Wednesday, October 07, 2009

September 2009 Report

This report is based on the available data as a couple of funds as usual won't report till near the end of the month. As usual everything is in US Dollars unless otherwise stated.

It was yet another good month month. The MSCI World Index gained 4.62% in USD terms and the SPX gained 3.73%. The Australian Dollar continued to appreciate, this time gaining by 4 US cents. We gained 9.88% in USD terms (4.91% in AUD terms and 6.92% in currency neutral terms). I'm feeling a little bit superstitious about saying too much about how great things are going. But it is a relief that we're bouncing back towards our former position faster than my most optimistic expectations. Some more good news today, was that UniSuper have refunded the retirement contributions that they mysteriously deleted.

Our spending was quite low when some refundable business expenses are deducted: $3,167 ($A3,588):

Non-investment income was high because we each received 3 biweekly salary payments and received Moom's tax refund. All other categories of net worth accumulation were strong. Net worth reached $380k ($A431k). Asset allocation moved away from our target but there were no dramatic changes this month:

Rather than selling stocks I will be adding to investments outside the large cap Australian stock category as much as possible. The following is estimated performances for this month (net of forex movements) by asset class:

Sorry for the missing labels - they are in the same order as the allocation above... Australian stocks again performed strongly and hedge funds are estimated to have gained reasonably well too. The above market returns this month boosted estimated alpha and beta. Alpha measured against the USD MSCI was 6.5% with a beta of 1.27 currently. Beta remains very high and will have to come down at some point. Performance in AUD terms is similar.

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