Monday, 29 June 2015

June 2015 Review

June saw my net worth increase by 0.2%, with a very bad month for investments just about offset by savings and property valuations.

The value of my investment portfolio was down over 3%, and this was after taking into account a lot of dividends received in the month. There was a lot of volatility during June, with a sharp drop at the month end given market concerns about Greece possibly exiting the Euro. I made one small purchase in the month an may look to make further purchases in July if opportunities arise.

Pension unit prices fell by over 1% and with the usual time lag i expect them to fall further in early July.

Property rental income was paid in full & on time.  I've recorded a further small increase in the value of my existing property and added a new property at its purchase price less the costs that would be involved in selling it again.  I'm hoping to increase the rent on my original property later in the year and will look to get the new property on the rental market in a couple of weeks.

Cash balances were materially lower following the completion of a property investment.  Expenses were high due to the property purchase and some travel, but i did manage to maintain a reasonable savings rate.

Year to date net worth growth: 15%
Year to date savings rate: 73%

Property purchase complete

I've now completed the purchase of a new rental property.  The cost was a lot less than my existing rental property due to its location away from big cities, but knowing the area, the property should be ideal for young families close to a local school.

I expect the net yield after costs and tax to be around 4%, which is higher than my existing property yield, although it probably doesn't have as much potential for capital appreciation.

There are a few odd jobs to complete but i hope to have it on the market with 2 weeks.  I had not fully factored in the costs associated with the purchase into my annual plan, so June expenses were higher than usual.

This has helped to reduce my cash reserves to under 30% of net worth, the lowest proportion it has been for around 3 years.

3101.HK purchased

After a long while away from investing, the problems in Greece seem to be presenting some potential buying opportunities.

This triggered some research to see if there are any new ETFs on the market that fit my portfolio aims of a decent yield and broad diversification.  I was pleased to find Vanguard have expanded their range of low cost ETFs listed in HK. Whilst i wasn't trying to catch a falling knife just yet, i couldn't resist a small purchase of 3101.HK, a HK listed Europe ETF.  The costs are lower than the UK listed ETF i had been using for Europe exposure, and it should yield well over 3%.

The purchase pre-dates the recent increasing severity of the Greece situation so this may start somewhat underwater, but the size was very small and i'll keep an eye on the market and look for opportunities to add to either this or other positions.

Purchase price: HKD18.58