November saw a partial recovery in net worth with gains in equities compounded by adverse currency movements. The end result was a 3.45 percent increase in net assets.
For the year to date, the portfolio is down 2.17 percent. The adjusted change from when I retired in September 2013 is a 23.94 percent increase. Hong Kong liquidity stands at 39.77 months of estimated outgoings, significantly increased from the start of the year's 26.68 months due to net asset sales and a new mortgage loan. The sharp decline from last month was due to paying for a new car.
Here are the details:
1. my Hong Kong equities rose. There were no transactions this month;
2. my AU/NZ equities were were down ... again. There were no new transactions;
3.my equity ETFs were up (India, Hong Kong and China) in line with the local markets;
4. my position in silver was more or less unchanged. I am considering selling my silver and investing the money in equities for additional income;
5. all tenants are paying on time and all properties are let;
6. the AUD and NZD were up against the USD/HKD;
7. my position in bonds remains modest. There were no additional purchases this month. Recent interest rate increases have pushed the holding values of some of my bonds to below par - since I intend holding to maturity (other than a solitary perpetual) this is not a problem. I have a margin facility in place and my carry trade is doing its thing and generating a small amount of additional income;
8. expenses were moderate as I paid for some travel expenses.
My HK cash position rose during the month due to full occupancy on the properties and a number of dividends being received. I currently hold 39.77 months of expenses in HKD cash or equivalents (up from 26.68 months on 1 January).
Total household gearing ((debt+accruals)/assets) is 8.9% of total assets – lower than last last month due to the car purchase and reduction of the offsetting accrual. Property prices are as at 1 January, 2018 and will not be marked-to-market until year end and I do not net off cash. With a mark-to-market of equities, bonds and FX this number will fluctuate even if the amount of debt is being slowly amortised.
Friday, November 30, 2018
Monthly Review – October, 2018
October saw a sharp decline in net worth with losses in all asset classes compounded by adverse currency movements. The end result was a 4.9 percent decline in net assets.
For the year to date, the portfolio is down 5.10 percent.
Here are the details:
1. my Hong Kong equities fell ... a lot There were no transactions this month. At month end I purchased a few more shares in Sinopec (HK:386);
2. my AU/NZ equities were were down. There were no additional purchases this month;
3.my equity ETFs were down (India, Hong Kong and China) in line with the local markets;
4. my position in silver fell slightly. I am considering selling my silver and investing the money in equities for additional income;
5. all tenants are paying on time and all properties are let;
6. the AUD and NZD were down against the USD/HKD;
7. my position in bonds remains modest. There were no additional purchases this month. Recent interest rate increases have pushed the holding values of some of my bonds to below par - since I intend holding to maturity (other than a solitary perpetual) this is not a problem. I have a margin facility in place and my carry trade is doing its thing and generating a small amount of additional income;
8. expenses were low.
My HK cash position rose during the month due to full occupancy on the properties and a number of dividends being received. I currently hold 43.6 months of expenses in HKD cash or equivalents (up from 26.68 months on 1 January).
Total household gearing ((debt+accruals)/assets) is 9.38% of total assets – more or less flat from last month. Property prices are as at 1 January, 2018 and will not be marked-to-market until year end and I do not net off cash. With a mark-to-market of equities, bonds and FX this number will fluctuate even if the amount of debt is being slowly amortised.
For the year to date, the portfolio is down 5.10 percent.
Here are the details:
1. my Hong Kong equities fell ... a lot There were no transactions this month. At month end I purchased a few more shares in Sinopec (HK:386);
2. my AU/NZ equities were were down. There were no additional purchases this month;
3.my equity ETFs were down (India, Hong Kong and China) in line with the local markets;
4. my position in silver fell slightly. I am considering selling my silver and investing the money in equities for additional income;
5. all tenants are paying on time and all properties are let;
6. the AUD and NZD were down against the USD/HKD;
7. my position in bonds remains modest. There were no additional purchases this month. Recent interest rate increases have pushed the holding values of some of my bonds to below par - since I intend holding to maturity (other than a solitary perpetual) this is not a problem. I have a margin facility in place and my carry trade is doing its thing and generating a small amount of additional income;
8. expenses were low.
My HK cash position rose during the month due to full occupancy on the properties and a number of dividends being received. I currently hold 43.6 months of expenses in HKD cash or equivalents (up from 26.68 months on 1 January).
Total household gearing ((debt+accruals)/assets) is 9.38% of total assets – more or less flat from last month. Property prices are as at 1 January, 2018 and will not be marked-to-market until year end and I do not net off cash. With a mark-to-market of equities, bonds and FX this number will fluctuate even if the amount of debt is being slowly amortised.
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