Sunday, July 03, 2016

June 2016 Report

After hitting a new net worth high in Australian Dollar terms last month, net worth fell back a bit in this month's market turmoil. Here are our monthly accounts (in AUD):

Spending was very high at $12k but one of the two computers I bought was reimbursed by my employer, which is one reason why current other income (salary, refunds etc.) is also higher than in recent months. The other reason is that there were three biweekly salary payments this month.  There was also an accident with a computer that required an expensive repair and Snork Maiden bought a treadmill. Minus the reimbursed expense, spending was $8.7k. Minus the other items I just mentioned it would have been $4.8k, which is in line with our typical spending.

After taking into account the mortgage payment of $5,188 - there were three mortgage payments this month (and which includes implicit interest saving due to our offset account - the actual mortgage payment was about $420 less than this) - which shows up as a transfer to the housing account, we dissaved $1.2k on the current account. We made $4.1k of retirement contributions (again three payments this month), and saved a net $3.0k in added housing equity. Net saving was, therefore, $5.8k across the board.

The Australian Dollar rose from USD 0.7241 to USD 0.7433. The ASX 200 fell 2.45%, the MSCI World Index 0.55%, and the S&P 500 rose 0.26%. We lost 3.30% in Australian Dollar terms and -0.74% in US Dollar terms. So we underperformed both Australian and international markets. The best performing investment (in total dollars not RoR) was Winton Global Alpha Fund with a gain of $2.5k. Not surprisingly, the worst performer was the Colonial First State Geared Share Fund, which lost $25k. All asset classes apart from commodities and real estate lost this month.

As a result of all this, net worth fell AUD 36k to $1.529 million but rose USD 3k to $US 1.136 million.

Two investments ended their life in the last couple of months. Legend International declared bankruptcy in May and the Everest Direct Investments Fund made its final distribution in June. The carrying value of each investment was less than $100 and so there isn't much impact on this month's accounts. But this means I can write off the losses on these investments in this year's taxes. The loss on Legend was almost USD 4,000. On EDIF about AUD 1,000. As I have a large carried over capital loss, of more than AUD 60k, the net effect will be to make the accumulated capital loss decline a little less. I think it still will be many years until I pay any capital gains tax.

1 comment:

Financial Independence said...

A technical comment at 1920x1200 resolution using Chrome the picture does not fit in entirely - I could not see last letters (F+...).

Your post is still a god remainder of diversification and that the things can go wrong and one end up loosing invested money.