Thursday, November 30, 2017

Financial Review - November, 2017

November was another positive month for the portfolio with small positive movements in all asset classes offsetting small declines in the AUD/NZD producing a 0.98 percent increase in net assets.

For the year, the portfolio is up 18.21 percent. The adjusted change from when I retired in September 2013 is a 26.01 percent increase. Hong Kong liquidity stands at 27.37 months of estimated outgoings, well down on January's 38.6 months due to new investments + transfers to New Zealand.

Here are the details:

1. my Hong Kong equities increased. There were no new investments this month;

2. my AU/NZ equities were mixed with Australia being marginally ahead and New Zealand falling slightly. I sold my shares in PG Wrightson (NZX: PGW). PGW has been a good performer and pays high dividends but I have doubts about sustainability. As part of my review of the smaller investments in the portfolio, I sold my shares in Specialty Fashion (ASX: SFH), the worst performing share in the portfolio having finally lost any residual faith in the company's management. I should have sold years ago. I purchased some additional shares in Grange Resources (ASX: GRR) on the huge uplift in the premium iron ore pellets are receiving over fines. I currently have too high a proportion of my New Zealand assets in cash;

3.my equity ETFs were up slightly (India, Hong Kong and China) in line with the local markets;

4. my position in silver rose and my small position in platinum recovered slightly;

5. all tenants are paying on time and all properties are let. Unusually, there were no repairs at all in November but I have received another irritatingly pointless mandatory window inspection scheme notice;

6. the AUD and NZD were were down against the USD/HKD;

7. my position in bonds remains modest. I have a margin facility in place and my carry trade is doing its thing and generating a small amount of additional income;

8. expenses were low.

My HK cash position fell slightly during the month. I currently hold 27.37 months of expenses in HKD cash or equivalents (down from 38.6 months on 1 January).

I have revamped my spreadsheets to capture all debt (previously some accounts were entered on a net basis). Total household gearing ((debt+accruals)/assets) is 9.85% of total assets. Property prices are as at 1 January, 2017, so this overstates the gearing ratio. With a mark-to-market of equities, bonds and FX this number will fluctuate even if the amount of debt is being slowly amortised.

I would like to make some additional investments but am struggling to find good value in the markets I follow. With expectations of further rises in interest rates muted, I remain tempted by the carry trade and would do one or two more should the right offers be available. I am reviewing some of the smaller investments in the portfolio with a view to either exiting or adding to my positions - too many very small investments are taking up a disproportionate amount of time to monitor.

Friday, November 03, 2017

Financial Review - October, 2017

October was another positive month for the portfolio with positive movements in Hong Kong, emerging markets and precious metals offsetting declines in New Zealand sharemarket and the NZD producing a 0.95 percent increase in net assets.

For the year, the portfolio is up 17.22 percent. The adjusted change from when I retired in September 2013 is a 24.71 percent increase. Hong Kong liquidity stands at 27.58 months of estimated outgoings, well down on January's 38.6 months due to new investments + transfers to New Zealand.

Here are the details:

1. my Hong Kong equities increased. I  purchased a few additional shares in CNOOC (HK:883), GDI (HK:270) and took the dividend reinvestment option on my shares in K Wah (HK:173);

2. my AU/NZ equities were mixed with Australia being marginally ahead and New Zealand slumping sharply on a combination of another earnings downgrade from Fletcher Building (NZX: FBU) and the election resulting in the centre-left government being replaced by an unstable far-left coalition;

3.my equity ETFs were up slightly (India, Hong Kong and China) in line with the local markets;

4. my position in silver rose and my small position in platinum recovered slightly;

5. all tenants are paying on time and all properties are let. Unusually, there were no repairs at all in October ;

6. the AUD and NZD were were down against the USD/HKD. The NZD in particular slumped following the political pole-vault to the left;

7. my position in bonds remains modest. I have a margin facility in place and my carry trade is doing its thing and generating a small amount of additional income;

8. expenses were low.

My HK cash position fell during the month. I currently hold 27.5 months of expenses in HKD cash or equivalents (down from 38.6 months on 1 January).

I have revamped my spreadsheets to capture all debt (previously some accounts were entered on a net basis). Total household gearing ((debt+accruals)/assets) is 9.97% of total assets. Property prices are as at 1 January, 2017, so this overstates the gearing ratio. With a mark-to-market of equities, bonds and FX this number will fluctuate even if the amount of debt is being slowly amortised.

I would like to make some additional investments but am struggling to find good value in the markets I follow. With expectations of further rises in interest rates muted, I remain tempted by the carry trade and would do one or two more should the right offers be available. I am currently having a look at Singapore REITS and some of the smaller investments in the portfolio with a view to either exiting or adding to my positions - too many very small investments are taking up a disproportionate amount of time to monitor.

Saturday, September 30, 2017

Financial Review - September, 2017

September was another positive month for the portfolio with a cumulation of small gains in most assets and neutral FX movements producing a 1.60 percent increase in net assets.

For the year, the portfolio is up 16.27 percent. The adjusted change from when I retired in September 2013 is a 23.88 percent increase. Hong Kong liquidity stands at 27.70 months of estimated outgoings, well down on January's 38.6 months due to new investments + transfers to New Zealand.

Here are the details:

1. my Hong Kong equities increased moderately. I sold my shares in Xtep (HK:1368) after the company continued to disappoint and purchased a few additional shares in CNOOC (HK:883);

2. my AU/NZ equities were mixed with declines in Australia being less than a small gain in New Zealand. I added some more shares in Colonial Motor Company (NZX: CMO);

3.my equity ETFs were up slightly (India, Hong Kong and China) in line with the local markets;

4. my position in silver fell. I opened a small position in platinum;

5. all tenants are paying on time and all properties are let. Unfortunately, I had a few repair bills this month, some of which are a result of the recent typhoons. One tenant has agreed to a new leas with a small increase in rent;

6. the AUD and NZD were were mixed with the AUD being down and the NZD slightly ahead against the USD/HKD;

7. my position in bonds remains modest. I have a margin facility in place and purchased one additional bond using the facility - a very small carry trade;

8. expenses were low.

My HK cash position rose during the month. I currently hold 27.7 months of expenses in HKD cash or equivalents (down from 38.6 months on 1 January).

I have revamped my spreadsheets to capture all debt (previously some accounts were entered on a net basis). Total household gearing ((debt+accruals)/assets) is 10.04% of total assets. Property prices are as at 1 January, 2017, so this overstates the gearing ratio.

I would like to make some additional investments but am struggling to find good value in the markets I follow. With expectations of further rises in interest rates muted, I remain tempted by the carry trade and would do one or two more should the right offers be available.