Wednesday, September 06, 2017

Financial Review - August, 2017

August was a marginally positive month for the portfolio with a mixture of small gains and losses and unfavourable FX movements producing a 0.62 percent increase in net assets.

For the year, the portfolio is up 14.62 percent. The adjusted change from when I retired in September 2013 is a 22.11 percent increase. Hong Kong liquidity stands at 25.74 months of estimated outgoings, well down on January's 38.6 months due to new investments + transfers to New Zealand.

Here are the details:

1. my Hong Kong equities increased slightly. I purchased a few additional shares in CCB (HK:939);

2. my AU/NZ equities fell with declines in Australia outweighing a small increase in New Zealand. There were 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 increased;

5. all tenants are paying on time and all properties are let. Unfortunately, I will have a few repair bills this month, some of which are a result of the recent typhoons;

6. the AUD and NZD were were mixed with the AUD being flat and the NZD falling in response to pre-election jitters. I made an additional transfer to New Zealand;

7. my position in bonds remains modest. I have a margin facility in place and am looking to by some bonds on margin as a carry trade;

8. expenses were moderate as I took a trip to New Zealand to visit family.

My HK cash position fell during the month due to another transfer to New Zealand. I currently hold 25.7 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 9.02% 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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