Wednesday, May 12, 2021

Adjusting Estimated Real Estate Exposure for Leverage

I realized that because the URF.AX fund, which is invested in New York and New Jersey real estate, is highly levered, my exposure to real estate is much greater than I previously estimated. The market value of this investment is AUD 51, but the underlying value of the real estate assets is almost AUD 1/2 million.

Based on this, the share of real assets in the portfolio is 17.28% currently, which is above the target share of 15%. The asset allocation pie chart now looks like this:

 In recent months the share of real estate increased a lot:

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