April was another good month for the portfolio with small gains across the board producing a 0.99 percent increase in net assets for the second month in a row.
For the year, the portfolio is up 6.14%. The adjusted change from when I retired in September 2013 is an 12.79% increase. Hong Kong liquidity stands at 27.5 months of estimated outgoings, well down on January's 38.6 months due to new investments + a transfer to New Zealand.
Here are the details:
1. my Hong Kong equities increased. I have taken the dividend reinvestment option on my shares in NWD (HK:17), NWS (HK:659) and Huaxian Reit (HK:87001) and invested the proceeds of redemption of a small RMB bond in more Huaxian Reit units on the belief that being paid a yield of over 8% instead of 3% is adequate compensation for the risks of choosing a Reit over a bond;
2. my AU/NZ equities appreciated slightly. I purchased shares in two small companies, Augusta Properties (NZX: AUG) which offers a net yield of over 5% and Marsden Maritime Holdings (NZX: MMH) which only offers a net yield of around 3.2% but has a good track record of growing its distributions and a favourable macro environment;
3.my equity ETFs were up very slightly (India, Hong Kong and China) in line with the local markets;
4. my position in silver fell;
5. all tenants are paying on time and both vacancies have been filled. One tenant has given notice to vacate at the beginning of June;
6. the AUD and NZD were down slightly against the HKD/USD. I transferred some money from HK to NZ to pay for the new investments mentioned in #2 above which accounts for most of the fall in my HK liquidity;
7. my position in bonds remains small;
8. expenses were moderate with a pre-paid air ticket for visiting my daughter in boarding school later in the year paid for.
My HK cash position fell during the month due to the transfer of funds to New Zealand. I currently hold 27.5 months of expenses in HKD cash or equivalents (down from 30.6 months).
I would like to make some additional investments but am struggling to find good value in the markets I follow. With expectations of further rises in interest rates muted, I am starting to get tempted by the carry trade.
