December saw my net worth increase by 1% with good income, reasonable savings and increases in investment values.
The value of my investment portfolio increased around 1.7% with a mix of dividends on ETFs and increases in most equity values. There were no purchases or sales and the markets seem to end the year with a mild rally.
Pension unit prices were also up around 1% in line with improved equities performance.
Rental income was back on track with the tenant in areas catching up and paying some of January in advance as a good will gesture. I wasn't expecting this so its a nice surprise, but will see how it progresses over the next few months before deciding whether to extend the tenancy. The other tenant also paid in full, as usual. No tenant yet for the recent purchase, probably a lack of interest over the holiday season. I'm hoping to find someone in January. There were a few expenses in the month but nothing significant.
Cash balances were a lot higher with strong income, average expenses (apart from travel / gifts) and no new investments/disposals. Overall this has been another excellent year for my finances. I will post a full year review for 2016 along with expectations for 2017 shortly.
Year to date net worth growth: 24.3%
Year to date savings rate: 65%
Friday 30 December 2016
Tuesday 29 November 2016
November 2016 Review
November saw my net worth increase by 1.8% with a good savings rate and a favourable update to the fx rates used to manage my assets. This was to reflect the continued weakness in GBP v HKD/USD post Brexit and that my base currency is GBP.
The value of my investment portfolio increased around 2.5% and although underlying investments were slightly lower, the update of the fx rate used to convert my hk based investments back to GBP had an overall positive impact on the portfolio value. Unusually there were no dividends in the month but quite a lot are due next month.
Pension unit prices were fairly flat, but in GBP terms rose 6% as a large part are denominated in HKD.
My third property purchase finally completed during November, but it will take a few weeks before i can market the property for rental. I'm hoping there will be minimal further costs involved. Of the other properties, one paid rent on time as usual, but the other was unable to make their rental payment and the tenant appears to be in some financial difficulty. They are looking to pay double next month, and given they are coming to the end of their rental contract i'm hoping any potential losses will be minimal.
Cash balances were materially lower following the completion of a property investment. Expenses were average, including some travel expenses. Travel expense is well above plan but i'm not too concerned about that given the health of my overall savings rate.
Year to date net worth growth: 23.1%
Year to date savings rate: 65%
The value of my investment portfolio increased around 2.5% and although underlying investments were slightly lower, the update of the fx rate used to convert my hk based investments back to GBP had an overall positive impact on the portfolio value. Unusually there were no dividends in the month but quite a lot are due next month.
Pension unit prices were fairly flat, but in GBP terms rose 6% as a large part are denominated in HKD.
My third property purchase finally completed during November, but it will take a few weeks before i can market the property for rental. I'm hoping there will be minimal further costs involved. Of the other properties, one paid rent on time as usual, but the other was unable to make their rental payment and the tenant appears to be in some financial difficulty. They are looking to pay double next month, and given they are coming to the end of their rental contract i'm hoping any potential losses will be minimal.
Cash balances were materially lower following the completion of a property investment. Expenses were average, including some travel expenses. Travel expense is well above plan but i'm not too concerned about that given the health of my overall savings rate.
Year to date net worth growth: 23.1%
Year to date savings rate: 65%
Monday 31 October 2016
October 2016 Review
October saw my net worth increase by 1.3% with a good savings rate and improved investment performance.
The value of my investment portfolio increased around 3% although a lot of this seems to be foreign exchange related, and a consequence of having GBP denominated ETFs holding non GBP equities with a weaker pound. Dividends were higher than average.
Pension unit prices were fairly flat, with the hkd portfolio lower, and gap portfolio higher (probably also fx related).
All rent was received broadly on time. My new property investment will now complete in mid November and i'll look to get it on to the rental market as soon as possible after then. There should be minimal costs before marketing it.
Cash balances were a lot higher, with a net inflow from investments, higher interest and dividend income, and a good savings rate. Expenses were average, including some travel expenses.
Year to date net worth growth: 20.9%
Year to date savings rate: 66%
The value of my investment portfolio increased around 3% although a lot of this seems to be foreign exchange related, and a consequence of having GBP denominated ETFs holding non GBP equities with a weaker pound. Dividends were higher than average.
Pension unit prices were fairly flat, with the hkd portfolio lower, and gap portfolio higher (probably also fx related).
All rent was received broadly on time. My new property investment will now complete in mid November and i'll look to get it on to the rental market as soon as possible after then. There should be minimal costs before marketing it.
Cash balances were a lot higher, with a net inflow from investments, higher interest and dividend income, and a good savings rate. Expenses were average, including some travel expenses.
Year to date net worth growth: 20.9%
Year to date savings rate: 66%
Tuesday 27 September 2016
September 2016 Review
September saw my net worth increase by 0.8% with a slightly calmer and steadier month in the markets, and better savings.
The value of my investment portfolio increased around 1% as markets calmed a little after a lot of volatility over the summer. I sold one small ETF position as part of the recent tidy up and downsizing of the portfolio. It is now 12% of total assets, down from a high of 15% a few months ago.
Pension unit prices were around 1% higher, in line with broader market performance.
All rent was received broadly on time., with one small expense related to a rental agreement being renewed. My new property investment is moving slower than expected but is expected to complete in October.
Cash balances increased with one small investment disposal and higher than average savings. Expenses were lower than most months this year with no one offs or travel.
Year to date net worth growth: 19.3%
Year to date savings rate: 67%
The value of my investment portfolio increased around 1% as markets calmed a little after a lot of volatility over the summer. I sold one small ETF position as part of the recent tidy up and downsizing of the portfolio. It is now 12% of total assets, down from a high of 15% a few months ago.
Pension unit prices were around 1% higher, in line with broader market performance.
All rent was received broadly on time., with one small expense related to a rental agreement being renewed. My new property investment is moving slower than expected but is expected to complete in October.
Cash balances increased with one small investment disposal and higher than average savings. Expenses were lower than most months this year with no one offs or travel.
Year to date net worth growth: 19.3%
Year to date savings rate: 67%
Tuesday 30 August 2016
August 2016 Review
August saw my net worth increase by 1.3% with continued strength in financial markets and decent savings in the month.
The value of my investment portfolio increased around 3% following a continued rally in most markets. I took the opportunity of market highs to dispose some non core investments (mainly smaller holdings of higher cost legacy ETFs), simplifying the composition of the portfolio.
Pension unit prices were around 2% higher, on the back of the rally in global equities markets.
All rent was received broadly on time with a minor expense. One tenant has just renewed tenancy for another year with the same rent, and only one small maintenance request. The property in question has been constantly let for 6 years so is probably due some refurbishment, but as the tenant is currently happy these can wait a bit longer! I have also now committed to the next property investment. It may take another month or so to fully complete but i would hope to have everything done and tenants in place by the end of the year.
Cash balances were materially higher following investment disposals and reasonable savings. Ignoring travel, BAU expenses were actually well under plan for the first time in a few months. Cash balances should drop a lot in the next month or so as the property investment progresses.
Year to date net worth growth: 18.3%
Year to date savings rate: 68%
The value of my investment portfolio increased around 3% following a continued rally in most markets. I took the opportunity of market highs to dispose some non core investments (mainly smaller holdings of higher cost legacy ETFs), simplifying the composition of the portfolio.
Pension unit prices were around 2% higher, on the back of the rally in global equities markets.
All rent was received broadly on time with a minor expense. One tenant has just renewed tenancy for another year with the same rent, and only one small maintenance request. The property in question has been constantly let for 6 years so is probably due some refurbishment, but as the tenant is currently happy these can wait a bit longer! I have also now committed to the next property investment. It may take another month or so to fully complete but i would hope to have everything done and tenants in place by the end of the year.
Cash balances were materially higher following investment disposals and reasonable savings. Ignoring travel, BAU expenses were actually well under plan for the first time in a few months. Cash balances should drop a lot in the next month or so as the property investment progresses.
Year to date net worth growth: 18.3%
Year to date savings rate: 68%
Friday 29 July 2016
July 2016 Review
July saw my net worth increase by 1.8% with a strong rally in financial markets increasing my pension & investment portfolios.
The value of my investment portfolio increased around 5% following a strong rally across global equities throughout the month. Some large dividends came in at the beginning of the month and most sectors performed well.
Pension unit prices were around 4% higher, on the back of the rally in global equities markets.
All rent was received on time. I am now in the process of starting another rental property investment which should be complete hopefully in around a month's time. It is in a similar location and of a similar value to my investment last year.
Cash balances were lower following an initial payment towards the property investment. Expenses were high again but better than last month and included some travel costs for later in the year. Excluding travel expenses were in line with target.
Year to date net worth growth: 16.8%
Year to date savings rate: 69%
The value of my investment portfolio increased around 5% following a strong rally across global equities throughout the month. Some large dividends came in at the beginning of the month and most sectors performed well.
Pension unit prices were around 4% higher, on the back of the rally in global equities markets.
All rent was received on time. I am now in the process of starting another rental property investment which should be complete hopefully in around a month's time. It is in a similar location and of a similar value to my investment last year.
Cash balances were lower following an initial payment towards the property investment. Expenses were high again but better than last month and included some travel costs for later in the year. Excluding travel expenses were in line with target.
Year to date net worth growth: 16.8%
Year to date savings rate: 69%
Friday 1 July 2016
June 2016 Review
June saw my net worth increase by 1.6% with significant fx gains and investment performance following the Brexit vote offsetting very high expenses.
The value of my investment portfolio increased around 6% following a wild ride in the markets. This was mainly driven by exchange rate movements, in addition to a strong rally in a number of investments in the last few days of the month, after an initial drop following the vote. Some large dividends came in at the end of the month and a few more are expected in July.
Pension unit prices were fairly flat, but the value increased around 2% with fx movements.
All rent was received on time, including a catch up for some overdue rent from the prior month. I am actively considering another property investment in the uk and should have more news in the next few weeks.
Cash balances were higher with no investments, but expenses were very high. Whilst a lot of this was some one off fitness / health related costs, underlying expenses and in particular food and drink remain high. There were also some travel, gift and property costs in the month.
Year to date net worth growth: 14.7%
Year to date savings rate: 71%
The value of my investment portfolio increased around 6% following a wild ride in the markets. This was mainly driven by exchange rate movements, in addition to a strong rally in a number of investments in the last few days of the month, after an initial drop following the vote. Some large dividends came in at the end of the month and a few more are expected in July.
Pension unit prices were fairly flat, but the value increased around 2% with fx movements.
All rent was received on time, including a catch up for some overdue rent from the prior month. I am actively considering another property investment in the uk and should have more news in the next few weeks.
Cash balances were higher with no investments, but expenses were very high. Whilst a lot of this was some one off fitness / health related costs, underlying expenses and in particular food and drink remain high. There were also some travel, gift and property costs in the month.
Year to date net worth growth: 14.7%
Year to date savings rate: 71%
Brexit
June was one of the most interesting months for British politics and its implications on the financial markets. Being a Brit and having a lot of GBP based assets i've been following very closely.
With the markets having priced in a remain vote, the initial shock to the financial markets on 24 June was significant, and beyond anything i've seen in one day. These were the main immediate impacts to my finances:
With the value of GBP falling around 10% compared to USD (and HKD) the value of many of my assets fell but my HK based assets and income increased in value in GBP terms. I translate my portfolio to GBP as a base currency so this has generally appeared as a positive, although obviously the opposite is true if i were to consider my net worth in USD terms.
My equity investments initially fell sharply in value but have rallied strongly over the past week. In addition, a number of my uk listed and GBP denominated ETFs have underlying investments in non GBP currencies and have appreciated sharply.
My pension funds initially fell in value following the referendum result, but have rallied back to similar levels. The non GBP portion has gained in value due to the fx movements.
Overall, when viewing my portfolio in GBP, Brexit has had a positive initial impact, with most of this driven by fx movements. It remains to be seen what the longer term implications will be.
Specific considerations for myself going forward include whether i intend to be based in the UK in the future, whether GBP should continue to be the base currency of my portfolio, and if any changes are needed to the broad diversification of my assets in terms of asset class, geography and currency.
With the markets having priced in a remain vote, the initial shock to the financial markets on 24 June was significant, and beyond anything i've seen in one day. These were the main immediate impacts to my finances:
With the value of GBP falling around 10% compared to USD (and HKD) the value of many of my assets fell but my HK based assets and income increased in value in GBP terms. I translate my portfolio to GBP as a base currency so this has generally appeared as a positive, although obviously the opposite is true if i were to consider my net worth in USD terms.
My equity investments initially fell sharply in value but have rallied strongly over the past week. In addition, a number of my uk listed and GBP denominated ETFs have underlying investments in non GBP currencies and have appreciated sharply.
My pension funds initially fell in value following the referendum result, but have rallied back to similar levels. The non GBP portion has gained in value due to the fx movements.
Overall, when viewing my portfolio in GBP, Brexit has had a positive initial impact, with most of this driven by fx movements. It remains to be seen what the longer term implications will be.
Specific considerations for myself going forward include whether i intend to be based in the UK in the future, whether GBP should continue to be the base currency of my portfolio, and if any changes are needed to the broad diversification of my assets in terms of asset class, geography and currency.
Monday 30 May 2016
May 2016 Review
May saw my net worth increase by 0.4% with a weaker month and higher expenses than usual.
The value of my investment portfolio fell by around 1.5% although it had been down a lot more in the middle of the month. HK seems to be lagging behind most global markets which is suppressing the overall portfolio value. There were also not many dividends this month, although a number of ETFs are due to pay in June. I made some small additions to my HK and Asia ETF positions during the fall in markets in early to mid May.
Pension unit prices were fairly flat, but had been down a lot mid-month, before a rally in the last week. My pension is quite heavily weighted towards HK which doesn't help.
There has been a slight delay on part of one of my property rental payments, although i think this is an admin issue with the tenant having previously paid in advance and forgetting to restart. Fingers crossed it is rectified shortly.
Cash balances were slightly higher despite a couple of small investments and higher than average expenses. I need to take a closer look at what is driving the more general increase in expenses as it is starting to move well ahead of plan. However, part of this is extra gym costs which will be a recurring theme as i make more effort with fitness, and part was a one off treat this month.
Year to date net worth growth: 12.9%
Year to date savings rate: 75%
The value of my investment portfolio fell by around 1.5% although it had been down a lot more in the middle of the month. HK seems to be lagging behind most global markets which is suppressing the overall portfolio value. There were also not many dividends this month, although a number of ETFs are due to pay in June. I made some small additions to my HK and Asia ETF positions during the fall in markets in early to mid May.
Pension unit prices were fairly flat, but had been down a lot mid-month, before a rally in the last week. My pension is quite heavily weighted towards HK which doesn't help.
There has been a slight delay on part of one of my property rental payments, although i think this is an admin issue with the tenant having previously paid in advance and forgetting to restart. Fingers crossed it is rectified shortly.
Cash balances were slightly higher despite a couple of small investments and higher than average expenses. I need to take a closer look at what is driving the more general increase in expenses as it is starting to move well ahead of plan. However, part of this is extra gym costs which will be a recurring theme as i make more effort with fitness, and part was a one off treat this month.
Year to date net worth growth: 12.9%
Year to date savings rate: 75%
Thursday 28 April 2016
April 2016 Review
April saw my net worth increase by 1.5% with a strong but volatile month in the markets, along with a healthy savings rate.
The value of my investment portfolio increased by over 3% with a very strong increase mid month and a slight pull back in the last week. There were no new investments but quite a lot of dividends.
Pension unit prices were also up around 3%. My monthly contributions have also increased, in line with a recent salary increase.
Rental income on both properties was paid in full. I will have a minor repair bill next month. I am also considering further property investments but i think any action will be several months away.
Cash balances were fairly flat, with a good savings rate and higher than average income offset by the second income tax payment. Expenses were lower than average, for the first month in a while.
Year to date net worth growth: 12.4%
Year to date savings rate: 78%
The value of my investment portfolio increased by over 3% with a very strong increase mid month and a slight pull back in the last week. There were no new investments but quite a lot of dividends.
Pension unit prices were also up around 3%. My monthly contributions have also increased, in line with a recent salary increase.
Rental income on both properties was paid in full. I will have a minor repair bill next month. I am also considering further property investments but i think any action will be several months away.
Cash balances were fairly flat, with a good savings rate and higher than average income offset by the second income tax payment. Expenses were lower than average, for the first month in a while.
Year to date net worth growth: 12.4%
Year to date savings rate: 78%
Saturday 26 March 2016
March 2016 Review
March saw my net worth increase by 9% mainly as a result of a large lump sum income, along with improved market performance.
The value of my investment portfolio increased by over 2% with a slow but steady rally in equities for most of the month. There were no new investments and handful of dividends.
Pension unit prices were up around 3% following a pick up in most equities markets.
Rental income on both properties was paid in full, with one paying a couple of months in advance following a late payment last month.
Cash balances were significantly higher with a large lump sum income in the month. This will probably stay deployed in savings accounts for now as i don't have any significant investments planned, although i may be helping with a family property purchase in the near future. Expenses were slightly higher than average following a laptop repair and some travel, but not excessive.
As a result of high income my std savings rate is very high, but this should drift down to around 60% through the year.
Year to date net worth growth: 10.7%
Year to date savings rate: 81%
The value of my investment portfolio increased by over 2% with a slow but steady rally in equities for most of the month. There were no new investments and handful of dividends.
Pension unit prices were up around 3% following a pick up in most equities markets.
Rental income on both properties was paid in full, with one paying a couple of months in advance following a late payment last month.
Cash balances were significantly higher with a large lump sum income in the month. This will probably stay deployed in savings accounts for now as i don't have any significant investments planned, although i may be helping with a family property purchase in the near future. Expenses were slightly higher than average following a laptop repair and some travel, but not excessive.
As a result of high income my std savings rate is very high, but this should drift down to around 60% through the year.
Year to date net worth growth: 10.7%
Year to date savings rate: 81%
Sunday 28 February 2016
February 2016 Review
February saw my net worth increase by 1%. Investment performance improved and expenses were low.
The value of my investment portfolio increased by just under 1%. For most of the month this was looking lower but markets picked up in the past few days. There were no new investments in the month and no significant dividends received.
Pension unit prices were fairly flat, although the UK based fund seemed to perform better than the HK funds.
Rental income on both properties was paid in full although one was paid late. I'm not too concerned at this stage as it seems the tenant is making an effort to resolve the issue and may potentially pay a few months in advance next month.
Cash balances were higher as expenses were low. I also made an adjustment to release some tax accrual which also contributed to the improvement this month.
Year to date net worth growth: 1.3%
Year to date savings rate: 53%
The value of my investment portfolio increased by just under 1%. For most of the month this was looking lower but markets picked up in the past few days. There were no new investments in the month and no significant dividends received.
Pension unit prices were fairly flat, although the UK based fund seemed to perform better than the HK funds.
Rental income on both properties was paid in full although one was paid late. I'm not too concerned at this stage as it seems the tenant is making an effort to resolve the issue and may potentially pay a few months in advance next month.
Cash balances were higher as expenses were low. I also made an adjustment to release some tax accrual which also contributed to the improvement this month.
Year to date net worth growth: 1.3%
Year to date savings rate: 53%
Saturday 30 January 2016
January 2016 Review
January saw my net worth increase by 0.3%. Investment and pension funds continued to struggle but fx movements were favourable.
The value of my investment portfolio was fairly flat after adjusting for fx. This was largely thanks to a rally at the end of the month, with volatility throughout the month. There were no signifiant purchases, it is difficult to have much confidence to invest right now.
Pension unit prices were down around 2%, i don't think the month end rally is reflected yet in unit values.
Rental income on both properties was paid in full & on time.
Cash balances were lower with a large annual tax payment (which was accrued) and some planned travel costs.
Year to date net worth growth: 0.3%
Year to date savings rate: 38%
The value of my investment portfolio was fairly flat after adjusting for fx. This was largely thanks to a rally at the end of the month, with volatility throughout the month. There were no signifiant purchases, it is difficult to have much confidence to invest right now.
Pension unit prices were down around 2%, i don't think the month end rally is reflected yet in unit values.
Rental income on both properties was paid in full & on time.
Cash balances were lower with a large annual tax payment (which was accrued) and some planned travel costs.
Year to date net worth growth: 0.3%
Year to date savings rate: 38%
Wednesday 6 January 2016
December 2015 Review
December saw my net worth increase by 0.8%. Investment and pension performance was poor but savings were healthy & property continued to appreciate. Due to some travel my financial year ended on 6th January and as a result it included the sharp drop in equities over the last few days.
The value of my investment portfolio was down 3.3%. The last few days saw a sharp drop in a number of equities markets and i'm considering further investments as a result. During December i added to my FTSE100 ETF and received a lot of dividends.
Pension unit prices were also down around 3% with weakness in equities over the past few days.
Rental income on both properties was paid in full & on time. One of the tenants has just extended their lease at the same rent. I increased the recorded value of one of my properties again following continual increases in the local market, but this still lags the market price by around 10%.
Cash balances were higher as savings exceeded new investments. Income was higher than usual due to a number of dividends & higher interest income in the month.
A full 2015 review and a look ahead to 2016 will follow shortly
Year to date net worth growth: 18%
Year to date savings rate: 65%
The value of my investment portfolio was down 3.3%. The last few days saw a sharp drop in a number of equities markets and i'm considering further investments as a result. During December i added to my FTSE100 ETF and received a lot of dividends.
Pension unit prices were also down around 3% with weakness in equities over the past few days.
Rental income on both properties was paid in full & on time. One of the tenants has just extended their lease at the same rent. I increased the recorded value of one of my properties again following continual increases in the local market, but this still lags the market price by around 10%.
Cash balances were higher as savings exceeded new investments. Income was higher than usual due to a number of dividends & higher interest income in the month.
A full 2015 review and a look ahead to 2016 will follow shortly
Year to date net worth growth: 18%
Year to date savings rate: 65%
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