Monthly Review - November 2011

November saw the value of the portfolio decline, largely in line with the decline in equity markets and adverse exchange rate movements.

Positive cash from on the properties (fully leased) and a healthy savings rate were not enough to overcome the mark to market losses.

Here are the details:

1. my Hong Kong equity portfolio declined, with HWL leading the way down. I purchased shares in CMR , Cosco Pacific, K Wah and HKR and sold some shares in Kenford, Perennial and CMOC to partially pay for the purchases; . The amounts involved were not large;

2. my AU/NZ equities declined;

3.my ETFs declined in line with the local markets, with India being the worst affected. There were no ETF purchases this month;

4. my commodities fell slightly, led by silver;

5. all of my properties are occupied with all tenants paying on time. No repairs this month;

6. currency movements were very negative, as the NZD and AUD fell sharply against the HKD/USD;

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

8. I had no open derivative positions;

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

My cash position increased in spite of making net new investments. I currently hold 22.3 months of expenses in HKD cash or equivalents (compared to 26 months at the end of February).

For the month, my net worth decreased by 2.74%. The year to date increase is a meagre 3.84% - which is less than my net savings and cash flow from properties, indicating that I have had material losses on investments this year.

Cosco Pacific purchased

Ok, my self control didn't last long. This morning I added a few more Cosco Pacific (HK:1199) to the portfolio paying an HK$8.65 for the additional shares.

I have become very marginally more optimistic about the US economy (primarily on the back of strong corporate balance sheets, slowly growing employment numbers and improved retail sales) and China (some monetary and fiscal easing, moderating inflation and clearance of developers' housing stocks (although at low levels)) but remain concerned about Europe's dysfunctional leadership.

Some small portfolio sales

A rather tardy update: to pay for last week's purchase of additional shares in CMR (HK:773), I sold a few shares in Kenford (HK:464) at HK$0.57 and Perennial (HK:725) at HK$0.62.

As I watch the Hang Seng Index drift below 18,000, it is very hard to resist the urge to spend all the cash I have on hand. Very.....very.....hard....