I was wondering how much each asset class has contributed to our total profits to date. It was easy to compute this number using the spreadsheet I use to compute monthly gains on individual investments and asset classes. The numbers are only estimates. For multi-asset class funds, I assume that each asset class in the fund has the same rate of return. So I multiply each asset class share by the total profit for the fund to get the contributions of that fund to total returns for that asset class. This is also how I compute asset class returns each month. Here are the results:
Private equity has contributed the most followed by Australian large cap and gold. Contributions of bonds and real assets are surprisingly large. They may be an artifact of how I compute the contributions from multi-asset funds like our employers' superannuation funds. Also, Commonwealth Bank is all attributed to bonds, when about half my return was from my investment in the Colonial IPO rather than my later investments in CBA hybrids. Finally, 17% of Regal Investment Fund (RF1.AX) is currently in private credit but most of my returns were made before they even invested in private credit! So, this is biased upwards.
Coincidentally, I am changing the name of the Bonds asset class to Credit. Private credit isn't bonds. It isn't even "fixed income". The category covers both private credit and bonds.
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