Sunday, December 30, 2007

Monthly Review - December

My net worth increased by 1.7% in December. The increase for the year is 35.4%.

The return on my investments was mixed. Spending was low (the Christmas holiday had been expensed back in October). Income was strong, with a small bonus in the Christmas stocking.

Here are the details:

1. my unit trusts declined in value during the month. The declines were most noticeable in the emerging markets funds and represent the continuation of a trend;

2. my residual share portfolio depreciated in local currency returns but benefited from currency movements to end about even for the month. The takeover offer for one of my holdings announced last month did not proceed;

3. my investment in silver appreciated;

4. my tenants continued to pay the rent on time and rents continue to be higher than the expense component of the outgoings. The tenant who was late with her rent has caught up (but annoyingly still refuses to set up an standing instruction). The only negative here is the new flat which is now fully renovated but in need of a tenant (which may take a while in view of the fact that the building will be covered with scaffolding as the exterior renovation is undertaken over the next five months);

5. currency movements were in my favour for the month;

6. expenses were moderately below budget. There were no large items (the family holiday had been expensed in prior months). I reviewed the accruals for future expenses and decided to increase the provision for future tax bills;

7. my income was high. I received a small bonus this month.

The combined effect of the combined effect of the above resulted in a 1.7% increase in net worth at month end. The only investment activities undertaken during the month were regular monthly payments into two small cap investment funds.

A full review for the year will be made in a separate post.

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