Sunday, 29 June 2014

June 2104 Review

June saw my net worth increase by 0.1%, with gains in investments, pension funds & savings largely offset by an adverse fx movement following the periodical revaluation of my foreign currency assets.

In order to minimise volatility & keep my spreadsheets simple i tend to only revalue my foreign currency assets when fx rates move significantly. My largest exposure is GBP/HKD, and with HKD having gradually weakened over the past 6 months with a recent acceleration in this trend, i've recognised the full movement this month. The impact was a reduction in GBP net worth of just under 1%, which offset most of the underlying gains across asset classes for the month.

The value of my investment portfolio increased by around 1% before the fx revaluation, but fell after factoring this in. Dividends were very high, with a number of ETFs paying large dividends in the same month. There were no major purchases other than the usual standing monthly investments.

Likewise, my pension fund unit values increased by around 1% before the fx revaluation, but fell after factoring this in.

Property rental income was paid in full & on time with no additional expenses. I'm in the process of renewing the tenancy, although this is unlikely to see an increase in rental income this time.

Cash balances were slightly higher with good income but some travel expenses in the month reducing my typical savings rate.

Year to date net worth growth: 17.1%
Year to date savings rate: 70%


  1. Currency movements leave me feeling bipolar. If the non-HKD currency appreciates then my wealth goes up but it costs me more to invest outside HK. If it goes down, my wealth declines but I can buy assets cheaper. The former gives the nice warm cosy feeling of an appreciating net worth, but in the longer run, the latter is probably better for me.


  2. I'm in the position of having my income in a depreciating currency and most of my assets in an appreciating currency. Whilst this is good for the value of my assets, its less good for my current purchasing power!