Friday, March 01, 2019

Financial Review - Febuary, 2019

There is no review for January, 2019 due to travelling and other commitments. The February review covers the two month period form 1 January to 28 February, 2019.

The two month period saw a recovery in net worth with gains across all assets classes compounded by adverse currency movements. The end result was a 4.84 percent increase in net assets.

For the year to date, the portfolio is up 4.84 percent. The adjusted change from when I retired in September 2013 is a 27.95 percent increase. Hong Kong liquidity stands at 36.30 months of estimated outgoings, down from the start of the year's 39.90 months due to new investments.
Here are the details:

1. my Hong Kong equities increased. I added a a position in Shun Tak Holdings (HK:242) to the portfolio;

2. my AU/NZ equities were were up. I sold my shares in NZ Exchange (NZ: NZX) and Genesis (NZ: GNE) and am looking for replacements; equity ETFs were up (India, Hong Kong and China) in line with the local markets;

4. my position in silver was up slightly;

5. all tenants are paying on time and all properties are let. I will have one major repair bill in March;

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. With the prospect of further increases in interest rates more muted, I am looking at buying some more bonds;

8. expenses were low (in spite of a short trip to Singapore).

My HK cash position fell during the month due to new investments. I currently hold 36.3 months of expenses in HKD cash or equivalents (down from 29,9 months on 1 January). 

Total household gearing ((debt+accruals)/assets) is 8.54% of total assets – with a partial pay down in a margin facility and increased share prices accounting for the reduction. Property prices are as at 1 January, 2019 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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