Saturday, December 04, 2010

Moominvalley November 2010 Report

As usual some data will lag for a month or more but here are the accounts based on the information I have at the moment. And as usual everything is in USD. The AUD fell a little to 96.06 US Cents so there is a little more difference between US and Australian Dollars this month.

Non-investment income was again high this month because I got a tax refund. Snork Maiden earned her regular salary. Expenditure was near base levels at $3,612, which is a lot less than the average for the year.

Investment return was a loss of 2.64% in USD terms against -2.79% for the MSCI Index. So we slightly outperformed the market. In AUD terms we gained 0.06% and lost -1.19% in currency neutral terms. Over the longer term, we see periods where we have outperformed the market and periods where we underperform:

The chart shows the excess return relative to the MSCI World Index since the month indicated in annual terms. So since February 2003 we have made about 2.5% a year more than the MSCI but since July 2005 about 2.5% per year less. This shows the importance of investigating the returns of investments over various time frames. Just looking at performance over the last 3 years, for example, could be very misleading.

Net worth fell in USD terms by $7k (rose by $A6k in AUD terms) to $459k ($A477k). Allocation-wise the main change was a fall in large cap Australian stocks due to the market and a gain in cash and fall in leverage.

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