Sunday, January 10, 2010

Annual Report 2009: Part IV

Following a breakdown of the sources of growth in net worth, we look at changes in asset allocation over the year:

This first chart tracks gross assets. Net worth is less because of borrowing both by fund managers and ourselves. The growth in the various categories of stocks is pretty clear though. Looking at percentage share chart:

we see that the percentage allocated to Australian large (41.6 to 48.7%) and small cap (8.6% to 10.1%) stocks has clearly increased. Hedge funds now constitute a smaller share than at the market bottom (from 17.7% to 11.9%), but their share is about unchanged from the beginning of the year. The shares of other asset classes have mostly declined a little over the year. At some point we will need to cut the allocation to Australian stocks but I'm not ready yet.

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