Friday, November 03, 2017

Financial Review - October, 2017

October was another positive month for the portfolio with positive movements in Hong Kong, emerging markets and precious metals offsetting declines in New Zealand sharemarket and the NZD producing a 0.95 percent increase in net assets.

For the year, the portfolio is up 17.22 percent. The adjusted change from when I retired in September 2013 is a 24.71 percent increase. Hong Kong liquidity stands at 27.58 months of estimated outgoings, well down on January's 38.6 months due to new investments + transfers to New Zealand.

Here are the details:

1. my Hong Kong equities increased. I  purchased a few additional shares in CNOOC (HK:883), GDI (HK:270) and took the dividend reinvestment option on my shares in K Wah (HK:173);

2. my AU/NZ equities were mixed with Australia being marginally ahead and New Zealand slumping sharply on a combination of another earnings downgrade from Fletcher Building (NZX: FBU) and the election resulting in the centre-left government being replaced by an unstable far-left coalition;

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

4. my position in silver rose and my small position in platinum recovered slightly;

5. all tenants are paying on time and all properties are let. Unusually, there were no repairs at all in October ;

6. the AUD and NZD were were down against the USD/HKD. The NZD in particular slumped following the political pole-vault to the left;

7. my position in bonds remains modest. I have a margin facility in place and my carry trade is doing its thing and generating a small amount of additional income;

8. expenses were low.

My HK cash position fell during the month. I currently hold 27.5 months of expenses in HKD cash or equivalents (down from 38.6 months on 1 January).

I have revamped my spreadsheets to capture all debt (previously some accounts were entered on a net basis). Total household gearing ((debt+accruals)/assets) is 9.97% of total assets. Property prices are as at 1 January, 2017, so this overstates the gearing ratio. With a mark-to-market of equities, bonds and FX this number will fluctuate even if the amount of debt is being slowly amortised.

I would like to make some additional investments but am struggling to find good value in the markets I follow. With expectations of further rises in interest rates muted, I remain tempted by the carry trade and would do one or two more should the right offers be available. I am currently having a look at Singapore REITS and some of the smaller investments in the portfolio with a view to either exiting or adding to my positions - too many very small investments are taking up a disproportionate amount of time to monitor.

Saturday, September 30, 2017

Financial Review - September, 2017

September was another positive month for the portfolio with a cumulation of small gains in most assets and neutral FX movements producing a 1.60 percent increase in net assets.

For the year, the portfolio is up 16.27 percent. The adjusted change from when I retired in September 2013 is a 23.88 percent increase. Hong Kong liquidity stands at 27.70 months of estimated outgoings, well down on January's 38.6 months due to new investments + transfers to New Zealand.

Here are the details:

1. my Hong Kong equities increased moderately. I sold my shares in Xtep (HK:1368) after the company continued to disappoint and purchased a few additional shares in CNOOC (HK:883);

2. my AU/NZ equities were mixed with declines in Australia being less than a small gain in New Zealand. I added some more shares in Colonial Motor Company (NZX: CMO);

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

4. my position in silver fell. I opened a small position in platinum;

5. all tenants are paying on time and all properties are let. Unfortunately, I had a few repair bills this month, some of which are a result of the recent typhoons. One tenant has agreed to a new leas with a small increase in rent;

6. the AUD and NZD were were mixed with the AUD being down and the NZD slightly ahead against the USD/HKD;

7. my position in bonds remains modest. I have a margin facility in place and purchased one additional bond using the facility - a very small carry trade;

8. expenses were low.

My HK cash position rose during the month. I currently hold 27.7 months of expenses in HKD cash or equivalents (down from 38.6 months on 1 January).

I have revamped my spreadsheets to capture all debt (previously some accounts were entered on a net basis). Total household gearing ((debt+accruals)/assets) is 10.04% of total assets. Property prices are as at 1 January, 2017, so this overstates the gearing ratio.

I would like to make some additional investments but am struggling to find good value in the markets I follow. With expectations of further rises in interest rates muted, I remain tempted by the carry trade and would do one or two more should the right offers be available.

Wednesday, September 06, 2017

Financial Review - August, 2017

August was a marginally positive month for the portfolio with a mixture of small gains and losses and unfavourable FX movements producing a 0.62 percent increase in net assets.

For the year, the portfolio is up 14.62 percent. The adjusted change from when I retired in September 2013 is a 22.11 percent increase. Hong Kong liquidity stands at 25.74 months of estimated outgoings, well down on January's 38.6 months due to new investments + transfers to New Zealand.

Here are the details:

1. my Hong Kong equities increased slightly. I purchased a few additional shares in CCB (HK:939);

2. my AU/NZ equities fell with declines in Australia outweighing a small increase in New Zealand. There were no transactions this month;

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

4. my position in silver increased;

5. all tenants are paying on time and all properties are let. Unfortunately, I will have a few repair bills this month, some of which are a result of the recent typhoons;

6. the AUD and NZD were were mixed with the AUD being flat and the NZD falling in response to pre-election jitters. I made an additional transfer to New Zealand;

7. my position in bonds remains modest. I have a margin facility in place and am looking to by some bonds on margin as a carry trade;

8. expenses were moderate as I took a trip to New Zealand to visit family.

My HK cash position fell during the month due to another transfer to New Zealand. I currently hold 25.7 months of expenses in HKD cash or equivalents (down from 38.6 months on 1 January).

I have revamped my spreadsheets to capture all debt (previously some accounts were entered on a net basis). Total household gearing ((debt+accruals)/assets) is 9.02% of total assets. Property prices are as at 1 January, 2017, so this overstates the gearing ratio.

I would like to make some additional investments but am struggling to find good value in the markets I follow. With expectations of further rises in interest rates muted, I remain tempted by the carry trade and would do one or two more should the right offers be available.