Thursday, August 02, 2012

Monthly Review - July 2012

July was a month of solid financial progress with value of the portfolio increasing with gains in my Hong Kong equities and favourable FX movements accounting for most of the increase. Positive cash flow from the properties and positive savings added to the increase in net worth.

Here are the details:

1. my Hong Kong equity portfolio appreciated. I made small additions to my positions in CCB, China Blue Chemical, Hang Seng Bank, Sinopec and China Metal Recycling. I sold my shares in Varitronix;

2. my AU/NZ equities appreciated; ETFs rallied in line with the local markets;

4. my commodities were flat with a small gain in silver being offset by falls in NICK and HOGS;

5. all of my properties were occupied with all tenants paying on time. There were two small repair bills and one tenant reported a leak during the typhoon which will require some sealing work to be done;

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

7. my position in bonds remains small. I purchased some RMB sovereign bonds;

8. There were no open derivative contracts;

9. savings were solid with good income and moderate expenses. A family holiday in Thailand came in under the accrued expenditure.

My cash position increased due to new investments being less than savings, cash flow from properties and dividends received. I currently hold 43 months of expenses in HKD cash or equivalents. This is above my target floor of 24 months.

For the month, my net worth increased by 2.5%. The year to date increase is 15.0%. I remain on track to retire at the end of 2012.


Anonymous said...


I am looking at opening a stock market account in HK. I was just curious who you use? I was looking at HSBC HK.


traineeinvestor said...


I use HSBC and BOCHK for my HK investments - they are not the cheapest (HSBC is actually rather expensive) and they do not offer a full range of products but for my purposes, safety is everything and I sleep easier than I would using the smaller brokerages.


Anonymous said...

Hi, Me again.

I use Internaxx (all exchanges) in Luxemburg currently which is cheaper but you incur international transfer costs moving money in/out and the 3 day wait... This also causes problems with topping up if your dividend payements have not been enough. Your money in essence gets stuck in Luxemburg because of costs.

I noticed HSBC HK has alot of additional charges. If i move my UK shares to them i also noticed i will be charged part of my dividend payment each time (0.5%?).


J-D said...

why not just use BOCHK? The brokerage is cheaper 0.25 Vs 0.2% i think

traineeinvestor said...

@ Anonymous - I'm not familiar with Internaxx (although TD is obviously well known) and will stick with the familiar and the perceived safety of well known big banks. I'm paying a penalty for this - both in terms of transaction cost and product access but, after MF Global (among others) I sleep easier at night.

@ J-D BOCHK is more cost effective than HSBC but I'll stick with the split. I don't like having too much of my retirement nest egg in one place. I'm actually weighing up the benefits of opening an account with a third bank against the inconvenience. If I do, I'm considering SCB and DBS.