April saw my net worth increase by 3.3%, with positive movements in all major asset categories.
The value of my investment portfolio increased by around 0.7%. Purchases were limited to standing monthly purchases of the HK & China indices, with no dividends in the month. I am still in two minds about whether to continue increasing my exposure to China but the monthly investment is currently very small.
My pension fund unit values increased by around 2%, with gains mainly in western equities.
Property rental income was paid in full & on time with no additional expenses. I increased the recorded value of my property by another 5% following strong market increases & local sales. It is still held at around 10% below the implied market value, reflecting my skepticism around the sustainability of current valuations.
Cash balances increased with good income & average expenses. The month's expenses included holiday expenditure that had been budgeted for.
Year to date net worth growth: 15.7%
Year to date savings rate: 76%
Tuesday, 29 April 2014
Wednesday, 2 April 2014
Property valuation
I was shocked again today to see how quickly some UK property prices are rising, particularly around the London area.
Whilst its only around 3 months since i last reviewed and increased the value i record my rental property in my personal finances, checking local valuations again today showed another material increase. The valuations appear to be genuine too, with a neighbouring (and almost identical) property just being sold for around 18% above the value i was holding mine at.
I have therefore decided to add an extra 5% to my property value in my assets and net worth calculations. While this still keeps it around 10% below 'the market', it does reflect the recent increases and allows a margin of error for some fluctuations going forward.
I am also keeping a close eye on potential capital gains tax changes which may determine whether i continue to hold or sell this property. Whilst it is tempting to sell now and realise a large tax free gain, my cash balances are already too large a proportion of total assets and the rental yield is double what i can earn on cash.
Whilst its only around 3 months since i last reviewed and increased the value i record my rental property in my personal finances, checking local valuations again today showed another material increase. The valuations appear to be genuine too, with a neighbouring (and almost identical) property just being sold for around 18% above the value i was holding mine at.
I have therefore decided to add an extra 5% to my property value in my assets and net worth calculations. While this still keeps it around 10% below 'the market', it does reflect the recent increases and allows a margin of error for some fluctuations going forward.
I am also keeping a close eye on potential capital gains tax changes which may determine whether i continue to hold or sell this property. Whilst it is tempting to sell now and realise a large tax free gain, my cash balances are already too large a proportion of total assets and the rental yield is double what i can earn on cash.
Monday, 31 March 2014
March 2014 Review
March saw my net worth increase by 9.2%, with a large lump sum income adding to cash reserves.
The value of my investment portfolio was broadly flat but paid higher than average dividends. Purchases included the RMB bond ETF and China equities. Whilst there was a lot of volatility during the month, the movements all generally offset each other.
My pension fund unit values fell by around 1%, mainly due to weaker HK equities.
Property rental income was paid in full & on time.
Cash balances increased materially with high income. Expenses were also high with a few personal treats but nothing too extravagant. March income tends to have a distorting impact on year to date performance and i expect my savings rate to drift back down as the year progresses.
Year to date net worth growth: 12.1%
Year to date savings rate: 79%
The value of my investment portfolio was broadly flat but paid higher than average dividends. Purchases included the RMB bond ETF and China equities. Whilst there was a lot of volatility during the month, the movements all generally offset each other.
My pension fund unit values fell by around 1%, mainly due to weaker HK equities.
Property rental income was paid in full & on time.
Cash balances increased materially with high income. Expenses were also high with a few personal treats but nothing too extravagant. March income tends to have a distorting impact on year to date performance and i expect my savings rate to drift back down as the year progresses.
Year to date net worth growth: 12.1%
Year to date savings rate: 79%
Wednesday, 26 March 2014
3139.HK Purchased
Earlier this week i added to my holding of the ishares RMB Bond ETF.
Although the underlying value has been fairly flat & dividend solid at around 4%, the price of the HKD denominated units have fallen around 3% as RMB has depreciated against HKD over the past few weeks.
Whilst there has been a lot of discussion in the media about RMB depreciation, widening of the exchange rate trading band & general confidence around China, my personal view is still to expect currency appreciation & growth albeit with some volatility along the way.
In the meantime i am happy to take a 4% yield on what should in theory be relatively low credit risk. Any additional pick-up from RMB appreciation will be an added bonus.
The additional units were purchased at around HKD43.1, and this has now become the largest individual holding in my investment portfolio.
Although the underlying value has been fairly flat & dividend solid at around 4%, the price of the HKD denominated units have fallen around 3% as RMB has depreciated against HKD over the past few weeks.
Whilst there has been a lot of discussion in the media about RMB depreciation, widening of the exchange rate trading band & general confidence around China, my personal view is still to expect currency appreciation & growth albeit with some volatility along the way.
In the meantime i am happy to take a 4% yield on what should in theory be relatively low credit risk. Any additional pick-up from RMB appreciation will be an added bonus.
The additional units were purchased at around HKD43.1, and this has now become the largest individual holding in my investment portfolio.
Lump sum income
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.
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.
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