Friday, March 01, 2013

Monthy Review - February 2013

February was a month where the investments largely went sideways while a high savings rate and positive cash flow from the properties contributed to a modest net gain. While my Hong Kong equities were largely unchanged for the month, my Australian and New Zealand equities rose strongly.  Commodity prices deteriorated (especially silver). Currency movements were slight adverse (in particular the AUD). Cash flow from the properties was positive with all properties fully occupied. Income was high and there were no major expenses. The result was a modest increase in net worth.

Here are the details:

1. my Hong Kong equity portfolio was largely unchanged. There were no new investments this month. I hold shares in CMR which is currently suspended following an attack by a short seller alleging fraud. I have arbitrarily assumed that the shares will fall by a third when the suspension is lifted;

2. my AU/NZ equities appreciated sharply; ETFs went sideways in line with the local markets;

4. my commodities fell sharply, with silver the biggest loser;

5. all of my properties were occupied with all tenants paying on time. There were no major bills this month but I will have two major bills in March - one repair job which is semi-structural and a levy for building refurbishment;

6. currency movements were negative, with the NZD largely unchanged while the AUD fell against the HKD/USD;

7. my position in bonds remains small;

8. there were no open derivative contracts at month end;

9. savings were very high with good income and expenses were low;

10. I transferred some money to Mrs Traineeinvestor.

My cash position rose with more money coming in than going out due to new investments. I transferred some money to Mrs Traineeinvestor which is treated as an expense. I currently hold 52.3 months of expenses in HKD cash or equivalents. This is above my target floor of 24 months.

For the month, my net worth increased by 1.6%. The year to date increase is 8.0%. My retirement date has been fixed for the middle of this year for reasons that have nothing to do with finance - financially, I am past the point where I can afford to retire.

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