Monday, June 05, 2017

Financial Review - May, 2017

May was another good month for the portfolio with small gains across the board producing a 2.02 percent increase in net assets for the second month in a row.

For the year, the portfolio is up 8.08%. The adjusted change from when I retired in September 2013 is a 14.92% increase. Hong Kong liquidity stands at 25.4 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 purchased a small position in Honma Golf (HK:6858);

2. my AU/NZ equities fell slightly. No transactions this month; equity ETFs were up slightly (India, Hong Kong and China) in line with the local markets;

4. my position in silver rose;

5. all tenants are paying on time and all properties are let. I secured I slight increase in rent on leasing one property to a new tenant;

6. the AUD and NZD were down slightly against the HKD/USD;

7. my position in bonds remains small;

8. expenses were moderate after replacing an aircon unit in our home and taking a short trip to New Zealand;

My HK cash position fell during the month due to expenses and new investments. I currently hold 25.4 months of expenses in HKD cash or equivalents (down from 38.6 months on 1 January).

I have revamped my spreadsheets to capture all debt (previously some accounts were entered on a net basis). Total household liabilities (debt+accruals) is 8.79% of total assets. Property prices are as at 1 January, 2017, so this overstates the gearing ratio.
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, although the rise in funding costs currently makes this less attractive than it was a few months ago.

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