Monday, June 03, 2019

Financial Review - May, 2019

May, 2019 produced a significant decline in net worth with losses across most asset classes  compounded by adverse currency movements. The end result was a 3.34 percent decrease in net assets.

For the year to date, the portfolio is up 4.48 percent. The adjusted change from when I retired in September 2013 is a 27.49 percent increase. Hong Kong liquidity stands at 41.30 months of estimated outgoings, up from the start of the year's 39.90 months due to sale proceeds being higher than new investments.

Here are the details:

1. my Hong Kong equities were down. There were no transactions this month;

2. my AU/NZ equities were were mixed with gains in New Zealand offset by losses in Australia. I sold my shares in Automative Holdings (ASX: AHG) into the market rather than wait for the takeover offer conditions to be satisfied;

3.my equity ETFs were down (India, Hong Kong and China) in line with the local markets;

4. my position in silver was down slightly;

5. all tenants are paying on time and all properties are let. There were several minor repair bills this month;

6. the AUD and NZD were down against the USD/HKD;

7. my position in bonds remains unchanged;

8. expenses were low.

My HK cash position was largely unchanged during the month. I currently hold 41.30 months of expenses in HKD cash or equivalents (up from 39.9 months on 1 January). It makes little sense to hold large amounts of cash while also having outstanding borrowings on which we pay interest. I partially paid down one loan and switched the balance from USD to HKD to take advantage of the lower interest rate and better align the loan currency with the cash flows which will be used to pay it down.

Total household gearing ((debt+accruals)/assets) is 10.41% of total assets – with the effect of partially paying down one loan outweighing the effect of falling asset values on the calculation.   Property prices are as at 1 January, 2019 and will not be marked-to-market until year end and I do not net off cash. With a mark-to-market of equities, bonds and FX this number will fluctuate even if the amount of debt is being slowly amortised.

Tuesday, April 30, 2019

Financial Review – April, 2019

April, 2019 produced a small in net worth with small gains across most assets classes  partially offset by adverse currency movements. The end result was a 0.75 percent increase in net assets.

For the year to date, the portfolio is up 7.30 percent. The adjusted change from when I retired in September 2013 is a 31.01 percent increase. Hong Kong liquidity stands at 41.27 months of estimated outgoings, up from the start of the year's 39.90 months due to sale proceeds being higher than new investments.

Here are the details:

1. my Hong Kong equities were more or less flat. I sold my shares in China Dongxiang (HKX: 3818) after a the company suspended its dividend following a disappointing result. I added a few more shares in a very small GEM listed company (still a very small position) and took out the scrip option for Hua Xian REIT's dividend (HKX: 87001);

2. my AU/NZ equities were were up with gains in both New Zealand and Australia. There were no transactions this month;

3.my equity ETFs were up (India, Hong Kong and China) in line with the local markets;

4. my position in silver was up slightly;

5. all tenants are paying on time and all properties are let. One lease has been rolled over for the same rental;

6. the AUD and NZD were down against the USD/HKD;

7. my position in bonds increased sharply – and not by design. I have attempted to subscribe for new issues of bonds on five occasions so far this year without receiving any allocation in spite of gearing up my application well above the level I wished to invest. At the end of last month I made my sixth application this year and ended up with a full allocation with the result that, come settlement, on settlement I ended up with more of a single bond issue than I am comfortable with (all purchased with borrowed money). It's a nice spread but it's bad portfolio management;

8. expenses were low.

My HK cash position increased significantly during the month due to sales of investments. I currently hold 41.27 months of expenses in HKD cash or equivalents (up from 39.9 months on 1 January). It makes little sense to hold large amounts of cash while also having outstanding borrowings on which we pay interest. Absent new investments, we will be paying down some of our debts during May.

Total household gearing ((debt+accruals)/assets) is 10.61% of total assets – with the unexpectedly large purchase of bonds being responsible for most of the increase. Property prices are as at 1 January, 2019 and will not be marked-to-market until year end and I do not net off cash. With a mark-to-market of equities, bonds and FX this number will fluctuate even if the amount of debt is being slowly amortised.

Sunday, March 31, 2019

Financial Review - March 2019

March, 2019 produced a small in net worth with gains across all assets classes except silver partially offset by adverse currency movements. The end result was a 2.14 percent increase in net assets.

For the year to date, the portfolio is up 6.66 percent. The adjusted change from when I retired in September 2013 is a 30.23 percent increase. Hong Kong liquidity stands at 35.97 months of estimated outgoings, down from the start of the year's 39.90 months due to new investments.
Here are the details:

1. my Hong Kong equities increased. I topped my my holding in Hua Xian REIT (HK:87001) and made a very small speculation in a GEM listed company;

2. my AU/NZ equities were were up with gains in New Zealand offsetting a small loss in Australia. I purchased shares in Nufarm (ASX: NUF) ahead of the company's worse than expected result;

3.my equity ETFs were up (India, Hong Kong and China) in line with the local markets;


4. my position in silver was down slightly;

5. all tenants are paying on time and all properties are let. I had one major repair bill in March. One lease expired and was renewed to the same tenant for an increased rental;

6. the AUD and NZD were down against the USD/HKD;

7. my position in bonds remains modest. Bonds have been frustrating. I have attempted to subscribe for new issues of bonds on five occasions so far this year without receiving any allocation in spite of gearing up my application well above the level I wished to invest. This week I made my sixth application this year and ended up with a full allocation with the result that, come settlement later this week, I will have more of a single bond issue than I am comfortable with. I will look to sell some of the position before applying for any more bonds;

8. expenses were high due to a trip to Australia.

My HK cash position fell during slightly the month due to new investments. I currently hold 35.97 months of expenses in HKD cash or equivalents (up from 29,9 months on 1 January). 

Total household gearing ((debt+accruals)/assets) is 7.49% of total assets – with a partial pay down in a margin facility and increased share prices accounting for the reduction. This will increase in April when I draw down to pay for the new bond purchase. Property prices are as at 1 January, 2019 and will not be marked-to-market until year end and I do not net off cash. With a mark-to-market of equities, bonds and FX this number will fluctuate even if the amount of debt is being slowly amortised.