Friday, November 29, 2013

Financial Review - November 2013

November was the first month in which there is no employment related income hitting the bank account - a scary moment. At the moment, it looks like I will get a small adjustment in late January or early February.

November was a good month for my investments. Net worth increased. The combined effect of a strong performance from my emerging market equities and the steady contribution from my properties more than offset the combined effect of a decline in my NZ/AU equities and commodities, adverse FX movements and living expenses.

Here are the details:

1. my Hong Kong equity portfolio appreciated sharply. During the month, I purchased more shares in Ping An (HK:2318) and added Dynam Japan (HK:6889) and Shanghai Petrochemical (HK:338) to the portfolio. I sold shares in Jiangsu Express and China VTM. 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 declined slightly - mostly due to my largest position Westpac falling; equity ETFs increased in line with the local markets. There were no new purchases;

4. my commodities fell. 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 but a number of bills will be due either in December or early in 2014. Unfortunately, two buildings have received notices for a mandatory window inspection - I am hoping that I will not have to replace any windows. One tenant has given notice to terminate her lease effective mid-February. Two properties are debt free;

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

7. my position in bonds remains small. Some RMB bonds matured and I have applied for a new IPO of PRC sovereign RMB bonds;

8. expenses were low.

My cash position fell slightly. I currently hold 55.6 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 1.41%. The year to date increase is 15.14%. This means that my mark-to-market investments have appreciated this year.

Note 1: my calculation of cash and near cash needs to be revised.

Note 2: my net worth calculation includes accruals for long term expenses such as tax, holidays, home repair etc. At the moment, it appears that I have over provided for both tax and holidays. I will make an adjustment at year end.

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