Saturday, September 12, 2009

August 2009 Report

This report 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.

It was another good month month. The MSCI World Index gained 3.62% in USD terms and the SPX gained 3.61%. The Australian Dollar again appreciated a little against the USD. We gained 7.90% in USD terms (6.76% in AUD terms and 7.02% in currency neutral terms). Our spending was normal. Returns in annualized terms over various periods:

We have weaker performance than the indices in the 12 months to 3 years time frame but better at longer and shorter time frames as I recently showed in a chart.

We spent $3,492 ($A4,145):

All other categories of net worth accumulation were strong. Net worth reached $336k ($A399k). It feels good to be above $A400k again now early in September. 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. The following is estimated performances for this month (net of forex movements) by asset class:

Private equity and Australian stocks continued to peform strongly. The above market returns this month boosted estimated alpha and beta. Alpha measured against the USD MSCI was 5.3% with a beta of 1.23 currently. Beta remains very high and will have to come down at some point. Performance in AUD terms is similar. Performance against the S&P 500 is ridiculously strong...

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