Manulife's Philip Hampden-Smith tells how he's very happy with his 10 properties in the UK and S'pore.
Q: How was money when you were a child?
A: I was fortunate that I did not have to worry too much about money when I was a child.
My father was a banker and we lived in various parts of Asia, including Japan, Indonesia and Pakistan. He was always careful with money and advised me to 'shop around' before making a purchase.
Unlike me, my father was not so fortunate when he was a child. My grandfather went to China in 1919 and had a shipping and ship building business in Tianjin.
When World War II broke out in 1938, he lost everything overnight.
My father went through a tough time when the whole family returned to England via Siberia with almost nothing.
Q: When did you begin investing? Was there a trigger factor that made you start?
A: I suppose that I began investing at age 18.
I bought a tiny house in a rundown area near London.
My father made the first downpayment with the intention of teaching me the discipline of saving and investment, as I had to service the mortgage every month.
Q: Do you have a target? And does this target move with changes in your circumstances?
A: I don't have a specific target in mind. I am sensible with money.
With a lot of luck, my investments have made decent returns over the years.
This puts me in a position to retire comfortably if I want to.
Money is not the reason I work, which in many ways makes working more enjoyable.
Q: Do you believe strongly in certain types of assets like property or stocks and so plan your investments accordingly?
A: By and large, my better investments have been in property.
I still own 10 properties in Singapore and the UK.
I have been very lucky to have invested in property some years ago when the prices were low.
I was also very fortunate to have invested in Manulife Financial.
The shares have appreciated about 600 per cent since 1999.
Q: Having been in Asia some 30 years, like most Asians, do you think property is a good investment? You have a farm in England - how is that managed while you are away?
A: Property is my favourite because I like tangible things.
It can generate revenue with capital appreciation but not always, and it can be a double-edged sword.
My family lives on a farm as my children are all at school in the UK.
The farm brings in a reasonable income. We rent out land to local farmers who keep sheep and cattle.
We also lease out stables to horse owners, while the cottages on the farm are popular during holiday season as the farm is located in a well-known national park with beautiful views.
Q: You have four young children. Do you have to set aside a portion of your savings/investments towards their education?
A: With rising costs and inflation, education is expensive nowadays.
A good education is priceless and I believe it is the best gift parents can give to their children.
My key investment for my children is to try to provide them with good guidance in their development and education.
Q: Do you, like the Chinese, believe in leaving money to your children? Do you treat boys and girls the same or differently?
A: I don't believe that one should be given money without working for it.
Parents should not spoil their children; it sets a bad precedent. However, parents should be around to help their children if the need arises.
My children need to earn their pocket money through odd jobs.
I treat my boys and girl identically; my daughter would kill me if I didn't.
Q: Do you make your own investment decisions or consult your wife?
A: My wife leaves all the investment decisions to me so it is clear who to blame when things go wrong.
I mainly make my own investment decisions, though I have a broker I consult occasionally.
Q: Do you see your wife taking a different approach when it comes to money?
A: Not really
Q: What kind of retirement do you envisage? Do you have a date for retiring?
A: I don't believe in retirement per se.
To me, retirement does not mean the end of working; rather, the beginning of doing something else. I want to keep busy.
I have a few interests that could be developed into businesses - for example, property management. I am glad that I am in a position to continue living my preferred lifestyle.
Many people in Asia are ill-prepared for retirement and have no clue as to how much they need for their golden years.
No one should just leave their retirement needs to fate.
Q: What has been your best investment?
A: My best investment in percentage terms has been Manulife stock that has appreciated 600 per cent.
My other good investment was a house in Sri Lanka that I sold four years ago.
Its value grew 500 per cent in just three years.
Unfortunately, it was a very cheap house so the profit was not much in property terms.
Q: And the worst?
A: I bought an MG sports car some 30 years ago for 1,000 pounds; I sold it for 250 pounds four months later after the engine blew up.
Q: Has being a soldier made you more disciplined when it comes to investments?
A: Although my military background has not made any difference to my approach to investing, it trained me to live on very little.
I remember during my army days that I hated long holidays because we received no food allowance.
Q: What would you say is a weakness when it comes to spending money? What do you splurge on?
A: I have various antique collections.
Over the years I have spent too much on antique Chinese blue porcelain.
I have another very expensive collection: my four lovely children.
I splurge on interesting holidays with my family - we have travelled all over the world.
Q: Tell us more about your 10 properties
A: I have a penthouse apartment in Singapore, which is home.
The rest of my properties, apart from my farm, are rental properties in the UK.
They provide me with a net income of about 5 per cent annually, and have produced very steady capital appreciation over the years.
I have no desire to become a developer.
Simple property management is about as complicated as I want it to get.
This article was first published in The Business Times on 25 June 2008.
