Saturday, December 31, 2011

Monthly Review - December 2011

December saw the value of the portfolio edge slightly higher, largely in line with the movements in equity markets and favourable exchange rate movements.

Positive cash from on the properties (fully leased) and a healthy savings rate were enough to produce a respectable end to a very disappointing year.

Here are the details:

1. my Hong Kong equity portfolio appreciated, with China Gas being the standout performer. I purchased shares in VTech, Sino Oil & Gas, Sinopec, Cosco Pacific, GDI and NWS;

2. my AU/NZ equities declined; ETFs were mixed in line with the local markets, with Hong Kong being positive and the others being negative. I sold all my Lyxor ETFs (except for a small position in the Lyxor Commodity fund which inadvertently escaped the cull in response to news that the funds would be delisted). There were no ETF purchases this month;

4. my commodities fell, led by silver.  Most of my Lyxor Commodities Fund was sold;

5. all of my properties are occupied with all tenants paying on time. Some minor repairs this month;

6. currency movements were very negative, as the NZD and AUD fell sharply against the HKD/USD;

7. my position in bonds remains small. No bonds were purchased this month;

8. I had no open derivative positions;

9. savings were good with high income and low expenses.  The Christmas holiday was fully provided for and had no impact on my net worth.

My cash position increased in spite of making net new investments. I currently hold 35.3 months of expenses in HKD cash or equivalents (compared to 26 months at the end of February).  This is an all time high.

For the month, my net worth increased by 1.76%. The year to date increase is a meagre 5.6
8% - which is less than my net savings and cash flow from properties, indicating that I have had material losses on investments this year.

An annual review will be posted separately.

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