Tuesday, August 01, 2017

Financial Review - July, 2017

July was another good month for the portfolio with small gains across the board and favourable FX movements producing a 3.93 percent increase in net assets.

For the year, the portfolio is up 14.00 percent. The adjusted change from when I retired in September 2013 is a 21.14 percent increase. Hong Kong liquidity stands at 28.5 months of estimated outgoings, well down on January's 38.6 months due to new investments + a transfer to New Zealand but ahead of last month's due to high levels of dividends being received.

Here are the details:

1. my Hong Kong equities increased. I purchased some additional shares in GDI (HK:270);

2. my AU/NZ equities rose slightly. I purchased some additional shares in Colonial Motor Company (NZX: CMO);

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

4. my position in silver was stable;

5. all tenants are paying on time and all properties are let;

6. the AUD and NZD were up against the HKD/USD. I made a small additional transfer to New Zealand;

7. my position in bonds remains small. I declined some offers as the spread between yield and cost of funds was too thin.

8. expenses were moderate as we took a short family holiday to Da Nang;

My HK cash position rose slightly during the month due to high level of dividends. I currently hold 28.5 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 gearing ((debt+accruals)/assets) is 9.06% 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 remain tempted by the carry trade and would do one or two more should the right offers be available.

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