Monthly Review - June

My net worth increased by 2.1% in June.

The year to date increase is 17.8%. The return on my investments in the first half of the year was ahead of the desired return for the full year. In dollar terms savings are slightly ahead of my budget (in spite of my best efforts to overspend in June). This is due to increases in income being greater than increases in spending. More discipline on the spending front is needed.

June was a disappointing month. Although the headline increase in net worth appeared to be a solid result a look at the numbers tells a different story:

1. my unit trusts declined in value during the month. The change was relatively small, but it was a negative performance;

2. my residual share portfolio declined in value during the month. The change was relatively small, but it was a negative performance;

3. my investment in silver declined in value during the month. In percentage terms it was a material change in the value of my investment in silver but the overall effect on my net worth was small;

4. my tenants continued to pay the rent on time and rents continue to be higher than the expense component of the outgoings;

5. the modest gain on the sale of a small investment property was realised at the end of the month;

6. I had a self inflicted blow out in expenses during the month. See here for further details;

7. my income rose during the month.

The combined effect of the increase in income, the realised gain on the property disposal and the net income from the investment properties was greater than the losses on the investment funds, shares and silver.

The only investment activities undertaken during the month were (i) completion of the sale of one small investment property (ii) agreeing the budget for the fit out of the new property purchase to be completed next month (iii) regular monthly payments into two small cap investment funds and (iv) a small amount of cash converted into RMB in anticipation of participating in the launch of an RMB bond issue.

Looking ahead to July, I will have major cash outflows as I complete the purchase of another property and make the first payment to the contractor and pay the credit card bills for our holiday.