August saw my net worth increase by 1%, with gains in investments, pension funds and cash balances.
The value of my investment portfolio increased by close to 2% as equity markets continued their recent rally. I purchased small amounts of the HK Gov iBond along with standing monthly purchases of HK & China index trackers. These monthly purchases have subsequently been cancelled given the recent strength in these markets. A handful of dividends were also received.
My pension fund unit values increased by around 1% on the back of strong equities performance.
Property rental income was paid in full & on time and a renewal of the lease has now been signed. I expect a few renewal costs in the next month.
Cash balances were higher, with savings from income exceeding expenses & investments. Expenses were better than recent months although still tracking above plan.
Year to date net worth growth: 21%
Year to date savings rate: 67%
Saturday, 30 August 2014
Wednesday, 27 August 2014
Taking a pause...
For the past 18 months or so i've been adding a regular monthly purchase of HK and China Index tracker ETFs to my investment portfolio.
Given the recent rallies in both markets and my growing exposure to them, i've decided to take a pause after this month's purchases & cancel the standing monthly orders. It is tempting to sell what i have and lock in some healthy gains, but the reality is there is nothing better to do with the cash at the moment.
Instead i'll hold what i have and see where the market goes. If there is a material pull back i may restart the purchases, if the rally continues i'll reassess whether it makes sense to lock in the gains and look for alternatives.
In general my cash balances are still probably too high, but it doesn't feel like the right time to be buying into equities at the moment. I am still considering potential property purchases as an alternative.
Given the recent rallies in both markets and my growing exposure to them, i've decided to take a pause after this month's purchases & cancel the standing monthly orders. It is tempting to sell what i have and lock in some healthy gains, but the reality is there is nothing better to do with the cash at the moment.
Instead i'll hold what i have and see where the market goes. If there is a material pull back i may restart the purchases, if the rally continues i'll reassess whether it makes sense to lock in the gains and look for alternatives.
In general my cash balances are still probably too high, but it doesn't feel like the right time to be buying into equities at the moment. I am still considering potential property purchases as an alternative.
HK iBond Purchased
Earlier this month i purchased 2 units of the new annual HK iBond, which was the maximum subscription amount given its popularity.
Whilst the amounts are small, this represents probably the best 'cash' return available for HKD, in line with the local rate of inflation.
It is frustrating that it is not possible to buy more, but given the relative health of the HK public sector finances, I can understand why there is no great desire to raise significant amounts of this relatively expensive debt.
Whilst the amounts are small, this represents probably the best 'cash' return available for HKD, in line with the local rate of inflation.
It is frustrating that it is not possible to buy more, but given the relative health of the HK public sector finances, I can understand why there is no great desire to raise significant amounts of this relatively expensive debt.
Friday, 1 August 2014
July 2014 Review
July saw my net worth increase by 2.4%, with gains in investments, pension funds & another increase in property value.
The value of my investment portfolio increased by close to 1% as equity markets rallied. The largest purchase in the month was an emerging market bond ETF. Both the HK and China tracker ETFs had healthy gains.
My pension fund unit values increased by around 1.5% with gains in the HK market in particular.
Property rental income was paid in full & on time with no additional expenses. I increased the value of my property again, by around 3% this time. I'm still holding it around 8% below market value as i don't think all of the recent increases are sustainable.
Cash balances were slightly lower with good income and average expenses offset by the bond ETF investment.
Year to date net worth growth: 19.8%
Year to date savings rate: 69%
The value of my investment portfolio increased by close to 1% as equity markets rallied. The largest purchase in the month was an emerging market bond ETF. Both the HK and China tracker ETFs had healthy gains.
My pension fund unit values increased by around 1.5% with gains in the HK market in particular.
Property rental income was paid in full & on time with no additional expenses. I increased the value of my property again, by around 3% this time. I'm still holding it around 8% below market value as i don't think all of the recent increases are sustainable.
Cash balances were slightly lower with good income and average expenses offset by the bond ETF investment.
Year to date net worth growth: 19.8%
Year to date savings rate: 69%
Thursday, 3 July 2014
SEML.L Purchased
I've just added SEML.L (an emerging market government bond ETF) to my investment portfolio, following a quick trawl through a list if iShares ETF yields.
This ETF contains a broad based holding of local currency denominated government bonds, with the largest holdings in Malaysia, Poland, Mexico, South Africa & Turkey, currently 14 countries in total. It currently has a distribution yield of around 5.6%, having seen the unit price fall over the first half of the year - i suspect this is more a result of depreciating local currencies than any specific credit risk concerns.
I currently hold a reasonable amount of emerging market equities ETFs, which have also fallen in value on weaker currencies. Rather than continuing to add to these, it seemed like a good opportunity to increase the fixed income portion of my investment portfolio instead & lock in a solid income stream.
Many of the countries within the ETF are not subject to the current US/UK/Eurozone style low interest rate enviroments, so i hope there would be less chance of material capital depreciation from rising rates. FX movements, however, would remain a risk going forward if the trends of the last year continue.
I paid around GBP48.7 per unit, the investment size was broadly comparable to most of my new ETF purchases.
This ETF contains a broad based holding of local currency denominated government bonds, with the largest holdings in Malaysia, Poland, Mexico, South Africa & Turkey, currently 14 countries in total. It currently has a distribution yield of around 5.6%, having seen the unit price fall over the first half of the year - i suspect this is more a result of depreciating local currencies than any specific credit risk concerns.
I currently hold a reasonable amount of emerging market equities ETFs, which have also fallen in value on weaker currencies. Rather than continuing to add to these, it seemed like a good opportunity to increase the fixed income portion of my investment portfolio instead & lock in a solid income stream.
Many of the countries within the ETF are not subject to the current US/UK/Eurozone style low interest rate enviroments, so i hope there would be less chance of material capital depreciation from rising rates. FX movements, however, would remain a risk going forward if the trends of the last year continue.
I paid around GBP48.7 per unit, the investment size was broadly comparable to most of my new ETF purchases.
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