"Know what you own and why you own it." In that spirit, here are a few thoughts on the top holdings:
Elite Commercial REIT (US$330mn mkt cap): A pretty small-cap REIT listed in Singapore holding 97 properties across the UK, 99% leased to the UK government. The bulk of the properties are located in city centres and triple-net leased to the UK Department of Work and Pensions, i.e. the unemployment and welfare department, with a weighted average lease of 8.6 years. Trades at 1.1x P/B, with a dividend yield of 6.6%. Pretty sturdy, just not a ton of upside in terms of rental reversions, but some potential acquisitions in the UK if it trades well. Exposed to sterling, which could be a good or bad thing, depending on how you look at it (I don't have a particularly strong view). Overall, this should be a pretty stable holding.
Netlink Trust (US$2.4bn): Owner and operator of Singapore's fibre network. Business cycle is more tied to population growth than economic activity, though a severe recession could slow down the pace of installations. It's entirely possible that the mandate to stay-at-home causes more people to upgrade their Internet networks, actually. Actually quite a conservative balance sheet, at 20% debt/equity ratio compared to the 40% that most REITs run at. Trades at 1.2 P/B and 5.8% dividend yield, I was happy to pick this up at a slight discount and use the dividend to fund other purchases in the future.
Microsoft (US$1.5tn): Man, it feels weird typing in that market cap. And yet, it seems like the total addressable market (TAM) for cloud services has been completely underestimated. Azure grew +59% yoy in the last quarter off a huge base. Some crazy yoy numbers: revenue +14%, operating income +27%, and these numbers included a drag from FX translations. I think Microsoft is a lock to compound earnings at 15-20% over the next few years, and on track to return something like US$32bn each year to shareholders via buybacks and dividends. A much transformed company under stellar leadership, and now firing on all cylinders. Should probably be a larger holding, to be honest.
Amazon (US$1.5tn): Amazon is no longer the no-brainer that it was at $360, but I reckon AWS could be worth US$500bn, and the retail side accounts for the rest of the valuation. Seeing some competition from the likes of Shopify, as the Internet space fragments into tribes, but continues to take share from the offline retailers. If this were a Chinese company, could spin some dog-and-pony story and get phantom valuation for its health and logistics arms. Ultimately, with a company this side, you are making an investment in management and company culture. It sounds weird to say this, but Amazon is no longer aggressively overvalued. By my reckoning, it trades at 25x FY22f P/E, if you normalize earnings. Clearly, they're going to undeclare earnings to reduce their tax liability, but this is a company that could declare mammoth profits whenever it wants to.
AEM Holdings (US$800mn): One of two small-cap semiconductor stocks I own, supplies mostly automated testing equipment to Intel. I'm a strong believer in semiconductor stocks, as the ongoing friction between US and China creates the need for parallel supply chains, so a capex bonanza should be ongoing for the next couple of years. AEM trades at ~8x P/E, and recently reaffirmed guidance of record revenue (and hence earnings) for 2020. It needs close to zero capex to expand. Main risk, in my view, is the heavy reliance on a single customer, but Intel and TSMC and both guiding for record capex spends in the next few years.