time ago that when I have the financial means to own one, I would get one.

Some go for cars, some yatches, mine was a watch.

Lasts a Lifetime

I wanted something that was of high quality and can last me my entire life.

At the same time, it appreciates in value over time. In fact, I’ve come to see quality timepieces as perhaps the best heirloom to pass on to the next generation.

Investment

I love the feel of a good solid watch on my wrist and in the case of a luxury watch, they retain their value over time. The latter appeals very much to the investor in me.

Instead of having my cash in stocks or placed in FDs, I wanted one on my wrist. In fact, my Tudor GMT, after wearing it for about 6 months, has appreciated by about 20% in value.

How I Purchased a Tudor

With the above reasons, it was about time I got myself one.

Tudor Black Bay GMT

To be totally honest, I looked at a Rolex initially but it was just too expensive for me. I couldn’t justify having RM50,000 on my wrist that I know that I wouldn’t wear often. So until my net worth goes up by about 5X, a Rolex would not suit me.

A Tudor isn’t a Rolex but as some of you may know, Tudor is the sister company of Rolex. You get the quality of Rolex at a more than 50% discount.

They’re a brand that I can get behind and they do increase in value over time. Also, with their lower price tag compared to a Rolex, I can comfortably wear a Tudor every day.

With Tudor in mind, I spent days diving through watch forums and reading articles on the company and I was torn between the Black Bay GMT and BB58. I finally settled on the GMT because I love the Pepsi bezel and the GMT feature is useful for me when I travel.

Tudor was actually introduced to me by a new friend I met through one of my readers. Sean, from ssong watches.
Ssong is a great place to look for and to learn about luxury watches. Sean answered ALL of my many many queries as I was doing my research on watches. He’s a veteran in the industry and has years of experience with luxury watches. I was fortunate to have been acquainted with him before making my first purchase.

Ssong did not have Tudors at the time I was looking to buy so I told Sean to reserve one for me if and when a unit becomes available. I then went ahead and booked one from Mid Valley’s Tudor boutique store as well, as per the advice from Sean himself.

As a side note, I actually had a very bad experience when I went to The Hour Glass at the Gardens. Didn’t get good service there. On the other hand, I had a wonderful experience at Tudor’s boutique store in Mid Valley though.

Purchased!

Finally, towards the end of 2020, I was finally able to get myself my first ”somewhat” luxury watch – a Tudor Black Bay GMT.

Lady luck was actually on my side and Sean gave me a call I think a few weeks after I met him to reserve a Tudor GMT. I didn’t purchase a brand new one but instead got one that was in mint condition and barely worn a few times at a slight discount.

Till today, I still feel a sense of joy putting on the watch every day. =)
It may be tough to explain my love and appreciation for a good watch to someone that doesn’t like one, so I won’t.

I’ve heard from so many around me saying they’d just wear an apple watch or a Casio as it was just to tell time. I’ve got nothing against Casio btw. An Apple Watch can even measure your heartbeat and health. They may be right in their own way, but god damn I still love my watch.

I’ve been wearing my Tudor GMT for half a year now, almost every single day. This is an investment for me but at the same time, it is an investment I can fall in love with. The price has already gone up in the 6 months that I’ve owned the watch.

End.

As mentioned earlier, I know this article is a little out of the norm from the usual stocks and dividends. But hey, I think it is a viable investment and I really do consider it one.

Hopefully, you’ll continue to see updates on watches from me periodically. And I promise to not spend above my means. If you’ve got views or comments or even advice on watches, please do leave your thoughts in the comment section of this article. I know many of you are enthusiasts and veterans.

Binance – Crypto Savings and Staking

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Filed Under: Cryptocurrencies, Investment 7

So I’ve recently sold about RM20,000 worth of bitcoins. It was just sitting in my Luno account for a month or so as MYR because I did not know what to do with it. I have since moved that amount to Binance. I converted to XRP and then transferred it to Binance.

At the same time, I was also doing my research on DeFi and staking. A really good place to start if you’re looking into this is CoinGecko’s book – How to DeFi. It took me a few days to get through the whole book the first time, and another few days for me to kinda-sorta understand it. And even now, I think I’ve barely scratched the surface. If you guys have other recommended readings, please do share them with me.

My Crypto Portfolio on Binance

Space reserved for updates.

Binance vs Coinbase

So my interest is actually in staking my coins. I don’t like my assets to just sit there and staking actually generates a lot of returns in the form of interest. So I had to look for platforms that supported staking and savings. In the end, it boiled down to Binance and Coinbase, I went with Binance mainly because they’re the biggest and the cheapest.

Is Binance Safe?

Some of you may remember the Binance hack back in 2019. The company actually absorbed the losses sustained then and no users were affected.

Another one of my concerns with Binance was with China. Binance was founded in China but they’ve since taken measures. Their servers were moved to Japan back in 2017 and they’re now headquartered in the Cayman Islands.

What I Did on Binance

As mentioned earlier, I had about RM20,000 of Bitcoin profits sitting in my Luno account. I decided to move this amount to Binance to try out its savings and staking. I wanted to move my funds with the lowest possible fees and decided to move it using XRP. Bought the maximum amount of XRP in Luno, moved the funds to Binance, and then converted my XRP to USDT.

The total transfer cost of XRP? 0.8313165. Which translates to about RM4?

As you can see, I’m holding 3,811 USDT right now and earning 5.80% p.a. using Binance’s savings feature

Earning Interests on my Crypto

Savings

So the safest of all the various forms of earning a return on your coins is Savings. Of which there are two types – Locked Savings and Flexible Savings.

An example would be Bitcoin’s savings. You stand to earn 1.2% p.a. Which isn’t too bad considering I’ve been earning zilch previously.

Another personal example of mine is my USDT Savings which is currently netting me 5.80% p.a.

Staking

I’ve yet to actually stake my coins but I’m really looking into it. Right now, there’s a sort of first come first serve situation with the more popular coins.

So, what is staking?

Staking is the process of actively participating in transaction validation (similar to mining) on a proof-of-stake (PoS) blockchain. On these blockchains, anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn Staking rewards. 

– Coinbase

For example, for USDT, the interest rate for staking is almost double its savings rate at 10.67%. But it is sold out.
I’ll definitely be selling my USDT at some point to invest in other coins and then staking them. Updates will be done on this same page so keep an eye out.

The Risks of Savings and Staking

As we are all too familiar with, the higher the risk, the higher your potential reward. Naturally, that means staking carries a higher risk when compared to savings.

One risk that both savings and staking share is the risk of the value of your coin falling. If that particular coin experiences a huge drop, all interests earned will be wiped out.

Savings and Staking are very new in the world of finance and cryptocurrencies. Essentially, you’re lending your coins out to a process.

Usually, in Savings, your coin is loaned out to a holding company that then lends it to its various clients. These clients may want to borrow cryptocurrency for financial trades or for arbitrage.

In Staking, your tokens are used in its respective verification process. By helping out the network, you earn a reward.

A key thing to remember – Do not risk your whole stack of coins. Not in savings and not in staking. Don’t risk what you can’t afford to lose.

Sign Up

If you’re looking to sign up with Binance and explore the world of DeFi, use the link or manually enter my code: GGRMJQWA

You get a small 5% kick back and discount on fees when you make transactions there.

End.

I’m moving a relatively small portion of my crypto portfolio from Luno to Binance. Luno is still where the bulk of my portfolio will be held as it is the safest for me as a Malaysian.

The main reason for testing out Binance is to try out their savings and staking. If you’re new to cryptocurrencies and looking for a place to start, my advice is to stick with Luno as a Malaysian. Safety will be the biggest priority. My review and my cryptocurrency portfolio on Luno can be found hERE.

Risks, risks, risks

There are huge. huge risks to investing in cryptocurrencies. Even more when you’re moving them out of Malaysia’s regulatory space and into unknown, literal international waters. You then further risk it by staking/savings said coins. So please, understand the risks you’re taking before taking the dive.

The above being said, I’m extremely excited right now and I feel like a kid all over again dabbling in a whole new world of finance. I’m still very new at this and would love to hear from experts or anyone with more experience with this.

Onwards and upwards!

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