Tuesday, August 31, 2010

Monthly Review - August 2010

August was a poor month for financial progress with losses on the equity portfolio being compounded by adverse currency movements as the USD rose. While these losses were more than offset by positive cash flow on my properties, a reasonable savings rate and a small tax refund, I transferred some money to mrs traineeinvestor which resulted in an overall small decrease in net worth this month.

Here are the details:

1. my Hong Kong equity portfolio declined. I purchased some more shares in CNOOC and some shares in BHP

2. my ETFs declined in line with their respective markets (Hong Kong, Russia, Taiwan and India)

3. my commodities were mixed and netted out for a small loss (ETF, silver, HOGS, NICK)

4. all of my properties are let, are producing a positive cash flow and making a positive contribution to my net worth. Although there were no repair bills this month, I will be hit hard next month as two properties have suffered from leaks and a third requires an air conditioning unit to be replaced. On the positive side, one lease has been renewed for another two years at a slight increase in rent

5. currency movements were adverse, as the AUD and NZD depreciated against the USD

6. savings were positive with income being average and expenses also being average. Net savings were reasonably good

7. I transferred some money to mrs traineeinvestor for tax planning purposes. As this is an outright transfer it represents a reduction in the net worth of the private portfolio

My cash position was reduced due to the equities purchased and the transfer to mrs traineeinvestor and now represents about 9 month's worth of expenses.

For the month, net worth decreased 0.07%. The year to date increase is 11.1%.

My target retirement window remains sometime between early 2012 and the end of 2013

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