Tuesday, January 03, 2017

Financial Review - December, 2016

November saw a 2.03% dip in net assets. Almost all the decrease was attributable to the fall in emerging market stocks and the fall in the AUD/NZD against the USD/HKD. 

For the year, the portfolio is up 2.43%. The adjusted change from when I retired in September 2013 is an 6.03% increase. Liquidity stands at 39.9 months of estimated outgoings. 

Here are the details:

1. my Hong Kong equities feel. I added some additional shares Hua Xian REIT (HK:87001) and in NWS (HK:659) through the dividend reinvestment plan;

2. my AU/NZ equities appreciated slightly. I added some shares in National Australia Bank through the dividend reinvestment plan;

3.my equity ETFs were down (India, Hong Kong and China) in line with the local markets;

4. my position in silver fell;

5. all tenants are paying on time. We are at full occupancy. One building is currently subject to a lengthy renovation exercise. My tenant had agreed to tough it out in exchange for a significant discount on the rent (which is better than a lengthy vacancy) but has now given notice expiring at the end of January. The property will need redecorating before being put back on the market. A second property will become vacant at the end of February;

6. both the NZD and thee AUD fell sharply against the HKD/USD;

7. my position in bonds remains small. I purchased as small amount of RMB two year PRC sovereign bonds yielding 3.5%;

8. expenses were high (Australia is expensive) but had been fully accrued;

9.there were no transfers to Mrs Traineeinvestor;

10. there were no derivative transactions this month.

My cash position rose during the month due to the influx of year end dividends. I currently hold 39.9 months of expenses in HKD cash or equivalents.

In other news, my part time job came to an end on 31 December and interest rates on our mortgages have gone up following the US interest rate increase. I will comment more on these when I do the 2016 year end wrap up and the 2017 preview.


Share Investor said...

Just a note. To your disclaimer at bottom of page. I would take your personal advice on investing over any other "professional".

traineeinvestor said...

Hi Darren

Thanks for the comment. Right now, I'm wishing I'd followed your recommendations for NZ stocks a bit more closely as I have two daughters starting boarding school in New Zealand (one this year, the other in two years' time). I would like to meet the costs from my NZ$ rent and NZ$ dividends (trying to match outings and income to reduce FX risk) which will require me to increase my investments in NZ listed shares. The good news is that the NZD has weakened. The bad news is that value is hard to find on the NZX at the moment.