Wednesday, June 01, 2016

May 2016 Report

This month we hit a new net worth high in Australian Dollar terms of of $1.565 million up $67k on last month. The previous high was in July 2015. Before the new house, the baby, and the negative performance that financial markets have had in the last year. This graph clearly shows the flat period we've been in since February 2015 and the clear break upwards this month:

It also shows that retirement accounts contributed most to the gain. Even though Moominmama is no longer getting a salary her employer is making superannuation contributions. So that together with my super contributions and fund earnings all help. This month, as is often the case, the rate of return on our retirement accounts outstripped that on our non-retirement accounts. Stockmarkets did well this month and the US dollar rose strongly improving our Australian Dollar returns but damping returns in USD terms. In US Dollars net worth was $US 1.133 million, down $US 7k.

Here are our monthly accounts (in AUD):

Spending (not including the mortgage) was $4.9k, which almost the same as last month. We are now down to only my salary and so "current other income" came in at $8.6k. After taking into account the mortgage payment of $3,572 (which includes implicit interest saving due to our offset account - the actual mortgage payment was about $400 less than this), which shows up as a transfer to the housing account, we saved only $63 on the current account. We made $3.1k of retirement contributions, and saved a net $1.3k in added housing equity. Net saving was, therefore, $4.5k across the board. I increased the value of our house by $1k to $756k after a house in our development was listed for sale at $820k. The new value is based on the uplift that represents in percentage terms from the prices when the houses were new. There was an auction, which I attended, but no-one registered to bid, which is something I hadn't seen before. I don't know if I should be worried about that or it was just a random event.

The ASX 200 rose 3.09%, the MSCI World Index 0.21%, and the S&P 500 1.80%. The Australian Dollar fell from $US0.7616 to $US.0.7246 We gained 5.10% in Australian Dollar terms and -0.01% in US Dollar terms. So we out-performed Australian markets and underperformed international markets. The best performing investment (in total dollars not RoR) was again the Colonial First State Geared Share Fund, which gained $27.4k, followed by Oceania Capital Partners with $6.8k, Unisuper with $6.5k, and PSSAP with $5k. OCP's share price rose steeply following the buyout of Hosken Investments' interest by Hosken CEO Johnny Copelyn. The worst performing investment was Platinum Capital, which lost $0.8k. All asset classes apart from commodities gained this month with private equity and then U.S. stocks being the best performers.

The following investments are at all time profit highs for us: Unisuper, PSSAP, CFS Diversified Fund, IPE,  TIAA Real Estate, BT Property Investments, Medibank, CFS Global Shares, Generation Global Shares, and 3i. In other words: Diversified funds, property, private equity, and non-US international shares are all doing very well.