Update on recent investments

This is a bit late (even by my usual standards), but, hey, I'm retired.

Over the last few weeks I have added the following to the private portfolio:

1. Genesis Energy (NZX: GNE): I subscribed on the IPO at NZD1.55 on the basis that a 10% projected dividend yield + a 1 for 15 loyalty bonus if held for a year was more than enough to overcome prevailing political risk and the medium term run down of the Kupe oil field;

2. National Australia Bank (ASX: NAB): this is the smallest of the big four Australian banks and sells on the lowest multiples. Given the bank's rather patchy track record and its problems in the UK, there is good reason for that. However as a yield proposition and with the possibility of an uplift if/when the UK business is sorted out, this is one I am comfortable putting in the bottom draw. I paid AUD35.56 per share;

3. Hellaby Holdings (NZX: HBY): this is a mid-cap (for New Zealand) company which holds a number of industrial companies of which auto-parts and services is the largest. A trailing 4.7% dividend yield which I hope will grow over time is the main attraction of this company. I paid NZD3.05 per share.

Financial Review - March, 2014

March was an awful month for my investments.


Net worth slumped as a decline in equities was only sightly offset by favourable FX movements and rental income. Expenses were moderate.

Here are the details:

1. my Hong Kong equity portfolio slumped. The only dealings this month were purchases of Dynam Japan (HK:6889), Sinolink Holdings (HK:1168) and CCB (HK:939) and the sale of Sinotrans Shipping (HK:368);

2. my AU/NZ equities appreciated slightly - with most shares being up a bit. I have applied for shares in Genesis (NZX: new listing). My position here is slightly understated as several shares are trading ex-dividend but I have not yet received the dividends;

3.my equity ETFs were up (India and Vietnam) or down (Hong Kong and China) in line with the local markets. There were no new purchases;

4. my commodities were lower. Silver is my only position;

5. one property is now vacant. There are several repair bills payable this month and next (either related to buildings which received notices for a mandatory window inspection or remedial work on a change of tenancy);

6. currency movements were positive, with small increases in the NZD and the AUD;

7. my position in bonds remains small. I added some more units in an RMB bond fund to the portfolio;

8. expenses were moderate due to a collection of small unbudgeted expenses (i.e. a purchased a few cases of wine);

9. there were no transfers to Mrs Traineeinvestor this month.

My cash position increased due to net sales of investments. I currently hold 46.5 months of expenses in HKD cash or equivalents. This is now calculated on a different basis from last year - I have included the principal component of the mortgage on our home as an expense and added some additional near cash items to the cash side of the calculation.

For March, my net worth fell by 1.36%. The year to date increase is 0.01%.

Dynam Japan purchased

Dynam Japan (HK:6889) has been on a wild ride. Since I purchased at $16.86 last year the shares have traded as high as $36.70 and fallen sharply since then. This morning I added a few more shares to the portfolio at HK$22.00 per share.

The story remains largely unchanged - strong cash flows from the Japanese pachinko business (a shrinking industry), a small shareholding in Macau Legend (HK:1680), a question over the impact of an increase in Japan's consumption tax and the potential to be one of the early movers as and when Japan legalises casinos. The only recent developments appear to be (i) an arrangement for the distribution of pachinko machines in Macau and (ii) a lawsuit which does not appear to be material to shareholders in the company.

With a dividend yield of 4.8% (less Japanese withholding tax), this is essentially a case of being paid to wait for Japan to legalise casinos.