Thursday, July 12, 2007

June Report

I finally have the data together in almost final form to be able to present to you my net worth and investment performance report for June. All figures are in US Dollars unless otherwise stated. This month saw stronger performance than last month, net worth again increased, and investment returns remained positive for the ninth month running.

Income and Expenditure

Expenditure was $3,622 which included a plane ticket to Australia. Current non-investment income consisted of $561 in reimbursements. I was paid two months salary in May already. 403b contributions totaled $3,021 due to delayed deposit of last month's doubled contributions. I stopped contributing to my Roth pending the move to Australia. Non-retirement investment returns were strong at $9698 but more than half of that came from the continuing increase in the Australian Dollar. Retirement investment returns came in at $3299, almost entirely due to the change in the exchange rate.

Net Worth Performance
Net worth rose by $US12,166 to $US445,261 and in Australian Dollars gained $A866 to $A524,391. Non-retirement accounts reached almost $US245k. Retirement accounts rose to $US200k.

Investment Performance
Investment return in US Dollars was 3.00% vs. a 0.26% loss in the MSCI (Gross) World Index, which I use as my overall benchmark and a 1.52% loss in the S&P 500 total return index. Non-retirement accounts gained 4.06%. Returns in Australian Dollars terms were 0.35% and 1.36% respectively.

The contributions of the different investments and trades are as follows:

The returns on all the individual investments are net of foreign exchange movements. Foreign currency gains appear at the bottom of the table together with the sum of all other investment income and expenses - mainly net interest. Stock index trading (NQ/QQQQ and ES/SPY) produced nice results this month while long-term investments lost the most with the weakness in the market.

Progress on Trading Goal
Trading in my US accounts netted $2,691 - a 10.7% return on trading capital. The model gained 4.1% while the NDX rose 0.3%. My goal for the year is to end up with at least as much in my three accounts - regular trading, Roth IRA, and IB - as I've put into them. The accounts have reached $55,233 with $61.5k contributed - so I still need to gain just over $6k. Since the beginning of the year the trading capital gained 82%, the NDX has gained 10% and the theoretical model gained 41%.

Asset Allocation
At the end of the month the portfolio had a beta of 0.49. Allocation was 34% in "passive alpha", 63% in "beta", 5% allocated to trading, 6% to industrial stocks, 6% to liquidity, and I was borrowing 14%. I've brought my Australian Dollar exposure down to 62.2% from 69.5% in January. The goal is to eventually reach 50%.

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