Thursday, August 06, 2009

July 2009 Report

It was a great month. The MSCI World Index gained 8.84% in USD terms and the SPX gained just 7.56%. The Australian Dollar again appreciated against the USD from 80.54 US cents to 83.36 US cents. We gained 13.00% in USD terms (9.38% in AUD terms and 10.57% in currency neutral terms). Our spending was at the baseload level.

The following is based on the available data as a couple of funds as usual won't report till near the end of the month. As usual everything is in US Dollars unless otherwise stated.

We spent $3,173 ($A3,806), which is approximately our "baseload" level of spending:

Net worth reached $308k ($A370k). Asset allocation moved away from our target but there were no dramatic changes this month:

Australian stocks moved further above target while foreign stocks remain considerably below target. The target is a very long term target, I don't plan on selling Australian stocks soon, but I do plan to keep adding to foreign stocks as much as possible. We added to private equity investments (3i) during the month. The following is estimated performances for this month (net of forex movements) by asset class:

Oceania Capital Partners (formerly Allco Equity Partners) performed very nicely driving the private equity return. All stock classes did well. The above market returns this month boosted estimated alpha and beta. Alpha measured against the USD MSCI was 4.3% with a beta of 1.22 currently. Beta remains very high and will have to come down at some point:

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