Just an update on the FCL Treasury 3.65% 7 year Retail Bond.
- Price on 29th May 2015 = S$1.007
- Interest = S$0.0365 per share
- Yield = 3.625%
- Tenure = 7 years
- Total Interest = $0.2555 per share
- Capital Loss = $0.007
- Transaction Cost = $0.006
- Overall Return = $0.2446
- Overall Annual Yield = 3.440%
This is something which I don't really understand because FCL Treasury has the backing of Fraser Centrepoint which is by far one of the household blue chips that we know. Thus, there should be a premium attached to it. However, as of now, it is not moving up as much.
Well, there seems to have a competition of funds at this point with FCL Treasury rivaling Hyflux CPS 6% and OCC 5.1% all which has a shorter tenure and giving at least 3% yield and therefore look more attractive.
I have gotten 10 lots from this and will hold on to it at least until next year. It serves as part of my family cash reserve which I am trying to build.