Monday, October 31, 2011

Monthly Review - October 2011

Last month I reported that September had been the single worst month for my investment (in dollar terms) ever and that retirement plans were on hold. October was, in many respects, a mirror image of September with very strong gains across the board. Although I did not drain my cash reserves, I did make some additional investments near the bottom of the market and, importantly, didn't do any panic selling.

Mark to market appreciation in asset values, particularly equities, added to the gains from rental income and were compounded by favourable FX movements. A healthy savings rate also contributed to a very good monthly result.

Here are the details:

1. my Hong Kong equity portfolio appreciated sharply. During the month I purchased shares in K Wah, Yangzhou Coal, New World Services and Cosco Pacific;

2. my AU/NZ equities appreciated; ETFs were up sharply in line with the local markets. There were no ETF purchases this month;

4. my commodities gained, led by silver;

5. all of my properties are occupied, however, one tenant missed a payment and is being chased. There was only one minor repair bill;

6. currency movements were very positive, as the NZD and AUD rose against the HKD/USD;

7. my position in bonds remains small. No bonds were purchased this month;

8. I had onne open derivative position, a put written against the AUD, which was closed out at a profit;

9. savings were good with high income and low expenses.

My cash position decreased due to new investments. I currently hold 16.4 months of expenses in HKD cash or equivalents (compared to 26 months at the end of February).

For the month, my net worth increased by 10.47%. The year to date increase is 6.77%

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