Saturday, September 30, 2017

Financial Review - September, 2017

September was another positive month for the portfolio with a cumulation of small gains in most assets and neutral FX movements producing a 1.60 percent increase in net assets.

For the year, the portfolio is up 16.27 percent. The adjusted change from when I retired in September 2013 is a 23.88 percent increase. Hong Kong liquidity stands at 27.70 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 moderately. I sold my shares in Xtep (HK:1368) after the company continued to disappoint and purchased a few additional shares in CNOOC (HK:883);

2. my AU/NZ equities were mixed with declines in Australia being less than a small gain in New Zealand. I added some more shares in Colonial Motor Company (NZX: CMO); equity ETFs were up slightly (India, Hong Kong and China) in line with the local markets;

4. my position in silver fell. I opened a small position in platinum;

5. all tenants are paying on time and all properties are let. Unfortunately, I had a few repair bills this month, some of which are a result of the recent typhoons. One tenant has agreed to a new leas with a small increase in rent;

6. the AUD and NZD were were mixed with the AUD being down and the NZD slightly ahead against the USD/HKD;

7. my position in bonds remains modest. I have a margin facility in place and purchased one additional bond using the facility - a very small carry trade;

8. expenses were low.

My HK cash position rose during the month. I currently hold 27.7 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 10.04% 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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