I've been lucky enough to receive a reasonably large cash lump sum from my employment.
Whilst this is always welcome, it does compound my existing issues of a growing cash pile and a lack of risk appetite to invest material amounts in the financial markets given current volatility & valuations.
Whilst i do have a few luxury purchases in mind and have made a couple of initial investments, i am likely to sit on the cash pile for a while until i have a clearer strategy what to do with it.
My overall cash yield remains above 2%, which gives me some comfort that i'm not losing too much to inflation in the meantime.
Wednesday, 26 March 2014
Monday, 3 March 2014
3049.HK Purchased
Following a long period of sitting on the sidelines, today i increased my holding of the China CSI300 tracker ETF.
China shares have taken a real beating over the last few weeks, with both declining values coupled with a depreciating currency.
I've been buying this ETF for around 8 months as part of a small but regular monthly investment with an average purchase price of around HKD5.7. Following the recent sharp drop, today I added to this position with the equivalent of around 3 months regular purchases, at an incremental price of HKD4.98.
Whilst there are obvious risks associated with China shares, and in particular the large index weighting to financials, i consider the current valuation sufficiently low to justify additional purchases. I intend to continue the small standard monthly purchase unless there are any developments that warrant a rethink of my China exposure.
China shares have taken a real beating over the last few weeks, with both declining values coupled with a depreciating currency.
I've been buying this ETF for around 8 months as part of a small but regular monthly investment with an average purchase price of around HKD5.7. Following the recent sharp drop, today I added to this position with the equivalent of around 3 months regular purchases, at an incremental price of HKD4.98.
Whilst there are obvious risks associated with China shares, and in particular the large index weighting to financials, i consider the current valuation sufficiently low to justify additional purchases. I intend to continue the small standard monthly purchase unless there are any developments that warrant a rethink of my China exposure.
Friday, 28 February 2014
February 2014 Review
February saw my net worth increase by 1.5%, with increases in my investments & pension funds, along with a higher savings rate.
The value of my investment portfolio increased over 2%, reversing most of the decline in January. Purchases were limited to standing monthly purchases of the HK and China indices. One notable increase was in gold, with the first move up for a long time. The China CSI Index ETF fell to a very low level by the end of the month, leading me to consider further purchases. Developed market ETFs generally performed better.
My pension fund unit values increased by around 2%, more than reversing the decline in January
Property rental income was paid in full & on time.
Cash balances increased with no major expenses or investments and a better savings rate of 58% for the month.
Year to date net worth growth: 2.6%
Year to date savings rate: 52%
The value of my investment portfolio increased over 2%, reversing most of the decline in January. Purchases were limited to standing monthly purchases of the HK and China indices. One notable increase was in gold, with the first move up for a long time. The China CSI Index ETF fell to a very low level by the end of the month, leading me to consider further purchases. Developed market ETFs generally performed better.
My pension fund unit values increased by around 2%, more than reversing the decline in January
Property rental income was paid in full & on time.
Cash balances increased with no major expenses or investments and a better savings rate of 58% for the month.
Year to date net worth growth: 2.6%
Year to date savings rate: 52%
Friday, 31 January 2014
January 2014 Review
January saw my net worth increase by 1.1%, with poor investment & pension performance offset by reasonable savings and an increase in my property value.
The value of my investment portfolio was down over 2% following sharp decreases in equities markets late in the month. Purchases were limited to standing monthly purchases of the HK and China indices. The recent movements in emerging markets equities and currencies are of concern, but i'm letting the dust settle on the recent falls before considering new purchases.
My pension fund unit values fell around 1%. Having started the month positively, values dropped significantly towards the end of the month
Property rental income was steady. I also increased the value i hold the property at given continued strength in the local market. My valuation is still lagging the actual market to maintain a conservative view.
Cash balances decreased following the payment of most of my income tax bill which was fully provided for. Savings were slightly below average as a number of Christmas and travel costs at the end of the year fell into January.
Year to date net worth growth: 1.1%
Year to date savings rate: 46%
The value of my investment portfolio was down over 2% following sharp decreases in equities markets late in the month. Purchases were limited to standing monthly purchases of the HK and China indices. The recent movements in emerging markets equities and currencies are of concern, but i'm letting the dust settle on the recent falls before considering new purchases.
My pension fund unit values fell around 1%. Having started the month positively, values dropped significantly towards the end of the month
Property rental income was steady. I also increased the value i hold the property at given continued strength in the local market. My valuation is still lagging the actual market to maintain a conservative view.
Cash balances decreased following the payment of most of my income tax bill which was fully provided for. Savings were slightly below average as a number of Christmas and travel costs at the end of the year fell into January.
Year to date net worth growth: 1.1%
Year to date savings rate: 46%
Thursday, 16 January 2014
2013 Annual Review
Looking back, 2013 was a very successful year financially. With headline figures of 39.5% net worth growth and a 69% savings rate, it has been my best year yet.
Asset performance:
My property investment continued to yield reliable high income, and the property value continued to appreciate. In 2013 (and going back long before) this continued to be my best performing asset.
My pension funds appreciated, with unit values increasing around 15% on top of continued monthly contributions. This benefited particularly from the exceptional UK and US stock market performance.
My investment portfolio grew materially with regular investments, but had mixed performance with developed equities outperforming emerging markets. Although many investments appreciated and paid regular high dividends, falling metals and some adverse fx movements saw the overall performance stay fairly flat.
Cash grew materially, both in dollar terms and as a proportion of total assets. This was a result of a high savings rate and a couple of big one offs. I did manage to maintain a reasonable cash yield over 2%.
Performance against 2013 objectives:
1) Reduce cash balances towards my medium term target of 20% of total assets.
FAIL, although i did continue to build up my investment portfolio to a reasonable size and maintain a healthy cash yield. I really need to give some thought as to my target asset allocation, as the more this builds up, the greater the effort will be to re-balance.
2) Maintain investment discipline.
Overall, i am happy with my performance here. 2013 was by far my most active year in the markets and i have built a portfolio that largely meets my investment objectives. One blemish early on saw a loss realised on some more risky pref shares from chasing yield.
3) Achieve a high savings rate.
This was a major success, and achieved whilst not making a conscious effort to hold back on any particular expenses. I expect this to drop in 2014, but still stay well above my target floor of 50%.
4) Improve fitness.
This was broadly flat, with ups and downs during the year. My gym membership was renewed and I will re-focus for the new year.
5) Improve work/life balance.
2013 was a very tough year for work, and whilst this started quite badly, i felt it did improve towards the end of the year. Realistically work will stay challenging going forward, but i feel i am doing a better job of making the most of time away from work.
Overall, i'm happy with what i achieved in 2013. That said, there are a number of things i'd like to work on in 2014 which i'll cover in a separate post.
Asset performance:
My property investment continued to yield reliable high income, and the property value continued to appreciate. In 2013 (and going back long before) this continued to be my best performing asset.
My pension funds appreciated, with unit values increasing around 15% on top of continued monthly contributions. This benefited particularly from the exceptional UK and US stock market performance.
My investment portfolio grew materially with regular investments, but had mixed performance with developed equities outperforming emerging markets. Although many investments appreciated and paid regular high dividends, falling metals and some adverse fx movements saw the overall performance stay fairly flat.
Cash grew materially, both in dollar terms and as a proportion of total assets. This was a result of a high savings rate and a couple of big one offs. I did manage to maintain a reasonable cash yield over 2%.
Performance against 2013 objectives:
1) Reduce cash balances towards my medium term target of 20% of total assets.
FAIL, although i did continue to build up my investment portfolio to a reasonable size and maintain a healthy cash yield. I really need to give some thought as to my target asset allocation, as the more this builds up, the greater the effort will be to re-balance.
2) Maintain investment discipline.
Overall, i am happy with my performance here. 2013 was by far my most active year in the markets and i have built a portfolio that largely meets my investment objectives. One blemish early on saw a loss realised on some more risky pref shares from chasing yield.
3) Achieve a high savings rate.
This was a major success, and achieved whilst not making a conscious effort to hold back on any particular expenses. I expect this to drop in 2014, but still stay well above my target floor of 50%.
4) Improve fitness.
This was broadly flat, with ups and downs during the year. My gym membership was renewed and I will re-focus for the new year.
5) Improve work/life balance.
2013 was a very tough year for work, and whilst this started quite badly, i felt it did improve towards the end of the year. Realistically work will stay challenging going forward, but i feel i am doing a better job of making the most of time away from work.
Overall, i'm happy with what i achieved in 2013. That said, there are a number of things i'd like to work on in 2014 which i'll cover in a separate post.
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