Thursday, October 31, 2013

Financial Review - October 2013

October was a good month for my investments. Net worth increased. High income produced excellent savings* and the principal component of my mortgage repayments combined with solid gains on my equities and commodities more than offset a small adverse movement in FX rates.

Here are the details:

1. my Hong Kong equity portfolio appreciated. During the month, I purchased shares in Ping An (HK:2318) and added slightly to my shareholdings in Cosco Pacific (HK:1199) and K Wah (HK:173) through dividend reinvestment elections. I hold shares in CMR which is currently suspended following an attack by a short seller alleging fraud. I am currently assuming a 100% loss on this position;

2. my AU/NZ equities appreciated slightly; equity  ETFs increased in line with the local markets. There were no new purchases;

4. my commodities rose. Silver is my only position;

5. all of my properties were occupied with all tenants paying on time. There were only minor repair bills this month. Unfortunately, two buildings have received notices for a mandatory window inspection - I am hoping that I will not have to replace any windows. One property is now debt free;

6. currency movements were negative, with gains in the AUD being less significant than the fall in the NZD;

7. my position in bonds remains small. Some RMB bonds matured and I purchased some units in the iShares RMB Bond fund (HK:3139 and HK:83139);

8.I have no open derivative positions;

9. savings were high with high income and moderate expenses;

10. there was no transfer to Mrs Traineeinvestor this month.

My cash position rose due in spite of the new investment in Ping An. I currently hold 56.5 months of expenses in HKD cash or equivalents. The IShares RMB Bond fund is included a a cash equivalent. This is above my target floor of 24 months.

For the one month period, my net worth rose by 2.06%. The year to date increase is 13.54%. This means that my mark-to-market investments have appreciated this year.

* I retired on 30 September, 2013. Pay for September hit the bank account at the beginning of October.

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